Internet And Advantages For Traditional Organizations
- Date: 2009-11-27 - Word Count: 800
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The Internet is an important new resource for individuals and organizations. Since the options available to all, he is not a resource that provides a sustainable advantage - they are in fact creative applications which may provide an advantage. No matter what is the advantage may not hold, the Internet gives companies the opportunity to improve their operations, provide better customer service and reduce operating costs.
Internet enables companies:
* To access a vast market with the fulfillment of basic technological and commercial demands.
* To accelerate development time, because you do not need to adapt to the private network and the graphical interfaces.
* To connect with the millions of companies worldwide, easy to incoming information.
* To build applications based on the Internet that promote the business, as is the external networks.
* To connect with the many applications and computers worldwide.
* To develop more innovative programs and services.
* To reduce costs communications.
* To connect more closely with partners and suppliers and achieve the benefits of close relationships.
* There is a chance for smaller companies without large investments access to a large number of customers.
These features allow companies to develop new business models:
* Retail trade in electronic commerce. Internet eliminates the need for physical activities, web site becomes an electronic retailer's store, and service delivery going to replace physical action.
* B2B commerce. Internet exclude significantly physical contact and the need to conduct business through telephone electronic markets, reducing costs and accelerating the procurement results.
* Production. Orders are placed via the Internet, can eliminate the physical actions and distributors, to provide online services to customers and potential use of the Internet for coordinate company.
* Portals. The emergence of new businesses such as portals, which are a starting point for users on the net.
* Hubs. The Internet has become a new market, improving communication between the supplier-buyer in the area of special interest.
Internet raises challenges and many companies question the responsible people in the company how to use its advantages to achieve competitive advantage.
No problem to create an offer on the web site, but is an important issue to resolve in the logistics value chain and operations that will satisfy customers. Need strong and expensive systems that support these processes. Customers want much, trust management, complaints, ability to follow their orders, make changes, custom marketing, etc.. These are serious questions that must be resolved before the start of online business to these projects were the basis for survival in the highly competitive Internet environment. In most cases, companies can buy developed software solutions, rent, or dislocate the activities of other specialized companies for certain operations in the value chain.
Companies that move only in Internet campaigns aimed at the exploitation of its advantages, and here are thoughts on the start-up businesses. However, traditional companies are faced with legacy systems, organizational design and staff who do not have to be enthusiastic in terms of e-business. There are also other issues related to the sensitive nature of the human and fears that are based on changes and something new.
Companies that are followers must go through a strategic process and search for their place in the defined business and new business models. They must decide on which basis will apply. For example, can access the value developed and developing web applications, services and products that are complementary to the dominant design and solutions that are developed by building their position in such systems - the development of special and personal applications can be quite expensive and with high probability of failure.
There is a possibility for companies that are pioneers to develop substitute products and threaten the current position of leader. Also, companies can take advantage of the business association and cooperation with other companies to develop solutions and try to compete with companies leaders.
From all the above, one can easily conclude that the Internet is transforming and offers many business opportunities to companies, regardless of which sector of the economy operates, from advertising, complete electronic solutions and services, providing information, portals and the like. Modern companies have a duty to honestly assess and make cost-benefit analysis and that the strong focus on adaptation of new capabilities to their specific problems and development opportunities.
What to do traditional companies to adapt their strategy:
* Identify your primary resources - whether they are rare, values, hard to copy?
* To define the resources that are responsible for competitive advantage if they possess.
* To consider whether they can develop a specialized.
* To define what are the new resources that can help them to survive and improve competitive advantage: expensive and complex systems, knowledge, abilities, skills, experience, existing customer base, and the like.
* To know how to reach critical mass?
* To define how it will develop a strong interaction between the resources at their disposal?
* To identify which additional resources must be developed to the advantage that is achieved, held.
Internet enables companies:
* To access a vast market with the fulfillment of basic technological and commercial demands.
* To accelerate development time, because you do not need to adapt to the private network and the graphical interfaces.
* To connect with the millions of companies worldwide, easy to incoming information.
* To build applications based on the Internet that promote the business, as is the external networks.
* To connect with the many applications and computers worldwide.
* To develop more innovative programs and services.
* To reduce costs communications.
* To connect more closely with partners and suppliers and achieve the benefits of close relationships.
* There is a chance for smaller companies without large investments access to a large number of customers.
These features allow companies to develop new business models:
* Retail trade in electronic commerce. Internet eliminates the need for physical activities, web site becomes an electronic retailer's store, and service delivery going to replace physical action.
* B2B commerce. Internet exclude significantly physical contact and the need to conduct business through telephone electronic markets, reducing costs and accelerating the procurement results.
* Production. Orders are placed via the Internet, can eliminate the physical actions and distributors, to provide online services to customers and potential use of the Internet for coordinate company.
* Portals. The emergence of new businesses such as portals, which are a starting point for users on the net.
* Hubs. The Internet has become a new market, improving communication between the supplier-buyer in the area of special interest.
Internet raises challenges and many companies question the responsible people in the company how to use its advantages to achieve competitive advantage.
No problem to create an offer on the web site, but is an important issue to resolve in the logistics value chain and operations that will satisfy customers. Need strong and expensive systems that support these processes. Customers want much, trust management, complaints, ability to follow their orders, make changes, custom marketing, etc.. These are serious questions that must be resolved before the start of online business to these projects were the basis for survival in the highly competitive Internet environment. In most cases, companies can buy developed software solutions, rent, or dislocate the activities of other specialized companies for certain operations in the value chain.
Companies that move only in Internet campaigns aimed at the exploitation of its advantages, and here are thoughts on the start-up businesses. However, traditional companies are faced with legacy systems, organizational design and staff who do not have to be enthusiastic in terms of e-business. There are also other issues related to the sensitive nature of the human and fears that are based on changes and something new.
Companies that are followers must go through a strategic process and search for their place in the defined business and new business models. They must decide on which basis will apply. For example, can access the value developed and developing web applications, services and products that are complementary to the dominant design and solutions that are developed by building their position in such systems - the development of special and personal applications can be quite expensive and with high probability of failure.
There is a possibility for companies that are pioneers to develop substitute products and threaten the current position of leader. Also, companies can take advantage of the business association and cooperation with other companies to develop solutions and try to compete with companies leaders.
From all the above, one can easily conclude that the Internet is transforming and offers many business opportunities to companies, regardless of which sector of the economy operates, from advertising, complete electronic solutions and services, providing information, portals and the like. Modern companies have a duty to honestly assess and make cost-benefit analysis and that the strong focus on adaptation of new capabilities to their specific problems and development opportunities.
What to do traditional companies to adapt their strategy:
* Identify your primary resources - whether they are rare, values, hard to copy?
* To define the resources that are responsible for competitive advantage if they possess.
* To consider whether they can develop a specialized.
* To define what are the new resources that can help them to survive and improve competitive advantage: expensive and complex systems, knowledge, abilities, skills, experience, existing customer base, and the like.
* To know how to reach critical mass?
* To define how it will develop a strong interaction between the resources at their disposal?
* To identify which additional resources must be developed to the advantage that is achieved, held.
Related Tags: internet, b2b, hubs, retail trade
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