Tuesday, March 12, 2019
Organizationââ¬â¢s Cost and Profitability and Performance Indicators Essay
The publication of the lucre and other information technology has been hailed by the business origination as one of the drivers of growth and favourableness. It revolutionized the relationships between businesses and their customers between and among businesses and between customers, too. Implementing e-business, however, is non easily implemented. Apart from the monetary costs, on that point are also integrating and transition issues that an organization needs to face. Quan (2008) argues that in spite of the heavy investment in e-business activities and broadcasts, there is no conclusive proof that demonstrates significant returns from e-business.When profitability is measured, leaders demonstrated success. In terms of cost measurement, however, they did not. I tally with Quan that too many executives and IT practitioners have joined the bandwagon of e-business because of success stories of some internet businesses. It is easier to join the bandwagon and duplicate what othe r organizations have done than to take a look at ones own situation and peculiarities to in reality determine, which approach would work. If this were followed, the impact of e-business would have been more salient.In my own experience, the integration of information technology and e-business framework has mixed results. It helped the way that the business connects with its customers and clients. In terms of customer relationship management and the way that the business manages its stock list and its communication needs. The investment on e-business is significant. The business has to employ additional individuals so as to manage the elements of e-business and spend on additional equipment and gadgets that could make the placement work.The returns on this investment, however, cannot be felt right away. There are several(prenominal) areas of business operations rendered more efficiently such as reporting, accessing information, savings on materials such as paper that are no seven -day used extensively. In the nobble run, e-business platforms and elements tend to be more on the cost side of the business. For managers, this is a rather alarming situation. Profitability is of line of descent the ultimate goal of any business. Yet, e-business tends to be unprofitable in the short run.Quan agrees with such an observation. To maximize the impact of e-business profitability, the timeline of the implementation should be clear and there should be clear guidelines as to the implementation of the project. In our case, we managed the expectations of stakeholders by informing them of the process that the organization will go through while e-business platform is being integrated into the system. Managers and organizations, in general, should be able to manage expectations as to the situation of e-business integration.Yet, management should not be afraid to take risks because of the benefits that e-business could need to the organization as a whole. Several months mig ht not be enough to see the results of e-business integration. Yet, if the organization will really follow through on its investment, the results will be seen in due time. The challenge, however, is planning and mathematical function out these results. With deft management and effective communication within and without the organization, e-business will succeed and become integrated into the operations of the business in the pertinacious run.
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