The Digital Age: Electronic Businesses and e-Commerce

An entrepreneur is essential to know how the company can benefit through commerce and electronic business, creating true digital networks through Internet technology that differentiate the traditional method of communicating with customers and suppliers, improving and scanning processes of internal and external business also relationships with other organizations become more efficient and competitive, but facing some challenges as: Commerce and electronic business require complete change in its organizational structure and management processes, arriving at having to redesign entire business processes, acquire new technologies for information systems and business practices finally totally changing the physical, cultural and administrative structure of the company.

Through the Internet created a new digital infrastructure for IT to share information by allowing all sectors of companies that increasingly rely on it to remain efficient and competitive, because communication is easier, the cost is less, and fits any computing platform that is different from the old proprietary networks that were used. Trading partners have direct communication 24H a day without intermediaries and inefficient procedures, so even share and distribute information in other formats other than text, attracting new customers and suppliers with little effort and still reduce transaction costs like paying bills, processing orders , meet a client deadlines, especially the fully digital delivery such as music, videos, texts and even softwares.

New business models are Virtual Store sells direct to customers or individual companies. Electronic commerce has two forms of transaction, 1 refers to the nature of the participants that divides the e-commerce in three ways: business to consumer (B2C e-commerce): selling products and services to individual buyers. Business to business (B2B e-commerce): sale of goods and services between companies and consumer-to-consumer electronic sales of goods and services among consumers. The 2nd refers to the physical connection between the participant and the web, it was used networks connected by wire and now you can access the internet and all its types of services through mobile phones and other portable digital wireless applications. using this type of device is called mobile commerce (m-commerce). Amazon, eBay and Alibaba can be taken as e-commerce giants.

Another advantage of the internet is that it provides lasting relationships and regular purchases, where manufacturers can sell their products directly to retail customers, avoiding intermediaries such as distributors and retail stores, to avoid costly leases, sales department etc. .. The advantage to the client is that it is cheaper. The removal of organizations or business process layers, ie, intermediaries in the value chain is called disintermediation. The same way that creates new intermediate excludes some sectors, may be called infomediaries that help Internet users to obtain information and locate products and services online, then reintermediation that moves a value chain to a new source occurs. Well contrary to what occurs in traditional distribution channels where the final product cost is higher.

Marketing people use interactive features of web pages to hold the attention of customers, capturing information about tastes, models, preferences, and interests, doing one to one marketing, collecting information from them through software tools that track the web activities knowing which pages the customer has accessed and how often. è also used a technique Customization Web, where companies create unique and custom web pages that have ads, messages of products and services for individual customers fortifying the relationship with the customer, through information obtained by tracking and record it on websites. It is a technique that draws the customer's attention, but otherwise is considered an invasion of privacy, because much of the data is collected without the customer knowing. The ideal would be to know the tastes of the customer through surveys they fill entries, but the cost is higher to keep them, with the advantage of less spending part of sales to customer education and even the company can improve its products and services through the different suggestions, so customers no longer just passive buyers and became active participants in the value chain.

Through the use of tracking, portable devices, tracking and personalization techniques marketing strategies no longer need to worry about top take the information to the client, but in taking the message directly to the customer according to their need, for example, notify a broker when the turnover is very high on weekdays.

Through the relationship with the customer through increased web technologies and their services mainly email, clarify doubts of the customers just got easier with automated service that costs less than a phone call. Companies are creating call centers online department intended to clarify doubts that can be found on the websites through the links "contact us" that are answered by e-mail registered by a call from the company or even in real time, including customers being able to help them shop that will do.

In the e-commerce business to business, proprietary systems and paper processes for applications, deliveries of goods, provision of information and are being replaced by other web technologies creating virtual stores, increasing sales among large companies through Private Sector Networks being: extranet to connect to suppliers and other business partners in order to perform efficiently managing the supply chain and other collaborative commerce activities eg project to develop a product. E-marketplace or public squares are said to online market where multiple buyers can purchase from various sellers, do not turn much for relationships, but generating revenue for transactions with buying and selling, auctions, orders, and others.The E marketplace classified as direct inputs, goods used in the production process eg: Indirect steel plates and all other goods not directly participating in the process produção.Ex: office supplies. Some E-marketplace serving specific sectors Ex Vertical Markets: Markets Horizontal cars other goods and services for different industries eg equipment. Some benefits of both: share online catalogs for supply prices, cheapen supplies decrease delivery deadlines etc. Many e-marketplaces failed because competition between suppliers was very encouraging high competitive bids and overthrow prices, and do not provide long-term relationships with buyers.

The electronic payment systems have been developed to manage the payment of goods and services purchased through the internet business to business or business to consumer. Classified into: Credit cards: provide greater security offering that provides the buyer the bank that provided the card you deposit in the bank account of the seller, protecting information transmitted between users and sites banks mechanisms. Digital Wallet (Wallet) Software that stores credit card information and other data that facilitate the purchase over the web, not requiring the user to enter their information each time you make a purchase, they are automatically registered. Micro payment systems developed for purchases of less than $ 10, can be of type Debtor Balance Accumulated where micropayments is accumulated to be paid periodically by credit card or phone bill. Systems for pre-stored value: enable consumers make payments to merchants at the time whose value is stored in a digital account, these systems rely on the existing value in current bank account, credit card and some require digital wallet. There are special pre stored value systems for micropayments that are smart cards, the same size as a credit card, store digital content such as medical history, identify phone numbers etc. for pay, are passed in a Digital (e-cash) for micropayments or larger accounts, is the electronic currency where users receive client software and transact money online with another user or retailer of the same, recommended for anyone who has no credit. Peer-to-peer card (P2P ) cash transaction for the web sellers who do not accept payment by credit card, where the customer through your card creates an account for payment at a specific site designated for this type of payment you will receive the money in the bank account or physical address . Electronic payment after purchase at online stores and real digital check, electronic check encrypted with secure digital signature that extend the functionality of current accounts, and are safe to be used between businesses and Electronic Systems presentation of invoices and payments support, used routine to settle accounts with the possibility of verification, also notify the winning accounts by presenting invoices and processing payments.

Research involving ROI (return on investment) published by eQatar.com show that a major benefit of the Net for business Intranets are reducing costs and agency coordination, because they are inexpensive and can be enlarged or reduced in accordance with the needs and resources can integrate multiple sectors types of enterprise systems forming a single network system, creating a rich environment of online information being updated and accessed at any time, avoiding costs of printing, paper and distribution, enabling the company to follow the rapid changes, for it requires high production cost, also benefit customers with innovative solutions and best quality.

Collaborative environments are also created with Intranets where members work together on projects, sharing planning ideas regardless of location and management of business processes through the Intranet is more efficient because it encompasses all functional areas of the company. For Finance and Accounting provides an integrated view of the same and easy to be used, for example, gather information ledger and functional data contribute to decision making. In Human Resources keeps all employees informed about company matters as records and benefits, online publishing their policies and planning, also used for assessment of competence. Sales and Marketing are used for individual customers and other companies coordinating them giving access to updated price promotions to compete, customize documents etc. .. And finally for Manufacture and Production are more used for inventory control collecting production information real time, change suppliers etc.,

Integrated systems are helpful for managing the supply chain linking all processes providing source information to the client, but they are expensive compared to Internet that communicates all chain components sharing all possible and updated information at lower cost, using Intranets improve the coordination of internal processes Ex: set of shopping and order processing one of the most expensive features of the e-commerce and extranets improve coordination of the entire chain including links with business partners and Ex: collaboration forecasts. The cost to provide this information in real time encourages companies to share business information with a larger number of suppliers that can be performed through B2B E-marketplaces also reducing inventory easily meeting the customer will have the product as requested. Also collaborating to introduce more and more products on the market by increasing their income by applying it to product designs, ultimately it forms a digital nervous system of logistics.

Security and Privacy are also challenges, for important information such as personal data, preparation of a product... go through many computer systems before reaching the destination and can be copied, monitored, stored anywhere on the route being used for counterfeiting issues competition, theft. These processes sometimes occur unintentionally through the tracking systems used to automatically retrieve customer data without having to register q, but can also be done intentionally by Hachers, vandals and computer criminals who sometimes receive money in exchange for performing the espionage.

Anyway managers should evaluate their strategies and business models to see if it fits the resources of web technology and is aware that they will face many challenges and will have to perform several structural as well as in policy and behavior changes, first deciding whether to use across the company to reduce transaction costs, creating new business models with e-commerce increasing contact with customers and suppliers through elimination of intermediaries.