Background
Discuss about the Critical Examination Of The Effect Of e-Business On Value And Profitability Of Firm In Mining & Engineering Product Manufacture Industry.
According to Ruoco and Durfee (2001), today’s economy runs on skills and knowledge. Hence, a huge number of businesses work assiduously to capitalize on this fact. They tend to build a cross-functional team, customer or product-focused business units and work in groups to achieve the desired outcome. E-business has become an important aspect for businesses to consider the way it runs. This research study will focus on the effects of e-business on the value of an organization. It will address key areas such as strategies, human resources, customer relationship management, business environment and financial performance which undermine the quality of work. When a business implements e-businesses, a number of factors need to be taken into consideration such as process redesign, organizational structure, policies and procedures and financial performance (Wiengarten, Humhreys, Mckittrick and Fynes, 2013). Businesses will also need to examine the tax, legal and security issues. Today we see that e-business is changing all the rules and models to adapt to customer needs. A business‘s ability to adapt to new technology and business models is the key to increasing the organization’s productivity and financial performance.
According to Ruoco and Durfee (2001), today’s economy runs on skills and knowledge. Hence, a huge number of businesses work assiduously to capitalize on this fact. They tend to build a cross-functional team, customer or product-focused business units and work in groups to achieve the desired outcome. E-business has become an important aspect for businesses to consider the way it runs. This research study will focus on the effects of e-business on the value of an organization. It will address key areas such as strategies, human resources, customer relationship management, business environment and financial performance which undermine the quality of work. When a business implements e-businesses, a number of factors need to be taken into consideration such as process redesign, organizational structure, policies and procedures and financial performance (Wiengarten et al., 2013). Businesses will also need to examine the tax, legal and security issues. Today we see that e-business is changing all the rules and models to adapt to customer needs. A business‘s ability to adapt to new technology and business models is the key to increasing the organization’s productivity and financial performance.
Objective of the study
The purpose of this research paper is to critically examine the role of e-business innovation on a firm’s performance. It follows the footstep of past researchers who described organizational innovation as a more important to understand how innovation theory can explain one particular innovation instead of searching a single unifying theory that explains all innovations in general Caldwell, Harland, Powell, and Zeng (2013). However, the current research applies to organizational innovation theory in relation to e-business. This research will discuss e-business innovation and how this affects the business success by combining early adoption and innovative use of e-business to an entities performance.
The well-recognized work of Fei and Cheng (2015), highlights the significance of innovation as the source of value creation. He also suggests that innovation can not only change the way businesses operates but has even been called “creative destruction” due to its radical nature. Matlay, Westhead, and Wright (2011) believed innovation theory focuses on the importance of technology and identifies that innovation recognizes the use of technology as the foundation of new products and production methods. For instance, the implementation of new goods or a new method of production, the introduction of a new market and, or the development of a new source of supply of raw materials or partly manufactured goods.
According to Saleem and Dhavachelvan (2011), the high uncertainty characteristics of e-business challenges high-level management involved in e-business. It is the innovative use of technology that differentiates superior performance from the inferior ones. Such innovative use often accompanies the introduction of new goods or even a new method of production.
According to Ruoco and Durfee (2001), it is established that larger organizations find it difficult to adapt to the traditional capital budgeting method, which commencing e-business projects. E-business focuses on senior management to adopt a non-traditional approach while measuring the payoff of a project. Hence, senior management tends to discount the time value of money and calculate it with the Net Present Value (NPV) of the project. Thus, management can decide that, if the net present value is positive then they should fund the project since it will generate value for the company in excess of the cost of capital which is required to find the project. On the other hand, if the net present value is negative then the management would need to decline the project due to the fact that it will from the company’s value.
Research Question
Due to high pervasiveness, e-business affects within the organization. For instance, employees need to be retained to assume new responsibilities brought about by e-business. Entities would need to reorganize its structure to fit the e-business concept which emphasizes the flow of information both within their boundaries and among partners along the supply chain such as its customers, suppliers, and stakeholders. Bordonaba Juste, Lucia Palacios and Polo Redondo (2012), emphasizes e-business has become to change the way industries and entities operate. Its diffusion often stimulates reconfiguration of adopter’s technology strategy and structure and for early adoption tends to provide a dominant design that gains an initial competitive advantage. For instance, one early adoption of e-business was Dell, which was the first firm to use the internet to sell its products directly to businesses, governments, and consumers. As a result, it was able to gain significant advantages over its competitors.
- What are the factors which influence an organization to shift to e-business
- How to analyze the effect of e-business on the profitability of the companies
- What are the factors to be considered while opting for e-business
- To compare the financial performance of various e-business firms
This research aims to identify the critical effects of e-business on the value of the organization. Due to the fact, that there are large numbers of e-business this research will narrow its analysis on empirical data to analyze the companies based on annual reports, SPSS data, excel, ANOVA and histogram to demonstrate how e-business has changed the way business operates today. There are different types of sampling such as random sampling, systematic sampling and stratified sampling (Raghu, Rao and Sharman, 2012). In this research, information will be collected from the Australian Securities Exchange to analyze the performance of the company using ratios such as return on assets and operating income of the company.
Chapter One – This chapter provides an overview of the background, objective, research question, research design and limitation of studies for Mercury Z, Genesis Energy Limited, AusNet Service Limited and Infigen Energy Limited.
Chapter Two – This chapter focuses on the dependent and independent variables and also backups the argument with a review of the literature with regards to cost management.
Chapter Three – This chapter focuses on the data collected from the four companies that are listed in the Australian Securities Exchanges (ASX) within the utility sector.
Chapter Four – The data analyzed will be extracted using both SPSS and Excel. The results collected will be analyzed to determine how well the company has been performing.
Chapter Five – The final chapter will focus on the overall research project. The research question will be analyzed and will provide recommendation and conclusion for future research within the utility sector.
Conclusion
In this section is a prologue to the overview of the research project. The section additionally gives an overview of the background of the topic, objective of the study, research question, research design, limitation and importance of study and the overall chapters.
References
Balaraman, P., &Kosalram, K. (2012). E-commerce evaluation and E business trends. International Journal of Information Engineering and Electronic Business, 4(5), 9-16. Retrieved from https://login.ezproxy.holmesglen.edu.au
Bordonaba-Juste, V., Lucia-Palacios, L., & Polo-Redondo, Y. (2012). The influence of organizational factors on e-business use: Analysis of firm size. Marketing Intelligence & Planning, 30(2), 212-229
doi:https://dx.doi.org.ezproxy.holmesglen.edu.au/10.1108/02634501211211984
Burnie, E., & Maguire, E. (2000). E-business. International Tax Review,, 59-67. Retrieved from https://login.ezproxy.holmesglen.edu.au
Caldwell, N., Harland, C., Powell, P., & Zheng, J. (2013). Impact of e-business on perceived supply chain risks. Journal of Small Business and Enterprise Development, 20(4), 688-715. Retrieved from https://login.ezproxy.holmesglen.edu.au/login?url=https://search-proquest-com.ezproxy.holmesglen.edu.au/docview/1462472703?accountid=132066
Fei, X., & Chung, J. (2015). IT for future e-business management. Information Systems and E-Business Management, 13(2), 191-192
Luqman, A., & Abdullah, N. K. (2011). E-business adoption amongst SMEs: A structural equation modeling approach. Journal of Internet Banking and Commerce, 16(2), 1-20. Retrieved from https://login.ezproxy.holmesglen.edu.au /login?url=https://search-proquest-com.ezproxy.holmesglen.edu.au/docview/915653722?accountid=132066
M.S. Saleem Basha, & P. Dhavachelvan. (2011). Survey On E-Business Models. International Journal of Engineering Science and Technology, 3(5), 3631-3639
Martínez-Caro, E., &Cegarra-Navarro, J. (2010). The impact of e-business on capital productivity. International Journal of Operations & Production Management, 30(5), 488-507. doi:https://dx.doi.org.ezproxy.holmesglen.edu.au/10.1108/01443571011039597
Matlay, H., Westhead, P., & Wright, M. (2011). Classeek Spirits of the World: E-Business Internationalization. The International Journal of Entrepreneurship and Innovation, 12(2), 137-144
Nerguizian, V., Mhiri, R., &Saad, M. (2011). Active e-Learning Approach For e-Business. International Journal Of E-Business Management, 5(1), 48-60. doi:10.3316/IJEBM0501048
Ruocco, A., &Durfee, T. (2001). Thinking inside the box. The Journal of Business Strategy, 22(1), 10-13. Retrieved from https://login.ezproxy.holmesglen.edu.au
Sarac, M., Radojevic, T., Stanisic, N., Adamovic, S., &Radovanovic, D. (2012). Safety of e-business applications in Serbia: Applied knowledge based on SSL traffic. Journal of Internet Banking and Commerce, 17(3), 1-18. Retrieved from https://login.ezproxy.holmesglen.edu.au/login?url=https://search-proquest-com.ezproxy.holmesglen.edu.au/docview/1319781475?accountid=132066
Wiengarten, F., Humphreys, P., McKittrick, A., &Fynes, B. (2013). Investigating the impact of e-business applications on supply chain collaboration in the german automotive industry. International Journal of Operations & Production Management, 33(1), 25-48. doi:https://dx.doi.org.ezproxy.holmesglen.edu.au/10.1108/01443571311288039
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