How Combilift Adopted E-Business to Drive Global Growth

Introduction to E-Business

E-business, also known as electronic business, is defined as the use of information and communications technology (ICT) to support all key activities of a particular organization. The methods applied in electronic business enable firms to link their internal and external data processing facilities and systems in order to improve efficiency and flexibility. This allows firms to work closely with their suppliers, partners, and employees to better satisfy the needs and demands of their clients.

It is important to note that e-business encompasses more than e-commerce. The key difference is evident even in their fundamental definitions. E-business refers to the broader strategic focus a firm employs to emphasize its key functions using electronic means and capabilities. E-commerce, by contrast, is merely a subset of the overall e-business strategy and covers the business processes across the whole value chain — including the electronic purchasing of goods and services, supply chain management, electronic order processing, automated customer service, and cooperation with business partners.

The implementation of special technical standards enables the safe and encrypted exchange of sensitive business data between a corporation's many branches and its head office. The adoption of e-business solutions allows for the seamless integration of intra- and extra-corporation business processes. E-business can be carried out using the web, intranet, extranet, and internet.

In this paper, we examine how e-business has been successfully adopted by Combilift Ltd, a world-renowned forklift manufacturer, in the process of streamlining its key business functions.

Background: Combilift Ltd and Its Products

Combilift Ltd was the first company in the world to develop an engine-powered, all-wheel-drive, four-way forklift, which has since been successfully exported to more than thirty-three countries. Their product is known for its unique capabilities, particularly its ability to lift long loads while requiring significantly less operating space than earlier forklifts on the market — a distinct competitive advantage.

Since adopting the e-business system into its key business functions, Combilift's turnover skyrocketed by an enormous 98% increase compared to the previous year. The company's long-term objective is to develop Britain, the United States, and Germany as its primary target markets. The company began exporting to the United States some years ago, and the American market now accounts for approximately 15% of total sales.

Three Strategic Goals of the E-Business Initiative

The installation of the e-business initiative was aimed at achieving three major goals. The first was to create a network connecting everyone within the company in order to improve internal communications and accelerate process management. Previously, all computers were configured as standalone units. Networking them would allow the firm to archive information about previously formulated solutions and revise them as needed for new clients, thereby avoiding the need to "reinvent the wheel." Anyone in the firm would be able to access these solutions in the networked environment, enabling the efficient reuse of existing information. The key intention was to eliminate departmental overlap and improve coordination — all in order to increase the speed at which customers were served.

The second goal involved creating a new, well-designed website to serve as a channel for reaching customers and communicating with the broader market. News regarding product releases and improvements would all be communicated through the site. The existing website had been largely static and brochure-like, lacking interactivity and useful content. The main intention was to increase the number of contacts that could be passed on to local dealers. Importantly, the final goal was not to transform the site into a transactional e-commerce platform. The specialist nature of the product meant that face-to-face selling would always remain a significant component, and the firm was determined not to interfere with its existing dealer network, which was critical to post-sales service.

The third goal was the development of an extranet to improve communication within the organization's international dealership networks. This was central to Combilift's effort to penetrate new markets. Such global penetration brought with it the complexity of serving a rapidly growing worldwide dealer network. For example, it was projected that within two years, the US market alone would have between eighty and ninety dealers. The key to managing the distribution network — including spare parts distribution — was the adoption and integration of the IT framework across all dealer premises. The extranet was designed to contain an online copy of the spare parts manual as well as an online support system to aid in troubleshooting, in the form of a regularly updated guide. The adoption of this extranet would ease the overall growth process considerably.

All three moves were adopted as part of the company's broader strategic plan to sell its products in more than fifty countries worldwide — a vision intended to be achieved within five years.

Conclusion

In summary, the key challenge for Combilift was to make the necessary investments in purchasing and maintaining the IT infrastructure required to support business growth. The ongoing implementation of the e-business initiative has already resulted in significant contributions to the company's performance. All of these efforts are aimed at positioning Combilift for continuous and sustainable global growth.