Implementation of the e-commerce business model has to be conducted with the strategic alignment process intact. This ensures that the change is aligned to the strategic focus of the company. The solution to be implemented is the radio frequency identification technology offered by Intermec.
This technology will enable store employees to check product availability from a remote location and therefore improve the quality of customer service. Inventory management will also be improved. The process also involves the suppliers.
Because they will be part of the network, the information sharing process will be enhanced and as a result they will also be able to manage their inventory more efficiently. As a result, productivity will be maximized in terms of both supply chain management and customer service management.
The current business environment is characterized by a high level of competitiveness and therefore businesses have to constantly reengineer their internal operations in order to build and maintain a competitive advantage. Therefore a technology solution in the form of an e-commerce business model is recommended.
This technology solution will enable a business to attend to its customer needs to a greater extent. In this respect, implementing the e-commerce business model will facilitate implementation of both strategies of differentiation and cost minimization. On the one hand, the e-commerce business model will enable the company to carry a wider product range.
On the other hand, this will reduce the need for maintaining warehouses and thus minimize costs. The technology solution will also enable the business to enhance the efficiency of its inventory management process. This is a particularly relevant issue considering the importance of maintaining high inventory turnover.
The current objective of the business is to enhance the efficiency of the JIT manufacturing system. This means that the business must collect more information and share this information with the suppliers. This is the great strategic value of implementing the e-commerce business model. Because the purchases will take place online, a lot of information on customers’ purchase patterns will be generated.
As a result of implementing the new technology, the company will able to collect more information on inventory and purchase patterns. This additional information will enable the company to operate more efficiently and effectively. This is an example of the benefits of business process reengineering through technological innovations.