CIOs in eCommerce Should Amend Their Business Model and Strategy in 2018
It is growing increasingly important for CIOs in eCommerce to consider amending their business model as their respective industries and business environments change in 2018. Traditionally speaking, adjusting business models to meet pressing needs has always been one of many best practices, though the changes made are typically sporadic, with the idea of short term benefits in mind. Relatively speaking, the IT sector of most businesses tends to remain static, but a new wave of digital technologies is forcing businesses to adapt their IT sectors to meet new demands and standards. We believe that CIOs in eCommerce must quickly act in accordance to customer demands. The coming of a new age of eCommerce, mainly the transition to mobile commerce, creates a responsibility for CIOs to become better at their jobs by understanding their models and how they should be adjusted to new strategies.
But what’s the difference between business models and business strategies? A business model is a description on how an organization operates, namely by identifying sources of revenue, a customer base, products, as well as other related information. A business strategy is a statement that summarizes how an organization plans on meeting their goals. It is best when a business model and strategy complement each other, this also implies that should either change, they should affect one another. A business model will describe the characteristics of a business domain while the strategy discusses implementation and execution, both are necessary for any business to know how to get to their goals, and more importantly, know when they have met their goals.
One of the biggest trends in eCommerce is adding new sources of revenue that require little to no maintenance, such as adding a visual search camera next to the search bar on mobile websites and applications. The addition of such technology into this model serves as a valuable resource, as it assists customer in shopping for inspired looks from the collection of the respective website. It also proves useful in times when other executives become curious about the nature of the structure of the business, or when value propositions, customer relationships comes up.
As discussed earlier, a model and strategy should complement one another. An entire business model is less likely to change than a strategy. Changing an entire business model in eCommerce will take more time rather than a change in strategy. It is up to the CIO to stay ahead of the curve, and adapt regularly as needed, to ensure that as changes are being made, they don’t feel too drastic.