The Complexity of e-Business Scenarios

The Complexity of e-Business Scenarios

Why are e-business scenarios more complex than traditional business scenarios?

According to Grefen (2015), an e-business scenario involves two or more parties conducting networked e-business to meet a specific business goal. In such a setting, one individual or organization can simultaneously be engaged in many e-business scenarios to meet more than one business goal. The traditional business scenario includes exchanging goods and services between two or more parties (Akdeniz, 2016). One of the reasons why e-business scenarios are more complex than traditional business scenarios is their multijurisdictional nature. The networked e-business involves a large number of actors from different locations. Therefore, the e-business has to observe the laws regulating business activities in various jurisdictions to enhance its success. Secondly, the complexity of handling risks. Grefen (2015) argues that risk management in e-business scenarios can become complex in processes and functions because many actors make it hard to identify and mitigate risks such as fraud.

Thirdly, the architectural framework of the e-business scenario includes various functional layers. The main layers are the application services, management and information brokerage, support and interface services, and network infrastructure. The application services layer determines the type of e-commerce application to be implemented. The main applications used in e-business scenarios are intra-organizational, business-to-business, and consumer. The information management and brokerage layer serve as an intermediary providing service integration between information providers and customers. The brokerage part supports traditional transaction and data management services. Support and interface services include interactive catalogs and directories to search and access information by organizing a large amount of data and the transactions generated from e-commerce purchases. Network infrastructure links customers and suppliers by creating a channel to exchange information.

Interrelationships of relevant elements

Although there are some significant differences between traditional business and e-business scenarios, the two interrelate in elements such as the organization of business, business goals, and the use of information technology. The main interrelationship s between the business goals in traditional business scenarios and e-business scenarios is that they both include business profitability, customer service, operational efficiency, and growth. Both business scenarios emphasize the need to run a profitable business based on various profitability measures such as revenue and sales. Customer service goals include increasing customer satisfaction and loyalty and reducing complaints. These goals are mainly achieved based on customer needs and preferences changes and may be adjusted based on urgent customer service requirements. In attaining operational efficiency, the two business scenarios focus on reducing the time taken for goods and services to reach customers and offering high-quality goods and services. Both traditional and e-business scenarios may pursue business growth by adding more actors such as customers, suppliers, and intermediaries.

The interrelationship between the organization of e-business scenarios and traditional business scenarios is evident in implementing various organizational structures based on business goals. The structures may include functional, flat, matrix and divisional structures. The structures are mainly used to create the desired relationship between the actors in the business setting. For instance, a hierarchy may be used when some actors in the setting have more power than others. The traditional business and e-business scenarios implement technology to enhance operational efficiency. Grefen (2015) argues that in traditional business scenarios, technology follows business, but in e-business scenarios, technology implementation is dictated by the opportunity created by the enabling technology. However, both business scenarios use technology to improve customer service and the relationship between suppliers and the business to sustain business operations.

References

Akdeniz, C. (2016). Business models explained. Can Akdeniz.

Grefen, P. (2015). Beyond E-business: Towards networked structures. Routledge.

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

Prompt:

Explain why e-business scenarios are generally more complex than traditional business scenarios.

The Complexity of e-Business Scenarios

Discuss the interrelationships of the relevant elements, such as business goals, organization of business, and use of information technology.