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Evolution Of ECOMMERCE Information Technology Essay

1. 0 Introduction

In the appearing global economy, electronic commerce (e-commerce) has inchmeal turn into a strong catalyst for economical development as well as a necessary aspect of business strategy. Therefore, e-commerce is a potentially growing business for nowadays market and its development offers an undertaking way for business to meet the difficulties of the ever-changing environment.

In calendar year 2001, Vladimir Zwass, editor-in-chief of International Journal of E-Commerce, he says 'Electronic commerce is sharing business information, keeping business relationships and executing business transactions through telecommunications sites'. On the other airplane, E-Commerce is the process of buying, reselling, transferring, or exchanging products, services, and/or information via computer systems, mostly the web and intranets (Turban, Ruler, Viehland, Lee, Liang and Turban, 2011). However, as a simple understanding on the E-commerce will be referred it likes a variety of web business activities for products and services.

Basically, e-commerce can be categorised by different sizes that are business-to-business (B2B), business-to-consumer (B2C), intrabusiness e-commerce and etc. with regards to the nature of the trades or the relationship among the participants (Turban et al. , 2011)

Furthermore, Pikom, Chairman of the Relationship of the Computer and Media Industry of Malaysian got commented on the current ventures of e-commerce among small and medium businesses (SMEs) in Malaysia are anticipated to expand by 20 percent this season following greater awareness by the government and industry players.

2. 0 Books Review

2. 1 Impact available world

During early times, barter system is something that was adopted by the first people in the same locality to switch their personal property of value for other goods or services in return before the technology of money.

Nowadays, e-commerce is among the most essential method available world. The business exchange which is shifted to the web and computer network includes online credit-based card orders, e-cash, e-billing, e-cheques, electronic digital invoices, purchase order and financial claims. Banks will need to adopt online repayment systems and routines that will meet their clients' new needs arising from a change to e-commerce.

The use of e-commerce inside our country continues to be in the newborn level. Abu Bakar and Rohaizat (2002) said that the majority of the Malaysian SMEs are still left out in terms of using internet in their business business deal. It is beneficial to enhance business expansion and recognition of product by turning the business to online business.

According to Bernades & Verville (2005), e-commerce assists with giving an answer to business environmental stresses, fulfilling customers' demands and facing globalization obstacle. E-commerce which is also called 'many-to-many' e-marketplaces allows global customers and vendors to trade in one trading community. They are able to choose the favorable price from the information available in the e-marketplaces. These advantages can thus reduce the transfer cost for SMEs due to the insensitivity of e-commerce to distance factor. It encourages the SMEs to increase the sales across the world.

Besides, SMEs has transferred newspaper business into online business by using e-commerce website in different words. The digital products or services can be shipped right to customers across the world via Internet. It also can save costs by not paying to the intermediaries. Moreover, customer service also can be improved by more relationship with the customer.

On the other side, e-commerce also makes big changes to the business world by giving more advantages to the customers. Customers can compare price of thousands of products provided by SMEs by visiting different sites at any time surrounding the world. Besides, they can make obligations and transactions easily by simply one click which increases the cash stream of SMEs. Customer can also obtain information and electronic digital product easily through Internet. This improves efficiency for delivery of service which plays an important role in the business world. Customers are also fond of using the on-line tracking for examining their order status.

As a result, the changes of the facial skin of business to e-commerce can not only increase the volume level and speed of earning purchase, it also boosts the grade of goods or services provided and way to obtain creation with less type which results in lowering the business purchase costs.

2. 2 Development of e-commerce to improve business functions in the future

The development of e-commerce in the foreseeable future play a significant role as it can enhance a company's operation. Relating to Dick Dark brown, the chairman of EDS said that "the continuing future of the cyber market place depends, to a huge degree, on security and safety. " General public perceives that the level of security includes it personal and confidential information as well as their activities. They may have high amount of concern about the security and safety problem due to their personal information easily access by other celebrations, confidential information dropping into wrong hands, received e-mail infections while others (Allan R. Paliotta, 2000).

Therefore, companies require enhancing the security and safety of these company's website to protect the info of customers won't easily access by third celebrations. With the higher level of cover, customers will reassurance to make use of the website. On the other hands, the grievance from customers will reduce consequently of the satisfied service provided.

Besides, companies have to alert to the innovative technology on the market. According to High Riley, vice president and general supervisor of Yahoo SMALL COMPANY, the essence of internet is for interacting and collaborating. Thus, it creates Riley is convinced that internet has empowered innovators and entrepreneurs to reach their audiences proficiently and effectively in the past 10 years (Jennifer LeClaire, 2005). Companies should choose new technology which can match the requirements of customers such as easy to comprehend and use, high security of personal information, easier online return options as well as the online repayment process. Customers will satisfy because the business in a position to provide services that can satisfy their requirements.

Additionally, companies should choose new software that can easier the sales process on the management aspect. For example, the system will automatically notice the management after the customer made the web payment. Hence, implementing of new technology will advantage the company to truly have a successful web business.

Furthermore, the company should have a content management services (Vidushi, 2011). Essentially, website is a communication mass media that enable a company to have discussion with its customers. Therefore, the material in the web site are very crucial. If the web site contain obsolete or incorrect information, customers could make an incorrect decision regard of the merchandises that they purchase. In addition, customers lose self-confidence because of the merchandises flunk of the expectation. Therefore, content management services target at ensures the material in the website are update and right.

Recently, social networking site is extremely popular about the world. This indicates that sociable networking site will be an ongoing trend in the future. Therefore, company can consider creating a social networking site and program which might help the company to perform businesses internationally (Vidushi, 2011). The goal of this program is to connect the clients of the web site. Customers can talk or make friends through this software. Besides, they can exchange views about quality or price of the merchandises purchase in the web site as well as share the info on a particular topic of the interest areas. Then, they could give some suggestions to the business to boost or improve the operations.

In other words, company can consider using mobile business (M-commerce) to perform the businesses. M-commerce enable a business conducts business activity through wireless telecommunication network. M-commerce is the extension of electronic business (E-commerce). There exists large speculation that m-commerce will exceed e-commerce as it is more convenient and ubiquity.

M-commerce is more lightweight and hence it can connect easily and quickly to Internet, Intranet, other mobile devices, and online directories through the cellular cell phone and personal digital assistant (PDAs) whereas e-commerce's users require plugging in their Computer or laptop before do a purchase (Turban et al. , 2010). Besides, m-commerce is more ubiquity meaning it is offered by any moment and location. M-commerce's users can deliver information when it is needed whatever the users' location utilizing the cordless mobile device (Turban et al. , 2010). Both of these factors may benefit the company to acquire wide range of customers and therefore will help to raise the company's value.

2. 3 Examples of companies that successfully built up/overturn its decrease with

the use of e-commerce

Nowadays, e-commerce is one of the main facets of Internet. An effective e-commerce business must be globally aware, system-oriented and customer delicate. Companies can use the direct access to consumers to collect information that will assist them better develop products to meet up with the consumers need through customizations or create new topic products (Rohaizat Baharun and Abu Bakar A Hamid, 2005).

One of the well known e-commerce site in Malaysia is Airasia. com. It's the first low fare airline which is beginning an e-business that creates an environment of opportunity and establishes new interactions with prospects. The reason of Airasia. com becomes one of the well known e-commerce could it be provides the most convenient for customer by giving 24 hours per day, 7 days weekly freely access the website to buy or preview the option of seat tickets. In others words, the procedure costs of Airasia have been reduced dramatically due to e-commerce stores can be run with less employees and taken away marketing costs. Therefore, Airasia can save cost which assists in regards to to its research and development.

The difference between Airasia and Malaysia air travel is the Airasia website more user friendly and easier to let users remember the well-know slogan "Now Every One Can Fly". In contrast, the Malaysia airline not has the slogan about the air travel business. The Malaysia flight also lack of colourful and exciting feeling website, which it like more traditional format website. So that, the Airasia website can allures more users or customers. Besides, more users or customers also more trust about the Airasia because this excellent website is well-know really website, then your users will not afraid to be cheat. Thus, the customers or users will more trust Airasia equate to Malaysia airline. Even through, the Malaysia airline provides the compensation to the users also cannot easily to beyond the Airasia website. For the reason that in your brain of the users and customers the Airasia has a solid positive image equate to other flight.

Another exemplory case of the well-known successfully attractive site is amazon. com. It is the global marketplace where businesses and people can buy and sell practically anything. However, some similar business requires broker agents. The amazon. com using the e-market to deal the transaction, so that's not requiring any broker agents. It can reduce the search cost, allowing consumers to find sellers that offer lower prices, better service, or both (Turban et al. , 2010). This internet company urges the utilization of secure electronic digital transactions.

Their website also has a whole web page devotes to convince its potential customers that using bank cards online using their business is safe. In order that, the client and seller gets the confident to trust this site while doing their trade. After reading their security statement, if customer continues to be uncertain about using credit-based card online, they encourage customers to post their order without using charge card online and they'll contact them to complete their order. These shows that Amazon is providing a good website to the users and enhanced trust regarding well romance using their customers as well as secure to buy their product online. This built up a very strong romance between customers and retailer in term order to increase its sales and revenue.

In addition, dell. com also encourages the use of secure digital deals. The Dell Company selecting the right product to sell is a crucial success factor for e-tailing. Dell using e-commerce also decrease the timeframe involved in the order-taking routine because automation can be created to help customers seek out, select, and pay for something, anyplace and anytime, minus the intervention of a sales or complex person. Finally, product modified can be communicated to customers speedily. The Dell Company also provide the cost and acceleration of product customization. Millions of consumers configure computer systems to their liking. The Dell Company can fulfil such demands at an acceptable cost and in a short amount of time; this is why for Dell can assure success (Turban et al. , 2010)

As for putting into action security steps, Dell utilizes industry-standard Secure Sockets Layer (SSL) technology to permit for the encryption of probably sensitive information such as the customer's name and address, as well as critically sensitive information like their charge card amount. The Dell Store Internet site is also authorized with site id authorities to permit a browser to confirm the Dell Store's identify before any transmission is directed. Dell. com also backs each credit card order with the Secure Shopping Promise. This warrant further ensures that the customer is protected each and every time they buy online with Dell. This implies that Dell website success is triggered by providing a stability and security with their users and potential customers.

Therefore, in addition they provided a self-serve site to let their users simple to operate or download the program to solve their problem without assistance and are enabling customers help themselves. If the challenge is really very serious, the clients can send e-mail to them for asking for help and then they will come to customer house within 3 days and nights to help customer solve the issue. This provided very efficiency service and incredibly responsible to their customers and show their at ease their product. On the other hand, if the customers straight buy through their website, their providing a motivation and attractive price for customers to buy and also to go back. They provided sales promotion involve coupons, special offers and discount rates. So, they can build-up their goodwill and image in the mind of users and prospective customers.

2. 4 Types of companies that failed their e-business and lessons learnt

In the end of time 2000, "dot-com bubble" was burst triggering an unprecedented number of online-based businesses being closed down.

Empirically, House animals. com is one among many other trusted online retailers that failed as a B2C entity. Actually, Domestic pets. com is a fully virtual organization which founded by Grec McLemore that offered dog or cat products, information, and resources to its customers were set up in November 1998. Besides, it acquired the first-mover advantage being the first ever to enter the market and appeared to success in the beginning of 1999. However, the success never brought profit and therefore Pets. com made a decision to close down its business in November 2000.

The known reasons for the closing of Dogs and cats. com relate with an unsustainable business model and unachievable anticipations. Fundamentally, Domestic pets. com "guess everything on the market" (Fischer, 2000). Furthermore, that they had overestimated the marketplace style that assumed the revenues would grow quickly and invite them to hit their rate. On the other hand, Pets. com didn't bring up a good proposal in opposing its competition which the product's price is leaner than its cost. Also, Dogs. com failed to position itself in a highly effective manner (The failure of Pets. com, n. d. ).

C:\Users\Adrew\Desktop\Dogs and cats. com. PNG

Figure 1: The sign that representing Domestic pets. com

Other than House animals. com, one of the most notable dot-com inability, Webvan, was set up in 1996 by Loius Edges. It was offering same-day delivery of general grocery merchandise bought by its customers via internet. Finally, they ceased its procedures in 2001 (Ray Delgado, 2001).

The critical blunder the Webvan's management made was to spend an excessive amount of the shareholders' capital before there was even any income. Whereby, Webvan's management was made a wrong presumption against certainty on consumer motive to buy groceries online thereafter. Webvan didn't accurately predict the prevailing demand because of their services and were overly positive about the readiness of the consumer market to accept their new way of doing business. Another problem the Webvan's management made was they provided a low customer service and added to low consumer enthusiasm.

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In Substance, poor planning, spending too much capital before producing any profit, expanding prematurely before trying to establish in a specific market, failure to provide credited customer service, and failing to forecast the readiness of customer market - all of these things could be within both of these failed dot-com companies (Jeff Ropelato, n. d. ).

Hence, based on the activities and lessons from Pets. com and Webvan. com, the management team must to truly have a thorough research and planning on their market, readiness of customer market, financial point of view, and future market pattern. The basic economic principle stands in the E-Business world as "you have to make a profit eventually to be able to succeed". Thus, think seriously on its investment before getting any income. Meanwhile, a good customer service is a critical success factor for any online shop that to ensure their customer devotion.

3. 0 Conclusion

Emergence of e-commerce is creating fundamental changes to the way that business is conducted (Mohd Amirul Akhbar Mohd Zulkifli, 2001). The uptake of e-commerce is affected by its potential with respect to create business value and by knowing of its members of the benefits.

According to days gone by studies, there are a few potential benefits which can be categorized into tangible and intangible benefits. Consequently, tangible benefits are included business efficiency, transformation of traditional market string into international current market, retained and widened customer base (mass customisation), increased automation of process, operational cost benefits and etc. Moreover, intangible benefits are participating consumer commitment, competitive edge, convenient shopping, improving well-being, education of customers and etc.

In contrary, also, they are concluded some disadvantages helped bring by e-commerce such as insufficient sufficient system security, consistency, requirements and communication protocols, issues with compatibility of older and 'newer' technology, increased competition from national and international competition, rapidly growing and changing technology, pressure of innovation and advancements on business models and etc.

Generally, SMEs are constrained in their adoption of e-commerce by lack of money and technological education. Therefore, they may be facing some obstacles like minimal competitive advantages, ineffective and inefficient change of traditional market, website issues, poor security, people and organisational issues and etc. that made SMEs facing obstacles of e-commerce.

In order to beat the barriers mentioned, we suggest that SMEs can being flexible to constantly innovate and assimilate their e-commerce into existing business activities by utilizing training course on technology education or outsourcing to others expertise. Besides, they can also having selection on their product or service that are well-suited to e-commerce and having the ability to manage the progress or changes of these products with the goal of providing well customer service and up currently information. Furthermore, SMEs is prompted to maintain a great integration of e-commerce infrastructure and organisational structure in order to fully utilize e-commerce without any barrier.

Lastly, according to Edim (2000), even though SMEs might have a difficulty to build up a advanced web as a consequence to insufficient expertise and finance, however they still need e-commerce to prosper and for on-going survival. Subsequently, we hope our suggestion can bolster their e-commerce and finally achieved their organizational goals effectively and successfully.

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