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E-business and Corporate Governance

The table below summarises the drivers of business in organizations and the respective enablers.


Drivers

Enablers

Governance Principle

Profit & Shareholder Value (Balance Sheet and Stock Price)

  • More Revenue
  • Lower Costs
  • Accountability.

Customer Retention / Market Share

  • Customer Experience
  • Product Mix
  • Strategic Partnerships
  • Responsibility.

Brand Value

  • Innovation,
  • Marketing Activities
  • Reliable Products
  • Transparency

Internal Efficiency & Employee Productivity

  • Automation
  • Integration
  • Efficiency and Effectiveness.

The implications of the table above are as follows;

  • Organisations must be accountable to shareholders in terms of reporting profitability. Profitability is enabled by more revenue and lower costs.
  • In order to retain customers and market share, organisations have a responsibility of enhancing customer experience, mixing the right products and exploring strategic partnerships that will increase the market share.
  • To protect and enhance the brand value, marketing activities must be transparent and fair, products must be reliable in the market and organisations must continually innovate to meet the changing customer needs.
  • In order to remain efficient and productive, processes and procedures need to be automated, outsourced or redesigned.
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