|
Basis of Distinction
|
Traditional Business
|
E-Business
|
|
1. Cost of setting up
|
• High
|
• Low, as be requirements of physical facilities.
|
|
t. 2. Operating cost
|
• High, due to fixed charges associated with investment in procurement & storage, production, marketing and distribution facilities.
|
• Low, as a result of reliance on net work relationship rather than ownership of resources.
|
|
3. Nature of contract with the suppliers and the customers.
|
• Indirect, through intermediaries.
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• Direct
|
|
4. Nature of Intend communication.
|
• Hierarchial from top level management to middle level management to lower level management to operatives.
|
• Non-Hierarchial allowing direct vertical, horizontal communication.
|
|
5. Response time for meeting customers.
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• Long
|
• Instantaneous.
|
|
6. Shape of the organisational structure.
|
• Vertical/Fall, due to hierarchy or chain of command.
|
• Horizontal/flat due to directness of command and communcation.
|
|
7. Business processes and length of cycle.
|
• Sequential precedence succession relationship i.e. purchase-production/ operation marketing sales. The business process cycle is therefore logner.
|
• Simultaneous different processes, Business process cycle is therefore shorter.
|
|
8. Opportunity for inter personal touch.
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• Much more
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• Less
|
|
9. Opportunity for physical pre-sampling of products.
|
• Much more
|
• Less, however for digital products such an opportunity is tremendous.
|
|
10. Ease of going global
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• Less
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• Much, as cyber space is truly without boundaries.
|
|
11. Government patronage.
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• Shrinking
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• Much, as IT sector is among the top most priorities of govt.
|
|
12. Nature of Human Capital.
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• Semi skilled and even man power needed.
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• Technically and professional qualified personnel needed.
|
|
13. Transaction risk.
|
• Low due to arm is length transactions and face to face contact.
|
• High due to the distance and anonymity of parties.
|
Sia ? 2 years, 10 months ago
Basis of Distinction
Traditional Business
E-Business
1. Cost of setting up
• High
• Low, as be requirements of physical facilities.
t. 2. Operating cost
• High, due to fixed charges associated with investment in procurement & storage, production, marketing and distribution facilities.
• Low, as a result of reliance on net work relationship rather than ownership of resources.
3. Nature of contract with the suppliers and the customers.
• Indirect, through intermediaries.
• Direct
4. Nature of Intend communication.
• Hierarchial from top level management to middle level management to lower level management to operatives.
• Non-Hierarchial allowing direct vertical, horizontal communication.
5. Response time for meeting customers.
• Long
• Instantaneous.
6. Shape of the organisational structure.
• Vertical/Fall, due to hierarchy or chain of command.
• Horizontal/flat due to directness of command and communcation.
7. Business processes and length of cycle.
• Sequential precedence succession relationship i.e. purchase-production/ operation marketing sales. The business process cycle is therefore logner.
• Simultaneous different processes, Business process cycle is therefore shorter.
8. Opportunity for inter personal touch.
• Much more
• Less
9. Opportunity for physical pre-sampling of products.
• Much more
• Less, however for digital products such an opportunity is tremendous.
10. Ease of going global
• Less
• Much, as cyber space is truly without boundaries.
11. Government patronage.
• Shrinking
• Much, as IT sector is among the top most priorities of govt.
12. Nature of Human Capital.
• Semi skilled and even man power needed.
• Technically and professional qualified personnel needed.
13. Transaction risk.
• Low due to arm is length transactions and face to face contact.
• High due to the distance and anonymity of parties.
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