Business Process Outsourcing
Infrastructure as a Service
Platform as a Service
Software as a Service
Work From Home
AdvantagesEbusiness is typically done to reduce costs and improve speed. Many new firms are built from the ground up on ebusiness processes such that they have nothing that depends on a physical office location or local area network. This may be fundamentally more resilient than the old model where everything was dependent on physical locations such as a head office. Ebusiness also allows for great scale of distribution and marketing. For example, selling through a global ecommerce presence as opposed to face-to-face sales that is constrained by your ability to travel to each customer and partner.
DisadvantagesThere are no inherent disadvantages of ebusiness but firms often fail to implement it intelligently and well. For example, outsourcing your customer service to a partner with electronic integration can be a mistake if customer service is a potential competitive advantage. A partner doesn't know your products and culture such that it will only provide standard service where you could do much better.
NotesPhysical business activities will always exist. Products will continue to be physically manufactured and customers will continue to visit physical environments. However, the percentage of business activities that can be converted to ebusiness is extremely high. For example, a firm that develops, tests, launches, markets and supports products without every meeting in a physical office.
Business activity that takes place over the internet or other external networks.
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