Business research in e-commerece: challenges and strategy

One of the most important changes that internet has brought to the world of business e-commerce. E-commerce refers to use of computer networks for buying and selling goods, information and services. It integrates E-Mail, Electronic Fund Transfer (EFT), Electronic Data Interchange (EDI) and similar techniques into a comprehensive electronic system of trading. E-commerce combines IT, Telecommunication technology and business process to make it feasible to do business in ways that could not be even thought of earlier. It opens up new avenues of trading and improves efficiency and effectiveness of conventional business processes, markets and services. Therefore E-commerce is becoming an important means of dealing in goods and services. The advantages of E-commerce make the phenomenal growth in E-commerce inevitable.

At presents, E-commerce is flourishing in four major and interacting business models, namely search and retrieval of information, interpersonal communication services, shopping services and virtual enterprises.

Search and Retrieval of information: Most common example of this form of e-commerce is the commercial information services that maintain databases and charge for access. Another example is that of a large manufacturing company exchanging information with its suppliers regarding the changes in the technical specification of its products and input requirements.

Interpersonal communication services that promote exchange of ideas and improve cooperation among members of common interest teams and groups. For example, the group of automobile part dealer may form their own group for interaction and sharing their experiences.

Shopping services that permit transactions on electronic networks. This form of retail electronic sale is the most visible form of e-commerce. However, the trading on electronic media may relate to products and services including selling of spare manufacturing and freight capacities and old equipment with or without maintenance warranties.

Virtual enterprises are businesses separated by geography and expertise that are able to engage in business relations as if they were a single enterprise. Supply chain integration, one stop shopping malls for products of different business entities are the examples of this form of e-commerce.

However, e-commerce technology provides only a platform for trading. It is for the business how it uses the platform for creating value of customers. The success in E-commerce applications is not the result of a linear process in which innovations are easily transferred from a technology supplier to a receiver in the form of hardware or software solutions. Rather, it requires through understanding of complex network technology and the knowledge to skillfully analyze and manage this tool.

As e-commerce is quite recent phenomenon there are hardly any well-established principles and practices that one can follow to ensure success in e-commerce. The emergence of this new system of trading raises many issues regarding better business policy and practice that business research should aim to resolve.