Companies need information and information management systems as they are important for various functions such as planning. The information systems help in storing information such as customer data and financial data and this makes the access easier. They also help in saving costs when well developed and can also help in highlighting the strengths and weaknesses of a company. The system can also act as a communication tool and can help in prediction of sales and revenues. Ecommerce (or electric commerce) refers to the buying and selling of goods and services via electronic channels, primarily the Internet. E commerce stands for electronic commerce and pertains to trading in goods and services through the electronic medium, i.e. the internet or phone. On the internet, it pertains to a website, which sells products or services directly from the site using a shopping cart or shopping basket system and allow credit/debit card payments.
1. Communication Function: Aimed at the delivery of information and/or documents to facilitate business transactions. E.g. Email 2. Process Management Function: Covers the automation and improvements of business processes. E.g. networking two computers together 3. Service Management Function: Application of technology to improve the quality of service. E.g. Bluedart website to track shipments and schedule 4. Transaction Capabilities: Provides the ability to buy/sell on the internet or some other online services. E.g. Flipkart
E commerce Challenges
E commerce in India has boomed over the last decade or so, with new online shopping sites emerging every other week. But still it has to face a lot of competition from traditional market avenues. People are still naïve to the concept of online shopping. In spite of the huge opportunity due to the size and growth of the market, e-commerce in India has its own set of unique challenges. E-commerce in most mature markets such as the USA works because of certain efficiencies in payment and delivery mechanisms which are missing or underdeveloped in India. 1. Collection of payments: The first challenge for e-commerce retailers in India is collecting payment. Less than 2% of Indian consumers own credit cards and 90% of all retail transactions are conducted in cash. As a result most e-commerce sites are forced to offer a Cash-on-Delivery (COD) option. Eight out of ten online transactions are conducted on a COD basis. However, as per one estimate 45% of all COD orders are rejected at the point of delivery by the customer. This is clearly expensive and not a very sustainable business model. The problem is compounded by the fact that most retailers also offer free shipping to acquire and retain customers. 2. Reliable Logistics and Supply Chain: The second challenge is dealing with the actual logistics and delivery of goods ordered online. This is both inefficient and unreliable due to poor roads, traffic congestion and an overall weak transportation infrastructure coupled with India’s vast size. In fact much of the investment into e-commerce companies is going into logistics. Many retailers are setting up their own warehouses and delivery centers to extend their reach and streamline operations.
3. Customer Service: Customer service is something that is overlooked in the Indian context. However, in this dense e-Commerce market, quality customer support is going to be a big differentiator. Reassuring customers of a situation or telling them the status of a process is sometimes all that is needed to keep the customer from hitting the panic button and taking to public media. Getting customer support oriented resources in India will be a challenge that a startup can face.
4.Finding a niche: finding a niche in e-Commerce means finding people who will be willing to transact over the internet for a specific...