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IMPORTANCE AND USES OF E. COMMERCE

Updated on October 1, 2009

1.     Exploitation of New Business

Broadly speaking, electronic commerce emphasizes the generation and exploitation of new .business opportunities and to use popular phrases: “generate business value” or “do more with less”.

2.     Enabling the Customers

Electronic Commerce is enabling the customer to have an increasing say in what products are made, how products are made and how services are delivered (movement from a slow order fulfillment process with little understanding of what is taking place inside the firm, to a faster and rt1ore open process with customers having greater control.

3.     Improvement of Business Transaction

Electronic Commerce endeavors to improve the execution of business transaction over various networks.

4.     Effective Performance

It leads to more effective performance i.e. better quality, greater customer satisfaction and better corporate decision making.

5.     Greater Economic Efficiency

We may achieve greater economic efficiency (lower cost) and more rapid exchange (high speed, accelerated, or real-time interaction) with the help of electronic commerce.

6.     Execution of Information

It enables the execution of information-laden transactions between two ore more parties using inter connected networks. These networks can be a combination of ‘plain old telephone system’ (POTS), Cable TV, leased lines and wireless. Information based transactions are creating new ways of doing business and even new types of business.

7.     Incorporating Transaction

Electronic Commerce also inco11'orates transaction management, which organizes, routes, processes and tracks transactions. It also includes consumers making electronic payments and funds transfers.

8.     Increasing of Revenue

Firm use technology to either lower operating costs or increase revenue. Electronic Commerce has the Potential to increase revenue by creating new markets for old products, creating new information-based products, and establishing new service delivery channels to better serve and interact with customers. The transaction management aspect of electronic commerce can also enable firms to reduce operating costs by enabling better coordination in the sales, production and distribution processes and to consolidate operations arid reduce overhead.

9.     Reduction of Friction

Electronic Commerce research and its associated implementations is to reduce the “friction” in on line transactions frictions is often described in economics as transaction cost. It can arise from inefficient market structures and inefficient combinations of the technological activities required to make a transaction. Ultimately, the reduction of friction in online commerce will enable smoother transaction between buyers, intermediaries and sellers.

10.   Facilitating of Network Form

Electronic Commerce is also impacting business .to business interactions. It facilitates the network form of organization where small flexible firms rely on other partner, companies for component supplies and product distribution to meet changing customer demand more effectively. Hence, an end to end relationship management solution is a desirable goal that is needed to manage the chain of networks linking customers, workers, suppliers, distributors and even competitors. The management of "online transactions" in the supply chain assumes a central roll.

11.   Facilitating for Organizational Model

It is facilitating an organizational model that is fundamentally different from the past. It is a control organization to the information based organization. The emerging forms of techno-organizational structure involve changes in managerial responsibilities, communication and information flows and work group structures.

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    • profile image

      Wilbert 7 months ago

      Thanks for the efforts

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      audrey m 8 months ago

      thanks for sharing this website

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      Kaviya 22 months ago

      It's ssup

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      MURUGAN. MS 24 months ago

      I like E-Commerce

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      krupal 2 years ago

      It's good...

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      chelimo asadi 2 years ago

      it was the best information and facts

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      anchal 3 years ago

      It's good nd use ful

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      , jl 3 years ago

      .;o/.p'

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      frank leecrew 4 years ago

      importance of technological world;e-commerce endeavors improvement

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      ANUSH 4 years ago

      why do u say this, i will take you down son!!!!!!

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      nini 4 years ago

      DIE ANUSH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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      ANUSH 4 years ago

      SUPERB

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      Aayush 4 years ago

      I like big men.

    • profile image

      aayush 4 years ago

      god dam it bill

    • profile image

      nini 4 years ago

      john had a pie he consumed the pie with great precision.earlier on he put a dounut in the bath to see if it would float, is his nan 84 years old.

      give your answer as a percentage :

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      me 4 years ago

      bill, go die!!!!!!!!! luv ya :*

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      bill welch 4 years ago

      it was me who said those horrible things about jamie. im sory and im going through rehab to get the addicting taste of dick out of my mouth. i hope you can forgive me. love bill (william) xxxxx

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      Jamie Ravilious (JRav) 4 years ago

      I get beaten by my mother everyday. I hate my life and everybody always forces me to lick baby monkeys. Help. Please, can anyone recommend a nice way to kill myself?

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      william farrel 4 years ago

      willy

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      james sturman 4 years ago

      hi i am a vegetarian and i have been for a while i am now moving to the middle east to get my fix of willys.

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      morten 4 years ago

      big willys in my bum yum yum

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      Jamie RAVILIOUS 4 years ago

      OOOOH, MEN,

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      Jamie Ravilious. 4 years ago

      I am Jamie Ravilious, call me at 999.

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      Jamie Ravilious 4 years ago

      I am so attracted to men.

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      Jamie Ravilious 4 years ago

      I love e-commerce almost as much as I love men.

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      Jamie Ravilious 4 years ago

      I am Jamie Ravilious. I'm gay. I go to Walton High school and am in year 11. I suck long bananas. I lick them, too. I love the taste of men. I rape baby monkeys in my spare time and have no friends. Help me.

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      jrav 4 years ago

      i love men 2

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      JOHN 4 years ago

      i LOVE MEN

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      komal 4 years ago

      e commerce is gud

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      neha rawat 4 years ago

      i like e com

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      Raman ghumaan 4 years ago

      I study e commerce

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      samak 4 years ago

      tera khandaan kondam

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      asha 4 years ago

      maa ki aankh

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      fuck your ass

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      behen ke laude

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      om 4 years ago

      maa ki chut

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      i am on facebook!!!!

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      very good but not efficient

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      must improve

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      i amin tanzania aka bongo nice when u check me on face book

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      Toe Nail

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      Karim Jaffer 5 years ago

      i was involved in the London riots and got put on tag for 8 months i also smoke weed in the woods at lunch

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      why u muggin off my fellow zoo mates

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      Matt Wardman 5 years ago

      hey don't be mean about my friend jon or i will hurt you

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      tjtyjtyjyjjty

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      i am also gay and am looking for a relationship iu like a man with a bendy one

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      it was me who posted the stuff about matt wardman

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      i have an abnormally long neck and i also got rejected by bethan meighan and i raped hannah smith and look like a giraffe . i am also a tramp with one pair of trainers

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      shaqnel 5 years ago

      Enough information about e commerce is stated in the blog. This would be the trend of modern technology. Thank you for sharing such great ideas. These are additional knowledge for the successful growth of Dirigo Creative or go to http://dirigocreative.com/.

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      matt wardman 5 years ago

      i have a long neck and got mugged of by bethany meighan

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      edward hull 5 years ago

      yes guys this is totally rad ecommerce has developed are lives massively and i love men

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      karim 5 years ago

      i love this

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      minakshi 5 years ago

      what is e-commerce

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      jeff 5 years ago

      ya commerce is coog enough that may include the study of whole economy!

    • profile image

      jenny 5 years ago

      i hate eCommerce............

    • profile image

      ANKITA PRASAD 5 years ago

      I M THANKFUL TOOOO MODERN TECHNOLOGY......COOL

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      harry 5 years ago

      awesome dude

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      nice website....good for girls :)

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      maya sharama 6 years ago

      I like e-commerce

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      Boo McCourt 7 years ago from Washington MI

      How the heck did we survive without e-commerce all this time. Well written and interesting.

    • Waren E profile image

      Waren E 8 years ago from HAS LEFT THE BUILDING............

      Thanks for breaking it down so well,thus understanding came easy!

      thanks for sharing this!

    • i imi profile image
      Author

      i imi 8 years ago

      thanglynn07

      mdawson17

      Peggy W

      BrianS

      Rubes

      Thanks to all

    • Rubes profile image

      Rubes 8 years ago from Somwhere up high

      That's a crazy picture you put up. lol. It fits in with the article real well. Write some more.

    • BrianS profile image

      Brian Stephens 8 years ago from Castelnaudary, France

      Yes a lot of benefits associated with ecommerce but we still need to be wary of information overload as well for example getting copied on lots of emails that you do not need to be.

      Good hub, made me think about it.

    • Peggy W profile image

      Peggy Woods 8 years ago from Houston, Texas

      Would be hard to go back to the Dark Ages!

    • profile image

      mdawson17 8 years ago

      This was a very good hub; very informative! I have bookmarked it! Thanks for sharing such great information!

      mdawson17

    • i imi profile image
      Author

      i imi 8 years ago

      thx 4 sharing

    • thanglynn07 profile image

      thanglynn07 8 years ago from Long Beach, CA

      I am very appreciative of modern technology!