The benefits of e-Commerce

The benefits of e-Commerce

-The benefits of e-Commerce- In the history of human civilization, few innovations that have many potential advantages as EC. Global nature of the technology, low cost, the opportunity to reach hundreds of millions of people (projected in 10 years), the interactive nature, the diversity of possibilities, and the possibilities as well as the rapid development of supporting infrastructure (especially the Web) has resulted in many potential advantages for organizations, individuals, and society . These are just some of the benefits to which may be mentioned, and will increase significantly over the growing EC. So it is not surprising that there are still of the opinion that the EC revolution "as great as the changes brought about by the industrial revolution" (Clinton and Gore, 1997).

The benefits to be gained organization include:

• Electronic commerce marketplace to expand into national and international markets. Outplay With minimal capital, a company can easily find more customers, better suppliers, and business partners that best matches from all over the world. For example, in 1997, Boeing Corporation states can make savings of 20% after posting notices on the Internet that contains the opening of proposals to create a sub-system. A small vendors in Hungary submitted a proposal and won the bargain held electronically. Finally, not only is faster, the sub-system that was delivered quickly.
• Electronic commerce lowers the cost of manufacture, processing, distribution, storage and retrieval of information using paper> For example, by using an electronic procurement system, companies can cut administrative costs for purchasing by 85%, another example is the benefit payment. For the federal government to issue a check for the cost of paper is 43 cents. The cost of electronic payment is 2 cents (95% cheaper). These savings can be more than 100 million dollars per year. Because it was later in 2000 the federal government hopes to switch entirely to electronic benefit payments, by transferring money to a bank account or a smart card.
• Electronic commerce enables the reduction of the overhead by simplifying inventory and supply chain management of type "pull". In the pull-type supply chain management, the process starts from customer orders and manufacturing use just-in-time.
• pull-type processing allows the customization of products and services become more expensive actually have a comparative advantage for those who apply. One classic example is Dell Computers Corp., which will also be discussed case.
• Electronic commerce reduces the time between capital outlay and acceptance of products and services.
• Electronic commerce to support the efforts of business process re engineering. By changing the process, the productivity of salespeople, knowledgeable employees, and administrators could be increased by 100% or more.
• Electronic commerce-Internet telecommunications costs far cheaper than VAN.
• Other benefits include, customer service, and love the company for the better, find new business partners, the process becomes simple, time can be compressed, increasing productivity, the paper could be avoided, access to information becomes faster, reduced transportation costs, and increased flexibility.

EC benefits for consumers include:

• Electronic commerce allows customers to shop or do other transactions 24 hours a day all year round from almost any location.
• Electronic commerce teases most pertinent more choices to customers; they can choose a variety of products from many vendors.
• Electronic commerce provides products and services that are not expensive to customers in a way to visit many places and conduct quick comparisons.
• In some cases, particularly on the products which are digitized, the EC makes it very fast delivery.
• Customers can receive relevant information in detail in seconds, not days or weeks longer.
• Electronic commerce enable virtual participation in the auction (virtual auction).
• Electronic commerce provides a place for customers to interact with other customers in the electronic community and exchange ideas and experiences.
• Electronic commerce facilitates competition, which in turn will generate substantial discounts.

EC benefits for the community are:

• Electronic commerce allows people to work at home and not many come out to shop, this will consequently lower the density of traffic flow on the roads and reduce air pollution.
• Electronic commerce allows a number of merchandise sold at a lower price, so that people who are less able to buy more and improve their lives.
• Electronic commerce allows people in third world countries and regions of the countryside to enjoy the variety of products and services that they will be hard to get without EC. It also includes the opportunity to learn the profession and earn an academic degree.
• Electronic commerce facilitates public services, such as health care, education, social services and equitable distribution of the government with a lower cost, and / or with better quality. Health care services, for example, can reach patients in rural areas.