How E-commerce Influences Business Transactions

Literature Review

There are a great number of books materials which discuss basically all the aspects of e-commerce. A whole lot of reviews, studies, examination, and studies were already produced by general market trends businesses and organisations with direct interests in the e-commerce business. In such a research however, related literature materials that have been included were those that mostly concern the business functions and methodologies used in the use of e-commerce. This section is set up accordingly. First, there's a brief talk about the definition of e-commerce. A justification of e-commerce as a small business methodology and its own benefits is shown. Different e-commerce applications, issues, and legal concerns were talked about next.

Definitions of E-commerce

There are extensive confusing meanings of e-commerce. Some see e-commerce as Internet-based activities only while some include any varieties of exchanges of resources (electronic information, applications, methodologies, and strategies). There is certainly a very important factor common to all or any of these collections of general explanations however: e-commerce is an activity where electronic relationships make it possible to exchange resources. E-commerce is a very wide-ranging term used to describe modern means of doing business today. If we have a much broader view, we explain e-commerce as the use of the computer to help in all of the firm's operations, many of which are inside. These operations are performed within the organization by the functional areas of funding, recruiting, information services, processing, and marketing (McLeod, 1998). Fund mainly deals with the financial community, stockholders and owners, and the firm's customers. Recruiting have a special involvement in the global community and labor unions, and information services user interface with hardware and software suppliers. Creation is accountable for coping with the firm's suppliers and labor unions. Marketing is mostly responsible for interfacing with the firm's customers and competitors. All of these areas software with the federal government (McLeod, 1998) E-commerce is the portion of a small business that is put online, and be reached by anyone worldwide that has access to the web. It will involve advertising products on the web in order to reach out to more potential prospects. It also entails purchasing products and services online. Everything that relates to how exactly we run our business by using modern technology can be named an e-commerce. Because the World Wide Web presents an alternative environment for these activities than traditional mass media, regular marketing activities are being changed, because they are often difficult to put into practice in their present form. This means that in many cases, these marketing activities need to be restructured such that they can comply with this new medium (Hoffman and Novak, 1996). Even prior to the common use of the web for commercial purposes, businesses were already employed in Electronic Data Interchange or EDI. EDI can be an early form of e-commerce where companies involved in business deals with only a decided on few in a private network.

E-commerce as a modern business methodology

In order for businesses to deal up with changing customer demands, they must adjust new systems not only to support their business functions but also to lessen paper works, reduce costs, and improve and increase productions. In this way, e-commerce sometimes appears as an enterprise methodology that addresses both external and inside needs of the business enterprise organization. There are facts which have a tendency to support the idea that e-commerce will continue steadily to play a crucial role in owning a business. Most business organisations have already invested closely on Information and Communications Technology (ICT). ICT is already in the forefront of helping the business run a few of their key business functions like purchasing, invoicing, marketing, and customer support. This has empowered the organization to have some aspect of technology needed to transform their main business functions through the use of e-commerce. As being a business style, at least one major aspect of e-commerce has already been in the mainstream of society. While business organisations have spent intensely on ICT equipments, the costs of hardware and software tools continue to fall season. This was brought about by stiff competition from different players in the industry. Microsoft, Sunshine Microsystems, Oracle, and other leading software giants have face some kind of brutal competition from the other person and from open source advocates. Intel and Advanced Micro Devices (AMD) sustained to dominate the cpu and semiconductor industry by constantly expanding faster processors while decreasing their prices. Founded computer manufacturers like International Business Machines (IBM), Dell, Hewlett Packard, and Acer attempted to keep their prices within the number of clone computers. Although the IT sector is very energetic and highly volatile and recently dominating players are giving way to other players, dropping prices continue steadily to lure organisations into spending into IT. The Internet industry is continuing to grow quite fast, defeating market anticipations. Internet bandwidth continues to twin and triple as compared to a decade ago. The number if Internet users have become by the thousands and thousands. The amount of applications developed for the Internet commerce has also grown dramatically to new levels. Coupled with low hardware and software prices, proven ICT infrastructure, and availability of the web to nearly every member of society has reinforced the notion that e-commerce is likely to play a major role in every business functions and functions. As being a business strategy, e-commerce has allowed organisations to handle business deals over networks. Examples of e-commerce activities include online payment of request fees, repayment of tuition and college student bills, acquisitions of books, products, materials, procurements between businesses, electronic digital access to institutional databases, magazines, and many more.

Benefits of E-commerce

The main benefit of e-commerce is due to having the ability to integrate business functional functions across organizational limitations and time zones. Operational benefits of Web use for industrial vendors are reduced problems, time, and over head costs in information processing; reduced costs to suppliers by online bidding, submitting of bids, and awarding of bids electronically. This way, it motivates transparency and credibility using business transactions. In addition, creation of new marketplaces and market segments, easier admittance into new market segments of new and small players, and faster time to market is facilitated. The release of e-commerce to support business operations has mainly revamped many of these procedures and methods. It has also provided significant benefits to the organization in general and to the whole global current economic climate. These benefits largely revolved across the reduction of overall cost. Saving company and product information on the company database for the net has saved organisations the price of stamping catalogs while providing them with the chance to reuse and make changes to information in real time. Support services have mainly been rendered through the publishing of frequently asked questions on the net or through interactive online support services and applications. The usage of data warehousing and the development of data mining applications has allowed company executives to utilize digital information for decision support and perform more complex analysis. It also allows their suppliers and customers to get a first side view of company data and operations and provides them the possibility to try your choice making process. Companies who outsource the majority of their applications to third party service providers have saved a lot of money by hiring out services instead of investing heavily just to own them. E-commerce has also allowed business organisations to keep track of customer feedbacks and how their customers are satisfied with their products. It has help companies modify to these feedbacks in the quickest possible time and it allows those to structure their strategy in the fastest way they can. E-commerce in addition has allowed business organisations to grow globally. It opened up a whole lot of opportunities for them to discover and test new marketplaces because of their products just by using the web-enabling their business procedures and functions. Aside from these, it also allowed them to control their offshore sites in a digital environment.

E-commerce applications

McLeod (1998, p. 81) details the utilization of the web in the context of data communication as a communication tool between the business organization and its own immediate environment and within the organization itself. In one article about e-commerce, applications can be classified into three classes (Tapaswi): 1. Intranet 2. Extranet 3. Internet. Intranet applications support the internal processes and functions of the organization using company information in a fresh tactical way. Extranets support electric data interchange (or EDI) where company information may be used to support internal operations and can be used by other selected outside users. The Internet allows global processing over a wider size and facilitates infinite business-to-consumer electronic commerce applications. Matching to Rossi et al (n. d. ), e-commerce applications are a particular kind of web applications with similar requirements like good navigational constructions, usable interfaces, an obvious domain model, yet others.

Types of E-commerce Applications

E-commerce request categories or types generally show what is occurring during the commerce business deal (Franklin, 2002). Inside a Business to Customer (B2C) request, a business sells something or something to a end-user. These trades are usually short-lived however the revolving procedure for customer contact allows the business to make promotional advertisements with their customers. Business to Business (B2B) applications (Franklin, 2002) entail multiple businesses using electric communications to help commerce transactions between organizations. You can find complex business guidelines that govern trades between these organizations. B2B applications process orders from organizations (not the end-users) by integrating the front-end applications with the suppliers of products. B2B applications handle supply chain management, order procurement, agreement processing, logistics, and other similar orders.

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