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Classification by provider and consumer
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- Electronic Business Security
- Digital economy
- Digital economy in eGovernment
- The principle of e-Commerce
Classification by provider and consumerRoughly dividing the world into providers/producers and consumers/clients one can classify e-businesses into the following categories:
Electronic Business SecurityE-Business systems naturally have greater security risks than traditional business systems, therefore it is important for e-business systems to be fully protected against these risks. A far greater number of people have access to e-businesses through the internet than would have access to a traditional business. Customers, suppliers, employees, and numerous other people use any particular e-business system daily and expect their confidential information to stay secure. Hackers are one of the great threats to the security of e-businesses. Some common security concerns for e-Businesses include keeping business and customer information private and confidential, authenticity of data, and data integrity. Some of the methods of protecting e-business security and keeping information secure include physical security measures as well as data storage, data transmission, anti-virus software, firewalls, and encryption to list a few.[5][6] Digital economyA Digital Economy refers to an economy that is based on digital technologies (computers, communication networks, software and other related technologies. The digital economy is also sometimes called the Internet Economy, the New Economy, or Web Economy. The concept of a digital economy emerged in the last decade of the 20th century. Nicholas Negroponte (1995) used a metaphor of shifting from processing atoms to processing bits. He discussed the disadvantages of the former (e.g., mass, materials, transport) and advantages of the latter (e.g., weightlessness, virtual, instant global movement). In this new economy, digital networking and communication infrastructures provide a global platform over which people and organizations devise strategies, interact, communicate, collaborate and search for information. For example:
Digital economy in eGovernmentWith growing population and resource mobilisation, digital economy is not limited to business trading and services only but, it encompasses every aspect of life from health to education and from business to banking. Further while everything is happening on digital medium then why not communication with government. eGovernment is already playing its part in this digital economy by providing eservices through various ministry/department to its eCitizen. The principle of e-CommerceElectronic commerce, commonly known as e-commerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI),inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. E-commerce can be divided into:
Business applications An example of an automated online assistant on a merchandising website. Some common applications related to electronic commerce are the following:
Global trends Business models across the world continue to change drastically with the advent of e-commerce and this change is not just restricted to USA. Other countries are also contributing to the growth of e-commerce. For example, the United Kingdom has the biggest e-commerce market in the world when measured by the amount spent per capita, even higher than the USA. The internet economy in UK is likely to grow by 10% between 2010 to 2015. This has led to changing dynamics for the advertising industry [23] Amongst emerging economies, China's e-commerce presence continues to expand. With 384 million internet users, China's online shopping sales rose to $36.6 billion in 2009 and one of the reasons behind the huge growth has been the improved trust level for shoppers. The Chinese retailers have been able to help consumers feel more comfortable shopping online.[24] eCommerce is also expanding across the Middle East. Having recorded the world’s fastest growth in internet usage between 2000 and 2009, the region is now home to more than 60 million internet users. Retail, travel and gaming are the region’s top eCommerce segments, in spite of difficulties such as the lack of region-wide legal frameworks and logistical problems in cross-border transportation.[25] E-Commerce has become an important tool for businesses worldwide not only to sell to customers but also to engage them.[26]
E-commerce has grown in importance as companies have adopted Pure-Click and Brick and Click channel systems. We can distinguish between pure-click and brick and click channel system adopted by companies.
Examples of e-Commerce transactions:
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