The Impact of Web Analytics on E-Commerce

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Table of Contents

  1. Introduction. 3
  2. Web Analytics. 3

2.1 Background of Global Business Context 4

2.1.1 Brief History. 4

2.1.2 Globalization. 5

2.1.3 Information Age. 6

2.1.4 Information Systems. 7

2.2 Web Analytics in Management Context 8

2.2.1 Management Theory and its Origins. 8

2.2.2 Information Technology and Effective Management 9

2.2.3 Web Analytics Impact on Management 9

2.3 Web Analytics and E-Commerce. 10

2.3.1 Business Online. 10

2.3.2 Web Analytics Derived E-Commerce Inferences. 11

2.4 Web Analytics in Contemporary Organizational Setting. 12

References. 14

 

The Impact of Web Analytics on E-Commerce

1. Introduction

In order to paint the most accurate picture of the modern day aspect of management, information technology applications, innovations and improvisations must dominate the discussion. Contemporary management variable are synonymous with the information technology solutions in conjunction with the traditional debate of the definition of the organization and management. In light of the different technology applications in solving organizational needs, perhaps unlimited information resources are at the disposal of the manager than at any other period of management history. The application of the online platform for access to ever growing opportunities and information resources has brought the definition of the organization closer home as it is with the enumeration of relevant management approaches. Perhaps one of the most interesting observations on the compatibility and suitability of the information technology to management is its flexibility regarding various organization-specific management needs. In this discourse, web analytics in contemporary management is discussed against the background of information age style of management. Special attention is placed on the importance of web analytics and the impact it generates on management, technology and the definition of the modern organization

2. Web Analytics

The evaluation and appraisal of any data obtained on the internet usage for proposes of various applications ranging from study of internet users’ behavior to application in making useful business decisions describe web analytics. According to the Web Analytics Association, the application of web analytics assists scholars and professionals to comprehend the usage of a particular website in order to draw inferences on the nature of intervention required to increase audience satisfaction (Sostre 2007, p9). It is assumed that the visitation of a website is driven by specific interests, which could be addressed to assess relative value passed on to the audience. Websites visitation data is therefore possible to be obtained and processed to obtain useful information on the visitation patterns from which derivative usage variable can be extrapolated to make interventions to increase value. Currently, there are several web analytic tools that are available for web experts to closely monitor web usage with an aim of obtaining such information as would lead to cues on audience behavior, satisfaction and engage possible enhancements to the website.

2.1 Background of Global Business Context

2.1.1 Brief History

It is perhaps important to briefly trace the origin the contemporary business context. Business setting at the earliest recorded period in history was facilitated through a number of challenges, to which the modern age has significantly been able to find solutions. From challenges of finding an acceptable means of exchange to mass production for commercial sustainability, the world has made tremendous steps in harmonization of business as an important socioeconomic aspect of the global community. Internal and local trade under commercial production support thrived to allow drastic changes in the manner in which future business would be conducted. Industrial production emerged as one of the main few civilization revolutions that the human race has witnessed (Reed 1996, p. 39). Challenges of sustainable and efficient production as presented by the management of resources at the factories led to several management ideas that have eventually led to the establishment of organizations run on management perspectives as highlighted below.

Realization of comparative advantage in production further opened the need for cross border trade making it easier to specialize in production of certain products (Brewer and Hay 2011, p1). Business within such a background has perhaps led to cooperation in production of various products while allowing trade at the international arena to allow supply of what is not possible to produce. Continued cooperation of the international community in order to meet global business demand and supply has not only improved relations across nations but also led to sharing of resources in trade. Competition in the comparative advantage setting pushes businesses to think for ways to outcompete the international rivals on efficient and accurate approaches. Today’s business is largely based on the need to meet international market demands which has led to further cooperation in sharing ideas of the best productivity, which has attracted globalization and increased cooperation.

2.1.2 Globalization

Through innovations that are mainly based on communication technology and trade as highlighted above, the world has continued to become interconnected by the day. The process of globalization has literally made global interactions easier on a global village platform since virtually every corner of the world is reachable. Under business relations on this platform, businesses can now be relocated from one country to the other, either physically or virtually due to the interconnectedness that has been achieved. Overseas subsidiaries in the multinational framework of conducting business make it a reality to set shop at any corner of the world, through the continued cooperation. Production resources as well as market resources guide investors where it is most productive to set up their operations, with a friendlier international business environment being created by the globalization element of the commercial interconnectedness. Countries encourage foreign investors to set up shop on their own soil in order for a global village based on business interactions to be established. Thanks to the information age, communication across the globe has been made as simple as possible. Specialization in various areas of production at the international level based on efficiency analysis can only make the future of business bright at the helm of globalization.

2.1.3 Information Age

The human race is experiencing its third major revolution presented by information technology that is characterized by unparalleled innovativeness in every sphere of the human society, particularly in business. Modern day human population is better informed than any population in history due to the opportunity availed by the computer usage that embraces reliance on and delivery of information than ever before. Perhaps businesses have benefited from the information and communication technology aspect of computer innovations than any other sector of the human society. News, research and learning on virtually every topic are now possible to be relayed and shared without restrictions, thanks to the information age platform of sharing information across the globe, which benefits business in various ways (Kaushik 2007, p15). Trade and commercial activities are based on business data obtained from computer based systems referred to as information systems. Information on the best perspectives to conduct business from production, management to market information can now be obtained from well coordinated information systems.

Virtually every customer has gone online through changed sociocultural adaptations that have drastically occurred in the society today. Computer usage is no longer for study or business purposes as the society becomes integrated into a more compact network enabled by innovations based on information and communication technology. Social media as an illustration has emerged as one of the most powerful ICT infusions into the sociocultural environment and the entire world is making interactions online. Business has to get reorganized to set up business products that are responsive to these consumer changes, to provide clear-cut value in service provision and product presentation. This presents opportunities for modern business to embrace the new frontiers of innovation to capture newer emerging consumer demands based on internet usage while capturing globalization derived unlimited markets. Websites applications are therefore part of the larger business reorganization to capture changed sociocultural impacts on consumer behavior.

2.1.4 Information Systems

Computer based models of management to optimize operations of organizations have been brought forward in modern business. Collection of important data, analysis and simulation into applications can now be carried out by the coordinated and integrated information digesting computer systems of the modern business context (Benson and Tribe 2008, p8). Handling of data and information is not only accurately done in the information systems but also direct the management to make important decisions touching on the productivity hence sustainability of the modern day organization. As an illustration, information systems enable corporations to monitor the performance of its products in the market and facilitate appropriate production and marketing strategy reactions. Within the context of business applications of web analytics, the modern day organizations are able to follow the use of their websites to draw conclusions such as distribution of their clients, their numbers, peak period of visitation of the websites, satisfaction and related websites and type of competition available. From such systems, the organizations are able to obtain web analytic indications such as the type of clients available in specific market locations, the appropriate product design and packaging, advertising strategies, nature of market competition and make improvements on their public relations as well as other product management variables.

2.2 Web Analytics in Management Context

2.2.1 Management Theory and its Origins

Since the industrial revolution, the rush to remain industrially competitive to overcome rivals has been the main goal of the manager. The oldest forms of management were based on rationalized concepts that were aimed at scientifically transforming investments into unlimited returns. Management theories were initially designed to exponentially increase productivity of employees as illustrated in Taylorism and other scientific management theorists’ postulates (Bolman and Deal (2003, p109). Principles of management generated through such theories proved the point that with certain definitions of approaches, it was possible to increase productivity. Although the definition of the organization over the evolution of the organizational relations differed in certain concepts, the desire to increase productivity led to the establishment of the managerial position and roles as observed in contemporary setting. Several management approaches were brought forward to incorporate leadership attributes of the manager such as trait approach, skills approach, style approach, situational approach, contingency approach, path-goal, leader-member exchange, transformational leadership, team leadership and psychodynamic approach among several others. Definition of the manager’s input over the years continued to become clear as the organizational definition continued (Benson and Tribe 2008, p7). Several perspectives have been formulated over the history of management but with the adve.............


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