Second Rule of E-business

E-Business = Structural Transformation

  • e-Business results in growing pace of application innovation, new distribution channels and competitive dynamics that are baffling even the smartest managers.

  • Value is found not in tangible assets such as products but in intangibles: branding, customer relationship, supplier integration and the aggregation of key information assets.

  • This leads to second rule of e-business:-

The ability to streamline the structure and to influence and control the flow of information is dramatically more powerful and cost-effective than moving and manufacturing physical products.

  • It seems that few companies have developed the necessary information-centric business designs to deal with the issues of business change and innovation.

  • Unless an enterprise develops an explicit strategy to accommodate the accelerated flow of information, the enterprise will find it scrambling, working harder and faster just to stay afloat.

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