Introduction:
The term E-Commerce
may be simply defined as: “All business activities such as business trading
with other businesses & the internal processes that the companies support
by using internet technologies”. The various types of E-Business that occur in
the world are:
Business–to-business: transactions occur in Internet between businesses.
Business–to- consumer: A consumer shops in the Internet.
Business processes:Here various organizations, companies, & governments undertake
their selling & purchasing activities using Internet technologies.
Consumer- to- consumer: transactions between persons among themselves in the web.
Business- to- government: direct transactions with governments or their agencies of various countries.
Business Process:
The business
model may be defined as an integration of a group of business processes whose
output is revenue. In many cases, it is seen that new E-Com companies always
try to copy the business model of a reputed one. Hence one new E-Commerce
company must identify its individual business elements & accordingly create
its business model using web technologies, because duplicating the business
model of another company would most possibly put the newbie in doldrums in some
way or other. Here comes the question, how to identify the business elements
that the newbie will integrate to form a genuine business model.
Discussion:
In the ever
changing world of business, E-Commerce has a pivotal role, as the companies can
adapt to the changes using internet technologies. Though the skills of direct
selling can be very difficult to implement through E-Commerce, still companies
upload the direct selling skills to their web sites & become successful in
product specific cases. Products such as software, audio CDs, books, e-book,
movies, mobiles, office supplies, computer & its accessories, travel
services, investment, insurance & banking are excellent for E-Commerce, as
the purchasers never ask to experience the product physically before
purchasing. Many products are still not fully adaptable to E-Commerce. They
require the combination of both E-Commerce & traditional business
principles. A product is best suited for E-Commerce, depending on its easy
packaging & forwarding, and also brand equity. Products like real estate,
high value jewelry, perishable goods & automobiles require a combination of
both traditional & e-commerce business processes.
During 21st
Century, more & more companies are jumping into the E-Commerce fray, mainly
because this system requires less investment with high profit margin. A very
small company can promote its products throughout the world, although
geographically scattered, simply adopting best Web Advertising. Internet
creates business opportunities for newborn companies by promoting its products
through sharing in virtual communities, which would have been very difficult
& expensive in real world.
Like sellers, opportunities
are also created for purchasers in the Internet through indentifying new
companies, diversified product base & its availability, lower price tag by
competitive bidding, lightning fast business exchange information, & finally
reducing transactional costs. Finally, E-Commerce is clearly responsible for a
step towards creating a Green Earth.
Limitations:
There are some
products which cannot be included fully in the business processes of E-Commerce
in the present scenario. Products such as highly perishable goods, & high
value customized jewelry cannot be inspected from a remote place, & the
purchasers of these products are always keen on inspecting the product before
placing orders & further, they will need the product in as-is-where-is
basis after clear delivery.
The technology required
for implementation in E-Commerce projects are changing rapidly, & an E-Com
company always need to keep pace with the new & advanced technology. The
major investment of a new E-Com company is with the technology (Software + Database).
Suppose a company is formed today using the latest technologies of 2012, but if
the technology will change during 2013, the company must be able to revise or
update or adopt the new technology without delay, in order to remain in the market.
Here comes the question of return on investment. Another factor which limit the
functions of E-Commerce is the mindset of different people in different geographically
scattered areas. Many people have suffered & also suffering now in scams
through the Internet. Hence they are reluctant enough to send their
Credit/Debit card numbers to the E-Com companies. Specifically, in India, very
few people do know about Cyber Law. Further, the implementation part of Cyber Law
in the Indian scenario is very ridiculous.
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