Factors That Influence the Success or Failure of Digital Businesses

2006 Words8 Pages
Factors That Influence The Success or Failure of Digital Businesses Introduction The much-discussed and debated aspects of digital business disintermediating traditional channels of distribution and business models paradoxically did the exact opposite. Traditional business models are flourishing today and continue to grow as a result of best practices in managing digital business models to profitability. The essence of a digital business has evolved from the mere façade on a website to comprehensive, well-integrated system capable of capturing sales from multiple channel simultaneously while coordinating with suppliers, all in real time (Dehning, Richardson, Urbaczewski, Wells, 2004). Five years ago e-commerce strategies had progressed to the point of being able to deliver significant value and enough inventory efficiency to make exporting possible (Gregory, Karavdic, Zou, 2007). The net impact of these systems performing in real-time and increasingly automated to support key customer processes was a swift rise in Gross National Product (GDP) attributable to digital business accelerating transactions securely and profitably (Willis, 2004). The swift ascension of digital business has not been entirely without trouble and major failures however. The following section of this analysis provides insights into the lessons learned from major failures in digital business, showing how they combined to deliver solid lessons learned that lead to the success of this business model
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