Time is money and what is good today might be obsolete tomorrow. It's a tough and competitive world with only the toughest surviving. So how does an organization survive? According to Andy Grove, Chairman of Intel within five years time, all companies will be Internet companies, or they won't be companies at all. E-Business is a new method of doing business, which is transforming the way in which organizations operate and compete in today's global environment. It is a complex fusion of business processes, enterprise applications, and organizational structure necessary to create a high-performance business model. This paper will discuss the value chain analysis, legacy systems and the organizational structure as it relates to the formulating and developing of an eBusiness strategy.
One of the most common fears companies are facing when investigating eBusiness strategy is the thought of losing years of implementation and thousands of dollars from previous technology investments. It is important that in creating an eBusiness strategy that an efficient solution is found that better utilizes an existing system.
A value chain is a framework that identifies the activities that an organization performs in order mainly to create its products or services. It is used mainly to analyze the activities by looking at the cost of these activities as well as the value delivered. The links to a value chain are data resource, information engineering, knowledge environment, business intelligence and business strategies. The value chain begins with the data resources. Information is developed from the data resource to support the knowledge environment. Knowledge is the raw material for business intelligence that supports business strategies. By using the value chain analysis in formulating an eBusiness strategy, organizations are setting a firm foundation by creating a high quality of integrated data resource and a high quality of human resource to discover and accumulate knowledge to achieve successful business intelligence.