Unit 3 Blog – E
Business Systems
By
Lauren Camper
Benjamin Crump
Ryan Goodman
E-business systems are an integral component for many
businesses today. Organizations strategically implement e-business systems to
effectively compete in local and global business. E-business systems include
the use of networks, information technology, and the internet in various
aspects of the business, both inside and outside of the organization (O’Brien
& Marakas, 2011). They have the potential to heighten operational
efficiency and strategic positions for businesses but if implemented
incorrectly, they can have the opposite effect.
Operating efficiency is a contributing factor to sustaining
competitive advantage. Intel increased their operating efficiency by creating
an online presence that allowed customers to be “in the know” about everything
related to Intel from products to company news; all at the click of a mouse.
They transitioned customers from being phone/fax based to being online based
(Phan, 2003). Additionally, customers were now able to create profiles online
thereby tailoring their online experience to meet their exact needs in terms of
products and applications (Phan, 2003). Lastly, account managers were able to
securely send confidential information to customers whereas they previously
would have had to spend time hand delivering the information (Phan, 2003). The
table below depicts the E-business applications implemented by Intel (Phan,
2003).
While E-business systems can help create operating
efficiencies they can also create problems and challenges. With any
technological implementation, organizations have to ensure that information is
secure, complete, and accurate (O’Brien & Marakas, 2011). For instance, a
retail business that implements a new transaction system will want to ensure
that the transaction information is complete and all information is transferred
to the sales system accurately. In terms of e-commerce, businesses will want to
ensure their customer information is secure from being intercepted. Intel faced
some of these challenges with the deployment of their new e-business system.
For instance, customer transactions were secured by Secure Socket Layer (SSL)
encryption (Phan, 2003). This was legal in the United States
E-business systems are an important tool for businesses
today. They enable companies to achieve a competitive advantage over other
organizations by building efficiencies internally and externally. From an
internal perspective, e-business systems provide
potential for efficiency improvements when producing goods, sharing
information, and communicating amongst employees. From an external perspective,
they have the ability to increase customer satisfaction with efficiency
improvements with transactions, faster shipping times, and the ability to view
company information online. Adversely there are disadvantages to consider as
well. Businesses must be aware of application security and continuously monitor
the systems in place to ensure it is operating effectively. Overall, the
implementation of e-business systems has the ability to truly enhance an
organization in the local and global market place as long as they are
researched and implemented appropriately.
Sources
Phan, Dien (2003). E-business
development for competitive advantages: A case study. Retrieved from http://staffweb.hkbu.edu.hk/vwschow/Case-study.pdf
(2014) Intel Facts.
Retrieved from http://www.intel.com/content/www/us/en/company-overview/company-facts.html
O’Brien, James, & Marakas, George M. (2011). Management
Information Systems. McGraw-Hill Irwin. Pgs. 272-283
Group 3 response to Group 1 blog
ReplyDeleteWe thought your post was a very good discussion of e-business systems. Many analyses of e-business systems focus only on application to external customers. In the chart, it shows that Intel implemented an e-business system for the purpose of online benefits transactions. These types of implementations have been significant drivers of human resources efficiency in recent years. A 2011 survey showed over “81% of employers have already made the shift away from paper-based open enrollment [systems]” (Foxall, n.d.). The gained efficiencies have led to lower overhead costs and therefore a competitive advantage. The savings are dependent in a large part on the size of the workforce, but some estimates are as high as $500,000 over similar paper systems (Foxall, n.d.).
In addition to process efficiencies, these systems improve quality, pass decision making to the employee, and allow employees to make better decisions by providing faster access to data (Foxall, n.d.). Quality alone has said to improve from over 5% to less than 1% (Foxall, n.d.).
Although not as critical from a security perspective as some of the external transactions you mentioned, security is still of concern. Employees have an expectation of privacy relative to their personal elections. Health plan, disability, and supplemental insurance elections can provide insight to an employee’s medical wellbeing.
In conclusion, it was good to see that Intel focused on both their internal customers (employees) as well as their external customers.
Regina Riccioni and Jason Hatter (Group 3)
References
Foxall, D. (n.d.). Open Enrollment Software: Building a Benefits Business Case. Retrieved on June 28, 2014 from http://payrolllab.com/open-enrollment-software-business-case.php
Group One,
ReplyDeleteGreat Post. I like the way you tied together your discussion on e-business with the actions of Intel. There is something you mention in the first paragraph that really sets the tone for the talk about any e-business system. You said, "They (e-business systems) have the potential to heighten operational efficiency and strategic positions for businesses..." This (increase efficiency) is the goal of all technology that is adopted by businesses, but just as you mention there can be the flipside where if implemented incorrectly or not kept on course it can have negative effects. Using an example from case three in chapter 8, one can see where there can be issues from three different places (managerial, end-user, or technical). These can be tied together in many times. It is the manager's role to oversee both the inputs and the outputs of the system, while it is the end-user's role to make sure they are placing the necessary inputs into the system to keep it from giving inaccurate outputs which could then cause a technical problem.
The use of the example by Intel really shows how their business model has become. There is always changes coming about in technology and the business that can best adapt to the changes is the one that is creating longevity for itself. Intel has shown that they are adapting to the waves of technology both for their customers and their employees.
It will be interesting to see where the next phase of technology takes businesses next. People are now accessing the internet from pretty much anywhere from many different devices and it will be up to e-business systems to keep companies among the tops of their competitors.
Team Five- Ash, Courtney, and Jenny
O'Brien, J. and George Marakas. "Cisco Systems, Black & Decker, and O'Reilly Auto Parts: Adapting Supply Chains to Tough Times." Management Information Systems. (pgs. 331-332). Retrieved June 30, 2014.