Critical Examination of the Effect of E-Business on Value and Profitability of Firm in Mining & Engineering Product Manufacture Industry

Chapter 1
CRITICAL EXAMINATION OF THE EFFECT OF
E-BUSINESS ON VALUE AND PROFITABILITY
OF FIRM IN MINING & ENGINEERING
PRODUCT MANUFACTURE INDUSTRY

Table of Contents
1.0 Abstract -.........................................................................................................................................2
1.1 Introduction.....................................................................................................................................2
1.2 Background......................................................................................................................................3
1.3 Objective of the study.....................................................................................................................4
1.4 Research Question...........................................................................................................................5
1.5 Research Design..............................................................................................................................5
1.6 Chapters..........................................................................................................................................6
1.7 Conclusion.......................................................................................................................................6
1.8 Reference........................................................................................................................................6

1.0 ABSTRACT -
In the era of the digitalized world, every organization is using the internet services in direct or
indirect manner. E-business can be defined as the procedure of linking the business process
with the internet. This change in business process changes the way of communicating with
customers, dealers and other stakeholders. Internet enhances the quality of commercial
processes of an organization. E-business is often used with e-commerce, however, these two
terms are different and the former term is a subset of e-commerce. E-commerce has helped an
organization to control the management even by staying away from the original destination of
the organization. It helped in minimizing the limitations of boundaries between countries as
well. Various organizations have shifted from physical movements to electronic supply chain
to enhance their profitability. Thus it can be said that e-business is a revolution in the
business market which can help in reducing the limitation of distance barriers.
1.1 INTRODUCTION
According to Ruoco and Durfee (2001), today's economy runs on skills and knowledge.
Hence, a huge number of businesses work assiduously to capitalize on this fact. They tend to
build a cross-functional team, customer or product-focused business units and work in groups
to achieve the desired outcome. E-business has become an important aspect for businesses to
consider the way it runs. This research study will focus on the effects of e-business on the
value of an organization. It will address key areas such as strategies, human resources,
customer relationship management, business environment and financial performance which
undermine the quality of work. When a business implements e-businesses, a number of
factors need to be taken into consideration such as process redesign, organizational structure,
policies and procedures and financial performance (Wiengarten, Humhreys, Mckittrick and
Fynes, 2013). Businesses will also need to examine the tax, legal and security issues. Today
we see that e-business is changing all the rules and models to adapt to customer needs. A
business‘s ability to adapt to new technology and business models is the key to increasing the
organization's productivity and financial performance.