E-business and E-commerce
E-commerce is exchanging products online and is a major development for the buying and selling of goods which reduces operational and transaction costs, it also can intise people to come to your store and can boost reputation.
E-business is broader than E-commerce and also involves customer service, learning and collaboration.
Digitalization is the transformation of physical to digital business. It has occurred in different amounts in different business areas. Some Businesses remain brick and mortor like fresco. Many businesses are partially digitilized. Then pure play businesses are exclusively digital.
There is a large variety of business models that organizations use.
table 9.1
There are several e-commerce mechanisms that businesses and individuals can buy and sell of the web. Electronic catalogue includes product database, a directory and search. electronic auctions including forward auctions which are traditional, and reverse auctions where customers request a quote with information, then suppliers analyse the requests and submit bids online. electronic storefronts are one online store, where electronic malls are multiple stores in one website address. an electronic marketplace where many transactions can occur between many buyers and sellers. These are facilitated by a variety of online payment methods like credit cards and paypal.
There a a few limitations of e-commerce, the technological limitations are the need for internet accessing equipment, lack of standards and running out of bandwidth resulting in websites crashing.
Online service industries are another development that allows tasks like recruitment, banking and marketing to be exclusively online services.
This new form of marketing results in new ethical and legal issues previously covered.
Gray, H., Issa, T., Pye, G., Troshani, I., Rainer, K. (2014). Management Information Systems, 1st Australian Edition. John Wiley & Sons Australia.
