Introduction
This assignment is based on E-commerce (Electronic Commerce) that how it replace traditional offline business and how it benefitted the organisation and businesses, Electronic commerce refers to business activities like selling and purchasing of products or services carried out over electronic systems e.g. Internet or computer networks. E-commerce has changed the way of doing businesses. It encouraged businesses to go online and introduced to new potential markets. E-commerce is proved to be very cost effective and globalized. It has reduced the loss or theft and uncertainty in Organizations. E-commerce outraged traditional way of doing business.
E commerce has become necessity of every organization. In last few years, E-commerce has maximized every business sales to its highest level. E-commerce has increasingly become a necessary component of every business strategy and strong way of economic growth.The incorporation of information and communications technologies in business has revolutionized relationships within organizations and those between and among organizations and individuals. Specifically, the use of ICT in business has improved productivity, optimised greater customer involvement, in addition to reduction in costs.
Due to developments in the Internet and communication technologies, dissimilarity between traditional and electronic markets like business capital size, among both is step by step being pointed down. One more fact that due to increase in customers buying power, customer's preferences have changed and Customer's living standards are improved. At the same time, due to low cost of IT products like computers, laptops etc. Customers are utilizing extensively technology to satisfy their needs by getting more detailed information regarding the products or services offered by the different producers. Customers with the help of technology can make comparisons between the products features by just clicking on their computers.
Concepts of traditional offline businesses and E-commerce
What is Commerce?
Webster's Revised Unabridged Dictionary Traditional commerce may be defined as
The exchange or buying and selling of commodities; esp. the exchange of merchandise, on a large scale, between different places or communities; extended trade or traffic.”
E-commerce?
the history of e-commerce dates back to 1970, when for the first time, electronic data interchange (EDI) and electronic fund transfer were introduced. Since then, a rapid growth of e-commerce has pervaded almost every other aspects of business such as supply chain management, transaction processing, Internet marketing and inventory management.
Electronic commerce (e-commerce) is a general term for any type of business, or commercial transaction that involves the transfer of information across the Internet. This covers a range of different types of businesses from consumer-based retail sites, like Amazon.com, through auction and music sites like eBay or MP3.com, to business exchanges trading goods or services between corporations. Electronic commerce is the use of electronic communication to do business. E-commerce is not about technology. It is not a new business. E-commerce is a method for companies to create and operate their business in new and efficient ways. [1] Most fundamentally, e-commerce represents the realization of digital, as opposed to paper-based, commercial transactions between businesses, between a business and its consumers, or between a government and its citizens or constituent business.
Offline to Online Presence
There are many traditional businesses still today that do not have an online presence, or if they do, the last time it was updated, was the day it was created.Time is changed. Customers are now searching for detailed information about products or services and rely to buy online because the rapid changes in people buying decisions and purchasing patterns. Technology has made every thing accessible on customers finger tips So if you don't have a product to sell online, if your business is not online then you are missing out on potential new prospects and clients to purchase from you online and offline.
There is currently over 1.6 billion people using internet and about 80% have made at least one transaction on the internet. You might have seen your own searching and buying pattern changes over the years as well. Five years ago we were very hesitant to give our credit card details online, or sign up if they asked for an address or even a last name. Today with increased security over the internet you are probably one of the 80% that have made a purchase. Further, people are more tending to research who they are going to buy from online.
Every organization must have a website. If don't, then how are the people going to research about the organization's services or products. Chances are, unless they can't find the information they are looking for on the internet, that they won't call or send a letter to seek information about the business.
How much is it costing a business not to have an online presence? How many new potential customers are missing out on each day? An online presence does not need to have all the latest whiz bang flash movies or hype. It just requires being related content that is appealing to a prospective customers or clients.
Before any business wants to go online, it requires having a domain name. Specialists say that the domain name should be the product or service name rather name a company name. Like Accounanting.com would be better than your company name as people interested to search about accounting not about your company. But in case of McDonalds or John Lewis, People are more interested to rely on company profiles, so the better option is to register on search engine optimization.
In summary, E-commerce is theuse of electronic communication to do business .Specifically, the transfer of information (transactions), over the Internet Some people use the term e-business to refer to all the categories of e-commerceE.g. IBM defines e-business as:The transformation of key business processes through the use of Internet technologies .
Source: http://www.authorstream.com/Presentation/haytouta-143305-session1-introduction-electronic-comm-commerce-type-entertainment-ppt-powerpoint/
