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E-BUSINESS, STEP TO THE NEW WORLD.
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1. INTRODUCTION: Organisations cannot compete solely on past record of success in today’s rapidly changing business environment that is characterised by boundary blurring, disintermediation and hyper competition. To move ahead of these rivals they need to seek innovation constantly at every level of activities. Their ability to generate successful business models and strategies as well as new products, will be the key for their survival in new economy. The first step of such innovation is internet, which made the traditional commerce to evolve in to e-business trend. IBM as defined the e-business as the transformation of key business process to the use of internet technologies (Schneider and Perry 2001). This essay explains the how the e-commerce has brought a great change in the commerce with the relevance to use of internet. First half of essay clearly states the emergence of e-commerce and latter part criticizes the various business models. 2. ABOUT E-COMMERCE: When talking about e-commerce, many people use terms like e-commerce, e-business, i-commerce etc... Though literal interpretation of these terms denotes particular domains of activity and little rigour is applied to their application. Generally speaking e-commerce refers to the buying and selling of information, products and services via computer networks today and in future may be using any myriad of networks that make up internet (Lawrence & Corbitt 1998). 2.1. HISTORY OF E-COMMERCE: Over thousands of years, people have engaged in commerce with one another, they have adopted various methods which includes the inventions like steam engines, printing press and telephones which brought a major changes in the commerce activity. After several decades the firms slowly developed various electronic communication tools to conduct different kinds of business transaction. EFT (Electronic Fund Transfer, which was used by banks for electronic transmission of account exchange information through private communication) and EDI (Electronic Data Interchange, which is used in between business for transmitting computer readable data in standard format) are some stepping stones for the development. Later, innovation of E-Mail has encouraged commerce activities to become digital commerce phenomenon in nineties. Also many institutions and government departments started insisting the people in use of the new technology. This paradigm shift drives new practices in financial service industries too. Many financial institutions desired to build new computer systems across an open platform to handle secure digital transaction. “The way of doing business has dramatically changed by the use of information technology- old ways of dealing with customers, suppliers and employees have been destroyed and replaced by radical new ways….” Says Peter Schumpeter, a Harvard Economist, (Lawrence 1998). He calls this change as “Creative Destruction”. 2.2. E-COMMERCE – A BRIEF SUMMARY: As generations passed by, the marketers faced many challenges as well as opportunities. Such opportunities brought the innovations like e-commerce. Following table clearly illustrates the activities of e-commerce, Perspective Description Communication To deliver information, product/services and payments over communication network. Business To automate business transactions and work flows Services To cut service cost while improving quality of goods and elevate the speed of service delivery Online To provide the capability of buying and selling products and information over internet and other online services (Kalakota & Whinston 1997) 3.
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