Business firms use the internet platform for communication and commerce. The ecommerce
activities can be discussed as follows:
a) Direct marketing and selling
Business firms set up websites for direct marketing and selling. Direct selling was one of
the earliest forms of e-commerce. For example, Amazon.com, Barnes and noble and Dell
computers engaged in direct selling. Gradually firm moved on to one or more complex
operations on the web.
b) Value chain integration
E- Commerce does not tolerate any kind of delay. Delay in inventory tracking and
management can cripple the business. E- Commerce firm use EDI for exchanging transaction
data among them so that transactions are automatically processed. Thus suppliers, customers
and service providers will use open EDI for integrating their processing systems leading to mare
efficient operations.
c) Corporate purchasing:
Internet provides opportunities for business firms to reduce cost of purchasing. Suppliers
keep their electronic catalogs updated. Comparative price information is also available.
Ordering can be electronically done to reduce the laborious paper work in purchasing.
Officers can approve purchase orders electronically. The firm can enforce policies; provide
greater services to customers and suppliers.
d) Financial and information services
A wide range of financial services are offered on the internet. They include:
Mobile commerce is a part of e-commerce and differs from the latter on the use of mobile
telecommunication communication network in place of telecommunication network. Mcommerce
includes only transactions with a monetary value and it excludes short message
services. One condition essential for the success of mobile commerce is large user base of
mobile phones. Adequate security for mobile transactions is another condition for its adoption in
a big way.
activities can be discussed as follows:
a) Direct marketing and selling
Business firms set up websites for direct marketing and selling. Direct selling was one of
the earliest forms of e-commerce. For example, Amazon.com, Barnes and noble and Dell
computers engaged in direct selling. Gradually firm moved on to one or more complex
operations on the web.
b) Value chain integration
E- Commerce does not tolerate any kind of delay. Delay in inventory tracking and
management can cripple the business. E- Commerce firm use EDI for exchanging transaction
data among them so that transactions are automatically processed. Thus suppliers, customers
and service providers will use open EDI for integrating their processing systems leading to mare
efficient operations.
c) Corporate purchasing:
Internet provides opportunities for business firms to reduce cost of purchasing. Suppliers
keep their electronic catalogs updated. Comparative price information is also available.
Ordering can be electronically done to reduce the laborious paper work in purchasing.
Officers can approve purchase orders electronically. The firm can enforce policies; provide
greater services to customers and suppliers.
d) Financial and information services
A wide range of financial services are offered on the internet. They include:
- Online banking
- Online billing
- Online securities transactions
- Secure information distribution
Mobile commerce is a part of e-commerce and differs from the latter on the use of mobile
telecommunication communication network in place of telecommunication network. Mcommerce
includes only transactions with a monetary value and it excludes short message
services. One condition essential for the success of mobile commerce is large user base of
mobile phones. Adequate security for mobile transactions is another condition for its adoption in
a big way.
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