CITEC Manufacturing & Technology Solutions

 

News Notes

July/August 2000

From E-Commerce to E-Business

by: Anne Simmons, CITEC Project Manager

What is e-business? Simply stated, e-business is what happens when you combine your core business processes with the broad reach of the Internet.

The steps toward putting the "e" in your business:

1) have a web site that functions as an on-line business card;
2) create a web site that functions as an on-line brochure for your company;
3) buy raw materials and services on-line, and build a web site that sells your products;
4) then, implement a web site that automatically integrates the ordering process with shipping, inventory control, accounting, purchasing, customer service, and all other aspects of your business

There are advantages to moving your processes to the e-business model, such as better inventory control, reduced keying mistakes, better communication with suppliers and vendors, higher efficiencies and productivity, lower printing costs, better finance and cost control, reduced product cycle times, improved company-wide communication, and lower-cost training.

An example of an e-business solution is an extranet (a password-controlled web site) maintained by a manufacturer that allows its distributors to order products, process buybacks, track purchases and receive invoices. The distributors would also be able to access product updates, check order status and determine inventory availability.

Don't think you have to jump in and change your business processes all at the same time. Start by registering your own domain name and add each function one step at a time. Look at readily available solutions (such as banking and travel) and implement them first. Ideally, you will eventually want to integrate the following:

  • Sales & Marketing - product availability, price lists, product demos, sales reports, contact management, market research, and sales team collaboration
  • Customer Service & Support - on-line information for both customers and service personnel, frequently asked questions, customer database, order entry & tracking, problem entry & tracking, and warranty claims & processing
  • Human Resources - employee handbook, telephone directory, benefits information, newsletter, calendar, internal & external recruiting, policies & procedures, and training
  • Engineering - on-line project conferences, project documentation, project management, shared development of products & documentation, and prototype applications
  • Manufacturing & Operations - parts ordering & requisitioning, production schedules, supplier coordination, inventory control & warehousing, and quality assurance
  • Finance & Accounting - financial reports, budgets, expense reports, accounts payable, accounts receivable, timesheets, and payroll

Business-to-business (B2B) transactions have already outpaced business-to-consumer sales. Even if Internet sales to consumers doesn't interest you, keep in mind that the companies you sell your products to or buy your supplies from may soon only do business electronically. Don't risk losing business -- b-ready.

AL

"We learned years ago that it is not the big that devour the small,
but the fast that overcome the slow."

Bernd Pischetsrieder, CEO, BMW Corp.

 
 
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