The Role of E-Commerce Technology and the Impact of E-Commerce on the Supply Chain - Essay Example

E-Commerce, Revenue Models in E-Commerce, the Role of E-Commerce Technology, and the Impact of E-Commerce on the Supply Chain of institution Introduction The online business relates to the activities that display the transactions as a facilitation of the internet. The only difference between the physical market and the virtual market is that there are a lot of individualizations with the concern of the consumers, and the seller has the advantage of a vast market free of physical barriers. The essay describes the context of the virtual transactions on the internet and the stakeholders. Moreover, the text focuses on the available frameworks for the generation of the returns from the potential business. The impacts of the online markets to the supply chains are an inevitable part of the article. The implication of the study that the future of any business lays on the importance of using the web and thus the transformation of business is an improvement courtesy of the networking that is possible on the internet. The Business within the Online Environment The business within the context of the online environment relates to the selling or buying of products as well as services by consumers or businesses courtesy of the electronic media and the internet describes (Business Environment Snapshots, 2014). The electronic form of business relates to the case when a company enhances its activities to perform them in a more efficient manner using the technologies that are available due to the web technologies. The web technologies relate to the commerce technical know-how as the exhibitions by the mobile phones, the management in the supply chains, the fund transfer over electronic modes and the processing of online transactions as the statements by (Hamilton & Webster, 2009). Moreover, there is the involvement of the interchange of electronic data with the short of EDI, the management systems to cater for the inventory and the automation in the collection of data regarding consumers or the market in general designates (Franco, 2014). In particular, the online business popular by the name of commerce entails the retail sales that are made directly to the consumers in the form of online shopping and the provision of participation in the marketplaces that are virtually online as market places. The online markets tend to involve the third party element of the business in that the transaction may affect the enterprise and the consumer or the sales made by a consumer to another consumer. Moreover, e-commerce involves the selling and activities of purchasing that include two businesses such that is a business to business transaction as the description by (Chen, Chen & Kazman, 2007). Other involvements of e-commerce are the collection and subsequent use of the data on demographics that is available from the great representations of the contacts in the web as well as the contacts in the social media. Other instances of e-commerce include the prospects in marketing that focuses on the customers and employ the electronic emails or fax that may be a part of the newsletters. In fact, electronic commerce entails the launch of various new products and new services in the online markets. The most critical attribute of e-commerce is the interactivity aspect that keeps the customers or the buyers to be in a continuous form of involvement in the processes that constitute the activities of the favorite seller. The interactivity case implies that the market has plenty of individualizations. Besides, the online businesses are cheap to operate as a basis of the usage of already existing computer applications. The applications make up the EDI that is the Interchange of the Electronic Data. Government regulations The regulations are probably to ensure that the business transactions that take part in the online markets are authentic. The Commission for the Federal Trade regulates the activities of the e-commerce as the statements by (Doroodchi & Alib, 2013). The law accommodates the cases that employ the use of the emails for commercial purposes, the advertising mechanisms and the protection of the privacy of clients. The CAN-SPAM Act that came into being in the year 2003 did establish the national level standards that would regulate and guide the emails that are for direct marketing purposes as the substantiation by (Ashraf, Hussain & Hussain, 2013). However, the most traditional international law is the international protection of consumer and the network enforcement ICPEN that was the consensus of a democratic representation of the organizations that is in the fair trade of different states validates (Xu, Yasinzai & Lev, 2013). Revenue models within the context of e-commerce A model for revenue is the framework or the theory that is essential to generate returns for an enterprise. The frameworks role is to identify the best source of revenue that an organization should pursue, the optimum value that would form the offer from the source as per the portrayal by (Hawk, 2004). The price that would be appropriate to charge the value and the various customers is a concern of the framework as well as the consumer who would create a particular consumer base who pay for the exact value that offers the market advantage as the indications by (Sardana & Thatchenkery, 2012). The revenue model is critical and is a component of the business model of the company. The primary identification of the model is the service or the product that is essential and ideal for an organization to enable it to generate a particular level of the revenues and the best ways to sell the commodity as put by (Kim, 2013). He various divisions of the revenues models in the context of the electronic commerce are as per the following sections: Business to Business The model provides that a company should transact with another business. The decision is vital because it formulates a huge market that is almost as ten times the size that the enterprise to consumer transactions that result illustrates (Hawk, 2004). E-Distributor The model involves the fact that an online distributor can have involvements with the companies in a direct manner trading services or products. .an example of such a transaction is the Cisco Systems or the Fiat Group that deals in Automobiles or the Eneco Energy. E-Procurement The model provides that a company creates products and consequently sell the access of the products to the digital markets at a fee as put by (Ashraf, Hussain & Hussain, 2013). The instance is most familiar with the information sector such as the Google Services. Digital Exchanges The digital exchanges entail the marketplaces on the internet whereby suppliers tend to meet other large commercial buyers. A case of a company utilizing such a model is the Liquidation.com Industrial Consortia The term illustrates the vertical marketplaces belonging to industries that offer services to individual sectors as the depiction by (Doroodchi & Alib, 2013). An example of the same is the pools for the GlaxoSmithKline’s Patent. Private Industrial Networks The model entails the digital networks that offer the coordination to the various information exchanges that are among or between companies that accomplish same activities as per the account by (lo Storto, 2013). The model type is in use in about three-quarters of the total transactions between businesses and also does the most of the expenditure of the large companies practicing e-commerce as per the description by (Sardana & Thatchenkery, 2012). Examples of the models in some organizations include the Wal-Mart and the Procter & Gamble Company. Business to Customer The model category represents the retail practices that accommodate the businesses making sales to customers. Various distinctions attribute to the class and are the basis for the different forms of the segment. Online Retail Stores or the E-Tailers The model favors the vast stores such as amazon.com to other small pop up sites that are stored offering sales services of handicrafts. There is a very high degree of competition since the market offers almost no barriers to entering the market describe (Ramanathan & Ramanathan, n.d.). Wal-Mart also falls in the online store category. Content Provider The model ensures the employment of marketing of products in the form of text, photos, video and audio files to the consumer market. By 2009, the industry did get a net of $3.9 billion dollars making it one of the biggest industries available in the current generation designates (Kossecki, n.d.). Portals The model constitutes of the package offers that are services and content as the depiction by (Ng, 2010) with examples in the activities of the Services by Google. Transaction Brokers The aspect reflects the inclusion of agents who fasten the transactions making business very fast to operate despite geographical challenges such as distance. An example is the Commerce Bancorp and PayPal. Market Creators The perspective entails the use of the internet technology in the creation of new markets that converges the sellers and the purchasers with an example of the eBay Inc as the statement by (Sardana & Thatchenkery, 2012). Service Providers The fundamental aspect of the model is that revenue generation should be a basis of service provision to clients. An example of an institution employing such a model is the Zipcar. Community Providers The model entails the creation of sites that enable the social interaction of individuals and the exchange of various experiences or the working together of projects that are common between or among people as put forward by (The Global Educational Environment Within Global Management of Knowledge, 2011). Examples of such sites using the models include Twitter or Facebook or the Aurora Health Care. Customer to Customer The category exemplifies the business cases that tend to connect consumers directly among themselves in a manner that makes it possible for trade to occur as per (lo Storto, 2013). An example is a site eBay. Peer to Peer The framework illustrates the technology that enables the consumer to share services or files but may not ensure legality in some instances with an example in the 4Shaed.com. M-Commerce The model represents the growing sector that is using the wireless technology for almost all the models for revenue generation with a good example of PayPal. The role of e-commerce technology in developing strategies that support unique and diverse e-commerce opportunities The e-commerce is appearing to be offering more benefits to the private sectors because of the cheap methods that ensure the reach of clients forms around the globe as put by (Duke, Efiok, Kankpang & Emenyi, 2013). Therefore, the discussion focuses on whether the role of e-commerce for the private sector applies to the other areas. The development of the e-commerce practices is rapid and is combining the neglecting of barriers to enter the market and the increase in the users of the internet that is useful to most developing institutions defines (Focacci, 2006). However, research indicates that in the future, the sector that will drive most benefits from the e-commerce activities is the institutions that involve themselves in information exchange and transmission as put by (Ng, 2010). Therefore, there is the allowance by the Internet for the developing firms to tap the global market and to generate returns in an efficient manner that will enable them to cater for the operating costs and offset the. Marketing role The organizations that operate on the internet do not have the necessity of employing capital intensive techniques in the marketing programs to enable the success of a campaign in marketing illustrates (Howcroft & Richardson, 2010). The markets in the digital world involve people who have an experience of the internet or those who are capable of accessing the internet and use it to purchase commodities. Therefore, the internet is like a tool that creates markets through the identification techniques that array information concerning the other sites that are willing as well as able to link the enterprises in the internet and cross selling on the online sites. Types of products offered for sale online The role ensures that organizations can broaden the market segment through the development of a product line that will attain a wider appeal and still be able to retain the focus that guides the information distribution describes (Hamilton & Webster, 2009) on the issues that bring forth development. Web-based products The sales tend to include products such as the electronic versions of various journals and books that provide a cheap avenue of the distribution activities and the creation of the commodities as per the verification by (The Global Educational Environment Within Global Management of Knowledge, 2011). Purchasing Patterns of Online Customers The role of the internet is to provide a chance for the frequent update of the various products that are new in a product line in a bid to ensure the number of consumers returning to purchase the products increases as put forward by (Blázquez, 2014). The instance encourages the clients to shop for more than a unit product at a particular time and ensures the attainment of the serious offers that accompany the full diversity of commodities by developing institutions as put by (Ashraf, Hussain & Hussain, 2013). The impact of e-commerce on the supply chain The challenge for most organizations is the difference that sets apart the various benefits of the technology for the supply chain and the ways that can enable the delivery of the products as put forward by (Special issue on the impact of electronic commerce on supply chain, 2008). The development of the web and the subsequent growth of the e-commerce make the provision of a practical and an efficient avenue to deliver the supply chains benefits a possibility courtesy of the new technologies that enhance the supply chain describes (Mora-Monge, 2010). The electronic commerce makes it possible for the integration of multiple companies in an internal manner as well as the functions that cover different companies clarifies (Son, 2014). The advantage facilitates the flow of goods in a sensible way, the flow of finances and the sharing of data and information in the online markets. The impact of the internet on the constant stream of commodities creates a simpler way of the flow of products and inventory among companies while optimizing the information flow due to the increase in the exchange capacity and the speed of processing data that is critical for the functioning of enterprises states (Ramanathan & Ramanathan, n.d.). The internet also allows the efficient settlement and payment among companies. More specific impacts of the internet on the supply chain There is the elimination of the difference in the level of performance because companies can notice the difference in the supply chain degrees through electronic solution modes as per the (Special issue on the impact of electronic commerce on supply chain, 2008). There are also new abilities to implement the systems for the payment methods over the internet to accommodate more customers as well as suppliers illustrate (Sardana & Thatchenkery, 2012). The technology also raises the solutions for the investments through the indications of the return rates of investments states (Ashraf, Hussain & Hussain, 2013). The internet creates solutions for the possible political barriers or the changes that prevail from one nation to another. The internet also provides enterprises with efficient methods of collaborating with other companies in the supply chain. In conclusion, the online business offers cheap methods of operating companies with more convenience to deliver products rather than consuming more time in the transportation, the parking and the warehousing of commodities. The nature of the online business is in a way that allows the sourcing of products in a cheap way in the international front thus offering a greater variety due to the many inventory offers by the stores in the online sites. The business also has engines for comparison purposes that recommend products after brief product comparison. Other availabilities include platforms for auctions rather than physical involvements of the same. The specific benefits thus include the reduction of operating costs, the reduction of time as a resource, the assurance of flexibility and coupling it with efficiency and the improvements in the relationships among or between partners who are the stakeholders in a trade activity. The internet also provides new markets and make sure customers come back to purchase the diverse products available. References Ashraf, J., Hussain, O., & Hussain, F. (2013). Empirical analysis of domain ontology usage on the Web: eCommerce domain in focus. Concurrency And Computation: Practice And Experience, 26(5), 1157-1184. http://dx.doi.org/10.1002/cpe.3089 Blázquez, M. (2014). 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