Electronic-Business Strategies - Essay Example

e- Business Strategies e- Business Strategies This paper aims at determining how a cloud-based efficiency has gained more within the e- business strategies. The introduction part gives the background and relevant information in relation to cloud based efficiency and e- business. The paper has the aim and three objects that are summarized in a single paragraph. The methodology involves the use of secondary material as the sources of data. The findings of the research are analyzed as to the objectives of the research. The findings are then discussed and analyzed comprehensively. The conclusion holds that loud efficiency has gained so much in the e- business strategies. 1. INTRODUCTION E- Business is a process in which the business transactions are made via networks of telecommunication especially the internet. The invention and innovation in the ICT sector led to the development of cloud computing. Cloud computing is the process of using remote server networks on internet to process, manage and store e- business data (Geoffrion and Krishnan, 2003: 1445). This technological process is an option for the use of a personal computer or a local server. Cloud computing has gained popularity within the business sectors over the past years because there has been a need to reduce the energy costs. The cloud computing is also more of environment friendly technology. It is efficient in relation to energy consumption during computation, communication and storage of data. Studies show that cloud computing is more energy efficient compared to in- house information centers. Its efficiency can be categorized into: economies of scale, aggregation and diversity, flexibility and effectiveness. It was found that businesses can improve their efficiency by spreading the costs. The costs are spread over a server that is larger, thus allowing efficiency improvements. 1.1 Background There has been increased usage of information and communication technologies (ICT) due to technological improvement. The use of ICT has been preferred in the businesses due to its efficiency and effectiveness. The technological dynamics has made efficiency of the ICT to be more energy efficient. There has been increased usage of ICT in businesses due to its ease of use and reliability. Since businesses aim to see that the profit is maximized, there has been a need for cost- effectiveness in ICT (Kyriazoglou, 2012: 213). The environmental concerns, efficiency and effectiveness have seen that cloud computing gets preferred in the business sector. This is because cloud computing has improved the efficient utilization of information center resources. Its flexibility and adaptability have made the businesses view it as energy sufficient technology. This is based on its potential to save significant energy that focuses on more than hardware aspects (Rogers, 2013: 83). Instead, its efficiency can be explored in relation to networking and system operation aspects. It was also found that cloud computing ensures that the loads are spread over thus allowing increased utilization of equipments. Cloud computing can provide as much as 30- 40 % usage range of an equipment. This is opposite to the case of house- data that have a server utilization of 5 to15 percent or less. Cloud computing flexibility can be seen in its use of virtualization and other technologies. This makes it different from the physical server’s characteristics. It, therefore, allows businesses to design servers in energy efficient models. Studies show that cloud computing allows for sidestepping of the organizational issues in the businesses (Huelsbeck, Merchant and Sandino, 2011: 1631). It is through provision of a budget of one data center with the responsibilities assigned to an individual. This paper, therefore, aims at analyzing the gains that the cloud efficiency has brought in the e- business strategies. This will be explained in the aims and objective, methodology and findings sections. The findings of this paper are discussed and analyzed in chapter five and then concluded. The analysis includes the comparison with other works of literature that exist. 2. AIMS AND OBJECTIVES The overall aim of this paper was to determine the cloud- based efficiency gains within the e- business strategies. There are a number of objectives for the research. The first one is, to discuss and explain e- business design, access and management for integrated business operations, the second one is to recognize and evaluate a range of contemporary online business models. The last one is to analyze, discuss, and evaluate a range of alternative e- business methods or applications. 3. METHODOLOGY The overall aim and the objective of this paper were addressed through the use of secondary sources. The secondary sources that were used were those considered in terms of their reliability (Ryan, Scapens & Theobald, 2002: 17). The secondary data that were used were retrieved from books and journals. These sources were biased in relation to the cloud based efficiency and e- business strategies field. The reliability of the secondary sources was determined by their sources. Emphasis was laid on the secondary sources that are peer reviewed as opposed to those that are not. 4. FINDINGS 4.1 E- Business Design, Access and Management The e- business design gives the interaction model that the customers share with the business. E- Business design plan is therefore based on the approach that focuses on customers. The business websites should appeal and hold on those who have visited the site. The design gives the details in what the business offers to its customers in the market place. The aim of the design is supposed to be marketing and selling of services and products. The design should take into consideration the marketplace factors (Zhao, Xia and Shaw, 2011: 305). It should use words and colors on the website to designate its niche. The structural design of e- business website should give a trail leading visitors to distinct areas of the site. The design should ensure that the money transactions on the sites are secure and safe (Zott and Rafael, 2007: 181). The e- business that involves integrating operations should have an access control as a feature to its site. It should ensure that the e- information and resources can be accessed by only certain authorized individuals. It should bar the unauthorized lot in changing or tampering with the information presented (Prossser, 2010: 147). This is possible through the employment of authentication and identification techniques like digital certificates and passwords. It can also use access privileges, firewalls and Virtual Private Networks (VPN) (Levenburg and Magal, 2005:29). E- Business use in integrated business operations requires a multi- channel management criterion. There are several channel management strategies used in the running of – businesses in e- business management. These include: web promoting traditional channels, traditional channels enhancing the web channel, and use of web channel to explore new markets. The management also can be in the form of integrating new products into the web and integrating traditional channels with the web channels. The management can also be aimed to cannibalizing of the traditional channels (Burgess, 2009: 1609). It may also promote the development of an alliance between the internet companies and the traditional companies. 4.2 Range of Contemporary Online Business Models There are nine contemporary online business models that are not new in the world of e- business. These include: brokerage, advertising, infomediary, merchant, manufacture (direct), affiliate, community, subscription and utility models (Madhani and Clemons, 2011: 43). Brokerage model entails the use of brokers as market makers while advertising model is an advancement of traditional broadcast model (Clemons, 2009: 15). Infomediary model entails the use of independently collected data in relation to products and their producers. Merchant model lays emphasis on the retailers and wholesalers of the goods and services (Whinston, 2012: 195). The direct model is based on the capacity of web in allowing manufacturers to reach the buyers directly. This ensures that the channel of distribution is compressed since the intermediaries are eliminated. The Affiliate model provides the opportunities to purchase when people are surfing. The community model is where the e- business is based on the loyalty of the user. The subscription model practices the charging of periodic fee as a subscription to a service to be offered. The “on- demand” or utility model is based on the approach “pay as you go” or usage that is metered (Zhu and Casadesus- Masanell, 2013: 464). 4.3 Alternative e- Business Methods or Applications One of the alternative e- business methods is the buying of the second hand hardware online at the eBay. Second, e- business can also be used to offer free tools for the development of the website (Akridge, 2003: 3). Third, it can be used for the comparison of prices online, for example the gas prices thus ensuring cost effectiveness. Fourth, there is a method that can be used in identification of credit card for gas (Amit and Zott, 2001: 493). Fourth, shopping methods allows for online car shopping, through websites like Cars.com. The methods can also be used in the finding of the best insurance deals through websites like Insure.com. Some of them also provide online directories usage, thus eliminating the cost of calling for directory assistance (Zhao, Xia and Shaw, 2011: 305). Example is the websites like Anywho.com among others. There is also the introduction of coupon codes or coupons that ensures that money is saved by offline and online purchases. E- Business also provides for the reading of books online, renting the textbooks online (Nemeslaki and Pocsarovszky, 2012: 13). The alternative e- business methods entail the use of online for banking purposes. 5. DISCUSSION AND ANALYSIS 5.1 To discuss and explain the e- business design, access and management for integrated business operations. The dependent variables in this objective are design, access and management of e- business. The independent variable for the objective is integrated business operations. Zott and Rafael (2007: 181) agree that the design of business model affects the business performance of firms. This is the same argument that is in this paper beacuse e- business design determines profitability of a business. Levenburg and Magal (2005:29) argue that importance performance analysis can be realized in businesses through access restriction. The research finding in this paper gives the importance of access restriction in details. Even though the Levegenburg and Margal (2005: 30) work focuses on small firms, it proves that access restriction is important. According to Burgess (2009: 1609) the e- business process is facilitated through efficient and effective management for business to succeed. He describes e- business as a solution to the modern businesses. In contrary to this paper, it does not address the several management channels that are used in the integrated businesses. 5.2 To recognize and evaluate a range of contemporary online business models. The dependent variable for this objective is the range of contemporary models, while the independent variable is online business models. Casadesus- Masanell and Zhu (213: 464) argues that that there are several online business models. Even though it lays emphasis on the sponsor based models, it gives a wide variety of models. These are also some of the business models that are covered in this research. 5.3 to analyze discuss and evaluate a range of alternative e- business methods or applications. The dependent variable in this objective is the alternative methods while the dependent variable is the e- business method. Even though Xu, Kreamer and Zhu (2006: 1557) do not name all the e- business methods and applications, they acknowledge that they differ from country to country. This study shows that the e- business is influenced by the cultures of the potential customers in relation to online spending. The findings of this study agree with several of the studies done before. It addresses completely issues to do with e- business design, access and management. It has also tackled fully the range of online businesses in the day to day life. Similarly, it has analyzed the alternative e- business methods. In conclusion, the objectives of the study are equally met even though restriction due to the number of the pages has limited the discussion. Despite this, the paper has fully achieved its purpose through comprehensive analysis of the objectives. The paper explains clearly the aspect to which cloud based efficiency has gained popularity in e- business strategies. References Akridge, J. T. (2003) ‘E-Business in the Agricultural Input Industries’, Review of Agricultural Economics, Vol. 25, No. 1, April, pp. 3-13. Amit, R. and Zott, C. 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