E-commerce Essay -- Business and Management Studies

E-commerce Explain what is meant by the term ‘E-commerce’. It is the conducting of business communication and transactions over networks and through computers. As most restrictively defined, electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications. However EC also includes all inter-company and intra-company functions (such as marketing, finance, manufacturing, selling, and negotiation) that enable commerce and use electronic mail, EDI, file transfer, fax, video conferencing, workflow, or interaction with a remote computer. Electronic commerce also includes buying and selling over the Web, electronic funds transfer, smart cards, digital cash (e.g. Mondex), and all other ways of doing business over digital networks. Assess the advantages and disadvantages of E- Commerce information systems. Both the consumer and the supplier of a product can benefit from when using Electronic Commerce many obvious advantages. The consumer can browse through a whole shopping mall from the comfort of his or her own home, and products can be purchased and delivered right to their home. E-Commerce removes the hassle of crowds and line-ups from the consumer's routine. The supplier has the advantage of keeping their store open twenty four hours a day, seven days a week - without having to hire the staff to maintain it which saves a lot of money which means they can focus on better prices for their products and greater profits. The Internet opens up the customer base widely, allowing many customers the opportunity to view their product. First, businesses can communicate with customers easily. The business can receive and send e-mails from/to customers. This allows customers to quickly get in contact with the business. This can also be done to suppliers is well. This means that the business will forge closer relationships with customers and suppliers. In addition, e-commerce allows customers to look at the businesses products from their home. This means that customers will be able to look or buy the product at any time rather than only when they go shopping. Also with the business being on the internet it will mean that that the business will be able to aim their will be easy to access and that more people can see their product. Moreover, it is said that trad... ... First, careful design of documentation will aid the prevention of unintentional errors in recording and processing. Besides, the accurate processing of a transaction document requires those responsible to carry out the organisation’s procedures correctly. These should be specified in a procedures manual. Furthermore, separation of functions is aimed at preventing fraud. If a single member of staff were to be in charge of carrying out all the procedures connected with a transaction then it would be possible, and might be tempting, for that person to create fraudulent transactions. When these functions are separated and placed in the hands of different individuals, fraud may still be tempting but will be less possible. A business relies on its personnel. So, personnel must be selected and trained effectively to ensure that they are competent to carry out the tasks required of them. Also, physical controls may be used as a preventive measure; avoiding illegal loss of assets such as cash is to exclude staff from unnecessary access to these assets. A range of physical controls may be used to prevent access – locks, safes, and stout doors are obvious methods.