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1.     Exploitation of New Business

Broadly speaking, electronic commerce emphasizes the generation and exploitation of new .business opportunities and to use popular phrases: “generate business value” or “do more with less”.

2.     Enabling the Customers

Electronic Commerce is enabling the customer to have an increasing say in what products are made, how products are made and how services are delivered (movement from a slow order fulfillment process with little understanding of what is taking place inside the firm, to a faster and rt1ore open process with customers having greater control.

3.     Improvement of Business Transaction

Electronic Commerce endeavors to improve the execution of business transaction over various networks.

4.     Effective Performance

It leads to more effective performance i.e. better quality, greater customer satisfaction and better corporate decision making.

5.     Greater Economic Efficiency

We may achieve greater economic efficiency (lower cost) and more rapid exchange (high speed, accelerated, or real-time interaction) with the help of electronic commerce.

6.     Execution of Information

It enables the execution of information-laden transactions between two ore more parties using inter connected networks. These networks can be a combination of ‘plain old telephone system’ (POTS), Cable TV, leased lines and wireless. Information based transactions are creating new ways of doing business and even new types of business.

7.     Incorporating Transaction

Electronic Commerce also inco11'orates transaction management, which organizes, routes, processes and tracks transactions. It also includes consumers making electronic payments and funds transfers.

8.     Increasing of Revenue

Firm use technology to either lower operating costs or increase revenue. Electronic Commerce has the Potential to increase revenue by creating new markets for old products, creating new information-based products, and establishing new service delivery channels to better serve and interact with customers. The transaction management aspect of electronic commerce can also enable firms to reduce operating costs by enabling better coordination in the sales, production and distribution processes and to consolidate operations arid reduce overhead.

9.     Reduction of Friction

Electronic Commerce research and its associated implementations is to reduce the “friction” in on line transactions frictions is often described in economics as transaction cost. It can arise from inefficient market structures and inefficient combinations of the technological activities required to make a transaction. Ultimately, the reduction of friction in online commerce will enable smoother transaction between buyers, intermediaries and sellers.

10.   Facilitating of Network Form

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Electronic Commerce is also impacting business .to business interactions. It facilitates the network form of organization where small flexible firms rely on other partner, companies for component supplies and product distribution to meet changing customer demand more effectively. Hence, an end to end relationship management solution is a desirable goal that is needed to manage the chain of networks linking customers, workers, suppliers, distributors and even competitors. The management of "online transactions" in the supply chain assumes a central roll.

11.   Facilitating for Organizational Model

It is facilitating an organizational model that is fundamentally different from the past. It is a control organization to the information based organization. The emerging forms of techno-organizational structure involve changes in managerial responsibilities, communication and information flows and work group structures.


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I like E-Commerce

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I like big men.

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nini on December 12, 2012:

john had a pie he consumed the pie with great precision.earlier on he put a dounut in the bath to see if it would float, is his nan 84 years old.

give your answer as a percentage :

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I love e-commerce almost as much as I love men.

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e commerce is gud

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I study e commerce

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i love this

minakshi on April 27, 2012:

what is e-commerce

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ya commerce is coog enough that may include the study of whole economy!

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i hate eCommerce............

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I like e-commerce

Boo McCourt from Washington MI on October 30, 2009:

How the heck did we survive without e-commerce all this time. Well written and interesting.

Waren E from HAS LEFT THE BUILDING............ on October 07, 2009:

Thanks for breaking it down so well,thus understanding came easy!

thanks for sharing this!

i imi (author) on October 02, 2009:



Peggy W



Thanks to all

Rubes from Somwhere up high on October 01, 2009:

That's a crazy picture you put up. lol. It fits in with the article real well. Write some more.

Brian Stephens from Laroque des Alberes, France on October 01, 2009:

Yes a lot of benefits associated with ecommerce but we still need to be wary of information overload as well for example getting copied on lots of emails that you do not need to be.

Good hub, made me think about it.

Peggy Woods from Houston, Texas on October 01, 2009:

Would be hard to go back to the Dark Ages!

mdawson17 on October 01, 2009:

This was a very good hub; very informative! I have bookmarked it! Thanks for sharing such great information!


i imi (author) on October 01, 2009:

thx 4 sharing

thanglynn07 from Long Beach, CA on September 30, 2009:

I am very appreciative of modern technology!

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