User:Kim Fu/sandbox

Success factors of e-commerce implementation
Success in consists of achieving the desired outcomes or effects. The success of e-commerce implementation can be measured through certain variables. The variables enable the degree of contribution and impacts to be seen and analyzed to measure the success of implementing an e-commerce strategy. For instance customer satisfaction and secure electronic payment. Some critical factors for a successful e-commerce implementation have been identified.

Organizational structure

The organizational structure should fit e-commerce strategy. A negative impact on the success of e-commerce implementation would occur when the organizational structure conflicts with the targets of e-commerce strategy. The structural changes need to be routine reconfigurations for ensuring the consistency with e-commerce strategy, increasing the capability of efficiently carrying out the new strategy. The effective communication channels contribute to increasing the level of satisfaction and the success of a strategy implementation. Furthermore, the flexible structure helps to adapt the constantly changing environment for the success of implementing e-commerce strategy.

Compatibility

The implementation of new e-commerce strategy needs to be supported by the integrated technology and compensation system. The higher profitability of e-commerce implementation is brought by the higher integration between the e-commerce strategy and the technology. The e-commerce strategy needs to be aligned with the currently available technology and the company's long-term strategy. Additionally, "the compensation system" which is consistent with a new strategy helps to reduce risks of failure and stimulate employees' contributions for achieving the e-commerce target.

Investments

Financial and time investments are important to the success of e-commerce implementation. The failure of e-commerce implementation is commonly caused by inadequate financial resources. Sufficient financial investments and reliable budgets help to effectively achieve the e-commerce strategy. Compared with large companies, small companies have weaker capability to cover hidden costs. For example, the costs of delivery and return. Approximately 60% of UK retailers was negatively influenced by the growth of returned items bought online. Furthermore, the cost of managing the extended time to complete a project could be the biggest expenses in the process of e-commerce implementation.

Organizational culture

The cultural management in organizations has a vital impact on the implementation of e-commerce strategy. The communication and training of organizational value regard to the value perception and establishment of organizational members. The high alignment between personal and organizational value causes a high belief towards e-commerce strategy and positive attitude of employees, which is beneficial to reduce risks and improve coordination while implementing e-commerce strategy.

Management

A successful e-commerce implementation requires a systematic management within organizations. A strong leadership and controlled management team improve the execution of strategy and coordination among different departments. Despite many companies set e-commerce as a separate department, a separation might be created because of the non-integrated management teams. The integrated management team contributes to reducing misunderstanding and facilitating coordination among different departments for successfully carrying out e-commerce strategy.

Technological competence

The technological competence is essential for a successful e-commerce implementation, especially accurate decisions towards the selection of skilled people and outsourcing. The participators involving to technology are required to have sufficient knowledge to e-commerce and technological skills, ensuring the expected implementation of e-commerce strategy. Furthermore, the IT advantage can be gained through outsourcing, which is helpful to improve organizational competitiveness and increase opportunities of success for e-commerce implementation.