Electronic Business

Preface

It is claimed that application of Internet and World Wide Web technologies could lead to a radical revision of the business environment. This belief is much talked about, but industrial reality is very different outside the world of "dotcom" companies. The pace of adoption of these technologies, although proceeding at a rapid pace, does take time and not all applications are suitable for all companies. In reality there is much hype and many unrealistic expectations surrounding the Internet. Thus, while the topic is certainly of great significance, in the end what matters for business is the often forgotten question - how can the Internet and associated technologies be used to improve the long term competitive advantage of businesses?

 

To answer this question firms need to better understand the technologies, their potential applications and ways they can be used to add value for customers, support new strategies, and improve exiting operations.

 

This Executive Guide is not about electronic commerce (e-commerce) in the narrow sense of buying and selling products over the Internet. The theme underlying this publication is what IBM refer to as electronic business (e-business). At the heart of this is the move away from analogue towards low-cost digital technology and the linking of individual pieces of technology (personal computers, embedded microprocessor system devices such as set-top boxes) via networks such as the Internet. Both developments enable functionality, ways of operating, and opportunities that are either new or which hitherto have been uneconomic or too difficult to achieve.

 

This broader definition has more profound impacts than electronic commerce in the narrow sense of buying and selling via the Internet. E-business potentially impacts products, business processes, strategies, and relationships with customers, suppliers, distributors and competitors. It also has the potential to blur the boundaries between industries and create new industries and sectors.

 

The potential of e-business is only limited by the imagination of those who participate in its uptake and application. However, before one can move forwards, senior executives need to understand the issues and the many barriers that need to be overcome. A significant obstacle is the tendency to view information and communication technologies as the means of continuing to do exactly what we do now, only faster and cheaper.

 

This Executive Guide has been written for executives to help them to understand the potential of e-business and some of the issues involved. It has been written in a way that is free of technical jargon and assumes no prior knowledge of the Internet.