We are living in the age of technological advances. Development in our society began to happen post the World Wars, where in Industrial revolution started changing the face of economies. With evolution of Information Technology we first heard the Radio and later the TV that could capture pictures from the air and show it on the TV box. Then came the ‘Computer’ which was aptly the magic box. Computers and advancement of information and communication technology heralded the arrival of ‘Internet’ or ‘World Wide Web’ technology.
What a difference the Internet has made to our lives. No other invention has had such a mass transformational power over the entire human society, enterprise, business, economy as well as the political systems, education and the world communities and nations at large. The internet is rightly called the highway that has managed to erase the borders between countries and societies and taken the human society to a different level altogether.
Take a look at our lives today. There is no aspect of our life that is not interfaced with internet in one way or the other. From an individual’s need to find a date or a suitable life partner to one’s banking, insurance and other payments as well as dining out and not to forget the online shopping, internet has managed to become the mainstream facilitator to each and every individual.
Today millions of users access and use the internet for various purposes throughout the day. They use the internet for searching, browsing, writing & communication, listening, watching news, videos, publishing copying, printing, discussions, trading and selling etc. The list of activities and choices that the internet has got to offer to individuals is ever expanding. With millions of users actively looking for various products, information and services, there is a huge opportunity for the businesses to jump on to the internet bandwagon and cash in on the business opportunity that is presenting itself every minute.
Technology has helped build a platform that has enabled the businesses to cash in on the huge population and market that is now accessible over the internet and sell to them. Take the case of Online Banking, Mobile Banking, Debit| Credit Cards, ATMs as well as online trading and other business transactions, all these have grown and happened as a result of technological advancement in terms of communication, software as well as hardware technologies. From the time that one connected to Internet using a desktop, model and a telephone line to the Wi-Fi technology of today, we have graduated very fast making it possible to buy and sell at the click of a button. At another level the Business Processes as well as ERP coupled with various software and applications besides EDI, have enabled businesses to go ‘On Line’ with their business models.
Today no business, be it Business to Business or Business to Consumer, can ignore the huge ‘Online Market’ that exists on the internet. E Commerce was inevitable. Physical markets have literally been replaced with ‘Virtual Markets’. E Commerce has had far reaching impact on business organisations for it has redefined ‘Market’. E Commerce has made it possible for sellers to reach out to planet wide markets and consumers, thus changing the way business is conducted. For every prospective Management Professional, the in depth understanding of ‘Online Marketing’ and ‘E Commerce’ have become very important. Marketing managers have got to go back to the class rooms to learn the new rules of game in handling Online Marketing which is drastically and totally different from the traditional marketing, selling, distribution and advertising strategies. Understanding all about Internet, E Commerce mechanisms, technologies, learning how to market online, understanding E Customer and learning to identify, build and nurture a relationship with the E Customer become the building blocks of one’s new learning.
Basic Understanding of E-Commerce
Simply put, E Commerce is ‘Using Electronic Platform for Business Transactions’. It is also called a ‘Virtual Market Place’. Every minute millions of people from all over the world are logging into the Internet looking for some information, for product, services, to look for news, download music, for online shopping and so on. Every individual is looking for something that he would like to obtain or buy online instead of having to go through a physical transaction. Imagine what this means to the business organisations. If they are able to identify and access those individual users who have a specific need or want, they have a ready customer in waiting.
One could wonder whether it is the online community or the technology that is paving way for E Commerce. The answer is that both these factors are driving the E Commerce. The technological developments are providing the backbone for business transactions to take place and the growing volumes of users buying online is making it possible for E Commerce and markets to grow.
E Commerce is characterized by Business to Business and Business to Customer business models. We are very familiar with the Business to Customer model for banking; insurance as well as online shopping, online booking etc that have become very popular and accepted modes in our daily lives. On the B to B front too, business organisations have re-engineered their Business processes including Advertising, Marketing, Sales Order Management besides Supply chain management and Customer Relationship management to suit the E Commerce mode. Dell has successfully adapted ‘online selling’ model on a global scale. It allows the customers to ‘configure the model’ and to ‘Order Online’. Once the transaction has been successfully carried out and payment has been received, Dell executes the order and ensures that the DELL Products are delivered at the Customer’s door step within seven working days. DELL has not only used E Commerce successfully as its major selling channel, but at the backend they have put in place ‘Built to Order’ process where in the Computer is assembled against the specific customer order and is delivered to the customer. By integrating E Commerce and its Manufacturing process, DELL has managed to do away with holding inventories and managed to bring its costs down.
E Commerce has become a major business process for Global organisations and Multi National Companies. Most MNCs depend upon ‘Online selling ‘as well as ‘Online Procurement’ on global scale. E Commerce has made it possible for them to access global markets as well as source raw materials from across the world. Besides, E Commerce has brought down the cost of selling as well as cost of procurement drastically adding to the bottom line. In the consumer world, Insurance, banking, airlines and hospitality sectors have stood to benefit from E Commerce model of selling.
E Commerce is a reality. Several multiple technologies, platforms, agencies and networks make it possible for E Commerce to happen. EDI and Online banking and transactions have been the major enablers that have made it possible for business transactions to take place.
It is simply amazing to think that with the click of a button one can buy, sell or affect financial transactions worth millions of dollars in a few minutes. However this is true and E Commerce is the future.
