Lesson 1

Introducing an e-business to an existing business can be dramatic. Its effects are felt both internally and externally, in operations, marketing, as well as in the attitude of the employees. In many ways the introduction of e-business is a rebirth of the existing offline business. It allows those involved to experience first-hand how the business is re-engineered to accommodate the new model, and to learn a great deal about the business itself. It is not the responsibility of the architect to change the existing business functions. However, it is the responsibility of the architect to ensure that all executives, particularly those in charge of the areas affected, are prepared for and understand the impact of such changes. The architect needs the people responsible for making the changes to confirm that the necessary changes can be completed within the timeframes and with existing resources. If the architect cannot get these assurances, then the architect must ensure that the plans and budget for the project are altered accordingly.
At the end of this module, you will be able to:

1. Describe the effects of e-business on the existing business
2. Identify the operational support requirements for e-business
3. Detail the human resources factors related to e-business
4. Define the implications and/or relevance of marketing related to e-business and the enterprise
5. Identify the financial considerations of using e-business
6. Identify the link between manufacturing and e-business

The integration of e-business into an existing business can have profound and multifaceted effects:
Internally:

• Operational Efficiency: E-business often requires streamlining of processes, which can lead to more efficient operations. Automated workflows, digital document handling, and integrated systems can reduce manual labor and increase productivity.
• Employee Adaptation: There's a significant impact on employees, who might need training or reskilling to adapt to new digital tools and processes. This can lead to resistance or excitement, depending on how changes are managed. The attitude shift can range from apprehension to enthusiasm as they learn new skills and see improvements in their work environment.
• Change in Business Culture: The culture might shift towards more openness to innovation and digital solutions. However, this transition can be challenging if not managed with clear communication and involvement from all levels of the organization.
• Resource Allocation: Introducing e-business might require reallocating resources, both human and financial, towards digital infrastructure, cybersecurity, and IT support.

Externally:

• Market Reach and Sales: An e-business model expands market reach beyond physical locations, potentially increasing sales through online platforms. This can also lead to new customer segments or markets that were previously inaccessible.
• Customer Interaction: Online presence changes how customers interact with the business, offering new channels for communication, feedback, and service delivery. This can enhance customer satisfaction if managed well but might also expose weaknesses in service if not.
• Brand Perception: The business’s brand might be rejuvenated or reimagined in the digital space, affecting perception. A successful online presence can enhance credibility and modernity, while failures can tarnish the brand.
• Competitive Dynamics: The business enters a new competitive landscape where digital prowess can be as crucial as product quality. This might push the company to innovate faster or face increased competition from digital-native businesses.

Strategic and Structural:

• Business Model Re-engineering: The core business model might need re-engineering to accommodate online sales, digital marketing, or entirely new services/products that leverage digital capabilities.
• Leadership and Decision Making: There's often a shift towards data-driven decision-making as more metrics become available through digital channels. Leaders must be prepared to interpret this data and make strategic decisions based on insights rather than intuition alone.
• Integration Challenges: Ensuring that new online operations integrate seamlessly with offline processes without disrupting existing workflows is crucial. This might involve significant changes in how data is managed across the organization.

In summary, introducing e-business acts like a rebirth for the company, demanding a reassessment of almost every aspect of its operations, strategy, and culture. It's a transformative journey that, if navigated wisely, can lead to substantial growth and sustainability in the digital era.

The term e-business systems^[1] refers to IT systems that leverage internet-based technologies to enable business transactions. In 2023, most e-business systems rely on web services, essentially services hosted by web servers—to deliver content and exchange data with users or other systems. This doesn’t mean that non-web-enabled systems or services are excluded from an e-business solution. On the contrary, these solutions often integrate various communication systems and application services. However, without a web services component, a solution cannot be classified as an e-business system. Under this framework, enterprise-wide systems like enterprise resource planning (ERP), enterprise relationship management (ERM), and customer relationship management (CRM) typically use web services interfaces for content delivery and system management. In the next lesson, we’ll explore the commercial impact of e-business.

[1] e-business systems: In the context of e-commerce, e-business systems encompass the digital technologies and processes that facilitate online business operations. These systems include not only the customer-facing storefront website but also the underlying infrastructure for managing inventory, processing orders, handling payments, and interacting with customers.