The Role of E-Commercce in Global Business

Topics: Electronic commerce, Electronic business, Electronic Data Interchange Pages: 55 (18866 words) Published: June 26, 2008
Technological breakthrough in such areas as fax machines, telephone, video player, audio devices and televisions took many years to commercialise and measure their impacts on business. Compared to these breakthroughs, telecommunications, information communication technology, miniaturization, computers and Internet went through shorter product life styles and achieved widespread diffusion and reformed the nature of business operation and enhanced competitive business environment instantly. This technological advancement has resulted in evolution and innovation of many products, services and business processes. One of them is the emergence of e-commerce or electronic commerce. The Internet has resulted in the emergence of virtual markets with four primary distinctive characteristics, which are real time, shared, open and global. The application of Internet is divided in to three major activities that are publishing corporate information, conducting electronic commerce and business transformation. The greatest feature of the Internet is the absence of intermediaries; the manufacturers are able to sell their product relatively easier to buyers via Internet. E-commerce today is no longer technological issue, but is also a business issue. E-commerce involves a number of forms, varying level of cost and complexity, depending on business need. For the past few years, across a globe, e-commerce has improved significantly, but some issues remain elusive. The explanatory and conceptual paper presents the ways in which e-commerce give information to the consumers. It further highlights some critical issues in e-commerce, suggestion and future strategies for e-commerce in years to come.

In the past few years, enterprises across the globe have experienced significant changes in their business information system. Huge investments were made in enterprise resource planning system implementations but still they struggle to get timely information that is needed to make effective business decision and to ensure continuous growth of enterprises. Placing "e" in front of any process or function seemed to be the magic prescription for never ending story of success and rapid returns for enterprises. E-business, e-procurement, e-sales, e-payment, e-banking, e-CRM, e-CAD, e-delivery are just a few. Internet, for example is becoming one of the most popular medium in transmitting various data. Users can find any kind of information within a shorter time compared with conventional method that consumes moretime.

The emergence of the Internet through out the world has been contributing such a variety medium in doing business as well as people lifestyle. In fact, Internet is the essential prerequisite for the existence of E- commerce. Electronic commerce or e-commerce has been defined as the ability to perform transactions involving the exchange of goods or services between two or more parties using electronic tools and techniques (Yonah, 1997). The explosion of E-commerce has created new phenomena in our lifestyle especially in shopping activities. Consumers can easily buy products or services like magazines and airlines tickets via Internet. E-commerce has already become an integral part of that trade relationship and co-operation between Governments is a pre-requisite in helping to establish an enabling environment, a platform for trading opportunities. Helping businesses, large and small, to compete internationally involves reaching out to Governments and regulators around the world and helping to shape a market framework that is competitive, fair, and safe. By 2002, global revenues associated with electronic commerce are expected to reach $500,000,000,000. That's a lot of 1s and 0s-a half-trillion dollars worth. But beyond the dollars and cents, this new technological frontier offers enormous opportunities for both developed and modernizing countries alike. E-commerce means more choices, convenience and lower prices...
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