miércoles, 14 de noviembre de 2012

The digital live in Business


Since we are in  century XXI, the live runs more fast that always, more fast you eat, more fast you need keeping touch with family and friends, or simply is a fact of that : we are depending of technology. It is a good point of discussion, because all people are involved in this situation and the same time all concerns us. Many people has called this century such a : “ technology century” and is right this name, because not only machines and devices are technology, also I must refer everyday   live , how we use the technology to make the live more easy, save time and money and take advance of this tool. For this time, I going to show, how the technology advance is useful in business and in which areas has been used, for example the most popular is business on internet or well say: “E-commerce” and its importance in companies. In addition, I will explain “the systems development life cycle (SDLC), and a model for developing a system or project, all of them in the context of marketing and business application.

On first hand, one of terms more used actually is “E- commerce”, which means: “is buying and selling goods and service over the Internet”. It refers to buy goods and services using communication technologies with a special flexibility in networks and the availability of the Internet offers. To contextualize, what is the function of Internet in business, can be to know the following statements:
·         Offering vendor support
·         Providing customer service
·         Communicating with business partners
·         Publishing and disseminating information
Those are some of common use of Internet in business, but is essential to know the role in the business world, and the value chain, also Porters said : the value chain is a series of activities  designed to meet business needs by adding value in each phase of e-commerce process, in another words, this concept cover all activities that all companies must following in business, there are nine steps to consider in the creation of a company by the way of relationship between customers and organization.
E- Commerce, its applications and its supporting technologies, also the Internet can increase the speed and accuracy of communication between suppliers, distributors and customers and this represent an advantage for any organization because the Internet reduce cost and give a value chain’s efficiency. Thus, e-commerce offers ways to improve operations.
The focus of e-commerce is generating profit, but it has its advantages and disadvantages. As advantages are:
ü  Creating better relationship with suppliers, customers and business partners
ü  Improving customers services
ü  Increasing the number of customers
ü  Reducing administrative and transaction costs
ü  Being able to operate around the world.

As disadvantages are:
ê  Security issues
ê  Acceptance
ê  Accessibility

Thanks to the Internet many companies have improved their productivity to generate profitability, this following a model business, which just work in the web world. The products sell on web, could be traditional, the special thing is the way how are sold, for example, the Merchant model is using the medium of the Internet and sell goods and service over the Web, his advantage is to eliminate the middleman and reach new customers. The next model is the brokerage model, which can generate additional revenue by selling banner advertisements. The advertising model can charge companies for placing banner ads or leasing spots on their sites and the last is the mixed model, which generate revenue from commissions collected from buyers and sellers and from advertising.
On second hand, every day many information runs around the world and the unique way to manage it through systems, which are designed to make more easy some specifics task. For this reason, was created the “ Systems development life cycle”, it is series of well-defined phases performed in sequence that serve as framework for developing a system or project”, this kind of systems have as a function to evaluate the conducted of the system of information of any organization in phases designed particularly suitable to become the company more efficiently. Also for developing this systems have five phases to describe all aspects to improve inside of organization.

As a conclusion, I think that is a good option to get know about e-commerce and the new way to make business, furthermore is cheap and very easy to use with high benefits especially to small companies, which haven’t much money to invest but have great ideas. I guess, in Colombia should improve our interaction with technology for to be more competitors and the same way happen with the systems of information, the companies don’t matter in good system with a focus on grow this sales. When I have a company, I will implement all the recommendations suggested by the author in this great book

Bibliography : Bidgoli, Hossein. Management Information Systems. Chapter. 8, 10,11. 2010

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