From E-Business to I-Business, Essay Example
Given that an e-business is half operated as an internet-based entity and a half-physical based organization, an i-business is considered to be fully operated online. This means that the B-2-B and C-2-B operations are both accomplished through the aid of the internet. Relatively, an e-business is run through the aid of the internet and yet it still has strong physical foundation as an actual entity that consumers could check out. Given this, an e-business is then usually considered to be more costly than an i-business which does not need to be funded or supported by physical establishments as proof of the organization’s existence in the market. This is the reason why several e-commerce-based operations are turning into i-business developments to reduce costs and expenses of operation and increase profit revenue from their respective transactions.
However, when turning an e-commerce based operations, a business needs to transform from operating in a red oceans strategy towards a blue oceans strategy. Given that in the red oceans strategy, every limitations are noted, all capacities are outlined for the organization to follow, the blue oceans approach widens out all the possibilities that the organization could embrace especially when it comes to developing its own new process of considering business conditions online. Hence, when an organization is to be reassessed to be based upon a blue oceans strategy, it has to undergo six particular path frameworks while following the three principles of fair process.
The first step to note is the approach of engagement whereas the administrators would engage individuals into the decisions that they are supposed to make in relation to the adjustments involved. Through this, the administrators could refer to their staff members as they look through the different aspects of the industry they are in and create new demands for the market [which widens out the choices for their target buyers]. Expanding the market would be easier through engagement as the administrators would know who else they might be able to serve with what they are ready to offer instead of simply looking through the same consumers that their competitors are already serving. The second step to consider is the explanation, whereas the business owners and the supervisors are given the chance to see the rationale behind the changes they are making. Through looking across the line, they are expected to be able to create a sense of urgency among their people that would realign their focus on the market they are serving and thus make a greater impact on more consumers that they may be able to serve in the end. The last step to give attention to is the creation of a clarified expectation. Administrators should be careful not to over-state their expectations of the organization. Considering that it would be operating online in full swing, administrators should know that even though there might not be a physical limitation to their operation, there are still boundaries that are specifically able to make a distinctive impact on the online transactions that the business shall embrace as part of its regular existence on the internet.
With the blue ocean strategy applied, the new i-business is expected to flourish in the face of new advancements that follow the considerations over e-defined operations that are necessary for making a great impact in the international market. The internet has indeed increased the capacity of modern businesses to make greater impact on the international market. Though utilizing all the possibilities available, modern business administrators welcome the intended course of development that their organization could take in line with the desire of becoming bigger and more influential in the market. With this approach being given attention to at present, the blue ocean strategy lessens down the animosity of business competition while widening the capacity of each organization to attract a considerable share of the market to enjoy a wide array of service and product sources designed for their satisfaction and convenience.
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Barnett, M. Chapter 5: Moving from e-Business to i-Business Strategies in Virtual Markets. http://www.globalspec.com/reference/60895/203279/chapter-5-moving-from-e-business-to-i-business-strategies-in-virtual-markets. (Retrieved on October 1, 2012).
Kim, Chan (2005). Blue Ocean Strategy. Boston: Harvard Business School Press. p. 210.
Three Principles of Fair Process. http://www.blueoceanstrategy.com/abo/fair_process.html. (Retrieved on October 1, 2012).
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