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Old versus new economy
The Web has transformed the way business is conducted. The
old economy: Business, Commerce, and Processes consisted of slow,
manual, paper based tasks. In the new economy, E-business,
E-commerce, and E-processes dominate with an emphasis on
convenience, efficiency, ease-of-use, and fast, accurate results.
Old Economy
Business
Commerce
Processes
Paper
Mail
Slow
Inefficient
Not secure
Expensive
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New Economy
E-business
E-commerce
E-processes
Paper + electronic
Web + email
Fast
Efficient
Secure
Cost-effective
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Old processes
Consider business processes in the old economy. Applying
for a bank service like a new account required a person to
visit a branch and to fill in paper forms (often providing
the same information multiple times). The bank then processed
the application by routing the paperwork through manual
processes. Approximately a week later, the process was
completed - databases had been updated, cheques ordered, and
the new account was fully functional.
New processes
Contrast this with the new Internet economy. At the bank's
website end consumers apply for a new account online. They
secure their application with a digital signature and submit
the information in a matter of minutes. A workflow engine
follows business rules and directs the application around the
organization to those that add value, and to the bank's core
systems for near real-time validation and approval. The
workflow engine then generates database updates, and creates
an email to notify the applicant that their new account has
been approved, cheques ordered, and the account is fully
active - within a matter of minutes. This is an e-process.
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