preview

What is Electronic Commerce?

explanatory Essay
1046 words
1046 words
bookmark

What is Electronic Commerce? “E-commerce has the potential to unleash enormous savings and business efficiencies, but the practicalities remain elusive. How will e-commerce change the global planning and purchasing of transport and logistics in the supply chain? Logistics has been described as the key enabler for e-business – but how can individual logistics and transport companies ensure that they benefit from, rather than perish in, the e-commerce revolution?” Alan Waller, partner, PRICEWATERHOUSE COOPERS, EMEA. Electronic Commerce (e-commerce) is electronic business. It's using the power of computers, the Internet and shared software to send and receive product specifications and drawings; bids, purchase orders and invoices; and any other type of data that needs to be communicated to customers, suppliers, employees or the public. E-commerce is the new, profitable way to conduct business which goes beyond the simple movement of information and expands electronic transactions from point-of-sale requirements, determination and production scheduling, right through to invoicing, payment and receipt. E-commerce uses key standards and technologies including Electronic Data Interchange (EDI), Technical Data Interchange (TDI), Hypertext Mark-up Language (HTML), eXtensible Mark-up Language (XML), and the Standard for Exchange of Product model data (STEP). E-commerce is made possible through the expanded technologies of the Internet, the World Wide Web, and Value-Added Networks. The Internet is a world wide collection of computer networks, co-operating with each other to exchange data using a common software standard. Through telephone wires and satellite links, Internet users can share information in a variety of forms. The size, scope and design of the Internet allows users to connect easily through ordinary personal computers and local phone numbers, exchange electronic mail (E-mail) with friends and colleagues with accounts on the Internet, post information for others to access, and update it frequently, access multimedia information that includes sound, photographic images and even video, and access diverse perspectives from around the world. An additional attribute of the Internet is that it lacks a central authority—in other words, there is no "Internet, Inc." that controls the Internet. Beyond the various governing boards that work to establish policies and standards, few rules and answers to no single organisation bind the Internet. The History of the Internet Many people think that the Internet is a recent innovation, when in fact the essence of it has been around for over a quarter century. The Internet began as ARPAnet, a U.S. Department of Defence project to create a nation-wide computer network that would continue to function even if a large portion of it were destroyed in a nuclear war or natural disaster.

In this essay, the author

  • Opines that e-commerce has the potential to unleash enormous savings and business efficiencies, but the practicalities remain elusive.
  • Explains that electronic commerce is using the power of computers, the internet and shared software to send and receive product specifications and drawings, bids, purchase orders and invoices.
  • Explains that e-commerce is the new, profitable way to conduct business that goes beyond the simple movement of information and expands electronic transactions from point-of-sale requirements, determination and production scheduling, right through to invoicing, payment and receipt.
  • Explains that the internet is a world wide collection of computer networks, co-operating with each other to exchange data.
  • Explains that the internet lacks a central authority, meaning there is no 'internet, inc.' that controls it.
  • Explains that the internet began as arpanet, a u.s. department of defence project, to create an nation-wide computer network that would continue to function even if it was destroyed in nuclear war or natural disaster.
  • Explains that the nature of the internet changed abruptly in 1992, when the u.s. government began pulling out of network management, and commercial entities offered internet access to the general public for the first time.
  • Explains that the internet explosion coincides with the advent of increasingly powerful yet reasonably priced personal computers with easy-to-use graphical operating systems.
  • Describes the benefits of electronic commerce, whether business to business (b2b) or b2c, including reduced acquisition times and costs, lower prices for goods and services, an expanded number and quality of suppliers, and improved management information.
  • Explains that b2b e-commerce was born out of an attempt to solve an administrative problem. it developed a new computer standard to handle these needs, which became known as edi.
  • Explains that e-commerce is widely used and growing fast. b2b is the largest, fastest growing and most profitable market, boosted by broadband internet access to more on-line households.
  • Explains that the internet is creating unprecedented and seeming infinite opportunities for both customers and businesses. however, it is changing so fast that both parties are overwhelmed by the speed of change and the sheer number of choices available to them.
  • Opines that an e-commerce environment handled in a proper manner, with the right customisation of products and services, in innovative ways, can lead to win-win situations.
Get Access