E-Business and Digital Business

The primary benefits of e-business revolve around the fact that it eliminates limitations of time and geographical distance. In the process, e-commerce usually streamlines operations and lowers costs.

E-business uses the internet to run businesses smoothly, efficiently and with no error. 

 

Ford Motor Company launched its e-business initiative in 1999 and became a consumer-centric company from a dealer-centric company. This initiative allowed Ford to save costs in different departments. The e-business initiative helped Ford transform its strategy from push to pull, allowing the company to open a direct network for its customers

 The company, after this change, had the chance to enhance its supply chain management.

 

 E-business initiative in the automobile industry has reduced search costs and saved time for the customer.

Through E-business, customers were able to order their car via internet websites, and the car would be delivered to their house, while they were convenient at home, reducing the stress of going to dealerships and signing all papers for their new car. 

 

One of the challenges met by the company though their choice of the E-business, was that the company workers were afraid of loosing their jobs to a computer.

Another challenge could’ve been that the system was able to retrieve the data the company wanted; most customers and workers were indecisive with this type of business and most of them concluded that the old system fit better..

 

The biggest challenge was to make them buy from the websites. The challenges an e-business strategy firm would face are cost maintenance, extensibility and reusability of the systems, industry acceptability, and implementation of technology needed by the firm. Ford's e-business initiatives include AutoXchange, Covisint, and FSN, which enable suppliers to exchange information and bonds with Ford dealers, employees, and customers.

 

 Ford's MyFord.com website allowed dealers to connect with customers.

 The case informs that some analysts said that Nissan's initiative to build the car with trouble ineffective the specifications. Ford took the first step to implement build-to-order in late 2000, but Nissan emerged as a major competition. Ford has not yet been able to introduce web-enabled build-to-order manufacturing but aims to make it happen. If a company needs to be connected to all of its suppliers and customers, it needs an ERP system. Oracle helped Ford open a joint venture, Autoexchange, in 1999, which allowed Ford to do business online. Ford motors is a significant competitor to SAP ERP for web-enabled build-to-order car companies. (Reuters, 2022)

 

 An SAP ERP system allows a firm to manage its finances, human capital, logistics, and procurement. A sound management system allows a firm to measure business operations and improve the visibility of all processes. Ford's ERP system allows the firm to use the software design and innovate through adaptability. ERP systems evolved from financial, manufacturing, planning, and modules to SRM, PDM, CRM and PLM technologies. Introduced the concept of supply chain management, which aims to improve the performance of companies. PDM is a method of product data management.

PLM is a product life cycle management as a product goes through its life cycle, the advertisement and pricing of the product change.