Accounting Information Systems: The Processes and Controls, 2nd Edition

E-BUSINESS ENABLEMENT EXAMPLES (STUDY OBJECTIVE 7)

There is much more to e-business than just B2B transactions. The Internet can be used in many different ways to streamline business processes, reduce operational costs, and enhance efficiency that it is difficult to describe the entire range of e-business possibilities. The summaries that follow are real business examples of the ways in which businesses adopt e-business strategies.

These examples illustrate the broad nature of e-business, even though they do not encompass all the ways that e-business is used to streamline processes, reduce costs, and improve relationships with suppliers, distributors, wholesalers, retailers, and customers. To gain the advantages available in e-business, organizations must utilize various levels of networks within and attached to the Internet. Companies must use the Internet network to interact electronically with the entities in the supply chain. The levels of the Internet network structure that enable e-business are the Internet, extranets, and intranets. These levels of the network serve as the platform to connect parties throughout the supply chain.

THE REAL WORLD

General Electric Company (GE)

On April 26, 2000, Jack Welch, the well-known CEO of General Electric Company, spoke at the GE annual meeting of shareholders and described how e-business affects four aspects of business at GE. He called these four areas “buy, make, sell, and strategic.” Regarding these four areas, he said the following: ...