Traditional Versus E-Business

Customers try new products and provide feedback, allowing P&G to refine products and marketing plans. Before using the Internet, P&G spent $25,000 to test each product concept and took two months to complete a test. Now, P&G can do the same test at a cost of $2,500 and obtain results in two weeks. P&G is also using the Internet to take these new products to market. For example, when launching its Physique range of hair care products, P&G invited consumers to register on its Physique.com website to sample the new products. Within 12 weeks, more than five million consumers visited the site.

Information is essential for conducting e business. Thus information capture, storage and dissemination are important activities in organizations that have adopted ebusiness. The volume of data that is collected and analyzed is substantial in ebusiness. Although data was available, even before the Internet age, organizations could not analyze and cleanse the data to get meaningful information. But now modern technology has made real time information processing possible. This has improved the productivity and efficiency of organizations and enabled them to offer high quality customer service.

Traditional business operations are confined to limited geographic locations, but in the case of e business, operations can take place across the globe due to the ubiquitous nature of the Internet. In addition, automation has made e business processes and operations more efficient than those of traditional businesses. Transactions that were earlier time consuming are now performed within minutes because customers can interact with the organization through the fax, telephone, e mail or web.

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