Page 59 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Management Information Systems

Notes Introduction

It is radically changing how people learn, work, play, enjoy and consume. The centre of revolution
is browser technology. The “technology” has moved from the “Back office” to the front line.
Increasingly, technology is shifting the firm’s relationships, with its customers from “face to
face” to “screen to face” interactions. The impact of Internet on business is akin to previous
innovations that transformed not just one business sector but every sector. The Internet concerns
every sector of economy as it changes the way business should sensibly organize its activities
and go to market. In this unit we will study the concept, advantages-disadvantages and history
of e-commerce.
4.1 Electronic Commerce

E-commerce is a selling and transfer process requiring several institutes. It is systematic and
organized network for the exchange of goods between produces and consumers. The Net aims
to establish the interconnections between producers and consumers directly and in this, the
Internet embraces all those related activities which are indispensable for maintaining a
continuous, free and uninterrupted distribution and transfer of goods. The Website or portals
may be categorized into commercial and non-commercial.

Any website or portal that offers products and/or services for sale is a commercial website.
There are thousands of commercial web sites on the Internet. Some of them have been successful,
and some weren’t so lucky. What elements make up a good commercial web site? Of course, web
pages should look attractive to a customer. However, even the most attractive web pages will
not make a person come back to a website where it takes too long to find the right product or
where order forms don’t work. In this unit we will discuss what functionality is needed for a
successful commercial web site and what technology implements various web site elements.

4.1.1 Definition of Electronic Commerce

E-commerce is a general concept covering any form of business transaction or information
exchange executed using information and communication technologies (ICTs). E-commerce
takes place between companies, between companies and their customers, or between companies
and public administration. E-commerce includes electronic trading of both goods and electronic
material.
“e-commerce denotes the use of electronic transmission media (telecommunication) to engage
in the exchange of products and services requiring transportation either physically or digitally,
from location to location”.
—M. Greenstein and T.M. Feinman
“e-commerce describes the process of buying and selling (or exchanging) of products, services
and information via computer networks including the internet”.
—E. Turban and others.
E-commerce is the means to complete online transaction and integrate the supply chain into the
transaction management process such as receiving orders, making payments and tracking down
the deliveries or order.
“e-commerce can be defined as the technology-mediated exchanges between parties (individuals,
organisations, or both) as well as the electronic based intra or inter organisational activities that
facilitate such exchanges”.
—J.F. Rayport and B.I. Jaworski.

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