Value Chains and E-Business

Paper Summary:

This paper examines how understanding the value chain and the "soft" issues of human resource management are important for e-business models to succeed. It looks at how the anonymity of the workers and the lack of personal interaction between the various workers, collaborators, customers, and suppliers has introduced new issues in e-business models and how managing these issues might provide the best competitive edge for organizations

From the Paper:

"In the case of an e-business value chain analysis transparency in operation is required. For example, a U.S.-based telecommunication company might outsource Customer Relationship management (CRM) work to countries like India in order to keep cost down and improve the profit margin. In order to optimize this value chain of the CRM, both parties in the U.S. and India have to be able to evaluate the current situation and best practices that the two companies use constantly and at all times. A clear and detailed map of the flow of information and the work flow has to be defined initially. As with any process, bottlenecks, problems and constraints will surface once the plan is implemented. It is critical to tackle the problems as they appear in a manner that is suitable and appropriate for the situation and the workers within the organization."

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