e-Commerce and e-Business

There is considerable discussion currently about the opportunities the Internet provider for electronic commerce (e-Commerce) and electronic business (e-Business). As with many emerging development of this nature, there is some debate over the actual definitions of these two terms. Cisco System, now one of the largest organizations in the world, has defined five incremental stages to the Internet evolution of a business, which include definition of these terms.

Stage 1: E-mail

As well as communicating and exchanging files across an internal network, businesses at this stage are beginning to communicate with suppliers and customers by using the Internet as an external communicating medium. This delivers an immediate boots to the business’s efficiency and simplifies global communication.

Stage 2: Web site

Businesses at this stage have developed a Web site, which acts as a shop window t the world for their business products. The Web site also allows customers to communicate with the business at any time, from anywhere, which gives even the smallest business a global presence. 

Stage 3: e-Commerce

                e-Commerce : Customers can place and pay for orders via the business’s Web site.

Businesses at this stage are not only using their Web site as a dynamic brochure but they also allow customers to make procurements from the Web site, and may even be providing service and support online as well. This would usually involve some from of secure transaction using one of the technologies discussed in Section 18.5.7. This allows the business to trade 24 hours a day, every day of the year, thereby potentially increasing sales opportunities, reducing the cost of sales and service, and achieving improved customer satisfaction.   

Stage 4: e-Business

                e-Business : Complete integration of Internet technology into the economic infrastructure of

                                         the business.

Businesses at this stage have embraced Internet technology through many parts of their business. Internal  and external processes are all based around the Web. Among the potential advantages, the business achieves faster communication. Streamlined and more efficient process, and improved productivity.

Stage5: Ecosystem

In this stage, the entire business process in automated via the Internet. Customers, suppliers, key alliance partners, and the corporate infrastructure are integrated into a seamless system. It is argued that this provides lower costs, higher productivity, and significant competitive advantage.

                The Forrester Research Group have predicted that business- to- business (B2B) transactions will rise by 99% annually and will reach $1.3 trillion by 2003. In addition, they expect e-Commerce to account for $3.2 trillion in world wide corporate revenue by 2003 and could represent 5% of sales in the global economy. In contrast, IDC have estimated the current value of e-Commerce to be $34 billion and likely to increase to between $350 and $500 billion by 2002, again with the majority of transaction between businesses. 

Sumber :

• ·         DATABASE SYSTEMS “A Practical Aprroach to Design, Implementation and Management”, THOMAS CONNOLLY CAROLYN BEGG.