Duffy and Dale (2002) established that success in electronic commerce is dependent on ten critical processes. How well a company undertakes these processes determines its success. AOL should ensure that the following processes in its system are given priority: financial control, revenue collection/generation, IT/Web changes, business processes, e-integration, call center integration, order generation, 24/7 operation, order fulfilment, and consumer behavior. AOL should also develop positive customer relationships.
A small office supply company transacts business with other businesses: providing office materials. The company needs to keep track of inventory, delivery schedules and ensure that customer satisfaction is high to build client loyalty. This company requires a B2B model that enables it to transact business easily but considers the cost factor to the business. The company has a small IT budget. The IT scope of the company is considerably low; therefore, the company does not hire an internal IT professional. The critical factors that are evident for this decision are costs and number of IT processes required.
The appropriate B2B model for the office supplies company is the managed model. The company outsources all B2B processes to a service provider. This model is sufficient for companies that do not require extensive management of B2B processes (Sommer, 2003). The company in this case only requires three to five processes to manage its transactions with trading partners. Installing an internal system would not be economical for the business. The external service provider takes care of all transactions for the business. The service is also at demand, making it appropriate for a company that does not require the service consistently. Complexity is also eliminated since the business does not take care of any technical processes.
References
Duffy, G. & Dale, B.G. (2002). E-commerce processes: a study of criticality. Industrial Management & Data Systems, 102(8) , 432 - 441.
Sommer, R. A. (2003). Business process flexibility: a driver for outsourcing. Industrial Management & Data Systems, 103(3), 177-183.
