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

Kestrel Media, a publisher, has built an e-business platform and wants to judge whether its e-business strategy should be driven by the technology available or by the business strategy. The board is split. The CEO argues that the firm should first adopt the latest tools and then see what opportunities arise. The CFO argues that the e-business initiative should be selected only if it supports the organisation's existing strategic objectives and delivers a measurable return. Which view is more consistent with good e-business implementation, and why?

The CFO's view is better. E-business should be aligned with business strategy and justified by measurable benefits against risks, not adopted simply because the technology exists. Technology-led adoption risks wasted spend and does not guarantee lasting advantage, although the CFO is not limited to short-term savings.

  1. AThe CFO's, because e-business should be aligned with business strategy and justified by expected benefits rather than adopted for its own sakeCorrect
  2. BThe CEO's, because technology determines strategy in every sector
  3. CThe CEO's, because early adoption always creates a sustainable competitive advantage
  4. DThe CFO's, because e-business investment should be judged only on short-term cost savings

Explanation

E-business implementation should be strategy-led, with initiatives aligned to objectives and assessed on benefits and risks. Technology-led adoption risks wasted investment. The CFO's view is not limited to short-term cost savings; it asks for measurable return in line with strategy, so the final option misstates it.

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