Managerial Aspects Of E-Commerce

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Here are Managerial Aspects Of E-Commerce:

1. E-commerce has become a significant element in the modern global economic environment. It represents the use of a computer network, primarily the Internet, to buy and sell products,
services, information, and communication. E-commerce is also an application of technology using the Internet. In addition, it is a tool for increasing efficiency and lowering costs in Organizations.

2. The main characteristics of e-commerce are its pervasiveness and inexorability. Pervasiveness of e-commerce means its persistent development and proliferation in business and nonprofit organizations of various sizes. Inexorability of e-commerce represents its inevitable and unstoppable nature in terms of the high rates of growth that were described in the previous section.

3. E-commerce can be a rich source of value for organizations that employ it. E-commerce disinter mediation means an act of taking out intermediary organizations used for channel
delivery of products and services though e-commerce supply chain. At the same time, e-commerce re-inter mediation facilitates creation of third party organizations that provide
virtual environments for connecting buyers and sellers or generally, business partners for transactions on the Internet.

4. Organizations may have various levels of e-commerce implementation. Pure e-commerce organizations are characterized by their products/services and processes being completely
digitized. Partial e-commerce organizations are those organizations that, besides digital products and processes, may have some physical e-commerce dimensions like physical
products or processes. “Click-and-mortar” organizations are companies that conduct some e-commerce activities, but provide their primary business in the physical world.

5. E-commerce organizations are also differentiated by the transactions and interactions they make. The most common types are Business-to-Business (B2B) and Business-to-Consumer
(B2C) e-commerce transactions. Besides B2B and B2C transactions, e-commerce transactions and interactions may have other types: consumer-to-consumer (C2C), business-to-business
to-consumer (B2B2C), government-to-business (G2B), mobile commerce (M-commerce), Location-based Commerce (L-commerce), and some others.

6. Value creation in e-commerce represents the potential or expected and actual monetary and non-monetary results of utilizing an e-commerce business model. The main monetary
results of value creation include revenue enhancement through sales growth and price differentiation, and cost reduction related to cost of goods sold, operating costs, and assets
intensity reduction. The non-monetary value creation may incorporate a variety of tangible and intangible results relevant to e-commerce development like improved customer satisfaction and quality, faster delivery schedules, extended hours of work, global outreach, and permanent access to information.