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Strategic Development Process Of E-Commerce

Strategic Development Process Of E-Commerce

Electronic commerce is a technology based exchange between business parties (organizations or individuals) as well as electronically mediated inter or intra business activities. Primarily electronic commerce comprises of the selling, buying, distributing marketing of services or products by use of electronic systems such as the Internet and computer networks.

Strategic Insights

The information technology companies might see electronic commerce as an electronic business application for commercial transactions. It includes transfer of Electronic Funds, Chain Management Supply, Online Marketing, E-marketing, Online Process of Transaction, Electronic Data Interchange, Automated Inventory Management (AIM) Systems and Automated Data Collection (ADC) Systems. It characteristically uses electronic communication tools such as the Internet, extranets, e-books, e-mail, mobile phones and other databases.

Electronic commerce allows the worldwide access of the Internet to the mainstay business processes of buying and selling products and services. It also helps to produce demand for products and services and better management of order, payment, and support functions. The overall aim is to minimize expenses by decreasing transaction costs and by making all kinds of business processes efficient.

Timeline and development of electronic commerce:

  • Introduction of Online Shopping System by Michael Aldrich- 1979
  • First recorded Business to Business (B2B) System by Thomson Holidays- 1981
  • Invention of Minitel by France Telecom in France and used for online purchasing- 1982
  • Jane Snowball was became first online home shopper by using Gateshead SIS/Tesco System- 1984
  • Swreg began to supply software and shareware to sell their products online through Electronic Merchant Account- 1987
  • First web browser was written by Tim Berners Lee – World Wide Web by using a NeXT computer- 1990
  • Terra Ziporyn and J.H.Snider published a book- “Future Shop”- on how new technologies can change the way we buy and what we shop.
  • Mozilla was introduced as a Navigator Browser under the code name by Netscape- 1994
  • Pizza was offered by various Pazza Huts on their Web pages and the first online bank was also open. Delivery of flowers and subscription of magazine was become available online. Like cars and motor bikes, adult material was also become commercially available- 1994
  • Netscape 1.0 was invented with SSL encryption to make transaction secure- 1995
  • was launched by Jeff Beroz and broadcasting of the first 24 hour free commercial Internet Radio Station, Radio HK and Net Radio was come into existence. Dell and Cisco started to use internet for commercial transaction effectively. Later on ebay was founded by Pierre Omidyar as AuctionWeb- 1995
  • Purchase and download of Electronic Postal Stamps was made available for printing from the Web online- 1998
  • File sharing software Napster was introduced and ATG stores were launched to sell home decoration items online- 1999
  • The dot com break- 2000
  • Concept of selling products through many targeted domains rather than a central portal was accepted by Niche retail companies like CNS Stores and Net Stores- 2002
  • Profit of the first year was declared by 2003
  • Drastic increase of over 17 percent was observed by US e-commerce and Online Retails sales and reached to $204 billion- 2008