StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Strategic Implication of E Commerce for the Design and Construction Industry Article Analysis - Essay Example

Cite this document
Summary
The article "The Strategic Implication of Ecommerce for the Design and Construction Industry" is analyzed in this report to evaluate different aspects of the research approach as well as concepts and principles related to the application of e-commerce in the AEC industry…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
The Strategic Implication of E Commerce for the Design and Construction Industry Article Analysis
Read Text Preview

Extract of sample "The Strategic Implication of E Commerce for the Design and Construction Industry Article Analysis"

The business world has evolved greatly over the last 25 years. The acceleration started with the internet era in the 1990’s and the subsequent convergence age we are currently living in the 21st century. The convergence age is defined by the collapse of media channels: broadcast, cable, radio, online, print into a value chain that creates a singular medium which become the epicenter of interconnection and activity that leads all stakeholders to the same primary provider united by broadband internet and high speed wireless networks. The architecture / engineering / construction (AEC) is one of many industries that is currently utilizing ecommerce solutions and platforms in order to obtain competitive advantages by reducing cost, integrating resources and gaining access to vast amounts of information while at the same time increasing the networking capabilities of the firm. The article The Strategic Implication of Ecommerce for the Design and Construction Industry is analyzed in this report to evaluate different aspects of the research approach as well as concepts and principles related to the application of e-commerce in the AEC industry (Johnson, et al, 2002). The main research question which is being asked by the author’s of the article by Johnson and his colleagues is if the AEC industry can benefit itself and integrate ecommerce platforms into the business plans and strategic objectives of the enterprise. If the construction industry and its participants can achieve greater integration of ecommerce it be able to raise overall profits in the industry by streamlining activities that used to take greater efforts which led to unnecessary expenses now become automated activities that provide added value services to the customers. The power of the ecommerce solution is based on the achieved growth in the utilization of the platform after the turn of the century. In 2001 ecommerce in the United States generated $7931 million in revenues (Plunkett Research, 2007). Six years later in the 1st quarter in 2007 the sales volume had grown to $27,092, an overall increase of 242% over a six year span or an average yearly growth of 40% (Plunkett Research, 2007). These figures clearly illustrate evidence of the worldwide tendency of increase ecommerce dependence by all companies around the globe. The article effectively described the industry in order to evaluate possibilities that are going to integrate ecommerce solutions to increase efficiently in the AEC industry. Various case studies of different participants of the value added supply chain that allowed the players in the industry to obtain efficiencies associated with economies of scope, integration of resources, technological advances, information technology and other competitive advantages. The literature provided a very clear and descriptive analysis of the construction industry. The construction industry is a mature fragmented industry which is closely held with less than 25 public trading companies and plenty of small and medium closed held private enterprises (Johnson, et al, 2002). The configuration of the industry created the opportunity for intermediaries to provide a specialized service in order to help this fast pace dynamic industry in which firms jump from project to project and virtual enterprises are created to facilitate the communication and functioning of a project by applying information technology solutions to guide a firm in the right direction with the help of technological advancements. A fine methodological approach was provided with solid theory and concepts of practical application into ecommerce solutions. The e-commerce topic is discussed in a way that the strategic decisions are allocated a proper discussion starting in the role of information technology and moving into strategic positioning that can be achieved through the utilization of an ecommerce platform. Porter’s five forces technique is utilized to analyze the effect of the different element on a company in the studied industry with relation to the introduction of ecommerce application into a construction, design and engineering business. Each element or force of Porter’s model which includes: bargaining power of suppliers, threats of new entrants, threats of substitute products and services, competitive rivalry among firms, and buying power of buyers were used to illustrate different examples of how IT and e-commerce can enhance the functionality of different the different business functions (Kotler, 2003). The overall approach utilized by the authors of the article to bring light to the fact that information technology has become the top branded service industry that has revolutionized the world and create business models such as India’s information technology exports from other countries around the world based on ecommerce transaction originated by the need companies in other parts of the world such as the USA have to outsource work and have connectivity to its virtual employees by signing telecommuting work arrangements in which large portions of projects are performed elsewhere in business to business e-commerce transactions. The construction industry could perform generic benchmarking into the Indian Ecommerce model to find solution applied earlier in this fast track innovation nation to then apply the knowledge to perform continuous improvement in its e-commerce platforms for both business to customer and business to business e-commerce transactions. A company that provides civil engineering services for city construction projects and other jobs related to the construction industry can increase the amount of client the company is able to handle at the same time with the same amount of labor by having an information technology infrastructure that provides tools for the employees of the firm that allows them to work with clients and shared vital information through a secure network by performing business to business ecommerce transaction inside the through a module to the IS that allows the buyer access the seller’s network to share the information related with this business deal. The best way for a company in a closed industry to open up its doors to new possibilities is by entering a new dimension into the mix that allows the players to used new forms of communication to create value by providing services such as clearing financial transaction faster by performing electronic commerce is the wave of the future in the business world and will transform business is performed in the AEC industry (Moscove, et al 1999). References Johnson,R., Mark C., Ge. X., Jeong-hang W. and Yunsik S. (2002). The strategic implications of e-commerce form design and construction industry. Engineering, Construction, and Architectural Management, 9. 241-248. Kotler, P. (2003). Marketing Management (11th ed.). New Jersey: Prentice Hall. Moscove, S., Mark. S. and Nancy B. (1999). Core Concepts of Accounting Information Systems (6th ed.). New York: John Wiley & Sons. Plunkett Research (2007). Ecommerce & Internet Industry Trends. Available from [Plunkett Research database]. [Accessed 2 January 2008]. Plunkett Research (2007). Ecommerce & Internet Industry Statistics. Available from [Accessed 2 January 2008]. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Strategic Implication of E Commerce for the Design and Essay”, n.d.)
Retrieved from https://studentshare.org/marketing/1543901-critical-review-of-the-article-the-strategic-implications-of-e-commerce-for-the-design-and-construction-industry-attached
(The Strategic Implication of E Commerce for the Design and Essay)
https://studentshare.org/marketing/1543901-critical-review-of-the-article-the-strategic-implications-of-e-commerce-for-the-design-and-construction-industry-attached.
“The Strategic Implication of E Commerce for the Design and Essay”, n.d. https://studentshare.org/marketing/1543901-critical-review-of-the-article-the-strategic-implications-of-e-commerce-for-the-design-and-construction-industry-attached.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Strategic Implication of E Commerce for the Design and Construction Industry Article Analysis

Issues currently occurring in the hospitality industry

The major issues faced by the global hospital industry are the changing demographics of the world which are impacting the trends within the travel industry.... The emerging markets across the world, the shortage of labour and skills, innovations in technology, availability of capital, restrictions imposed in the travel industry, the increasing costs of constructions, balancing the expenses with the immediate need of increasing the rates and distribution revolution are the major factors affecting the global hospitality industry....
4 Pages (1000 words) Article

Construction op. analysis (reading articles) R4

analysis (READING ARTICLES) R4 Simulation of complex construction processes Question: What entails the simulation model of the construction process in the case study?... Then the last step is verification where animation is incorporated in the modeling. Answer: The STROBOSCOPE gave the earliest time the project can be started… This implies that it is easy to establish the best time to create the start and end date of a construction project. Answer: The steps involved in the construction are continuous where the output of the preceding step is input of the Lecturer: construction OP....
1 Pages (250 words) Article

Construction op analysis R5 (reading articles)

The procedures affect the course of research Reading Quiz Questions: Data analysis Multiple Choice According to Redman in the article Data: An Unfolding Quality Disaster, ZTECH technologies gathered data concerning its annual sales.... If its revenue were $20,000, for the year 2013, what amount of the revenue would result from poor quality data? Data is essential for… Primary, secondary, and good data are all sources of data used in research and considered to be true....
1 Pages (250 words) Article

Construction Industry Book

Leslie Simmons has authored an excellent guide for anyone related with the construction industry in the book, titled “Construction: principles, materials and methods”.... The first chapter details about the significance of design aspects including required by-laws and other statuary regulations Construction: principles, materials and methods ID: Leslie Simmons has ed an excellent guide for anyone related with the construction industry in the book, titled “Construction: principles, materials and methods”....
1 Pages (250 words) Article

Collaborative Commerce Application in the Travel Industry

nbsp; We now provide a brief overview of each key force and will apply our analysis to the airline industry in the late twentieth/early twenty-first century.... As we shall see in our analysis of the deregulation of the American airline industry in the late 1970s, the opposite occurred.... Our analysis now turns to a holistic overview of threat of new competitions (2) and the bargaining power of suppliers (5) as they have affected and continue to affect the global airline industry (Porter, 1979)....
7 Pages (1750 words) Article

The Saudi Construction Industry

This essay discusses the Saudi construction industry.... The essay analyses the factors of problems in the Saudi Arabian construction industry which were most eminent in included poor planning, incompetency among project managers and lack of proper communication problems.... hellip;  The Saudi construction industry is developing very fast, but its heavy dependency on poorly skilled foreign labor is making it hard for the industry to achieve international standards....
10 Pages (2500 words) Article

ICT in the Construction Industry

The writer of the paper “ICT in the construction industry” states that legitimate utilization of innovation will likewise decrease change requests and expense of development.... Programming and applications have been an exceptionally tremendous improvement in the historical backdrop of ICT and have changed the conditions inside building design and acquisition.... Like another CAD programming, construction-oriented CAD is in view of the same standards however may contrast to some degree in their planning and application systems....
9 Pages (2250 words) Article

Recent Developments in Data Warehouses and Its Application in E-Commerce

The review paper seeks to provide an insight into the recent developments of data warehouses and their technical application in the field of e-commerce.... Essentially, the previous five years have observed volatile progress in Data warehousing, both in terms of products and services provided, and in the acceptance of these technologies by the manufacturing industry.... As the paper "Recent Developments in Data Warehouses and Its Application in E-commerce" outlines, the data warehouse provides a platform for effective data extraction/mining....
17 Pages (4250 words) Article
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us