ELECTRONIC COMMERCE

What is Electronic Commerce?

Electronic commerce is a way of conducting business. This can, for example, include aspects such as arranging contracts, resolving conflicts. In that case systems concentrate on personal relationships with confidentiality an important issue.
Perhaps ultimately it should be an integration of all of the above. In that case it will support the entire business cycle starting with developing requirements from client needs, through to marketing sales and after sales service.

Electronic commerce has evolved rapidly and now covers many aspects of business. Electronic commerce is a way of conducting business transactions electronically. It was initially confined to aspects of managing financial transactions across networks but now has a much wider impact across businesses. This ranges across different levels of communication, and between different entities. Some of these are described in the following table.
 
 
Type of Link Mass Communication Specialized Communication Personalized Communication Knowledge based Communication
BUSINESS  
TO 
BUSINESS
Beginning with transaction exchange. 

Early transaction based systems using EDI (Electronic Data Interchange) to exchange business transactions.

Supporting specialized exchange of business data. 

Supporting distributors or contractors

Supporting formation of business alliances 

Support in making contacts and arrangements

Formation of virtual organizations 

Gathering experts to form teams

BUSINESS 
TO 
CLIENT
Mass marketing 

Mass publicity through the WWW (World Wide Web) leading to Electronic commerce is a way of marketing your product. Leading eventually to:

Electronic purchasing 

Using the WWW for electronic ordering and purchasing.

Providing personalized service 

Now there is a trend to personalized support. Electronic commerce is a way of providing client support by responding to problems, providing ways to monitor progress of services, or to build client relationships

Personalized support in developing requirements 

Direct involvement in joint project with client.

PERSON  
TO 
PERSON
Posting personal information

General postings in widely available newsgroups. Usually include contact information.

Personalized exchange through e-mail Joint project work

Working on joint documents

Knowledge sharing communities 
 
  • Virtual clubs
  • Creation of new products and services