CHAPTER VI

E-BUSINESS
ORGANIZATION
 • Learning Objectives
At the end of this chapter, the students should be able to:

1
01 - Understand the organization design for a business

2
02 - Identify the factors in selecting an organizational model

3 03 - Differentiate traditional organization from e-business

organization

4
04 - Describe the dimensions of e-organizations
The Internet offers alluring opportunities for top-
and bottom-line growth, yet the promise has been
difficult to realize. Indeed, many companies have
struggled to invest In the internet’s advantages
quickly and align their operations and business
models around e-commerce.
 Organization Design
There are three main design choices companies consider when
selecting an organization
 Organization Design
There are three main design choices companies consider when
selecting an organization

01 02 03

Report Lines Dedicated

Outsourcing
Functions
 01

Report Lines

Pertains to which
level within the
hierarchy the E- 02 03
business organization
should sit in other
words, who should Dedicated
Outsourcing
the E-business head Functions
report to
 Organization Design
There are three main design choices companies consider when
selecting an organization

01 02 03

Report Lines Dedicated

Outsourcing
Functions
 02
Dedicated Functions

The extent to which

there are dedicated
01 03
supporting functions
for E-business, such
as Supply chain,
Digital Marketing
Report Lines
Outsourcing
etc.
 Organization Design
There are three main design choices companies consider when
selecting an organization

01 02 03

Report Lines Dedicated

Outsourcing
Functions
 03

Outsourcing

The extent to which

particular functions,
01 02 such as online store
operations, are
outsourced to a third
Report Lines Dedicated party/trusted partner.
Functions
 Organization Design
There are three main design choices companies consider when
selecting an organization

01 02 03

Report Lines Dedicated

Outsourcing
Functions
Factors to Consider in Selecting and
Organizational Model
Factors to Consider in Selecting and
Organizational Model
Company
Culture

Size and ambition for

E-Commerce business

Maturity of
E-Commerce business

Complexity of
business
Factors to Consider in Selecting and
Organizational Model
Company
Culture

Size and ambition for

E-Commerce business

Maturity of
E-Commerce business

Complexity of
business

- the number of categories a consumer goods company plays in,

provide more negotiation power with e-tailors, and requires deep
understanding.
Factors to Consider in Selecting and
Organizational Model
Company
Culture

Size and ambition for

E-Commerce business

Maturity of
E-Commerce business

Complexity of
business - how mature a company is in E-business will affect
its model. Whilst those who embraced E-Commerce
later, are more likely to still rely on outsourcing and
will position
Factors to Consider in Selecting and
Organizational Model
Company
Culture

Size and ambition for

E-Commerce business

Maturity of
E-Commerce business - have strong ambitions to grow E-
Commerce, more likely to move
Complexity of more towards an integrated
business
organization model rather than
separating E-Commerce into its
own dedicated business function.
Factors to Consider in Selecting and
Organizational Model
Company
Culture

Size and ambition for

E-Commerce business - companies that promote
a more collaborative
Maturity of
E-Commerce business
culture may prefer to
retain the more
Complexity of "traditional" model.
business
 Dimensions of E-Business Organization

- refers to the various aspects or elements that contribute to the

structure, functioning, and success of an organization
operating in the digital business environment. These
dimensions encompass different areas that need to be
considered and managed effectively to ensure the smooth
operation and growth of an e-business.
 Dimensions of E-Business Organization

Organization Structure

This dimension refers to how a company is organized,

including its hierarchy and the distribution of roles and
responsibilities. It's the blueprint that dictates the flow of
information and decision-making processes.
Dimensions of E-Business Organization

Leadership

This dimension is about the individuals who steer the

organization towards its goals. It involves setting a vision,
motivating employees, and guiding them towards achieving
the company's objectives.
Dimensions of E-Business Organization

People and Culture

This dimension encompasses the collective attitudes,

behaviors, and values within an organization. It's about
creating an environment that encourages productivity,
inclusivity, and employee satisfaction.
Dimensions of E-Business Organization

Coherence
This dimension refers to the alignment of an organization's
strategies, actions, and processes. It ensures all parts of the
organization are working in harmony towards shared goals.
Dimensions of E-Business Organization

This dimension involves the information, skills, and

expertise that exist within an organization. It's about
managing and utilizing this knowledge to drive innovation
and improve decision-making.

Knowledge
Dimensions of E-Business Organization

This dimension involves the strategic partnerships an

organization forms to achieve its objectives. Alliances can
provide access to new markets, resources, and technologies,
enhancing the organization's capabilities.

Alliances
Dimensions of E-Business Organization

This dimension refers to the systems and processes that

control an organization. It ensures accountability, fairness,
and transparency in the company's operations and
relationships with stakeholders.

Governance
THANK YOU
FOR LISTENING