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FREE online courses on ECOMMERCE FUNDAMENTALS - Mechanics of E commerce -
Mechanics of E-commerce |
E-commerce business dimensions
vary according to the nature of the product or service. Electronic
publishers and financial services companies provide a high quality direct
marketing interface with individual consumers.Manufacturers of commercial
airliners, on the other hand, do not sell products directly to consumers.
Their interest in E-commerce relates tocoordinating logistics and maintenance
functions with the airlines and design, procurement and production functions
with the suppliers of components and sub-assemblies.
There are two types of interactive business dimensions:
·
This refers to the placing of finished goods and
services with final customers who can be corporate entities or individual
consumers.
·
Tangible goods must be delivered using physical
infrastructures.
·
The primary function of the electronic infrastructure in
case of tangible goods is to provide catalogue, ordering, billing, payment and
despatch facilities.
·
When intangible products are
involved, every element in the transaction is normally electronic, including
distribution.
·
This has primarily an inter-corporate or
inter-organizational (including business-to-government) supply chain
orientation.
·
The final objective is to achieve flexibility and
efficiency gains in design, procurement, manufacturing and logistics processes
related to the production of components, their assembly into finished products
and their delivery to the final point of sale.
·
In some cases, this dimension can also encompass product
support and maintenance.
·
E-commerce facilitates
migration between the customer and enterprise dimensions. For example, automobile manufacturers who now use electronic
networks primarily to support production and maintenance supply chains and to
communicate with franchised dealers, could eventually use E-commerce to sell
their products directly to individual consumers, perhaps employing virtual
showrooms to illustrate various design options.