Global Information

The global information society has transformed the way we do business. One of the most widespread changes is the use of the Internet to develop more efficient communications between suppliers and users of goods and services. This process is called intermediation. In this module we will look at how new Internet-based technologies have revolutionized business communications. First we will define intermediation. Then we will examine how technology has affected business communications. Finally, we will look at some of the online technologies that are helping businesses communicate better, faster and more cost-effectively.

e-Commerce: A Guide to How Technology has Affected Business as We Know It Today!

Glossary:

1. 1. Transaction processing--Completing a transaction online--such as when a consumer uses a shopping cart to make online purchases.

2. 2. e-Procurement--All purchasing activities plus all of the monitoring of all elements of purchase transactions

3. 3. Procurement--The purchase of goods for resale

4. 4. Snail mail--mail sent and received via the US Postal Service

5. 5. B2B (Business to Business)--the activities conducted online between two businesses

6. 6. Shopping cart--an electronic tool used by online consumers to purchase goods and services

7. 7. Fulfillment company--offers services to other companies such as transaction processing, providing security, etc.

8. 8. HR (Human Resources): the division of a company which hires employees and takes care of all employee-related matters.

9. 9. EDI (Electronic Data Interchange) -- when one business transfers computer-readable data into an agreed-upon format to another business.

10. 10. ISP (Internet Service Provider)--a business that provides access to the Internet via modem, DSL, or TI. They also provide other services such as e-mail, web hosting, and web design.

11. 11. Logistics--

* * Consumer--Browsing for information from multiple sites for comparison shopping purposes

* * Business--Delivery and warehousing activities that will provide the right goods in the right quantities in the right place at the right time.

12. 12. GPS--Global Positioning System--an access mechanism which allows the tracking of vehicle location through satellite

13. 13. Web auction--a site which provides a forum for buyers and sellers to trade items. An auction site normally charges both buyers and sellers; many web auctions sell advertising on its pages

14. 14. Intranet--a web-based private network that hosts Internet applications on a local area network; used for security purposes

E-Commerce: Changing Face of Business

At the dawn of the new millennium, if we look back at the last century, we will realize the changes the world has seen. And even the changes are becoming rapid. The main reason of changes is technological innovation. The ever-changing technology has affected business as well like it has affected all other walks of life. Here are some of the key changes in today's business environment which would include the following facts:

The world is more competitive

We are all competing in a global economy.

Geographic boundaries have become almost incidental.

Competitors are coming from outside traditional core business.

Margins are thinner, with severe impact on cost structures and profitability.

Customers are less loyal, but more sophisticated and ever more demanding.

Labour and primary input related cost competitive advantages are short lived at best.

Technological shifts in information availability and processing power have virtually eliminated the information float from business processes.

Why E-commerce

Before we go on to discuss the utility of e-commerce we have to see what e-commerce is ? Gartner Group has defined it as "electronic communication among enterprises, including customers, suppliers, business partners, government organizations, and financial institutions."

So ultimately e-commerce is a business strategy, which uses technology to achieve business goals. It is basically an evolution in the way companies interact. It provides information to facilitate delivery of goods and services and supports change initiatives and reinforces business process reengineering. It improves external business relationship also.

Types of business on net

There are two types of companies that do business on the Internet. One type of company is that which exists solely on the Internet. These types of companies do not have stores or do business in the traditional way. Two notable examples of this type are Amazon.com and CdNow.com. The other type of company that uses e-commerce is one that uses the Internet to complement their existing business. E.g.-Barnes & Noble. In addition to selling books at their stores across the country, Barnes & Noble operates a website in which consumers can search for books that they may be interested in buying and purchase