The emergence of E-business has been made possible due to the convergence of Connectivity - Content and e-Commerce and its long-term success will depend on the strategic partnerships it is able to insure.
Hence, in order to ensure profitability, E- business model need to follow CAMELS- Capital, Asset quality, Management, Earning, Liquidity and Sensitivity to market risk. The model needs to complement online services with an offline presence and bring in connectivity with the customer moods and preferences by bringing in operational efficiency.
The thriving E-business model of the future will stay ahead of the customer expectation curve and offer improved flexibility and service across channels. The need to harmonize increased demands of customers while maintaining cost effective operations will be critical in sustaining profitability and bringing in differentiation from competition.
The future of online business model depends on:
Value proposition:
A move from a static stage of giving customer what the company makes or offers to dynamic approach of deploying technology to create continuously improvement and adding new value for the customer.
Revenue and profit models:
Converting web presence into dollars and having a great CRM (customer relationship management) model for retaining customers by customizing offering by bundling information and knowledge,.
Organizational priority:
Shifts from efficiency and rigidity to flexibility and responsiveness by letting customers decide when, where, and how they want to interact.
Strategic partnership:
Developing partnership and bringing in unique products and services. It is a matter of bringing in core competence, while working with your competitors.
E- Business permutation and combination will work by offering improved flexibility; wider choices, strategic partnership and dynamic system revolving are need, wants and desires of customers which will bring in cost effectiveness. This cost effectiveness should lead to improved saving across the channel.
Robin C. Trehan is an industry consultant in the field of mergers and acquisitions. He can be reached at robin@tafunds.com www.tafunds.com