Such systems are replacing the earlier EDI systems. The Internet has greatly facilitated the proliferation of B2C e-commerce during the recent years. India witnessed the world’s highest growth of 37.5 per cent—from US$8.5 billion in 2000 to US$41.7 billion—in 2005 among the top 30 major exporters of ICT-enabled services, as depicted in Fig. The Internet is becoming increasingly integrated with day-to-day activities both in developed and developing economies. It is the universe of network-accessible information. Learn more about the research framework by reading this article and downloading the … The decision to select a seller for a purchase is traditionally based on the previous experience of the buyer with the seller, his/her proximity, range of products offered, and the price charged. 19.1, reveals that it involves electronic exchange of information or ‘digital content’ between two or more parties, i.e., the business enterprise and the buyer or the supplier. The traditional approach to marketing calls for market segmentation, i.e., dividing the customers into sub-groups, who would respond similarly to a given marketing strategy, and target a group of customers with a uniform marketing strategy. Viability of carrying out business transactions differs across firms, depending upon their nature of business and resource availability. ii. Gradually it moved up the ladder to rules-set based processing where agents made judgments based on rules set by the customer, for instance, upgrading travellers from economy to business class. These are generally used to disseminate to its citizens a variety of government information such as general rules and regulations directly concerned with the citizens and other information of public departments. Thus, e-business is a much broader concept which involves the use of extranets, the Internet links between the business suppliers and purchasers and intranets, the Internet links within a business. Global E-Services 11. Conceptual Framework of E- commerce Framework … An automated manufacturing system integrated through computer technology is known as computer integrated manufacturing (CIM). The ability to transmit information packets between widely dispersed com­puter networks was perceived as a means of lowering the computing costs. Internet can be accessed round the clock from all over the world. Growing use of the Internet as marketing channel, iv. The term ‘customization’ refers to manufacturing systems and is a ‘company-led approach’ and focuses on developing production systems so as to provide unique products to individual customers, whereas ‘personalization’ is more appropriate for e-commerce as it incorporates both the customer-led and company- led approaches to target a customer segment size of one. It includes tendering by the buyers, inviting suppliers to put forward their bids. trailer E-commerce includes inter-business or inter- organizational transactions (i.e., transactions between and among firms or organizations) and business to customers transactions (i.e., transactions between firms/organizations and individuals). Under C2B transactions, ‘reverse auctions’ are often involved, where customers, rather than the seller, initiate market transactions. Workforce with IT proficiency so as to manage and sustain the e-commerce system, i. The information was market controlled, customers were ill informed, and the exchanges were market initiated. External audiences include stockholders, customers, the general public, etc., whereas both suppliers and employees constitute a firm’s internal audiences. Some of the changes brought about by e-business are summarized below: The Internet has transformed the traditional ways of buying and selling of goods at physical marketplaces into virtual market-space enabling almost unlimited movements beyond physical borders. However, e-marketing transactions are less popular in product categories that need to be physically touched and examined by the buyers, such as clothes, furniture, etc. However, under e-marketing customers can self-select and co-customize offers with marketers. This has resulted in a shift of power from manufacturers to customers. Authentication authority that serves as a trusted third party to ensure the integrity and security of transactions, i. Major components required to send and receive EDI messages include: iii. Businesses that fail to recognize the rapidly growing competitive strengths of rivals as a result of technological integration are likely to vanish, as illustrated in Exhibit 19.1. 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