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Electronic commerce (also referred to as EC, e-commerce or ecommerce) consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions. It can involve electronic funds transfer, supply chain management, e-marketing, online marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection systems. It typically uses electronic communications technology such as the Internet, extranets, e-mail, e-books, databases, catalogues and mobile phones.
HISTORICAL DEVELOPMENT
The meaning of the term electronic commerce has changed over the last 30 years. Originally, electronic commerce meant the facilitation of commercial transactions electronically, usually using technology like Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), where both were introduced in the late 1970s, for example, to send commercial documents like purchase orders or invoices electronically. The electronic or e in e-commerce or e-business refers to the technology / systems; the commerce refers to be traditional business models. The growth and acceptance of credit cards, Automated Teller Machines (ATM) and telephone banking in the 1980s were also forms of e-commerce. However, from the 1990s onwards, this would include enterprise resource planning systems (ERP), data mining and data warehousing.
HISTORICAL DEVELOPMENT
This system, known as Automation of Procurement and Accounting Data Entry (APADE). In the dot com era, it came to include activities more precisely termed Web Commerce. The purchase of goods and services over the World Wide Web via secure servers (note HTTP, a special server protocol which encrypts confidential ordering data for customer protection) with eshopping carts and with electronic payment services, like credit card payment authorizations.
FEATURES OF E-COMMERCE
Ubiquity In traditional commerce, a marketplace is a physical place we visit in order to transact. For e.g. television and radio are typically directed to motivating the customer to go to some place to make a purchase. E-commerce is available just about everywhere at all times. Global Reach E-commerce technology permits commercial transactions to cross cultural and national boundaries far more conveniently and effectively as compared to traditional commerce. Universal Standards shared by all the nations around the world Interactivity allow for two-way communication between merchants and consumer Information Density and Richness E-commerce technologies reduce information collection, storage, communication and processing costs. Personalization E-commerce permits personalization. Merchants can target their marketing messages to specific individuals by adjusting the message to a persons name, interest and past purchases.