Sunday, February 1, 2009

Week 3 - History and Evolution of E-commerce

Electronic commerce or more known as E-commerce or eCommerce bring the meaning as selling and buying products or services through electronic systems such as internet or other computer network. The definition of e-commerce is different compare its first introduce and now. At the beginning of the introduction, the definition of e-commerce meant the process of execution of commercial transactions electronically with the help of leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These two technologies were introduced in the late of 1970s, which allow businesses to send commercial documents like purchase orders or invoice electronically. In 1980s, the introduction of credit cards, automated teller machine (ATM), and telephone banking are a form of e-commerce. Another form of e-commerce was the airline reservation system introduced by Sabre in USA and Travicom in UK.

Internet became popular in 1994 but it takes about four years to develop security protocol (for example, HTTP) and DSL which allow rapid access and persistent connection to the internet. In the year 2000, many organizations in the United States and Western Europe put their business on the internet. At this time, the meaning of e-commerce was changed to the definition we know today. Although there are company that collapse but there are some companies that recognize the advantage of e-commerce and continue invest on the application transferring traditional selling method to virtue selling method. For example two supermarket chains, Albertsons and Safeway, used e-commerce to enable their customer to buy groceries online. At the end of 2001, it is stated that the largest form of e-commerce transaction, Business-to-business (B2B) model had around $700 billion in transactions. E-commerce sales continue to grow and many creative and innovative ways of doing business had been developed till nowadays.

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