AOL has made the first step towards e-commerce. The company provides a useful service to its clients. The customers get the summary of their bills and are able to access a number of websites using only one passwords and ID (Haag & Cummings, 2008). Admittedly, customers will appreciate these options, but they will want other services as well. Thus, it is clear that the company should introduce services connected with paying bills. This option will attract more customers who long for easier ways to pay their bills. It will also require larger investment into development of the new software and a variety of additional services for customers.
As far as a small B2B company is concerned, it is necessary to note that it should try to adopt a B2B model of electronic commerce. Cullen and Webster (2007) claim that B2B model of commerce can be beneficial for B2B companies. The researchers provide nine scenarios for such companies. Since the company has limited resources to invest into development of the e-commerce model, it can adopt Scenario 3 as the first step. Cullen and Webster (2007) note that there are a number of electronic marketplaces which are aimed at matching demand and supply. Thus, the company does not need to invest a lot of funds into development of its own software as it can benefit from operating at such marketplaces.
At the same time, the company has a need to develop its IT infrastructure to manage products, materials and deliveries. When the company starts operating in new markets, the number of customers will increase. This will lead to larger revenues, though to more pressure on logistics. Therefore, it is important to start integrating software to address the company’s needs. It is possible to start with the use of specific software to manage deliveries and materials involved in the electronic marketplace. Duffy and Dale (2002) stress that integration of e-commerce should be held in several stages. It is crucial to implement smaller projects as this will enable the company to effectively address its needs.
Therefore, as has been mentioned above, the company in question should start with integrating e-commerce models to address the needs of the electronic marketplace. Afterwards, the company will gain the necessary experience and will have certain software to be able to expand it to other processes. The company will soon be able to integrate effective software to manage its materials, products and deliveries. Admittedly, the company will have to make a strategic decision and invest more into development of its IT infrastructure. This can be regarded as a significant risk as many companies are facing numerous financial constraints. Nevertheless, the company should take the risk as this will lead to further development.
To sum up, it is possible to note that electronic commerce has already become an indispensible part of the business world and companies should be integrated to remain competitive as customers (as well as businesses) are waiting for new services and new opportunities. It is necessary to note that even small businesses can (and should) benefit from e-commerce. Clearly, these companies will also have to invest into development of their IT infrastructure. However, this investment will lead to the company’s growth and development. Besides, companies should implement the change gradually, which will reduce costs and will make the process of IT integration will not be a hard financial burden.
Reference List
Cullen, A.J., & Webster, M. (2007). A model of B2B e-commerce, based on connectivity and purpose. International Journal of Operations & Production Management, 27(2), 205-225.
Duffy, G., & Dale, B.G. (2002). E-commerce processes: A study of criticality. Industrial Management & Data Systems, 102(8), 432-441.
Haag, S., & Cummings, M. (2008). Management information systems for the information age. Boston: McGraw-Hill/Irwin.