Electronic Business Vs Traditional Business Information Technology Essay

Electronic Business Vs handed-down Business Information Technology Essay1. entrance steering to e-CommerceElectronic commerce, commonly known as (e- let onping) e-commerce or ecommerce, consists of the buying and selling of harvestings or services everywhere electronic systems such as the Internet and some other computer networks. The amount of trade conducted electronic entirelyy has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet market, online proceeding processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems(Wikipedia). unsanded-fashioned electronic commerce typically uses the World Wide Web at least at some point in the transactions lifecycle, although it batch report a wider range of technologies such as e-mail as well.2. Definition of E CommerceA while back, e commerce referred to any showcase of argument conducted over the Internet. The meaning of the phrase has changed though, and now it means selling an actual reaping (hard goods) online. This is different from selling a service, such as obligate writing. (Masteringweb hinge uponemarketing.com)3. Some Examples of E CommerceThis list will show you some products and services-all considered to be a part of e commerce.Online Goods and ServicesEBooks (Sample example below)CLICK hither TO DOWNLOAD eBOOKSoftwareRetail servicesOrdering flowers, food or clothesMarketplace ServicesAuctionsOnline wallet (An online wallet is a program or web service that allows users to store and control their online shopping training, like logins, passwords, expatriation address and credit card details, in one central place. Wikipedia)Advertising4. to a greater extent than on Definition of E Commerce and Introduction to E Commerce- Its HistoryEcommerce began in 1994 when a man named Jeff Bezos started A mazon.com, selling things out of his garage. Ever since, more and more line of productses have attained a reputation online-companies like eBay and Target.Across the world there are around 8 million people who shop online. A study has shown that by 2011, profits from online retail sales will pass a quarter of a trillion dollars So, you suffer see how important e commerce is to the lives of many people.5. E Commerce characteristicsThe infrastanding of the e commerce paradigm varies among academics and practitioners. According to ALTER (2002) e-commerce is the practice of performing and coordinating critical line of reasoning processes such as designing products, obtaining supplies manufacturing selling and fulfilling orders and providing services by dint of the extensive use of computer and communication technologies and computerized data, DRUCKER (2002) however talks about ecommerce as the fickle emergence of the internet as a major world wide distribution channel for jobs and services, which in the end results in changes in markets and industry social structure as well as economics in general.An extensive study shows that ecommerce do not have a common accepted definition which is a sign of research area that is still emerging and maturing and one that involves different research domains as marketing, computer science or strategic management (WILKINS 2000).Summarizing the definitions of ecommerce and in accordance with the organization of economic cooperation and development, 5 major characteristics can be concluded, (OECD1999)Use of information and communication systems to standardize, automate and integrate transactions.Transformation of marketplaces and creation of new industriesIncreased connection and interactivity of and between the calling partners over electronic networks.Alteration of the relative importance of time and resourcesCatalytic effects of inter and intra organizational transaction6. BenefitsStarting an e commerce store has benefits to you, the merchant, and to your customers. Some of the biggest benefits are cheaper products and setting up and maintaining your online store-all done more easily than you can with a brick-and-mortar store. To conclude the accounting entry to and definition of e commerce, lets look at its benefits.24 Hours a Day, 7 Days a WeekWith an e commerce website, you can serve your customers 24/7 They can order any time of day or night. Want to sleep in? Go on a vacation?No problem Your customers can keep shopping and ordering, counterbalance when youre not there. (Powertips.com.au)Opportunities to Create RelationshipsE commerce opens the door to new opportunities for relationships with your customers, both new and old. When your business is online, it is getatable to customers the world over so there are many new opportunities for new relationships. You would not have most of these customers if your business wasnt online.Increase in salesStarting an e commerce site is a great way to ontogenesis the sales for your brick-and-mortar store. Many store owners dont think of how much their business could increase if they attain an online presence. It just doesnt occur to them However, it is a great way to increase sales at your offline store.Brand AwarenessThe ability to reach millions of potential customers all over the world will increase knowledge of your product line. You can get people talking about your products, which is free, word-of-mouth advertisingExpands Your Customer buttAs we mentioned briefly, having an e commerce business means that you can get customers from all over the world. There are almost no limits as to who you can sell to, and where. Offline stores are limited to getting customers locally. But e commerce removes these restrictions At the very least, target Canada, the UK and Australia as well as the USA.Builds Customer subjectionWith an e commerce store, its simple to show off your goods to customers in a unique way. If your store is easy to access and shop with, you will have loyal, living customers.Promotion is EasyIts easy to deliver information to your customers over the Internet Make your promotions, data, and information easily accessible. Of course, youll want to put a lot of this information in a newsletter that you send to your customers on a regular basis.Decreases Your ExpensesGoing online can decrease your costs, too. If your business is online, you wont posit much round (if any) Plus, theres no real location necessary, so you wont have to pay for rent or maintenance.Increases Your EarningsIf you have a Business already, interruption an e commerce site can be a big pick-me-up for your business. Its important to increase your profits, and going the e commerce route can be a big help. More sales = More profits = Bigger budget for your business.Smaller Target GroupWhile your customer rest home can extend well beyond your local area using e commerce, its to a fault easy to tighten your niche. Online, you h ave more control over who your business targets. You can target young couples, singles, teens, seniors, men, women, or a specific ethnic group. This fibre of targeting is done by using keywords that are popular to the demographic you are trying to reach.The meaning of Electronic Commerce (e-commerce) has changed over the past 30 years as today it is considered to be the buying and selling of products or services over an electronic system i.e. the internet. Since the spread of this, the amount of trade conducted electronically has grown tremendously. Now the World Wide Web (WWW) is being apply by modern e-commerce, which is generally considered to be the sales aspect of electronic business and consists of the exchange of data to facilitate the financing and payment of business transactions. 7. equivalence electronic business to handed-down businessNow days, technology has made human life easier and better. It has developed many fields to perform their task easier such as, manufa cturing, constructions and many more. Business sector has also changed a lot with the improvement of technology from traditional business it evolves to e-business and bringing a big difference in three major areas that is time, trust and as we all know that time is precious for many people, the same thing is applied in by the entrepreneurs in their businesses. The advantage of e-business is convenient because people do not use up to go out and talk to customer or muster for customers instead they can sit in the house and do their work through internet. Besides, e-business makes our life easier because any business transaction can be done through the internet and also safe our time from travelling up and down. Some example of e-business is e-shops e-commerce and e-auctions, with this new technology on e-business people are able to make their life even better.Where as, on the other hand traditional business is totally opposite then e-business because it is not so convenient because we need to go out and find customer, the advantage of this traditional business is that they provide good service and gain customers trust but amount of energy wasted is not really charge it sometimes. Further more, traditional business waste energy because need to travel a lot and quit a lot of paper work need to be done for one transaction and sometimes time and also waste time because lets say if the supplier want to buy a product from the manufacturer the supplier need to send letter to get the quotations and he must survey around which manufacturer offer the cheapest and etc. by doing this way the supplier is actually wasting a lot of time. (E-business amazon vs. borders)One simple thing that certainly differs e-business from traditional business is the technology that underpins the business itself.E-business is built electronically on a network therefore, without a network its completely impossible for an e-business to survive. The use of technology will bring a huge blow o n the way of a business communicates with its customers.This business communication models are categorized by Schneider into three different types 1Personal contact (one to one)In this type of communication model, the organization assigns its employees to identify and reach the prospective customers 1. The simplest example for this approach is the sales person who calls the potential customer and introduces the products offered by his smart set. This approach has been widely utilize by traditional business.Mass media (one to many)The intensity media approach allows the organization to broadcast advertising and promotional materials on its products 1. Examples for this approach are advertisement on television, radio, theme or magazine. This approach has also been widely adopted by traditional business.The web (many to one or many to many)The internet is neither a mass media nor a in the flesh(predicate) contact device 1. It stands on the middle of the fine line where mass media is allocated at the first side and personal contact at the other side. The web provides more interactivity than mass media does to its audience but less than personal contact could offer. For example, an internet user can type in his keywords on a search engine tool (e.g. Google) and riddle on the products that catch his attention. The web is the approach that is adopted by e-business.So, what impacts that the web can bring to-business as its business communication model? The communication model adopted by e-business will surely raise new barriers that need to be brought to attention.The low level of trustUnlike traditional business who can gain trust from its prospective customers through a straight, personal contact, the web eliminates the customers privileges to experience such personal contact with both the products and organization they want to buy the products from. In traditional business, customers come to a store and have personal interaction with the organization through its sales person and then, possibly, have personal contact with the product. These types of experience somehow develop trust towards the organization and are very important for certain types of product.The need of good electronic marketing strategiesIt is undeniably that internet provides the facilities for business to broadcast their advertisement. However, it doesnt have such power to force its audience to view or click on the ads 2. An audience has the opportunity to create a list of product by using search engine tool (e.g. Google) and click on the product that catches his attention. Therefore, some traditional marketing strategies are not applicable in e-business. New marketing strategies such as how to increase the rank of a company on search engines are more likely to gain attention in running an e-business.E-Business is changing the relationship between merchant and customer, whether it is business to business or business to consumer Business, or the government isomers of th ese.Relationship building is paramount. Savvy Internet users know that if they cannot get good service, which also means an easily passable web site, they can move on and quickly. The Internet is providing customers with growing power and purchasing control. Shopping agents will find the lowest price scams or unworthy service will quickly be identified and passed on.In addition there is still a strong ethic of free stuff on the web. Consumers in particular are looking for free information and services. Providing these aspects is a crucial part of relationship building which will form the basis of electronic Business into the future.With the potential speed and efficiency of electronic communications and transactions, the nature of inventory is changing. A virtual shop on the web may post no stock at all, relying on suppliers to fulfil orders a small, on-site inventory can be replenished with just-in-time manufacturingE-business improves the benefit and efficiency of traditional business, comparing with traditional business, E-business has the following advantagesE-business improves the benefit and efficiency of traditional business, especially international trade. Compared to traditional models,8. E-business has six main advantages compared to that of traditional business(1) Reduces business cost. Firstly, e-business can improve the marketing efficiency and decrease promotional costs by network marketing enterprises. According to statistics, advertising on the internet can increase sales people by 10 times, while the cost is only 10% of traditional advertisements Secondly, E-business can reduce stock cost, because it can find more suppliers with the most halcyon prices in the global market by internet enterprises, and sharing information with suppliers can also reduce problems caused by long communication chains. Some studies reason that using EDI usually can save stock cost for enterprises by 5%-10%.(2) Decreases stock, Decreases Waste. Enterprises sho uld maintain a certain stock of products and materials to deal with fluctuant market requirements. The native reason for stocking up is lack of information, a lack of information E-business based suppliers and manufacturers dont have. They can send information of market requirements to enterprises to make decision and contract by internet, and enterprises requirement information can be transferred to suppliers to supply on time, leading to zero-inventory management.(3) Shorter production cycles. To create a saleable product is often the cooperation of many enterprises. The products design, produce and sales may be managed by many different related enterprises. Using E-business can change the stage-cooperation method caused by lack of information into incorporate work methods, improving business tobusiness (B2B) relations.(4) Increases business opportunities. Traditional trade is limited by time and space, but E-business is a global 24 instant operation. Business on the internet can expand in the market that the traditional marketing and advertisement promotion can not reach.(5) Reduces material dependence. Traditional enterprises must have a certain number of materials to develop business, but the E-business in internet can built virtual enterprise, such as shop and bank on network, they dont need many practical basic instruments, and the enterprises can transfer the saved cost to customers, this is the reason that Amazon, a book shop on network can supply customers discount that the traditional book shops can not supply.(6) Cuts out the middle man. E-business redefines the traditional currency mode and reduces middle associate in B2B relations and international trade. E-commerce allows the possibility of direct transaction between manufacturers and buyers, across borders, thereby changing the economy of the entire world.9. ConclusionToday, ecommerce is the latest mantra in increasing your sales. This is because instead of selling your goods and services through a local store, you can sell online and gain a greater customer base. Apart from providing shipping services, you will need an online ecommerce merchant account to accept credit card payments to make your venture a success.These days, even a restaurant is running under ecommerce system. Ecommerce solution provider performs many jobs for the Restaurant, such as, they put online restaurant menu, online restaurant ordering systems and bed and breakfast booking system. There are many slipway to get your products and services online, from a simple brochure site to a high-end database driven site.In this way, we see that ecommerce has changed the people to do the business in a different way. Every thing in this world has been being globalize and of course business is no exception. Global ecommerce business has been new trends in ecommerce business and plays a pivotal role in global economy. Also the role of ecommerce business solution providers cannot be ignored because you cannot imagine successful and fruitful ecommerce business without their assistance.