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E-Commerce Boosts Profitability: A Shift to Virtual Organization Improves Performance

E-Commerce Boosts Profitability: A Shift to Virtual Organization Improves Performance

For centuries, bricks and mortar typified lines and frames of organizations, towering as stricture and symbol for identification of organizational growth and corporate accomplishment. In this millennium, professionals witnessed the transposition of organizational systems by e-commerce, which took over the wand of corporate business, shifted its frontier, and revolutionized transaction economics.

The Virtual Organization

In the face of giant strides fuelled by e-commerce, some corporate leaders bat eyelids, rebuff change and ward off efforts aimed at infusing e-commerce systems into their business processes. A full-blown e-commerce system brings implicit components into an organization, thereby giving rise to the critical mass that characterizes a virtual organization.

Certainly, perception influences vision but alters established objectives if in disarray. When deploying e-commerce systems in an organization, common potholes that should be avoided are the following:

  • The problem of the legal system in some countries
  • Operation of the electronic transaction through the website in only one language
  • Non-availability of fitting manpower for tasks at hand
  • Absence of a well-structured e-commerce model in the organization
  • Lack of connectivity between corporate strategy and existing e-commerce strategy
  • Dearth of managerial objectivity at the top echelon of a firm
  • Rule and action that constitute fraudulence or raise distrust
  • Non-competitiveness of offering
  • Improper shipment of goods to buyers
  • Absence of a first-rate electronic payment system

Integrating E-Commerce with Traditional Commerce

The full accompaniment of an e-commerce driven organization includes a finely integrated Web community, with the capability for weaving connectivity-nets through electronic nodes around consumers and diversity of databases. While traditional commerce involves physical contact between the salesman and buyer or the use of hard catalogs for prospecting.

In positioning an organization for e-commerce, appropriate action should be taken so as to ensure the physical organization acts as a foil for the virtual one. Therefore, effective integration of e-commerce with traditional commerce in order to boost profitability requires the following:

  • Strategic planning
  • Pre-deployment evaluation
  • Constructive deployment
  • Post-deployment evaluation

Benefits of Deploying E-Commerce

Sometimes professionals think about the relevance of e-commerce and try to gape into the grey space between it and traditional commerce. Notwithstanding, there are substantial performance gains that separate e-commerce from traditional commerce. You can deploy e-commerce systems in an organization with the intention of achieving the following:

  • Increased competitiveness of products and services
  • Leaner business systems for maximization of operational efficiency
  • Improved customer information management
  • Reduced cost
  • Reduced inventories
  • Decreased delivery delays
  • Increased innovation capability
  • More productive direct marketing
  • Enhanced customer services
  • Enlarged market from local to global level
  • Better tracking system for identifying customer focus
  • Increased sales
  • Increased profit
  • Improved catalog system that’s updated regularly
  • An automated billing system that improves service quality
  • Merchant operations without a physical warehouse

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