Significant Impacts of E-commerce in Modern Global Business - Essay Example

 Rapid Rise of e-Commerce in Modern Global Business Introduction Global business processes are usually characterized by various operationalstrategies. Some of these strategies entail the use of human resources, while some entail the application of business technology (Kopper & Ellis, 2011). It is apparent, taking into consideration the current business data that, e-commerce is currently one of the highest technology applied in commercial activities. The corpus of e-commerce entails the process of undertaking business activities through enhanced computer networks i.e. the Internet.

Research indicates that e-commerce activities depend heavily on technologies such as: Inventory Management Systems, Online Transactions, online marketing, data interchange through electronic processes et cetera (Cohan, 2010). This research will focus on e-commerce as one of most rapid business modus operandi applied by many global companies and provide examples of companies that depend on it. It shall also describe significant impacts of e-commerce in the current business environment as well as anticipated future effects of e-commerce.

DiscussionE-commerce or electronic commerce is one of the most currently talked about technological development in the business environment. Majority of companies are currently shifting their attention towards e-commerce activities basically due to the various benefits associated with it (Laudon & Traver, 2012). In addition, most governments, economic researchers as well as business analysts are currently shifting their focus through application of huge amounts of resources to ensure that e-commerce activities are enhanced through research and innovation.

However, research indicates that the application of e-commerce is currently mostly seen in online marketing companies such as e-Bay, Amazon and Google among others (Cohan, 2010). These companies provide a range of services to their clients through international networks and have been associated with tremendous benefits. Research has also indicated that e-commerce is growing on a daily basis since 1994 where the amount of money that was invested in e-commerce was at 240 million dollars. Currently, the figures stand at 7.

2 billion dollars, with major investors being Google Amazon and e-Bay (Laudon & Traver, 2012). Significant Impacts of E-commerceWith the integration of electronic technology into majority of Company’s operational procedures, e-commerce has been associated with effective and efficient technology, thus facilitating efficient business processes i.e. reduction of human errors usually associated with it (Laudon & Traver, 2012). In addition, economic experts have asserted that the essence of implementing e-commerce has been majorly driven by the fact that it entails reduced costs of operation: This occurs in the sense that it reduces costs associated with manual modes of operation specifically, inventory costs, employee management costs et cetera (Cohan, 2010).

On the other hand, the application of e-commerce in most of current business activities has been ascribed to improved competitive advantage of most organizations; this is due to the fact that it creates a platform for easy accessibility of updated information by the concerned companies (Cohan, 2010). ConclusionIn as much as e-commerce as a modern means of business operation has been associated with various benefits, business analysts have also indicated that there are certain limitations that may affect efficacy of this approach.

To begin with, security is among the biggest limitations affecting efficacy of e-commerce activities, with advanced knowledge on computer operational processes, some people have gone to an extent of accessing personal information of e-commerce users, thus jeopardizing their privacy. Some people have also shown laxity when it comes to engaging in e-commerce activities, majorly due to lack of trust of e-commerce suppliers. However, research has indicated that most people currently prefer less physical engaging processes of purchasing products and services (e-commerce), despite that fact that is also characterized with certain limitations.

This trend is expected to increase overtime and its effects are currently faced even in less developed nations. ReferencesCohan, P. S. (2010). E-profit high payoff strategies for capturing the e-commerce edge. New York: AMACOM. Korper, S., & Ellis, J. (2011). The e-commerce book building the e-empire (2nd ed.). San Diego, CA: Academic Press. Laudon, K. C., & Traver, C. G. (2012). E-commerce: business, technology, society. Boston: Addison Wesley.