The New Paradigm Of ICT - Research Paper Example

The New Paradigm Of ICT Ecommerce Table of Contents I. Introduction 3 II. Information on E-Commerce 3 III. History of E-Commerce 4 IV. Use of Ecommerce in the Modern Business Practices 5 V. Conclusion 6 VI. References 8 Introduction The most current change in the business environment is the use of electronic commerce. E-commerce refers to the use of telecommunication networks to share business information, conduct transactions, and maintain business relationships over the internet (Korper, & Ellis, 2001). E-commerce is a major emerging trend in the current business environment of globalization. The technology involves the use of the internet to purchase as well as sell goods and service; and support the after-sale services. The internet has provided a platform for marketing and distributing product information to the potential customers all over the world. The customers, therefore, can access this information and goods over the internet. Information on E-commerce Electronic commerce is a diverse business entity that encompasses a variety of activities. The activities include shopping on the internet, electronic banking, product sales, outsourced customer care operations, and automation of business practices. The automation process encompasses both the customers and the seller. The customer is required to access the internet and view the products that the business offers. At a click of a button, they are able to buy goods and services without accessing the business stores (Korper, & Ellis, 2001). The sellers on the other hand, maintain a website domain that allows them to advertise their goods online. They provide the various goods they offer in a catalogue that can be accessed by the customers. They may also provide shipping services in situations where the geographical location of the customer necessitates shipping. Electronic commerce is a trade technique that has provided diversity in production and supply. It forms a fundamental portion of businesses that ensures that customers compares and makes choices after considering a variety of stores. The creation of interdependence between the value chain of the customer, suppliers, and business organization provides a platform of customer satisfaction (Darie, & Watson, 2009). E-commerce has allowed the pulling together of business transactions, advertising and marketing. This is through the automation and enhanced diversity of business. Information can be exchanged between the buyers and the sellers through the e-commerce software. The businesses can, therefore, promote feedback acquisition from the customers. They can also promote customer satisfaction through the provision of goods that are custom-built. E-commerce exists in different forms. Collaborative commerce occurs when the business partners collaborate electronically along a supply chain. The business-to-consumer commerce exists in the availing of a variety of goods for the buyers to the sellers. The consumer-to-business commerce occur when the consumer makes a requirement of a given good or service, and a variety of businesses compete in the provision of these goods. Finally, the consumer-to-consumer commerce occurs when the consumer sells their goods directly to another consumer. The parties carry out the business transaction online and come up with an agreement of trade (Khosrow-Pour, 2007). History and Conception of E-commerce E-commerce has existed in the business world over the last forty years. The history of e-commerce is related to the electronic information transmission during the 1948 Berlin airlift. This electronic exchange opened up an era of e-Commerce development (Khosrow-Pour, 2007). In the 1960s, various industry groups initiated a cooperative effort to form common data formats. These formats were only allowed for purchasing, transportation and finance data management, and were only used in the inter-industry transactions. In the 1970s, national electronic data interchange began, and developed in the 1990s. The high costs of running the electronic data interchange led to the rich corporations persuading the smaller suppliers to implement the electronic data interchange programs. In 1996, about 100,000 companies both in Europe and USA were using the electronic data exchanges (Darie, & Watson, 2009). The invention of the internet transformed the electronic commerce by allowing a platform of diverse activities at lower costs. Most companies decided to invest in the e-commerce world with the aim of accessing more customers. Currently, e-commerce is one of the most essential components of trade. The online retail sales have become the common choice for both the buyers and the sellers. They have embraced the online purchasing systems that have prompted the businesses to invest in the e-Commerce venture. Despite having a physical location of the business, the online transactions have expanded the businesses towards a global experience. Uses of E-commerce the Modern Business The use of e-commerce is directly related to the benefits it accrues to the business, the customers, and the society. The first major use of e-commerce is the expansion of the business in the international market. When a website domain is established about a given business, the single physical market expands to a large borderless market (Khosrow-Pour, 2007). Potential customers from the local or international environment can access the business and place their orders. This potentiates that ability of a single store becoming a multinational corporation that can be recognized in the marketplace. The expansion of the business requires minimal capital outlay since a website is the only requirement. The business can access more customers, better suppliers, and suitable partners all over the world (Deans, 2004). E-commerce also allows for mass customization in the provision of goods to the consumers. The customers are able to make their specifications concerning the products they require. These specifications enable the businesses to provide customers with goods that meet their requirements. The customers gain trust in the businesses and loyalty to the business is fostered. This venture reduces the frictions that might be created when the consumer specifications are not met. It serves as a way of obtaining feedback from consumers, and meeting their demands. The transactions can be carried out in 24 hours, thus promoting continuous dissipation of goods and services (Khosrow-Pour, 2007). E-commerce allows for reduced inventories and telecommunication costs for the business. The business can collect customer orders and deliver it within the customer specified time. This strategy is beneficial in companies that produce perishable goods. It also promotes a technological production protocol for assessing inventories and deciding the performance of given business brands in the market. The data obtained can be used in planning the production, stocking, and delivery of the goods. All these processes can be achieved via the internet due to the low costs of the internet. The internet does not charge a lot in sending mail, retrieving them, and maintenance of a business network (Deans, 2004). Therefore, businesses that engage in e-commerce can maintain or lower their telecommunication and inventories cost. Conclusion E-commerce has become the most outstanding opportunity for businesses in the 21st century. Businesses have adopted the technological aspect of the internet in the provision of goods and services to the customers. The consumers, on the other hand have endorsed it as an easy way of comparing the goods and services and accessing high quality goods and services at lower costs. E-commerce has revolutionized trade towards the establishment of international corporations that are located in one areas. The experiences of the businesses and the customers has optimized business transactions that ensure their requirements are met. References Conférence des Nations Unies sur le commerce et le développement. (2007). Information economy report: Science and technology for development : the new paradigm of ICT. New York: United Nations. Darie, C., & Watson, K. (2009). Beginning ASP.NET E-Commerce in C♯: From novice to professional. Berkeley, CA: Apress. Deans, P. C. (2004). E-commerce and M-commerce technologies. Hershey, PA: IRM Press. Korper, S., & Ellis, J. (2001). The e-commerce book: Building the e-empire. San Diego, CA: Academic Press. Khosrow-Pour, M. (2007). Utilizing and managing commerce and services online. Hershey, Pa: Idea Group Pub. Read More