Monday, February 3, 2020

The Strategic Implication of E Commerce for the Design and Essay

The Strategic Implication of E Commerce for the Design and Construction Industry Article Analysis - Essay Example The main research question which is being asked by the authors of the article by Johnson and his colleagues is if the AEC industry can benefit itself and integrate e-commerce platforms into the business plans and strategic objectives of the enterprise. If the construction industry and its participants can achieve greater integration of e-commerce it is able to raise overall profits in the industry by streamlining activities that used to take greater efforts which led to unnecessary expenses now become automated activities that provide added value services to the customers. The power of the e-commerce solution is based on the achieved growth in the utilization of the platform after the turn of the century. In 2001 e-commerce in the United States generated $7931 million in revenues (Plunkett Research, 2007). Six years later in the 1st quarter in 2007 the sales volume had grown to $27,092, an overall increase of 242% over a six-year span or an average yearly growth of 40% (Plunkett Rese arch, 2007). These figures clearly illustrate evidence of the worldwide tendency to increase e-commerce dependence by all companies around the globe. The article effectively described the industry in order to evaluate possibilities that are going to integrate e-commerce solutions to increase efficiency in the AEC industry. Various case studies of different participants of the  value-added supply chain that allowed the players in the industry to obtain efficiencies associated with economies of scope, integration of resources, technological advances, information technology and other competitive advantages. The literature provided a very clear and descriptive analysis of the construction industry. The construction industry is a mature fragmented industry which is closely held with less than 25 public trading companies and plenty of small and medium closed held private enterprises.  Ã‚  

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