In the globalize business environment, a business needs to maintain its competitive edge in order to be successful. With the advancement of technologies, an organization can boost up its profit easily by applying E-commerce.
E-commerce is a system that allows an organization to communicate with its business partners, such as suppliers and customers by the use of electronic devices. With the use of electronic devices, it helps the organization to cut down the business cycle time. Cycle time refers to the length between a customer placing an order and the goods being sent to customer. By reducing cycle time, it can decrease cost, increase revenue and competitive advantage is obtained. For instance, when the stock has reached reorder level, Electronic Data Interchange (EDI) system will automatically send an E-mail to the supplier to make the necessary orders. E-commerce can reduce the time required to complete business processes and remove redundant steps in business processes. Moreover it can accelerate the processing time.
E-commerce is a system that allows an organization to communicate with its business partners, such as suppliers and customers by the use of electronic devices. With the use of electronic devices, it helps the organization to cut down the business cycle time. Cycle time refers to the length between a customer placing an order and the goods being sent to customer. By reducing cycle time, it can decrease cost, increase revenue and competitive advantage is obtained. For instance, when the stock has reached reorder level, Electronic Data Interchange (EDI) system will automatically send an E-mail to the supplier to make the necessary orders. E-commerce can reduce the time required to complete business processes and remove redundant steps in business processes. Moreover it can accelerate the processing time.
Besides that, E-commerce also helps the organization to facilitate better empowerment to employees. Employees’ empowerment is the ability to make decision for customers. By giving more flexibility to access information, employees are able to improve employees’ empowerment. With the front end system, no employees are needed to interact with the customer when the customer is making order. While the employees are empowered to work on back end activities such as inventory management, accounting and finance, payment processing, delivery, etc. By doing this, an organization can run a business with only few employees. Moreover employees’ morale can be increased.
The key factor for a business to be a success is the ability to retain its customers. E-commerce is able to provide a few “24/7” customer supports, such as a user friendly “step-by-step” guidance, frequently asked questions, search engines, etc. Besides that, the online system includes customer service center, which specifically solve customers’ queries and deal with customers’ complaints. Feedbacks from customers are very important and useful because it helps the company to identify their weaknesses and improve on it, as well as the customers’ needs. Nowadays, a wide range of technological solutions are available to facilitate customer support. E-commerce can reach customers anytime, anywhere as compared to traditional shops which are limited to customers during a certain time and dayNote: It costs ten times more to generate a new customer than to maintain an existing one!!!
In conclusion, E-commerce assists an organization in maintaining its competitiveness by reducing cycle time, improving employees’ empowerment, and facilitate better customer supports. Therefore, it is considerable to implement E-commerce in the business as the benefits are much greater than the costs.
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