Page 36 - Introduction to Electronic Commerce and Social Commerce
P. 36
1.3 Drivers and Benefits of E-Commerce 13
Figure 1.4 The major drivers of Benefits to Innovative Business Competition,
e-commerce growth Consumers Models Business Environment
Online File W4.1
Table 1.2 Online File W1.3 Chapter 12
Benefits to Emergence of Social
Organizations and Business and
Vendors Economy
Table 1.2 EC Section 1.4
Growth Chapter 7
Benefits to Society Help by Governments
Table 1.2 Section 1.6
Chapter 5
Technological Expansion to Service
Developments Capabilities of EC Industries and Global
Chapters 6-8 Section 1.6 Reach
T2 Chapter 12
Table 1.2 Benefits of e-commerce
Benefit Description
Benefits to organizations
Global reach Quickly locating customers and/or suppliers at reasonable cost worldwide
Cost reduction Lower cost of information processing, storage, and distribution
Facilitate problem solving Solve complex problems that have remained unsolved
Supply chain improvements Reduce delays, inventories, and cost
Business always open Open 24/7/365; no overtime or other costs
Customization/personalization Make order for customer preference
Ability to innovate, use new business models Facilitate innovation and enable unique business models
Lower communication costs The Internet is cheaper than VAN private lines
Efficient procurement Saves time and reduces costs by enabling e-procurement
Improved customer service and relationship Direct interaction with customers, better CRM
Help SMEs to compete EC may help small companies to compete against large ones by using special business models
Lower inventories Using customization inventories can be minimized
Lower cost of distributing digitizable product Delivery online can be 90% cheaper
Provide competitive advantage Lower prices, better service
Benefits to consumers
Availability Huge selection to choose from (vendor, products, styles)
Ubiquity Can shop any time from any place
Self-configuration Can self-customize products
Find bargains Use comparison engine
Real-time delivery Download digital products
No sales tax Sometimes; changing
Enable telecommuting Can work or study at home or any place
Social interaction and engagement In social networks
Find unique items Using online auctions, collectible items can be found
Comfortable shopping Shop at your leisure without pushy sales clerks bothering you
Benefits to society
Enable telecommuting Facilitate work at home; less traffic, pollution
More and better public services Provided by e-government
Improved homeland security Facilitate domestic security
Increased standard of living Can buy more and cheaper goods/services
Close the digital divide Allow people in rural areas and developing countries to use more services and purchase what
they really like
