E-commerce

E-commerce

Explain what is meant by the term ‘E-commerce’.

It is the conducting of business communication and transactions over

networks and through computers. As most restrictively defined,

electronic commerce is the buying and selling of goods and services,

and the transfer of funds, through digital communications. However EC

also includes all inter-company and intra-company functions (such as

marketing, finance, manufacturing, selling, and negotiation) that

enable commerce and use electronic mail, EDI, file transfer, fax,

video conferencing, workflow, or interaction with a remote computer.

Electronic commerce also includes buying and selling over the Web,

electronic funds transfer, smart cards, digital cash (e.g. Mondex),

and all other ways of doing business over digital networks.

Assess the advantages and disadvantages of E- Commerce information

systems.

Both the consumer and the supplier of a product can benefit from when

using Electronic Commerce many obvious advantages. The consumer can

browse through a whole shopping mall from the comfort of his or her

own home, and products can be purchased and delivered right to their

home. E-Commerce removes the hassle of crowds and line-ups from the

consumer's routine.

The supplier has the advantage of keeping their store open twenty four

hours a day, seven days a week - without having to hire the staff to

maintain it which saves a lot of money which means they can focus on

better prices for their products and greater profits. The Internet

opens up the customer base widely, allowing many customers the

opportunity to view their product.

First, businesses can communicate with customers easily. The business

can receive and send e-mails from/to customers. This allows customers

to quickly get in contact with the business. This can also be done to

suppliers is well. This means that the business will forge closer

relationships with customers and suppliers.

In addition, e-commerce allows customers to look at the businesses

products from their home. This means that customers will be able to

look or buy the product at any time rather than only when they go

shopping. Also with the business being on the internet it will mean

that that the business will be able to aim their will be easy to

access and that more people can see their product.

Moreover, it is said that trad...

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First, careful design of documentation will aid the prevention of

unintentional errors in recording and processing.

Besides, the accurate processing of a transaction document requires

those responsible to carry out the organisation’s procedures

correctly. These should be specified in a procedures manual.

Furthermore, separation of functions is aimed at preventing fraud. If

a single member of staff were to be in charge of carrying out all the

procedures connected with a transaction then it would be possible, and

might be tempting, for that person to create fraudulent transactions.

When these functions are separated and placed in the hands of

different individuals, fraud may still be tempting but will be less

possible.

A business relies on its personnel. So, personnel must be selected and

trained effectively to ensure that they are competent to carry out the

tasks required of them.

Also, physical controls may be used as a preventive measure; avoiding

illegal loss of assets such as cash is to exclude staff from

unnecessary access to these assets. A range of physical controls may

be used to prevent access – locks, safes, and stout doors are obvious

methods.