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Benefits of E-Commerce
The impact of e-commerce to
businesses can be huge. E-commerce can transform the way
products and services are created, sold and delivered to the
customer. It can also change the way in which a company works
with its partners. This section describes some of the
well-established benefits of e-commerce.
Improved Productivity
Using e-commerce, the time
required to create, transfer and process a business
transaction between trading partners is significantly reduced.
Furthermore, human errors and other problems like duplications
of records are largely eliminated with the reduction of
data-entry and re-entry in the process. This improvement in
speed and accuracy, plus the easier access to document and
information, will result in increase in productivity.
Cost Savings
According to a 1999 report by
Giga Information Group, conducting business online will save
companies around the world an estimated USD1.25 trillion by
2002. This compares to total savings of USD17.6 billion in
1998. The cost savings stem from efficient communication,
quicker turnaround time and closer access to markets.
Streamlined Business
Processes
Cost savings are amplified when
businesses go a step further and adapt their internal
processes and back-end legacy systems to take advantage of
e-commerce. Inventories can be shaved if businesses use the
Internet to share such information as promotional plans,
point-of-sale data, and sales forecasts. Business processes
can also be made more efficient with automation.
Better Customer Service
With e-commerce, there is
better and more efficient communication with customers. In
addition, customers can also enjoy the convenience of shopping
at any hour, anywhere in the world.
Opportunities for New
Businesses
Business
over the Internet have a global customer reach. There are
endless possibilities for businesses to exploit and expand
their customer base.
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