Know-How Exchange : Student Questions

Hi davidinstow,

Well day 4 and no responses and no clarification from you, so I will try to help you out.

Next time, please play along with us and be more interactive.

Here you go:

Some theory has that the corporations that fail at e-business do so because they use the traditional value chain as the strategic model for the enterprise.

If you don't know what a traditional value chain is, look up "Michael Porter Value Chain" in Google.

Conversely, the firms that are successful will do so by using a digital value chain that enables the company to focus not on static, internally focused chains but on dynamic, external webs of relationships that take full advantage of the power, flexibility, and opportunity of the Internet and digital world.

These could be:

1) Collaborating with multiple partners outside the firm based on real time information resources

2) Mastering dynamic pricing due to real-time feedback in a digital marketplace

(3) Establishing customer trust and lifetime increasing value and returns through a proactive balance of privacy and personalization - think Amazon and eBay

(4) Providing essential, relationship-based online services that can be delivered to customers on the fly.

So it doesn't really matter what kind of business it is - Web malls, email, search engine, web sites, if it can successfully do the above, they are operating in the world of delivering digital value.

I hope that helps!