The Impact of Management Science upon E-commerce

1.2.4 The Impact of Management Science upon E-commerce

Because management theories conforms the objective economic environment, management technologys vary in different development stages. At the classical management phase, the focus of management is to raise labor productivity by managing equipments and staff manually with strict regulations.

Because this phase falls into the category of the seller’s market, a tight market, the main task of governors is to increase labor productivity and supply. In the behavior management phase, the focus of governors is to transform the volume-produce mode into small-lot versatile production mode. The competition has changed to the service of how to meet the customer’s requirement from pure price competition. In this phase, supply has been guaranteed, customers began to push forward their claims for high-quality products. Products of low-quality are difficult to sell. Since the main task of the administrator is to sell out their commodity, commodity of high-quality, small lot and diverse types should be manufactured to satisfy various requirements of customers.

In the phase of strategic management, administrators have began to make and carry out decisions dynamically, continuously and adapt themselves quickly to changing internal and external conditions to balance stability, continuity, suitability, and innovation. In this phase, enterprises made use of internal resources and information comprehensively, and collecting and processing of information proposed higher quest to management measures. Therefore, computers entered traditional manual operation management fields that cannot adapt to the development. EDI has made full-grown development.

Introduction to E-commerce

In the times of enterprise reforger, enterprises, facing the never-ending changes, improvements and fierce race, are crying for regrouping of operation flow to improve enterprise operation status and efficiency. Regrouping of operation flow is the effective path for enterprise to regain competitive power and vitality. The implementation of Business Process Reengineering (BPR, for short) needs two foundations, that is, modern information technology and high-caliber talents. The need of information processing facilitates the extension of computers in enterprises and the rapid development and popularity of management information system (MIS, for short) and decision support system (DSS, for short), thus accelerating the rapid development of computer hardware and software, computer information processing technology and message-switching technology as well as setting up the foundation for the development of e-commerce.

In the organizational management phase of globalization and knowledge economy age, the waves of informatization and globalization spread all over the world rapidly. Because of the arrival of the knowledge economy, information and knowledge become significant strategic resources. Only by organizing the global resources reasonably and winning the support of the global customers may enterprises exist and develop. To reasonably organize the global resources, apart from multinational corporations, virtual enterprises also come into being. Accordingly, an upsurge in “virtual organizations” is coming, which makes greater demands on information acquisition, information processing, and information utility than the former periods. It is this objective need that requires enterprises to connect the former systems of MIS and DSS, speedups enormous progress of Internet with the function of information communication and releasing, and perfects the infrastructure of e-commerce.

To sum up, because any technical progress is based on commercial demands, e-commerce technology, a technology to process, acquire, and make use of information, is no exception. Therefore, the demand of management pushes forward step by step the development and technological perfection of computers, information processing and information transmission to the greatest degree organic integration of e-information technology and management technology. Management promotes e-commerce development by this means.

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