BUSINESS PLAN

Business Plan

Business Plan

Introduction

According to the estimations of the International Data Corporation, the United States expenditure on the IT sector will show an increment of US$ 0.27 billion by the end of 2013(Söderquist, 2006). Moreover, it has also been estimated that the American firms will spent a large part of the expenditure on the telecommunication sector. This amount is estimated to be US$ 603 million. Whereas, the telecommunication sector will include business-to-business (B2B) and electronic commerce (e-commerce). Over the last few years, B2B e-commerce technologies have become significant in various business models. In addition, the technology has gained global importance and has left behind other types of electroninc commerce. It has show rapid growth with respect to revenues in e-commerce.

In spite of the entire benefits and contributions of the B2B e-commerce sector, there have been confusions regarding its use. Furthermore, the sector has failed to adopt the significant technologies as compared to other industries, especially in the area of B2B business model in supply chain of goods and services (including procurement and distribution ). It has not been found in great detail, the reason how some companies have successfully implemented the technology, while others could not. Other concerns related to this technology is that there are few studies which have been carried out regarding the area. Theses studies mostly address strategic marketing of online services, customer relationship management, and designing phase of e-fulfillment systems. These concerns highlight the discrepencies which exist in the current knowledge on issues related to diffusion of B2B e-commerce and execution in the procurement, supply chain, and distribution of goods and services among corporations (Taylor, 2006).

Various factors have been found during an analysis of a related literature. Those factors have a significant impact on the performance of B2B e-commerce. The factors include B2B e-commerce policies and strategies developed at the organizational level, the ability of a company to successfully adopt IT investment evaluation methodology (IEM) and IT benefits realization methodology (BRM), and the maturity level of an organizational IT infrastructure.

It is essential for organizations to consider these factors with respect to strategic alignment and socio-technical views (Watson, 2007). An organization can efficiently meet its e-commerce objectives if it manages to develop an effective plan related to the formulation, and execution of B2B e-commerce policy. This will require the organizations to channel their resources and capabilities toward the accomplishment of those objectives. These capabilities can help the company to modify and enhance its identifiable and specific business processes. Furthermore, it can improve and upgrade the capabilities and resources to positively affect the maturity level of the organizational IT infrastructure. The level of an organizational IT infrastructure referes to a company's ability to successfully install up-to-date IT technology, to gain competitive advantage in line with organzaitional objectives (Weston, 1999).

According to recent studies, it has been found that organizations at different levels of IT maturity may implement different levels of IEM and BRM (Lee, 2007). This reflects the distinctive value propositions and strategic focus of improved ...