The size of E-business

E-Business is about 95% and 5% business technology. The implicit short sentence has been the essence of the development of new management concepts, known as e-business. Short sentences are essentially assert that the main considerations that must be used by practitioners in determining whether the management will use the bid-offer arouse promised by e-business lies in the consideration of how large the potential offered by business, not on how sophisticated the technology developed.

If the business aims to achieve what is called a theory in wealth maximization (and in the practice of day-to-day wealth is often associated with the business profit or advantage), then clearly e-business must be able to perform at least two things below:

How high potential for additional revenue (revenue) company either directly or indirectly at the time that the concept of e-business are implemented; and
How high potential for cost reduction (cost) that can be done either directly or indirectly at the time that the concept of e-business are applied.
Secondly it is the minimum that must be deliver by e-business to the company to significantly increase the level profitabilitasnya (in accordance with the simple formula Profit = Revenue - Cost). In fact, of course, not all businesses can directly affect the look and the two variables mentioned above, because many of the benefits or the value of e-business that is intangible and unquantifiable. In his book "The measurements of Effective IT Cost and Benefit Analysis", and Arthur Money Remenyi provide 16 criteria that must be measured in the company to determine whether the concept of e-business practices better than the conditions at the time of e-business has not been implemented (management conventional business). In summary sixth-pity criteria are as follows:

1. The ability to reduce system cost

2. The ability to move the system cost

3. Avoid the cost of the system capability

4. Ability system provides revenue growth opportunities

5. The ability to provide increased information systems management

6. the system's ability to increase staff productivity

7. ability to provide system capacity to increase the volume

8. the ability to reduce system eror

9. the system's ability to provide competitive advantage

10. system with the ability to make the competition

11. the system's ability to provide increased management control

12. the ability to increase productivity management system

13. the system's ability to provide increased employee morale

14. increase the system's ability to provide corporate image

15. the system's ability to provide increased customer service

16. the system's ability to increase the relationship with clients.



If viewed seriously sixteenth seen that this is the concept of e-business from the company's internal, in which consumers or customers not directly involved in the assessment process. Of course, if the views of business trends that are more market oriented and / or customer oriented, the new-size must be developed. Examples of performance criteria of e-business that can be developed to measure the success of the implementation of the ten are in the below (the size of success is seen from the perspective of external):

1. The ability to make the system cost efficiency

2. Improve the ability of the system on customer service

3. The ability to reach customers system

4. Ability system increased the quality of products and services

5. Ability system satisfying the needs of customers sepesifik

6. The ability to provide system services to customers quickly

7. System to reduce the ability of customers complain

8. The ability to provide a system of payment system effective.

9. The ability to add system customer brand awareness

10. The ability to create identity system customers (customer forever).



By looking at the overall performance measurement example is clearly seen that the concept of information technology relevant to the implementation of e-business in a particular company or industry. If an application usage, information systems, software, hardware, network, intranet, and product-related information technology products have directly or indirectly contribute to a positive and significant effect on the size of business performance as described above, it will be very clear role means for the development of the company. Similarly vice versa, if the results of the implementation of information technology in business is incompatible with the concept of performance improvements in the top, of course, attendance will be a boomerang for the existence of the company.