Learning Diary 9 Submitted by : Neelesh Kumar Roll No.

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Challenges facing e-business systems

The issues can be divided on the basis of following factors

Management Issues
Effective e-business design and implementation requires that management focus on four major issues:
• Developing a corporate climate for adapting to the network era.
• Understanding customer expectations.
• Analyzing the firm’s ability to manage information technology.
• Recognizing the time frame in which these changes must be made

Adapting to the Network Era

This initiative is the most challenging. It requires implementing an organizational structure which can
respond to a virtual community of buyers and suppliers “anytime, anywhere;” a willingness to implement
new policies to resolve channel conflict between current resellers and direct Web customers; intensive
research into new product opportunities for niche markets enabled by the growth of on-line special interest
communities; and a reallocation of financial resources to meet these new objectives.

Customer Expectations
The Web is creating a tougher customer. E-commerce continues to expand consumer choice by providing
the tools for them to switch suppliers instantaneously, including the ability to quickly and easily make price
comparisons. In many cases, suppliers are dealing with end users for the first time, having previously been
shielded by their resellers. Management strategies must consider this ultimate customer for whom access
to the Internet presents substitute sources for the form of their traditional offerings as well as opportunities
for information.

Assessing IT Skills
This factor has given rise to a new group of firms called application solution providers (ASPs) who offer an
opportunity for firms to outsource their IT management. The network becomes the computer. These services
are provided for a subscription fee assuring that latest versions of hardware and software

Measuring effectiveness and efficiency of e-business systems

The following factors can help a company measure the effectiveness of the E-Business

1. Create performance management system- this can be achieved by developing a combination of

efficient mix of hardware’s and software’s. the size of servers can be updated on the basis of the
traffic which is turning up on the portal and for what purpose is the company is operating online.
2. Define the performance metrics framework- KPI of any websites will help a company measure its
success. It is important to define the objective on which company is going to measure the success of
the portal. For a fitness application objective might be to have downloads while for a shopping site
objective will be first purchase
3. Tools and techniques for collecting metrics and summarizing results- the role of analytics becomes
crucial as which is the tool firm is going to use to measure the success of the site and who often
makes changes to the portal.