Thursday, May 15, 2008

Why Reruns On Desperate House Now?

vs. e-Business and Trade ICT

What are the differences between traditional commerce and e-commerce?, Can you use either e-Business and e-commerce?, This post will clarify these and other questions .

As expressed in the previous post, e-commerce definition I have adopted is "commercial transactions between organizations (companies) and individuals for digital media (mostly Internet) where there is necessarily an exchange of value in return for a product or service. " It has identified several features that are unique given the nature of electronic commerce, these are [1]:
1. Ubiquity: is available anywhere, anytime.
2. Global Reach : As such there is no limit in terms of market space is concerned, since it is not in a specific geographical location.
3. Wealth of information: The term refers to the amount and form of information that can be given to deliver a message.
4. Interactivity: necessarily communication is two way between vendors and buyers (in the case of radio or television does not have this capability).
5. Customizing : Sellers are able to set a message to a specific user segment. This feature is possible to have the ability to store information on buyers as past purchases, personal interests, age, etc.

Can use either e-commerce and e-business?

The answer is No. It is very important to distinguish the difference between e-commerce and e-business because they are different terms. Sometimes referred to as being the same concept, but this is a mistake. The term e-business involves the set of transactions for digital media where there is no exchange of value (Laudon, 2002), ie the set of transactions that are not commercial. Furthermore, the electronic trading platform may be contained in an electronic business system. The typical example, suppose we have two companies, the company "A" which is dedicated to the sale of particular products and company "B" which is the company producing the product it sells the company "A". When there is strong demand for the product, the company "A" performs the required application to the company "B". Seen from this perspective, the e-business platform would exist at the time the application for the order, placed by the company "A", is made by digital media (primarily the Internet. It could even be automatically in the event that Both systems were connected). As a strategy of e-business can be conducted on electronic trading system. Figure 1 serve to illustrate the above.

Figure 1. E-Business and e-Commerce

An e-business e-commerce becomes the instant in which the system allow any transaction of a commercial nature where there is necessarily an exchange of value (money).


References:
[1] Kenneth C. Laudon et al. E-Commerce: Bussines, Technology, Society. USA: Addison Wesley, 2002.