Preparing e-business  «Prev 

In-house or Outsourced Solutions

Unless the organization has the resources already in-house with the skills and capacity to build and run the solution, the company will need to create an eBusiness function within its structure. This in-house solution can be managed in two ways.

The first approach to an in-house solution is to decide that the eBusiness function will be a strongly controlled extension of the existing business and product/service mix. This is referred to as an eBusiness group.

In this case, the eBusiness group is controlled by an existing executive and is seen as part of the organizations structure.

An alternative in-house solution is to create an eBusiness subsidiary with an entrepreneurial mission. The eBusiness subsidiary has greater freedom to experiment with different business models and technological innovations, but still reports to the business executive board.

The eBusiness subsidiary alternative can be funded by venture capital and allows the company to establish an in-house eBusiness presence more quickly.