Changing the way of doing business : electronically enabled organizations

Abstract

Several forces are forging a new business environment. Among them are dramatic increase in communications, globalization of markets and supply chains, focus on customer needs, increased speed and competition. Companies adapt to this new, more challenging environment by changing their business model. The latest development of technology has enabled the creation of new business models, as well as forged radical changes in traditional ones. This thesis examines an organizational form, the Electronically Enabled Organization (EEO), which enables companies to implement a model that leverages technology in order to sense customer needs and respond quickly and effectively. Companies with successful implementation of the EEO concept have enjoyed both lower costs and higher customer satisfaction. The design of an EEO structure must align with other four elements: strategy, technology, people and processes and it is only limited by top management's traditional focus toward conventional business models and organizational structures. The real difficulty comes from the implementation, particularly where it affects people and their operating habits. Therefore large and well-established companies are at a disadvantage compared to smaller and younger organizations.