Benefits of E-Commerce: Reduced Cycle-Time, Improve Employees’ Empowerment & Facilitate Customer Support

Nowadays, E-commerce is widely used by either individual or companies to expand their size of markets and retain the attention of consumers by conducting business-to-business (B to B) or business to consumer (B to C) transactions through online. Besides that, it is the paperless exchange of business information using electronic data interchange (EDI), e-mail, electronic funds transfer and others.

E-commerce has brought many benefits in our daily life especially for companies which include reduce cycle time, improve empowerment of ewmployees, and facilitate customer support and others. The cycle time may reduce if e-commerce takes place in business. Cycle time is the total amount of time between the orders that placing by consumers and receiving the goods and services. Additionally, it is the electronic device that used by either internal or externally parties to communicate in order to reduce time to market which is the time from inception of idea to implementation. Competitive advantage may increase, decrease carrying and shrinkage costs, increase the speed of operations and improve cash flow if reduction of cycle time takes place in business transactions. For instance, sales orders might increase by 10 % if reduction of orders cycle time has taken place by 25% with point and click system instead of face to face.

In fact, employees are treating as important resource in one organization because they are able to contribute their ideas and energy into works. Thus, empowerment to employees is essential especially at the front line due to it might bring impact to the performance of personnel and business. The productivity will improve if employees are empowered because employees are provided with computerized decision aids in order to make their own decisions. Furthermore, employees are not strictly under supervision and the workload of mangers could be reduced because they do not need to approve all the decisions unless it’s related to internal decisions. Comprehensive Management Application is an application to improve empowerment of employees and enable employees to manage and edit hundreds of critical details about e-commerce activities.

E-commerce facilitates its customers’ support by providing consumers the opportunity and services to shop conveniently. It may lead to sales arise and improve the quality of services provided because customers could receive the goods and services directly without wastage of time. For example, NetSuite has the application of EDI supports collaboration between people in different areas via internet or extranets and facilitates the companies to offer better customer service online and all the collaboration with partners which suitable for companies that have the problems of client technical support.

In conclusion, e-commerce has brought many benefits in our daily life especially for organization. Thus, we have to use it wisely and expand it widely around the world.

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~ by ychin826 on June 14, 2008.

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