E-commerce: Its Development and Future Perspectives (Essay Sample)

E-COMMERCE: ITS DEVELOPMENT AND FUTURE PERSPECTIVES
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Electronic commerce (e-commerce) refers to the trading of products and services over computer networks such as the internet, and makes use of technological platforms such as Electronic Data Interchange, Inventory Management Systems, Electronic funds Transfer, Supply Chain Management, and mobile commerce among others1. Development of e-commerce has significantly revolutionized business processes in many countries. Business enterprises have adopted this technology and enjoyed the benefits accrued to it. The consequences have been developments in areas such as market shares, quality of services, reduced delivery time, and increased profitability. Regardless of these benefits, the evolution of e-commerce has been gradual. In the 1990s, only a few companies had adopted the technology of e-commerce. However, in the modern day business world, many companies have adopted e-commerce, which is viewed as an essential tool for organizational competence. The aim of this presentation is studying the development of e-commerce and look into its future perspectives.
During the different development eras, there have been different aspects of the global economy, which significantly influence to socio-economic revolution and industrial development. A leading example was in the 19th Century when the railway industry was the primary development engine. In the 1970s, manufacturing industry dominated. In a similar approach, Information and Communication Technology dominated as a determining factor for business development and planning. Introduction of the internet can be traced back to the 1990s2.
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1 Burgess, Stephen, Sellitto Carmine, and Karanasios Stan. Effective Web Presence Solutions for Small Companies: Strategies and Successful Implementation. Hershey: IGI Global, 2009.
2 O’Brien, James and Marakas George. Management Information Systems. New York: McGraw-Hill, 2011, 21.
It came with many benefits such as eased information access and the subsequent beginning of the new digital era. However, due to its complex nature during that time, it was only affordable for large corporations. ICT a new course in the 2000s, a period marked by rapid technological advances3. The impact was that companies could easily afford computers and the internet. Many organizations adopted the use of ICT in communicating with their stakeholders and customers.
The growth of ICT continued and consequently, many companies continued to embrace its importance as a tool for continued development. Many companies adopted e-commerce with the goal of remaining competitive in a dynamic business world. Initially, e-commerce was only for the large and well-grounded companies. However, the trend is different today because there has been development affordable computers along increased use of electronic means in business operations4. As such, small and medium business enterprises have had access to e-commerce, which is incorporated into their operations. Besides the information, other uses of commerce in the modern business environment include development of marketing strategies, profit margins, distribution channels, and performance indices5.
There have been trending debates among many scholars in respect to the future of e-commerce. According to Nissanoff, the use of e-commerce will increase as long as ICT and other technologies continue to improve.
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3 Ibid. 37.
4 Laudon, Kenneth, and Traver Guercio. E-commerce Business: Technology, Society. London: Pearson, 2014.
5 Nissanoff, Daniel. Future Shop: How the New Auction Culture Will Revolutionize the Way We Buy, Sell and Get the Things We Want. New York: The Penguin Press, 2006