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ACCA Strategic Professional · Strategic Business Leader · E-business: value chain

Dovecote Bank has a board paper stating: 'Our digital strategy is simply to launch a mobile app for customers.' The CEO argues the bank should instead adopt an e-business strategy. Which statement best reflects what adopting e-business, rather than only e-commerce or e-marketing, would imply?

Adopting e-business implies redesigning internal and external processes across the value chain, including back-office integration, supplier links and customer data use, around internet technologies. An app alone is only a customer channel for transactions and promotion, which is narrower than e-business.

  1. ALimiting the investment to the app's transaction and promotion features
  2. BRedesigning internal and external processes, such as back-office integration, supplier links and customer data use, around internet technologies across the value chainCorrect
  3. CReplacing all physical branches immediately with the app
  4. DOutsourcing the bank's marketing to a digital agency

Explanation

E-business implies applying internet technologies across the whole value chain and organisational processes, not only the customer-facing selling or promotion channel. An app alone is mainly an e-commerce and e-marketing channel. Closing branches or outsourcing marketing are separate decisions and not implied by the definition.

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