Formal Learning

Case Study #1 Trends in Business Ecosystems

Please write a case study analysis to address this Problem Statement: “How do the C-Commerce trends associated with Business Ecosystems drive virtual enterprise management system development, implementation, and operation”?

Problem Statement

A business ecosystem is a group of organizations connected through a common product, service or industry. An ecosystem may include but not limited to suppliers, distributers, customers and competitors (Investopedia).  Members of the ecosystem interact through competition and cooperation which allow the ecosystem to stay agile and strengthen over time. Collaborative commerce or C-Commerce with in an ecosystem use the internet and cloud technology to create business agility with the hopes of becoming efficient, cutting down costs and lead times while increasing profits (Heisterberg & Verma 2014).

In the attempt to gain a competitive advantage C-Commerce need to capitalize on the technology in the market place and must be willing to stay agile by adapting to new technology as it becomes available. As information technology has advanced members of a business ecosystem must adjust. The problem then arises “How do C-Commerce trend drive enterprise management systems development, implantation and operations” within an ecosystem.  In order to understand how the problem is being addressed within the ecosystems we explore background information on the problem, examine how managers responded the problems, what were the lessons learned from the problem and the impact the case study has the term project.

Challenges & Opportunities

In order to address and find a solution to the problem we must first dive into the background. Before the advancement of the internet businesses used technology for internal use to preform limited functions. As the internet has advanced the term collaborative commerce was created to describe business that used technology for internal and external use to grow and strengthen relationships (Chen, Zhang, Zhou, 2007).  The top five information technology trends used by collaborative commerce are cloud, big data, social, mobility, and video. Through the growth of these trends businesses began to use the internet to make business transactions with external users, these businesses are now known as E- Commerce.

Business process management has become a key element in the success of collaborative commerce (Chen, Zhang, Zhou, 2007).  Business process are “a standardize set of activities that accomplice a specific task (Baltzan, 2015)”. A business can then asses the activities and determine which are most important by creating a value chain. Figure 1 below shows a detailed example of a value chain (Value Chain Analysis).

Figure 1

As business grows and evolve into C-Commerce and E-Commerce a major challenge becomes, does the business have the agility to adopt the changes? Do they have the right management to implement the changes and a trainable staff under them to support the manage? Do they have the capital to invest in the tools such as software or training for employees? All these questions must be answered when a company when a business becomes C-Commerce or E-Commerce because the business must realign its core competencies to fit the new business model.

Business Solutions

In order C-Commerce develop a plane to address the top five IT trends- cloud, big data, social, mobile, and video the business released that they must start at the top down. New Executive Management positions have been created to lead the company’s growth in IT. Some examples of the new positions are chief information officer, chief technology officer, and chief digital officer. In Figure 2 you will find an example from spencerstuart.com of a company that uses cloud technology. As you can see the company has two executive positions that relate to IT

Figure 2 (Hancock 2011)

In Figure 3 we will the data provide by Brian Manning on a study he did on Fortune 500 companies and how they are adopting the idea of the need IT position at and executive level.

Figure 3

After C- Commerce assembles the right management team to lead the EMS they can implement the tools to for companies to be successful. Figure 4 shows the benefits of switching to a cloud based system (Koultorides 2016). By having instant cloud access to transfer information anytime anywhere creates leverage for the other four IT trends big data, social, and mobile, and video. Figure 4 also shows the impact a cloud service has financially on a company and the amount of resources it can free up. By freeing up resources a company can choose to reallocate them to a new location to improve business process in other areas or eliminate the positions and save money.

 

Figure 4

 

Lessons Learned/Business Case

C-Commerce has learned it is important to remain agile in order to stay competitive. Also they understand it is ok for an ecosystem to expand and the ecosystem must renew itself or it could become extinct (Heisterberg & Verma 2014).  Market leaders must also constantly adjust in order to keep their competitive advantage; with in the ecosystem they must continue to find new ways to leverage EIMS.

Health forms of competition can be good for the ecosystem as a whole because it will motivate by suppliers to examine its business process and value chain to become more efficient. The effects of the changes can then be measured by the ability to convert the change in efficient into a reduction in costs or increase in profits.

Why I Care

As a student and a supply chain professional it is important to understand “how the trends associated with Business Ecosystems drive virtual enterprise management systems development, implementation and operations” because we are in the middle of the “perfect storm”. The prefect storm is created by rapid growth and evolution of cloud, big data, social, mobility, and video disrupting the business playing field (Heisterberg & Verma 2014). Not only do I need to understand the background on subject as a student, I need to be able to add it to my personal learning environment and use it as leverage as I build my career. Also by learning about the background I can better prepare myself as a working professional to look out for early warning signs for the next “Force 5” change.

Business must continue to find new ways to leverage “Force 5” technology to improve a business ecosystem. Not only are customers with in the ecosystem embracing the changes they are also demanding the changes. For example most companies now have a modified website for mobile device users or even an app. Without these features customers are less likely to spend time on your website and will move on to a site that is easy to view and navigate. This is an example of how customers are now expecting a business to incorporate IT into their business.

 

 

 

 

 

 

 

 

References

Baltzan, P. (2015). Business driven technology (SIXTH edition. ed.). New York: McGraw-Hill     Education.

Chen, M., Zhang, D., & Zhou, L. (2007). Empowering collaborative commerce with web services enabled business process management systems. Decision Support        Systems, 43(2), 530-546. doi:10.1016/j.dss.2005.05.014

Hancock, J. C. (2011, July). Leadership in the Cloud Computing Era. Retrieved July 09, 2017,     from https://www.spencerstuart.com/research-and-insight/leadership-in-the-cloud-          computing-era

Heisterberg, R., & Verma, A. (2014). Creating business agility: How convergence of cloud,          social, mobile, video. John Wiley & Sons.

Investopedia-http://www.investopedia.com/terms/b/business-ecosystem.asp

Koultorides, A. (2016, June 30). Rain Down Cost Savings With Cloud-Based Business     Applications. Retrieved July 09, 2017, from http://blog.westmonroepartners.com/rain-          down-cost-savings-with-cloud-based-business-applications/

Manning, B. (2015, May 19). Too Many Chiefs? How CDOs, CIOs, CTOs, and CMOs Must       Work Together. Retrieved July 09, 2017, from https://centricdigital.com/blog/digital-           trends/cdos-cio-cto-cmo/

Value Chain Analysis http://research-methodology.net/theory/strategy/value-chain-analysis-2/

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s