In today's globally dynamic and diverse environments, a growing number
of firms are competing physically as well as electronically. A firm, like
a hospital, where I work, is creating an e-marketing strategy under an
overall marketing program. It is now a commonly known that e-commerce
presents several opportunities as well as challenges for the hospitals
(Conti and Warner,. 1994). E-commerce is allowing companies to bring
products into new markets, shift existing distribution channels more
efficiently and effectively (Cummings and Huse, 1989). Hospitals and other
health-care facilities are using a niche market offering through e-commerce
The use of e-commerce in hospitals allow segmentations through
outsourcing many of the routines tasks internationallyâ€"for example reading
of X-rays in many hospitals is done from radiologist employed in other
countries. The use software and database solution allows hospital decision
makers to identify where variations in treatment or costs, and monitor
resource utilization with severity-adjusted analysis. E-commerce tools
provide advantages of the latest data mining methodologies that capture a
detailed profile of the patients and allow a hospital to customize its
treatments to the demands of the patients (Majchrzak and Wang, 1996).
Presently, information technology (IT) often substitutes and sometimes
replaces the physical interactions between the patients and doctors.
Besides, a number of services, which are high on information-contents, can
be developed in digital format and downloaded by the patients in their
Hospital decision-makers can capitalize on these findings to improve
quality of care, reduce costs related to complications and length of stay,
and effectively compare efficiencies of care delivery by benchmarking
against the best performing hospitals in the nation or to local peers.
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