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The Charity Organization in the Electronic Market
Doing Business Via the Internet
Information and Communication Technology (ICT) is an element that has profoundly affected all aspects of human life in the developed world as well as in developing countries. Business at local and international levels has significantly been affected by this new technological advancement, so much that all forms of businesses find it difficult to operate and compete successfully without integrating new technological trends into their systems. Reynolds (2004) for instance argues that the internet has strikingly altered the way we do business in various ways such as finding new sources of revenue, getting new customers, or managing a businesss supply chain.
Ye and Liu (2001) argue that the internet has swept the world like a hurricane and that the extent and speed of change of WWW are astonishing and are influencing every aspect of human society. In the following part, we shall look at the implications of e-business in a childrens charity in terms of design implications on the website and supply chain management as well as order fulfillment operation within the business.
E-Business and E-Commerce
Let us begin with some definitions. According to Li (2007), E-Business does not only involve.com, internet-only companies, or e-Commerce but it encompasses a broader idea that is concerned with the use of the internet and interrelated technologies to incorporate and redesign an organizations internal activities, processes, and external relations and come up with new ways of doing things that are essentially different from, and often far advanced compared to the traditional ways of accomplishing the same roles. He further explains that e-business is all about coming up with new ways of running an organization by productively taking advantage of the new facilities of ICT and the Internet (p.2).
E-Commerce on the other hand is the selling and buying of goods and services through electronic channels, Kelly and Casey (2009). Ye and Liu (2001) state that e-commerce activities such as online trade of information, services, and products, etc are bringing business to a full new height of productivity and profitability. Reynolds (2004) asserts that E-commerce is making it possible for businesses to sell products and services to consumers on a worldwide basis. Ellis and Korper (2001) hold that E-commerce will stay put as a means of selling products, services, and contents over the internet. In other words, the internet is one of the most common electronic channels that are frequently deployed by firms and organizations in their attempt at reaching wider markets inexpensively. This is what the above-mentioned childrens charity seeks to take advantage of in its endeavor to raise its productivity and profitability.
Design Implications on the Web Site
Reynolds (2004) cautions that when one is considering joining the e-commerce community he or she should remember that selling goods and services on the internet presents a distinctive set of challenges. In this case, the Children Charity can not open an online store and expect customers to start flowing in immediately. Reynolds further advises that if their niche market can offer enough business to generate the income they need then they will have found a good niche. They should then dig deep within their identified niche to understand their customers behavior for business sustenance.
According to Meier (2009), going by the common assumption of every e-commerce operator, online customers are sophisticated shoppers who demand prompt delivery of a product and are prepared to meet costs as stated by the website, under these circumstances profitability would increase by a huge percentage for the childrens charity. This is especially so because the website will provide an avenue for products that the shops have failed to resell. Reiner (2009) says that this is because shops mainly attract below-average income earners and pensioners. Thus assumingly, venturing into the electronic marketplace will attract sophisticated and able buyers who can in particular purchase the high-value items which the Charity is used to scrapping. If this possibility occurs then their new business would enable them to generate the revenue needed. Their website would end up as an information site and an online shop for the Charity.
It is important to note that E-Marketing and E-Business are closely related so much so that if this Charity decides to do E-Business they would be required to do e-marketing. Chaffey and Smith (2005) argue that E-marketing is the core of E-business in that it enables you to be in touch with your customers and know them better, attach value to your products, widen distribution channels, and boost sales.
Supply Chain Management and Order Fulfillment Operation
Reynolds (2004) further argues that the most common mistake made by inexpert web operators is the failure to be alert regarding their customers order processing and other specific needs. This means that since these services are the underpinnings of all successful e-commerce ventures the charity in its new business would be required to hire proficient web operators to attain a successful e-commerce business enterprise. The charity though should pump some of its financial resources into redesigning its supply chain management and making it friendly to the donators who are their main financial suppliers, Andreas and Henrik (2009).
Conclusion
In Conclusion, survival in business today is hedged upon the ability of the managers to keep up with changes in technology and particularly the aspects that apply to their operations, Chaffey (2007). This particular Childrens Charity is no exception and its ability to integrate technology into its activities will determine how well they perform in the market. However, as already noted the charity should enter the electronic market space with an open mind so that it withstands the unique challenges presented by E-commerce and E-Bussiness.
Reference List
Chaffey, D. (2007). E-business and e-commerce management: strategy, implementation, and practice. New York: Prentice Hall.
Chaffey, D. & Smith, P. R. (2005). E-marketing excellence: The heart of E-business. Burlington: Elsevier.
Korper, S. & Ellis J. (2001). The E-commerce book: building the E-empire. Massachussets: Morgan Kaufmann.
Li, F. (2007).What is E-Business? How The Internet Transforms Organizations. London: Wiley-Blackwell.
Liu, J. & Ye, Y. (2001). E-commerce agents: marketplace solutions, security issues, and supply and demand. New York: Springer.
Meier, A. & Stormer, H. (2009). E-Business & e-commerce: managing the digital value chain. New York: Springer.
Rainer, K. & Gegielski, C. G. (2009). Introduction to Information Systems: Enabling and Transforming Business. San Francisco, CA John Wiley and Sons
Reynolds, J. (2004).The Complete E-Commerce Book: Design, Build & Maintain a Successful Web-based Business. Oxford: Focal Press.
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