The management of a business in the digital economy is based on a management process called digital management. Business in the digital economy integrates information technologies and communications within its activities and may be partially or totally electronic. Management of the business is carried out using information systems that support for the substantiation and decisions. Business electronic involve a complete change in how the customer is viewed in relation to the organization; requirements "e-customer" are larger and increasingly sophisticated, and the organization must be able to offer services of a quality that in the largest communities of a multinational partners and customers.management, business, IT & C, Internet, electronic

Elisabeta Andreea Budacia

Lucian Constantin Gabriel Budacia

English

Research Papers in Economics

  42 
 
 
ELECTRONIC BUSINESS IN BUSINESS 
 
Lucian Constantin  
Gabriel Budacia and  
Elisabeta Andreea Budacia
 ∗ 
 
Abstract 
The management of a business in the digital economy is based on a 
management process called digital management. Business in the digital 
economy integrates information technologies and communications within its 
activities and may be partially or totally electronic. Management of the business 
is carried out using information systems that support for the substantiation and 
decisions. Business electronic involve a complete change in how the customer is 
viewed in relation to the organization; requirements "e-customer" are larger 
and increasingly sophisticated, and the organization must be able to offer 
services of a quality that in the largest communities of a multinational partners 
and customers. 
 
Keywords: management, business, IT & C, Internet, electronic 
 
The management of a business in the digital economy is based on a 
management process called digital management. Business in the digital economy 
integrates information technologies and communications within its activities and 
may be partially or totally electronic. Management of the business is carried out 
using information systems that support for the substantiation and decisions. 
Yet what is different businesses through electronic traditional business? 
- business value: May not stay exclusively in its tangible assets, physical, size 
or number of employees but its intangible assets such as brand names, company 
image, quality relationships with customers, the capability to carry out an 
interesting experience of interaction with them, and to provide value-added 
services (online payment products purchased, the convergence of several 
apparently distinct services in a complex product, aggregate, etc.); 
- flexibility: if business is seen through personalization, adapting production 
to demand, a shift towards niche applications, creating business processes specific 
to each type of client; 
                                                           
∗ Lucian  Constantin Gabriel BUDACIA is Assistant Professor of Accounting at the Romanian 
American University in Bucharest. 
Elisabeta Andreea BUDACIA is Associate Professor of Marketing at the Romanian American 
University in Bucharest. 
Romanian Economic and Business Review – Vol. 3, No. 3   43 
- Interactive response capability, shortening terms of transactions: involves 
collaboration between producer and consumer through IT & C, most often 
through software agents that can provide answers 24 hours from 24 without 
human intervention. Organizations can choose when and how they wish to fulfill 
their tasks on the Internet without simultaneously involved in the same moment in 
time, and business partners; 
- orientation processes: relying on IT & C support of the whole informational 
activities, allowing the dismantling of electronic business boundaries imposed by 
rigid organizational structure and management of a full uniform and processes 
necessary business activity;  
- integration: the organization can no longer be viewed in isolation, without 
considering the market it is part, its suppliers and business partners. Business is 
not conducted in May by taking into account the availability and capabilities own 
organization, but those of all its partners; 
- the danger of marginalization - the digital divide: in the digital world 
economy is created major competitive differences between digital organizations 
and those that still have not managed to reach this point, digital organizations will 
be faster, more competitive, closer to customers and suppliers. 
Maybe in this moment, in which the Internet can still be exploited to the 
maximum for objective reasons related to the insufficient development of 
technological infrastructure and communications in certain regions, the most 
effective model would be that of a company that will operate both in the 
traditional manner and according to the vanguard model in which the Internet 
media and IT & C primordial place. 
Business electronic involve a complete change in how the customer is viewed 
in relation to the organization; requirements "e-customer" are larger and 
increasingly sophisticated, and the organization must be able to offer services of a 
quality that in the largest communities of a multinational partners and customers. 
In addition to services provided by the organization be taken into 
consideration and interactive services, value-added - such as those based on the 
use of the extranet. Some industries are favored in this regard to the status of e-
business, namely those characterized by short production cycles, high-tech 
innovation and flexibility in adapting to changing demands in the market. Also 
telecommunications, finance and accounting, marketing, the companies 
advertising, which offers management of human resources are among the first 
subjects in their e-business. 
E-business organizations put in a real dilemma. On the one hand the global 
market that e-business in November offers a promising business opportunities, 
new business itself and a competitive level equalization between small and large 
organizations corporations. On the other hand explosion of Internet technologies 
threaten the very existence of traditional organizations. They see it put in front of 
the necessity to evaluate his competency base - the so-called "core competencies"   44 
- marketing policies, procedures and internal standards, virtually all aspects of 
economic and functional. Major question is what must change in their work and if 
switching to e-business will bring the expected increase productivity; the 
responsibility of managers is to decide whether a shift to e-business is a necessity 
in the context of individual economic organization, if the products and services 
they offer can be supplied or sold online, and if their business partners have the 
capability to also move to e-business. Let's not forget that e-business means 
primarily a connection to a market level, so you can not consider a business in 
terms of e-business if its partners do not have the ability or desire to turn this step. 
Electronic Business may be characterized in three views: conceptual, 
organizational and practical. 
In terms of conceptual, so that a business will be promoted to the status of e-
business be taken into consideration the following aspects: 
- customer orientation - personalizing the largest possible extent and offers 
products based on preferences, field of interest and typology clients; obtaining and 
maintaining an image complete 360 on their way in providing services during and 
quantity expected; 
- targeting process - addressing information and operational activities of the 
organization's along process and not along rigid boundaries imposed by 
organizational structure (divisions, departments, territorial distributed locations, 
etc.); 
- opening - a date with the transformation in "e"-business organization is 
opening a series of opportunities such as the possibility of integrating information 
and informatics business partners, with banking institutions, customs, 
government, in order to tax automation economic transactions; 
- new forms of work, retraining staff - the deployment of most modern forms 
of work, based on intensive use of means IT & C (tele - work, tele - centers etc.).. 
The staff is trained for the purpose of the use of computer, the transition from 
performing simple operations to complex works. This can be considered as staff 
move from the stage qualifying at education; 
- Information security - the most since the property price of a business 
(whether electronic or traditional) is information, e-business require "a 
fundamentally different approach regarding security informatics. In the past the 
only people who accessed networks were certain employees and partners. These 
were people you knew and they had confidence. In e-business, do not know who 
accessed the information and I'll know if you can not trust them. So it is necessary 
a different set of principles, processes and technologies to ensure that networks 
remain protected". 
In practical terms, e-business involves the following:  
• the use of IT & C in a higher proportion for automating daily operations;   45 
• ordering, simplifying and monitoring flows of information: one of the 
essential conditions that guarantee the operation of a business is simplicity 
electronic information flows. What this implies simplicity information flows? 
- first is the concept of a unique point of entry: each category of information 
(products, customers, orders, invoices, etc..) should have a single entry point 
(whether as part of an integrated applications or not). For example, if the 
organization has two systems, an ERP and CRM, which should be decided 
between the two will manage customer orders;  
- second is the separation of information flows: flows must be maintained at a 
level as easy as possible, where a stream to complicate the need to cover certain 
situations and Non-standard equipment, exceptional, it is desirable to create 
custom parallel flows, Instead complicated flow standard. An example of this is 
the feed supply within an organization. For domestic suppliers to operate on the 
basis of a certain working procedures for the external uses a different procedure, 
something more complex. It is the second favorite definition of information flows, 
one for one for the domestic and external, each with a stream responsible for well-
defined, instead of a single stream generic, ramification; 
- responsibility of managing flows for each defined information flow will 
define a responsible, regardless of the number of departments or locations that 
feed it cross. The feed must be approved of those the best known business process 
represented by the flow; 
- monitoring flows of information: the automation process involves a part of 
the implementation of information systems in business functionalities necessary, 
but also establish a mechanism for tracking how they are developed. The most 
common model is the monitoring by logging sites (historical), which allow 
memorize system of "all" of each process in hand. Where appropriate, it is 
essential that the logs to memorize in particular processes which constitute 
interface points with external systems or applications for import / export data 
between different systems;  
- in terms of costs, simplify and location information flows are evident 
beneficial effects, including in information licensing applications implemented 
within the organization. 
Turning to characterize their practical terms, organizations e-business   
supposed to: 
• scaling systems: equipment and systems must be designed so as to allow the 
increase of capacity operating systems a date with business development and 
diversification in terms of new territories, new products and services, new types of 
customers; 
• The operational separation of the management: in an organization-type 
electronic business information systems design and information should have in 
mind the major differences between the executors and managers, among both 
OLTP and OLAP11.   46 
Executors must have online access, quickly, reliably and safely at full 
functionality of information systems. For example, low-speed access to hardware 
and software resources responsible for the billing process may have a negative 
impact on itself company image. In terms of information executors operate only 
transactions, understanding here in particular documents and punctual operations. 
Operations they perform are usually short and repetitive. The information should 
provide a simple graphical interface. 
On the other hand, top managers do not need access to the transaction area a 
system which they lead their business; most likely not even they are not familiar 
with all the details of business flows. Top managers should have access to those 
resources which allow them to achieve analyses and statistics, identify trends 
design, testing scenarios "what-if". Interaction with their system is usually long-
term, require intense physical resources (in particular storage media). For 
readability analysis is recommended that the results presented reports to be brief, 
mostly in graphic form (pie-chart-ROMs, etc.).. Between the two levels are 
operational managers or intermediaries with expertise in the transaction area and 
in the analysis. They must provide information synthetic top managers on the 
basis of analytical reports obtained directly from the transaction system. 
Finally, in terms of organization, switching to e-business has resulted in the 
emergence of new functions (positions in the establishment), such as the 
administrator of applications, content manager of Web pages, Web designer. 
Addressing e-business in terms of organization, the structure of electronic 
business will be detailed during the next chapters. 
As you can see, the evidence presented above do not represent something 
other than a brief list of the main characteristics of a complex solution type ERP / 
SCM / CRM, which again leads us to the conclusion that the business of 
promoting e-business can be achieved by "mere" implementation of such 
solutions and implementation to be binding and accompanied by a process 
reengineering the entire organization. 
One of the points of departure effective in promoting traditional 
organizations to e-business is, in the opinion of the author, development, 
implementation and maintenance of a Quality System (like ISO) correctly and 
completely, which describes in detail:  
• organizational structure of the company: departmental structure, file for 
each post office in part  
• procedure structure of the company, focused on flows and stock. 
Textbook quality, instructions and procedures specified by it should be 
distributed to all staff. In measuring the procedures indicate the use of means IT & 
C (even only those primary, such as e-mail or electronic documents type scales) as 
a standard operation and communication company, we can consider the 
organization as an organization digital.   47 
Defining any business model - not only electronic business - should take into 
consideration four basic elements: 
1. products and services  
2. infrastructure and network partners  
3. capital relationships with clients  
4. the financial aspects of the business. 
Referring us to define electronic business models, the four elements must be 
considered in light of how they are influenced by IT & C. 
IT & C improve products with information, ranging up to them digital 
completely. Using mass customization policy and methods offered by IT & C, 
electronic organizations can adapt his bid to complete the application, depending 
on the profile of each customer in hand. A second direction in which technology 
is influencing companies offer orientation November distribution channels for 
products and services. Publication catalogue of products and services on the 
Internet, supplementing it with the necessary mechanisms, confirmation, payment 
orders, automatically lead to better market the company in question has influence. 
The second element - the company's infrastructure - has in mind:  
• configuration company in terms of the value chain which it builds and 
exploits. Using technology in this sense refers in particular to the use and 
implementation of solutions type ERP, CRM and SCM for functional integration 
of all activities within the company in a common platform business, in accordance 
with economic laws and practices of local governments; 
• analysis of internal resources available to us - tangible (fixed assets, 
equipment manufacturing, etc.). Intangible (brand names, patents and licenses, 
quality relationships with clients.) And human resources. 
 
References 
 
Burn, Janice; Ash, Colin, 2001, Managing Change for e-business Success, 
14th Bled Electronic Commerce Conference, Slovenia  
Choi, Soon-Yong; Whinston, Andrew B., 2000, The Internet Economy, 
Technology and Practice, SmartEcon Publishing 
Cioata, M., 2001, Plati electronice, Net Report, februarie 
Fingar, Peter; Aronica, Ronald, 2001 The Death of ‘e’ and the Birth of the 
Real New Economy, Meghan-Kiffer Press 
Ghilic-Micu, Bogdan, 2006, Business Management in Digital Economy, 
Revista “Informatica Economica” nr. 1(37) 
Hawkins, R., 2001 The “Business Model” as a Research Problem in 
Electronic Commerce, Issue Report no. 4 
Marasescu, Andreea, 2003 Business in the New Economy, lucrare sustinuta 
la „Simpozionul International de Informatica Economica” 

Managing Change for e-business Success, 14th Bled Electronic Commerce Conference, Slovenia Choi, Soon-Yong; Whinston, Andrew B.,

ELECTRONIC BUSINESS IN BUSINESS

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ELECTRONIC BUSINESS IN BUSINESS

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