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E-business, mining, and strategy

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E-business, mining, and strategy

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Abstract

E-business has received tremendous press coverage over the past year; pundits have made broad predictions of how it will revolutionize the way businesses interact with their customers and with other businesses, as well as creating new ways for business to add economic value. To-date, Internet technologies have had the most impact on industries that have traditionally led in the adoption of new technology, such as aerospace, automotive, and computing. In mining and metals applications, to date, Internet technologies have centred on metals exchanges for matching buyers and sellers for marketplace efficiencies. While the complete impact of the e-commerce revolution is still very unclear, these authors believe that companies must begin thinking through their e-business strategy. Businesses that do not prepare may forfeit certain competitive positions or fail to capitalize on significant opportunities. In this paper the authors begin to create a business model for mining and metals in the context of e-business. In particular, they investigate how the perspective of the facility owner or operator can influence the approach. A physical asset proprietor perspective lends itself to a cost leadership strategy; a perspective of managing core competencies within a business opens other strategies.

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