Traditional Business & Digital Firm

According to to Anglefire, digital firms is for electronic commerce and electronic business in order to set their internal processes and relationships with customers, suppliers, and other external entities by using Internet technology. Furthermore. there are four principles move to digital firms are supply chain management systems, customer relationship management systems, enterprise systems, and knowledge management systems. the digital firm use technology is because  it  is able to mediate, and streamline its internal and external operations, the firm is more flexible, profitable, competitive, and efficient than a traditional firm.

For instance, the company that got many impacts of digital firm is Cemex. Cemex is sold cement and ready mix concrete products for a long time whereby it is around 98 year. Cemex used to run the business by using telephones in order to communicate with customers, truckers, and dispatchers. they spent a lot of money for it and sometimes the kines were jammed. likewise, Lorenzo Zambrano, who is the grandson of the founder, was built a System for to link Cemex delivery trucks to a Global Positioning System satellite which would assist dispatchers to monitor the location, direction and speed of every vehicle allowing this information to be efficient if there is last minute changes. the result of this is delivery time is much faster rather than by using telephones whereby from three hours to 20 minutes. furthermore, it provides providing them with cost savings on fuel, maintenance and personnel. Cemex also reduce the numbers of trucks to deliver the same amount of cement. they also use satellite communication that is called as CemexNet which electronically links all the firm’s production facilities and coordinates them from a central clearinghouse.additionally, dispatchers are able to know where they should send their products quickly. it shows that, digital firm is more effective and efficient rather than traditional businesses.

References

http://www.angelfire.com/rebellion2/jsmith/case_1.html
http://faculty.wiu.edu/C-Amaravadi/is340/hout/cemex.pdf
http://www.studymode.com/essays/Cemex-A-Digital-Firm-In-The-434211.html