E-Business and E-Commerce

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Table of Contents

E-Business
International Business Systems
Enterprise Communication and Collaboration
E-Commerce
Types of E-Commerce
Advantages of E-Commerce
Limitations of E-Commerce
Distinguishing Traditional Commerce and E-Commerce
Conclusion
References

E-commerce has been viewed as a radical innovation which has redefined the world of business. As a result, various rules and beliefs used by the old traditional economies have been rewritten due to the evolutionary paradigm shift. This web platform makes business processes efficient and increases the organizations reach.

E-Commerce has enhanced the merchandising mix by providing access to a broader selection of items and improved flow of information among relevant stakeholders. E-Business simply uses internet technologies to internetwork and empower business processes as well as facilitate communication and collaboration between customers, suppliers and other stakeholders.

E-Business

E-Business is a term used to describe businesses run on the internet, or which utilize internet technologies to improve the productivity or profitability of a business. It is the undertaking of business on the internet involving buying, selling and interactions with business stakeholders.

It includes any business operation that a business entity conducts online without necessarily involving a transfer of payment. This may include internal processes such as employee services and training.

International Business Systems

International business systems provide solutions to facilitate electronic business. They range from applications to manage activities within the supply chain, value chain and company resources. The supply chain model includes a sequence of processes in the manufacturing and distribution cycle.

The value chain involves primary activities which collectively include logistics (inbound and outbound), sales and marketing, operations, and services like support which may be after or pre-sales. Support activities have consisted of processes relating to human resource, technological infrastructure, and capacity as well as procurement procedures.

The activities of the supply chain and value chain can be managed using business systems that facilitate seamless interaction. An Enterprise Resource Planning (ERP) system allows a firm integrate its core business functions into one system including human resources, operations, finance, sales and marketing and the like. It is a system that collectively integrates all the resources at the disposal of the firm into one consolidated portal.

Several systems to facilitate international business include inventory management systems which manage stocks, raw materials, and shipping, and delivery services. Payment management systems are used to handle electronic payments, generate invoices, and minimize transaction costs.

Other systems include supply chain management systems which cover planning to meet demand, sourcing for raw materials, manufacturing, delivery and feedback mechanisms usually supported by customer relationship management systems. Others include distribution and channel management systems.

Enterprise Communication and Collaboration

There is an increasing need for entities to establish a borderless organization through sharing applications, services and knowledge as well as transforming business processes (Passiante 62). Enterprise collaboration and communication systems use groupware tools to support communication and coordination between networked teams and workgroups within an entity.

Internetworking requires the internet, setting up intranets and extranets, including networks to implement these systems. Communication refers to exchange of information through various communication channels.

Collaboration pertains to sharing of resources, communication exchange and applications within an entity through use of certain tools and technologies. Enterprise communication is facilitated through use of electronic mail (e-mail), mobile communications, video conferencing, audio and instant messaging options.

E-Commerce

E-Commerce involves several characteristics ranging from electronic payment, customer relationship management, sales support (pre and post) and exchange of information. Therefore, E-Commerce is the use of electronic means to conduct commerce which includes sale, purchase, transfer or exchange of products and services over a web platform (Beyer 15).

Types of E-Commerce

Several types of E-Commerce exist. Business to Consumer (B2C) E-Commerce allows organizations to offer their products and services and generate revenue from the actual sale of those products and services to customers.

B2C stresses the direction of delivery founded on intense customer focus in terms of their desires, needs and preferences. This is normally characterized by the use of virtual storefronts which often involve use of shopping carts.

In Business to Business (B2B) E-Commerce, businesses are conducted among entities, e.g. suppliers and partners. This facilitates interaction with suppliers of raw materials, distributors, and other partners involved in the supply chain except for the final consumer.

Business to Government (B2G) refers to transactions undertaken with the government that allows entities to conduct business with the government. They include electronic auctions, bidding, electronic procurement and other business processes that involve exchange of payment over a web platform.

Advantages of E-Commerce

E-Commerce facilitates access to distant markets hence allowing firms to trade globally irrespective of geographical boundaries. Distant markets can be easily accessed hence enabling possibilities of increased economies of scale as firms distribute products to a wider market. It provides the customer with customized interaction and better choices thereby resulting in improved customer service and improvement of sales.

The consumer enjoys a wider choice of products and services at lower prices, often referred to as increased purchasing power, as well as a certain level of convenience like elimination of unnecessary trips to the physical location of the store.

E-Commerce leads to the possibility of operating 24/7 and removes intermediaries which imply that the retailer can directly reach the customer. The presence of intermediaries in the distribution channel results in a cost which is usually transferred to the customer; hence for the case of E-Commerce, such costs are not transferred.

Limitations of E-Commerce

E-Commerce lacks a sense of personal touch, which is necessary for specific products and services that require a one on one interaction with the customer.

Start-up costs of E-Commerce may prove to be burdensome to some firms as a result of huge investments in hardware, software, network infrastructure, and training of employees or hiring of skilled people. Security equally remains a challenge due to the amount of information exchange between the seller and the customer in terms of account details and personal information.

Distinguishing Traditional Commerce and E-Commerce

Traditional commerce provides a form of personal touch while in E-Commerce, one has no direct access to the seller. E-Commerce allows customers to interact with other customers through accessing reviews to facilitate better judgement in purchasing.

Traditional commerce is limited to specific hours of operation, unlike E-Commerce which can be undertaken twenty-four hours a day and seven days a week. Traditional commerce requires a customer to visit the store physically while E-Commerce can be undertaken at the comfort of ones home, including final delivery of the product.

Conclusion

In conclusion, it is evident that with the current technological boom and increased adoption of information technology, business entities have no option but to innovate. This allows them to stay relevant within the markets that they offer their products and services.

Furthermore, the emergence of global markets and opening up of markets has led to the use of the internet by business entities to serve global markets better and attain competitive advantage.

References

Beyer, Swen. Supply Chain Performance Measurement & E-Business Supply Chain Management: Including a Practical Excursus on the Intel Case. Norderstedt: Grin Verlag, 2010. Print.

Passiante, Giuseppina. Evolving Towards the Internetworked Enterprise: Technological and Organizational Perspectives. New York: Springer Science, 2010. Print.

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