e-business systems- Competitive advantage

E-business involves all commercial activities, a dynamic set of technologies, applications and business processes performed across computer platforms that link organizations to their customers, suppliers and other business partners through electronic exchange. (Indrit Troshani, 2007)

The exponential growth and rapid changes of e-business technologies bring forth new opportunities and challenges to businesses. The underlying technologies of e-business solutions such as data storage, processing and transport are becoming increasingly indistinguishable and are susceptible to commoditization. (Indrit Troshani, 2007)

 Investments in e-business are a competitive necessity rather than a source of competitive advantage. Value will be added only when e-business applications can be harnessed to achieve organizational goals more effectively and efficiently than competitors. Gaining competitive advantage depends on the extent to which e-business applications are aligned with organizational goals (Indrit Troshani, 2007)

E-business advantage framework components

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·         Alignment between e-business and overall business strategies: - This alignment is difficult to replicate as both e-business and overall business strategies are likely to evolve uniquely for each organization.

·         Inter-organizational linkages: - Linkages to facilitate complex interactions and collaborative relationships between organizations are most likely to be unique, and therefore, more likely to survive competitive imitation.

·         E-business integration with business processes :- Innovations in business practices and their integration with e-business solutions are likely to be organization specific

·         Organizational agility: -   E-business application can facilitate significant alterations of leadership styles from coercive or directive to consultative or collaborative which are likely to result in different levels of organizational agility.

·         Management Commitment and support: - It has potential to distinguish from successful and unsuccessful e-business investments.

·         Interactions between IT professionals and e-business application users-Patterns of interactions between IT professionals and end-users are different in different organizations and constitute an opportunity for asymmetric distinctiveness across organizations.

·         Organizational Culture: - Key source of enduring competitive advantage as it creates a climate for either encouraging or discouraging risk-taking or experimentation with e-business solutions.

·         Intellectual resources: - Organization specific interpersonal relationships, application development, technology integration skills, corporate –level knowledge assets and managerial human resources become difficult to acquire and highly complex to imitate by competitors.

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E-commerce is one of the most popular forms of e-business. Some of the big Internet companies are highly competitive to the brick and mortar stores. There are a few strategies that have allowed e-commerce to reach the masses:

1. Subscription-based commerce- Consumers no longer have to go to the store. Instead, they can easily get access to their favorite items right at their doorstep. Dollar Shave Club has had much success with this type of model. Knowing that many men shave on a weekly/monthly basis, men can get high-quality razors at a reasonable price without going to the store.

2. Mobile commerce- Most consumers have a phone; therefore, it would be wise for a company to be able to reach a company via mobile application. "Mobile commerce is growing at a rate of over 130 percent annually" (Evans). Many banking companies have made apps; however, Wells Fargo seems to know what customers want. "Anything to enhance the customer experience is key because it can be the difference between keeping the customer or having them go to a competitor" (Needle).

3. Internet-only merchandise- Without going into the store, some companies have been able to grab consumers' attention via the Web. Dell was one of the first companies to integrate ecommerce in their sales process. (NetonomyNET). It was not just about the company's ability to provide computers online; much of Dell's success was due to its innovation of customizable computers. Either way, the company was able to provide a unique approach to e-commerce.

Works Cited

Evans, M. (2014, January 16). 12 E-Commerce Strategies To Grow Your Business This Year. Forbes. Retrieved June 30, 2014, from http://www.forbes.com/sites/allbusiness/2014/01/16/12-e-commerce-strategies-to-grow-your-business-this-year/

Needle, D. (2013, November 13). Wells Fargo has over a million iPad app customers for online banking. TabTimes. Retrieved June 30, 2014, from http://tabtimes.com/news/finance-insurance/2013/11/13/wells-fargo-has-over-million-customers-only-use-tablets

Top 5 Largest Online Retailers - Who Are These Companies And How Did They Make It To The Top?. (2013, January 30). NetonomyNET. Retrieved June 30, 2014, from http://netonomy.net/2013/01/30/top-5-largest-online-retailers-who-companies-how-did-they-make-it/

Indrit Troshani Enabling e-business competitive advantage [Online] // knowledgetaiwan.org. - 2007. - http://www.knowledgetaiwan.org/ojs/files/Vol2No1/4_Enabling_e-Business_Competitive_Advantage.pdf.