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Chapter 1. Moving from e-Commerce to e-B... > Defining e-Business: Structural Tran...

Defining e-Business: Structural Transformation

If e-commerce innovation is revolutionizing the rules of business, resulting in structural transformation, where do we see the effects? We see them in the growing pace of application innovation, the development of new distribution channels, and the competitive dynamics that continue to baffle even the smartest managers.

Are most companies organized to deal with structural change? Not really. Virtually every business today is stretched to the limit, attempting to maintain viability and profitability in the face of unparalleled uncertainty and change. And no relief is in sight. For example, the encyclopedia marketplace has undergone radical change. Thanks to the Internet, Encyclopaedia Britannica has been forced to place much of its product on the Web for free. Yes, free—a huge step for the tradition-bound company, which hadn't made a change in operation since the mid 1990s, when it put its products on CD-ROMs.[4]


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