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E-Business Technologies vs. IT

Monday, April 2, 2012, 8:00 AM
IT is the technological capability that is used to acquire, process and transmit data or information to necessitate a more effective decision making process for the business. It requires all necessary components such as computer hardware, software, and peripheral devices such as mouse, keyboard and other data input devices that the organization uses. Other systems that can be included in IT are telephones, fax systems, EDI integration, ERP and voice e-mail among many other devices. However, depending on the cost and capability and even purpose, IT system will differ a lot. An example is like RFID which is currently considered as too costly for implementations but other organizations consider the long term benefits as compared to the initial cost of implementing RFID. The decision by any organization to switch to a particular IT system is very important and should be done after careful considerations are made. E-Business technologies on the other hand are a kind of IT technology that requires the internet and the World Wide Web for communication. Researchers have long argued that e-business technologies are responsible for having a positive impact on information exchange between firms because of their low cost and large capability. These technologies provide real-time as compared to batch processing which is actually the differentiating factor between e-business technologies and other technologies. Data is collected and processed at a later date in batch processing while in real-time technologies do all that immediately. E-business technologies also use non proprietary network so they do not get restricted by format of the data they process. EDI has been surpassed by the internet when it comes to how information is shared and also the costs. However, this cost reductions will vary depending on a firms specific situation. There can be savings of up to 2% on sales done over the internet, 4% of transactional savings of sales and there are also claims of the British Telecom having experienced a reduction of 90% on procurement by suing e-commerce. EDI allows only limited sharing content with few remote partners and unfortunately at a high cost. EDI integration is also an information technology that requires computer-to-computer transmissions of standardized transactions. In contrast, form real-time sharing and integration of information between the partners in supply chain, the internet is used. It is also relatively cheaper and does not require conforming to any industry standards. At the end of the day, the benefits of internet use will outdo e-business benefits hence making IT much better for optimum cost reductions and efficiency.

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