Effects decision making in business
In today’s world e-business is extremely important for many reasons. Some of which is due to the fact it can speed the whole process of ordering etc. up. This then means that the lead time can be decreased because the ordering of products can be done much more quickly, particularly because the Internet is a fast running wide area network. However, despite this, the question should be asked, what does e-business mean?
E-business actually means: Better procurement and supply chain, making sales teams more effective, the ability to outsource functions such as accounting, remote access to systems, linking management teams in different locations, being able to locate the lowest cost supplier, improve customer services, improved collection of customer information for databases and more effective management of remote manufacturing sites.
All of this helps with the smooth running of the business, it makes transactions much quicker, and easier, for example, they can be down on the computer, and they do not have to be done face to face it a meeting, or even over the phone, both of which can take time, and are both dependant on the other person actually being available, whereas ordering on the internet can be done at any time, and it is not dependant on two, or even more people either meeting at the same time or talking over the phone. Both of which can also be work expensive, especially when dealing with foreign countries, i.
e. USA. Another advantage with using the Internet is that it can be used to browse and search for the suppliers who can offer them the best deal, i. e. the company who can offer them the most competitive price, with the quickest delivery, and even perhaps, the most guarantees, for example, if you are not happy with your product then you can send it back for a full refund. However, in order to purchase goods/products over the Internet the company needs to have a web site which can be easily accessed, because without this, transactions between two people will not be able to take place.
Both companies also have to have the Internet to be able to do this so they can both connect and share the order and send reply’s etc to let them know that the order has been accepted and processed. Other advantages of using the Internet for business, could be with regards to using applications and features such as email, which is great because it is a quick and cheap way of sending information, combined with the ability to attach files and send them onto another user. However, despite having many advantages of the Internet, there are, unfortunately disadvantages too.
For example, Viruses are often spread over the Internet, which can normally be done via email. Even having a virus scanner does not protect your computer/system 100% because they do not always recognise new virus which it does not yet know about. Other disadvantages of the Internet may include hackers being able to access your system and therefore all of the companies files, which could ruin the company because all of their ideas, plans and accounts etc could either be deleted, or the information sold on to its competitors which means they would know what they are about to do before they actually release a new product for example.
As well as this, ordering and purchasing goods over the Internet generally has to be done by the use of a credit/debit card, which involves putting all of your account information over the Internet, and if the site is not secure then hackers could get hold of this information and use them for themselves which would leave the company with a huge bill to pay, which would not be good for the budgets etc.
In conclusion, e-business over the Internet is a good thing for companies, even though there are a few disadvantages, but I feel that the advantages out weigh this, mainly because it can allow business’s work quicker and smoother, yet at the same time, at a cheaper cost because it is generally cheaper than a phone call or even an actual meeting especially if dealing with a country outside of the EU, e.
g. USA. The Internet also allows the company to search for the best possible deal for them with regards to cost and quality of the product/resources they are trying to get hold of. This therefore means than decisions can be made more quickly, and at the same time for the best of the company.