Innovations in Ecommerce - Dissertation Example

?INNOVATIONS IN ECOMMERCE Table of Contents The present information technology trends show that the use of the Internet for carrying out business operations is always increasing. Especially, in the past few years, the use of the Internet has turned out to be very common for performing business operations and expanding business reach to the worldwide customers in a convenient way. Thus, realizing the business organizations’ always growing interest in the Internet, many studies and researches regarding business to customers and Internet shopping have been carried out to discover the key attributes or factors that can have influence over customers’ behaviors and decisions while shopping on the Internet. In this scenario, some of the general attributes can comprise the demographic and psychographic characteristics of customers and the quality of products or services. Basically, the e-commerce is the process of carrying out business operations using the Internet. In this scenario, this research will describe the trends of e-commerce. The basic aim of this research is to discuss the role of innovations and latest IT trends in e-commerce and how they affect the retailer and consumer. Introduction Innovations and developments in information technology have always been continued since the emergence of the Internet. In fact, most of the ways companies and people carry out their daily activities and live at the present are determined with the huge web of electronic networks that is commonly known as the Internet (Turban, Leidner, McLean, & Wetherbe, 2005). Additionally, the comprehensive availability of the Internet for carrying out business related tasks of the businesses, sellers and buyers is the primary reason behind the development of electronic commerce (or simply e-commerce). Actually, “electronic commerce is the method of selling and purchasing services and goods and products performed electronically by means of computerized business transactions over the Internet, networks, and other digital technologies” (Laudon & Laudon, 1999, p. 25; Stair & Reynolds, 2003, p. 19). In addition, the term ‘e-commerce’ is commonly used for all the business operations that are carried out over the web using a wide variety of tools and software applications that depend on the Internet, such as immediate e-mail, messaging, shopping carts, and web services, UDDI, FTP and EDI, and so many others. Moreover, electronic commerce can be performed between two businesses performing transactions, trading funds, goods, services and data or between a business and a client (Webopedia, 2012; Damanpour & Damanpour, 2001). It is an admitted fact that the Internet has turned out to be a vital part of almost every kind of business. Basically, the simple description of a business is “any activity or transaction that entails the exchange of products and services with an aim of making money or generating profits. However, if this transaction is carried out over the web it is known as e-commerce. In the past few years, the reality of e-commerce has turned into a full-blown business (Ahuja, 2011; Melissa, 2010; Pozin, 2012). Now people want to shop from home by using their computer with a single click and the Internet has made it possible. Now the latest tools and technologies over the Internet have made the life easier. They have provided a lot of benefits to the customers and brought numerous opportunities for the businesses. In this proposal, I am going to analyze the impact of innovations on the business. This basic aim of this research is to show how do innovations in information technologies affect the retailers and customers. Literature Review The innovations and developments in the Internet carry on growing quickly, through which both new and well-established businesses are taking benefits online. In this scenario, e-commerce has emerged as a very attractive and helpful tool. It is an admitted fact that its influences on business economy will be as important as the shift from the agricultural financial system of the 17th Century (Shaik, 2007). In addition, despite the offering numerous advantages to regular customers, e-commerce has made business simpler and extra efficient for retailers and merchants. In fact, the innovations and the developments in information technology have offered a quick, inexpensive ways to sell and market products and services. Due to the mass applications of the Internet and the huge advertising and visibility the marketing has turned out to be an essential part of the e-commerce business model. Additionally, the e-commerce as well presents less transparency, an extensive market base, and reduces the need for a physical storefront. Moreover, with e-commerce businesses are able to expand far further than their restrictions of a physical store, however it as well outlines a marketplace at risk of becoming flooded that is why internet marketing is one of the most fundamental areas and aspects of the e-commerce business model (Ahuja, 2011; Melissa, 2010; Pozin, 2012; Shaik, 2007). A research by emarketers conducted on e-commerce shows the e-commerce stats in the upcoming years in a variety of geographic zones. Their research outlines a wide variety of aspects that can affect the evolution of e-commerce and new developments in coming few years. I have outlined below the potential growth of e-commerce in coming few years: (Ahuja, 2011; Melissa, 2010) Figure 1 E-commerce Expansion Image Source: http://www.searchenginejournal.com/the-future-of-e-commerce-and-online-business/27002/ Figure 2 E-commerce Expansion Image Source: http://www.searchenginejournal.com/the-future-of-e-commerce-and-online-business/27002/ Figure 3- E-commerce Expansion Image Source: http://www.searchenginejournal.com/the-future-of-e-commerce-and-online-business/27002/ According to the above shown graphs, the sale of mobile phones has as well augmented recently. In addition, another research conducted by the BlogSpot on Smartphones sales in the time period between July and September in 2010 amounted to 4.7 million units, which is an increase of 270 percent when compared to the similar among April and June in 2010. Hence, the future of e-commerce seems bright. In addition, it offers advantages for both the consumer and retailer. Moreover, in many cases, e-commerce is turning out to be a self-fulfilling divination, as more and more customers are adopting the Internet for their shopping requirements, thus retailers have started performing business on the web that attracts to more customers (Ahuja, 2011; Melissa, 2010). Without a doubt, e-commerce has turned out to be a most powerful tool for the business management. However, there are different trends or elements in e-commerce for instance business-to-consumer (B2C), business-to-business (B2B) and business-to-administration (B2A). In this scenario, B2C is a latest e-commerce trend which allows the business organizations to communicate with their potential customers. In other words, it is an efficient and modern marketing platform for a lot of business organizations for the reason that it is the simply feature they need to improve in an attempt to promote their business. Thus, this innovative idea allows them to catch the attention of numerous customers to their e-commerce platform (Turban et al., 2005; Anton, 2011; Epstein, 2004). Another latest e-commerce trend is known as business-to-business (B2B), which allows the business organizations to communicate or collaborate with other business organizations (i.e. partners or associates) for establishing effective supply chain links or attracting new trading associates towards their business. In addition, it is definitely a very powerful technique of communication and working with other businesses for the reason that well-established business organizations definitely make use of a wide variety of tools and technologies for their business associates for delivering a variety of necessary resources (Turban et al., 2005; Anton, 2011; Epstein, 2004). Moreover, there is another modern trend in e-commerce that is known as business-to-administration (B2A). In fact, this trend of e-commerce allows the business organizations to collaborate with other businesses and industries through the public sector groups covering a wide variety of business operations such as tax returns, patent registration and other significant transactions and deals with the certified authority of that specific area where business organization is located or registered. Furthermore, it does not only offer the opportunity to set up profitable relationships between public sectors and the private sector to improve association but also offers a straightforward way to perform vital deals that are done between the two sectors (Turban et al., 2005; Anton, 2011; Epstein, 2004). Problem Situation There are numerous challenges that e-commerce would be facing in the future. In this scenario, one of the main problems that need to be tackled is regarding marketplace saturation. In fact, there can be millions of similar websites, and merely efficient marketing can decide which one is the best. There is as well the incapability of customers to determine a product in real life, or ‘try it out’. Thus, it could take towards high return fractions for businesses, and inflated expenses for consumers. Moreover, many customers are afraid of a large number of security threats, emails or other marketing posters containing different business promotions and offers. These problems can ultimately direct to major changes in the e-commerce model (Ahuja, 2011; Melissa, 2010). Moreover, the e-commerce is suffering from a wide variety of security issues and threats. Thus, there is a great deal of need for the potential transformation of online business arrangements by incorporating some efficient innovation. In addition, there are numerous problems that are currently hindering in the widely acceptance of e-commerce. Thus, we need innovations and developments in e-commerce to make it much safer for the customers and retailers. In my research I will present the impact of innovations on the customers and retailers. Proposed Research To resolve and better deal with above stated issues and problems in e-commerce we need a better and innovative technology arrangement. The proposed research is based on the empirical study of innovations in e-commerce. The basic aim of this research is to determine the impact of innovations on retailer and consumer. In this scenario, this research will discuss the theories and available innovative tools that can be used to make retailer and consumer relationship more effective. In the coming years, e-commerce will surely prove itself a key tool for business. In this scenario, the successful e-commerce will turn out to be an idea totally indivisible from the web, for the reason that e-shopping is turning out to be an increasingly well-known and natural tool. At the same time strict rivalry in the field of online business and e-commerce services will strengthen their development. Therefore, the future developments and innovations in e-commerce will be the expansion of Internet sales as well as evolution (Ecommerce-Land, 2004). In addition, every year the number of business deals carried out using e-commerce rises dramatically. In fact, the sales levels of online business stores are beyond as compared to those of “brick-and-mortar” ones. Additionally, the trend will carry on, for the reason that many people are “imprisoned” through household and work duties, as Internet saves a lot of time and offers the opportunity and ease to select goods at the most excellent prices. Hence, the contemporary Internet sales expansion is the basis for outstanding e-commerce future and possible innovations. However, in order to attract more customers e-store-owners will have not simply to augment the number of accessible services, but to pay more attention to similar elements like that attractive user friendliness, design, appealing goods arrangement, they will have to fortunately make use of the modern and innovative technologies for their businesses to become a part of e-commerce growth and glomming future with full of innovations. Certainly, those, who attain web based businesses or e-stores earlier, and get a greater possibility for future success (eCommerce-Land, 2004). E-commerce Advantages I have outlined below some of the important advantages of bringing innovations in e-commerce for the retailers and the consumers: (EcommerceEducation, 2012) E-commerce allows the business organizations to carry out business operations without the barriers of distance and time. In fact, one is able to log on to the Internet at any time (no matter it is night or day) and start selling or purchasing anything via only a single click. The direct cost-of-sale for an order taken from a website is lower as compared to customary means (paper based, retail etc.), as there is no personal interaction throughout the electronic order processing. In addition, electronic selling virtually gets rid of processing errors, as well as it is faster and more convenient for the visitors. E-commerce is an ideal platform for niche products. Customers for the same products are normally not many however in the huge marketplace. One more significant advantage of e-commerce is that it is the easiest and inexpensive way of performing business activities. The everyday pressures of the market have played their role in reducing the chance for businesses to invest in improving their competitive place. Innovations in e-commerce In this section I will discuss some of the current innovations in e-commerce: Video Solutions Video is a commonly used tool for attracting, supporting and selling commercial products or services. In fact, it can hold numerous clickable objects that, when chosen, offer more data and information or start a transaction procedure. In this scenario, the video positions a product from front and center and replaces the lengthy product details and specs of the past by means of an additional interactive shopping practice. In e-commerce arrangement the use of this tool has become more and more common for promoting and advertising solutions (Sheldon, 2009). Customer Service In present business marketing and promotional areas we can see a lot of innovative ideas for serving customers. Basically, the customer service is described as "offering service to clients before, during and after a purchase," and it is a process that should never be unnoticed just for the reason that the service is offered online. At the present, there are numerous innovative tools to offer customer services for instance online chat or web based forum (Sheldon, 2009). Real-World Guided Selling Real-world guided selling is a characteristic that supports clients in deciding products that most excellent option to fulfill their requirements by analyzing user’s needs and generating business recommendations to fulfill those needs. In an e-commerce environment, the feature of real world guided selling is very bright since it can help the business promote its services (Sheldon, 2009). Multi-Store Retailing Multi-store retailing is also one of the biggest innovative trends in e-commerce, which offers an excellent support for potential for business improvement. Multi-store retailing engages tailoring numerous virtual storefronts to exact brands, customers, styles, products, seasonal ranges or geographies (Sheldon, 2009). In addition, there are numerous innovations and developments in e-commerce that offer a lot benefits to both the retailers and the consumers: (Sheldon, 2009) User-Interface Design Navigation Tools Effective Merchandising Social Shopping Customer Loyalty Research Hypothesis For this research I have established a research hypothesis that will be assessed throughout my proposed research. My hypothesis is: “Innovations in e-commerce will offer an excellent support for retailers and consumers” Research Methodology This research will be based on the qualitative research methodology. We use study current journal articles, researches papers and web based reports to prove the research hypothesis. Conclusion The present information technology trends show that the use of the Internet for carrying out business operations is always increasing. Especially, in the past few years, the use of the Internet has turned out to be very common for performing business operations and expanding their appearance to the worldwide customers in a convenient way. Thus, realizing the business organizations’ always growing interest in the Internet, many studies and researches regarding business to customers and Internet shopping have been carried out to discover the key attributes or factors that can have influence over customers’ behaviors and decisions while shopping on the Internet. Innovations and developments in information technology have always been continued since the emergence of the Internet. In fact, most of the ways companies and people carry out their daily activities and live at the present are determined with the huge web of electronic networks that is commonly known as the Internet. In addition, the term ‘e-commerce’ is commonly used for all the business operations that are carried out over the web using a wide variety of tools and software applications that depend on the Internet, such as immediate e-mail, messaging, shopping carts, and web services, UDDI, FTP and EDI, and so many others. Moreover, electronic commerce can be performed between two businesses performing transactions, trading funds, goods, services and data or between a business and a client. Now people want to shop from home by using their computer with a single click and the Internet has made it possible. Now the latest tools and technologies over the Internet have made the life easier. They have provided a lot of benefits to the customers and brought numerous opportunities for the businesses. In this proposal, I have analyzed the impact of innovations on the business. In this research I have discussed how do innovations in information technologies affect the retailers and customers. 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Management Information Systems, Sixth Edition. New Jersey: Prentice Hall. Melissa, 2010. The Future of ECommerce. [Online] Available at: http://www.optimum7.com/internet-marketing/ecommerce/the-future-of-ecommerce.html [Accessed 01 April 2012]. Pozin, I., 2012. The Future of Ecommerce. [Online] Available at: http://ecommerce.about.com/od/eCommerce-Trends-and-Issues/a/The-Future-Of-Ecommerce.htm [Accessed 02 April 2012]. Shaik, R., 2007. The Future of eCommerce. [Online] Available at: http://www.ipowerweb.com/iboost/manage/business/trends/20024.htm [Accessed 03 April 2012]. Sheldon, P., 2009. E-Commerce Innovations - What's Now and What's Next. [Online] Available at: http://www.ecommercetimes.com/story/68106.html [Accessed 05 April 2012]. Stair, R.M. & Reynolds, G.W., 2003. Principles of Information Systems. Sixth Edition. Toronto : Thomson Learning, Inc. Turban, E., Leidner, D., McLean, E. & Wetherbe, J., 2005. 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