In general, the benefits of e-business include reduced costs, improved efficiency and access to larger markets. By automating many of the administrative tasks associated with ordering, supplying and delivering goods or services, the cost of a typical business transaction can be reduced significantly. As an example, the NHS is the largest single healthcare delivery organisation in the world, with net planned expenditure for 2013–14 of £109.956 billion. E-procurement is used to reduce administrative costs and purchase goods at lower prices. Using e-procurement, it is possible to reduce the cost of making a purchase from £30 tojust £4.
It was mentioned earlier that adopting an e-business approach could help to enhance three main areas of business: production processes, customer-focused processes and internal management processes. In terms of customer-focused processes, for example, the efficiency of customer services can be improved through the introduction of a help desk on the company’s web site. Such a facility can be used to provide customers with help, information and advice on a 24-hour, 365-day basis. As well as helping customers, such a facility can also act to reduce costs by reducing pressure on other support services, such as telephonehelplines.
Finally, the adoption of an e-business approach can help companies to reach a larger, global market. This is often one of the benefits of restructuring the relationship between manufacturer, retailers and customers. In a conventional business relationship, consumers buy products and services from a retailer and have little or no contact with the producer. However, the Internet provides access to a global marketplace, allowing manufacturers to sell to customers directly (called e-tailing) or form business relationships with retailers located anywhere in the world. Customers also benefit by being given a greater choice ofproducts at more competitive prices.
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