Electronic Commerce and Business Essay

Submitted By xiahua
Words: 2166
Pages: 9

The business landscape is going through dramatic changes as we enter the twenty-first century. One of most significant element that leads to this change is introducing the new information technology (E-commences). These innovative information and communication technology is not only changing in one specific area, but also transforming the way business conducted all over the world (138). Electronic Business and Mobile business are two typical examples in recent years which will continue to emerge and accelerate the use of what the technology has to offer (E- commences). E-business model improves companies’ management system in efficiency and flexibility which build a closely relationship with suppliers, partners and customers. Nevertheless, this emerging business model could be a double-edged sword to society. This paper is aimed at contributing to the increase of understanding of E-business and business mobility and their impacts of business development. Identifying the issue of these two typical models faced now and providing some solving measurement the companies have taken steps.

It is widely acknowledged that firms are increasingly facing the challenge of e-business which is using internet-based tools to support their business processes. The concept of E-business defines as any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact (European Commission 1998).More specific, it is including electronic commerce, customer and supplier relationship management, and business collaboration (textbook).

From large enterprises perspective, the adoption of E-business could enhance performance of their complex supply chains and overall competitive power. It removes location and availability restrictions which companies can use E-business to conduct business at any time and any places. For instance, as E-business shares information with suppliers, buyers and partners, Dell Inc. develops their PCs selling business in USA before 2007 only via telephone and the internet (suibian). Simultaneously, it also can improve customer service and promote products and services at much lower prices than before. Customers can get their products by just few clicks which saving time and giving more comfort. In automobile making industry, the online business makes it possible for companies such as General Motors and Ford to interact with their major supplier which minimizing manual processing and promoting trade and price transparency. It is leads to savings of $2,000 to $3,000 on a $19,000 vehicle in these automobile manufacturers (competitive advantage with business).
In fact that the application of mobile business is the extension of e-business to mobile devices, such as smart phone and other handed devices (operational difference). M-business is the ability to purchase goods and services through wireless internet-enabled devices (textbook). Mobile technology contributes to improving the service which offered to your customer and flexibility in working. It enables employees working at home and customizing the customers’ information effectively. Moreover, Managers can conduct virtual meetings with their full-time employees and consultants which some of whom may be working from home (operational difference). Based on Mobile Business Intelligence Market Study (2011) updated by Howard Dresner’s, which is a reflection to enterprise mobility, it found that “70% of respondents said that 25% or more of current users would receive analytics exclusively on a mobile device by 2013”.
On the other hand, those new information technologies would also involve with potential risks. The major issue of E-business is the security in transacting and communicating during trading online. Technical attacks, including hackers breaking into web site illegally to get sensitive information, are one of most challenging types of security that E-business must