Time which is very valuable in any kind of businesses can now be saved by using electronic business. Information can be easily be accessed by companies. Thus, the time used in finding the correct information can now be saved and the time saved can be used in other more important tasks.
When a company does its business electronically in other words, uses electronic business. The company will be able to increase its income. The company no longer needs to have impressive and expensive offices which have been the trademark of success and reliable corporate. Now, companies are now turning to more efficient and cost-effective ways of creating and delivering products, this can be done with electronic business.
By revolutionizing the way of doing business, companies are able to surpass the geographical boundaries and barriers. Companies now are able to do business worldwide and not refine to just local businesses. This is made possible by electronic business as companies are able to keep in touch with their clients worldwide with ease.
But electronic business too has its drawbacks. When one of the system crashes, all the other inter-connecting systems too will crash. This will be a major problem for the company as these kinds of electronic problems may take days to solve and the company business transactions will be in a standstill. Thus, the company is making losses everyday until the problems are solved and the company is back on track.
One of the drawbacks for electronic business is its setup cost. The setup cost can be very large depends on how sophisticated the system is and the size of the company. Setting up electronic business can be a hassle and professionals are hired to this job. There are also operating costs for electronic business, such as maintenance cost.
The system�s running costs are high as professionals are hired to monitor the system and updating the system. These professionals are hard to find and their wages are high. Thus, using electronic business is simply not economically feasible for small and medium sized companies.
Reference
www.wikipedia.org
www.prairepublic.org/features/end/homebase/
www.ebusiness-watch.org/resources/business/
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