Electronic business is a type of business which works in the internet. It uses technology and progress to get good costumer relationship, have a new market, new costumer and these kinds of activities over the internet. There are many kinds of electronic business categories which are use over internet successfully like e-banking, e-government, e-learning, e-mailing exc. Electronic commerce is subset o e-business and first of all it associated with selling product, buying product or exchanging product, services and information via computer network and over the internet. Both of them are growing by day by quickly because of developing internet technology. Huge numbers of organizations became to use e-marketing, e-business and e-commerce in recent times. Rest of organisation will be able to use e-business in short time because the companies are taking advantage of related technologies to optimize their business, if they have e-commerce. Selling and buying goods over the internet has been growing up since 1990's and it is big part of commotional activities at the moment. Depend on developing technology and growing e-commercial almost all organization has a web site which sells their goods. For example amozan.com sells books and it stated to sell books over the internet in 1995 and its income 600 million dollar in 3 years.
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That essay will be considered a web site which sells saucepan in Turkey. The web site is www.tencereler.com. There is a big organisation which produces and sells saucepan and all the kitchen equipment to Turkey kitchen market and they do export as well. It has been established at 1980's, to start produce Aluminium disc. After, they were specialized in this sector, the organization decided to improve our knowledge and we established a Cookware factory in 1995. After getting experience about this work, they bought one more high technology factory, to make high quality cookware. They were producing and selling their goods with traditional way, which they was selling their goods to wholesalers first, from 1980 to 2008 and then the company decided to sell their product to last costumer directly. The web site was created in 2008 and started to use over the internet.
Why They Needed To Use E-Commerce Technology
The organization uses the technology because of it was wanted to keep up with developing technology and they needed to be innovative in customizing their products and providing good customer service and they had to reach new customers to. They thought that if they use a web site, it will be opened up new sales channels. Moreover the organization wanted to get direct and interactive contact with their costumer because they used to use wholesalers. With that way the organization is not using wholesalers anymore they sell the product directly to customer and having more profit then before either more costumer. It was also wanted to announce their brand name bigger consumer area.
One of the important aims was to get competitive advantage and increase the overall demand. The organization thought that if they started to sell their product over the internet they would get provide competitive advantage and it could be increase the overall demand.
Manager of the organization says “In fact, we were selling our goods to wholesalers but our aim is to be finding our products anywhere, anytime. Technology is growing up and new generation knows everything about it, we made this investment for new generation. Also, they don't need to go anywhere to get our product. Their goods will be sending to their houses whenever they want” (Karahan,2010)
Changing Managed And Management Process
When the organization decided to sell their product over the internet, first of all they needed to create a web site and they did crate new marketing and selling strategy as well. For example, they were using traditional sales strategy with new innovation they started to target one-to-one sales. Traditional selling system was;
At the moment it is being used;
To change the selling system has gives the company many advantages. First off all, it was taken long time to meet a product with costumer using traditional system. There was a long procedure. Using the e-commerce is the shortest way for seller and buyer. When buyer orders a product it takes only 24 hour to delivering the product. One more point is; it takes short time to collect money too for the company.
Always on Time
Marked to Standard
The second example can be that; the organization did not have a catalogue which uses for the internet they needed to create a list for the internet with new prices too because internet prices cheaper than which uses for wholesalers. This is also benefits of reducing paper coast. In the organization after using e -commerce they had to change their payment system too. They was taking cheque and going to bank to take their money. At the moment the organization is collecting the money online. It means lees time and less job than before.
One of the biggest chancing happened in finance, account and sales departments of the organization. They used use long procedure like; firstly, all the order had come to sales department, these order used to collect weekly and send to production department and the department after collected the order, they used to send them sales department again. Sales department was checking the orders again and then send to customers. That procedure was too long and confusing as well. At the moment orders are going to production department directly and the department sent to orders to delivery serves. New procedure does not need more employees in the company and rest of employees needed to get training because of new technology. It makes the employees skilled.
At first time using new technology was difficult for the company. There are many reasons makes it difficult for example, to get successful e-commerce marketing buyer and seller have to trust each other. Both sides take risk. They do not meet face to face other and do not know each other. For the buyer side, costumer only can see the pictures of product and have to trust in the promises of prices, quality delivery which says by seller.
Shopping over the internet does not common innovation at first time and it took time to people got used to it. People had doubt about security, at the beginning. Customers did not want to use their credit or debit cart over the internet. Because of this problem the organization took high level of security measures. Secondly, they are taking the addresses over the internet, first time it was not easy to find the addresses for delivery staff. After that cause they started use navigation system. (That is another innovation for the company). Finally the biggest trouble was staff training. It was started to use new and confusing innovation and it was too difficult to get used to for the staff at the beginning. It took time. The solution was training, the company wanted to their employees to learn and adopt new technology. It was being spend huge amount money in engaging their employees.
The most important benefit is increasing sales. With new innovation the company has more costumers and more business partners than before because of global researching, everyone who have internet get information about the company and shopping from the company. It makes more profit. In the organization paper coast also has been reduced. Moreover, the costumer services have been improved. There are more information and helping serving on the web site. The company answer the question and delivery their product 7 days 24 hours as well. Organization's workers have more knowledge and more skills than before because of new trainings. Finally, all the benefits make value chain in the company.
One of the biggest roles belongs to the manager of the company for innovation. The manager thinks all types of innovation needs planning, organising and controlling. Some aspects must be considered for the planning; “new ways of doing business though technology, evaluation of the organisation's response to customer needs, ways to decrease costs and increase competitive advantage, assessment of customer base and its capacity to trade online, assessment of products and services and how these may be marketed to the costumer, outsourcing requirements, creation of detailed partnering strategy, financial requirements of the internet business, keeping up to date.” ( Lawrence, Lawrence, Newton, Dann, Corbitt, Thanasankit, 2003)
In addition the innovation must be organized day by day to keep up improved technology by the manager. It has also been organized training sessions for employees who are interested in the e-commerce. Finally, the one of the important role of manager is controlling. It must be controlled step by step to get reaction from customers. If the innovation does not make any profit, it should change as soon as possible by company.
Technology Evolution Can Not Finish
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According to manager the technology evolution mainly finished. They are selling their product over the internet and get profit but manager of the company added “we think our evolution has not done yet. Technology is growing up day by day and it has no end. It will be growing for good that is why our research and innovation will be continued forever. If we want to keep up with technology we have to improve our innovation day by day. (Karahan,2010 manager of the company)
Improved technology almost all the company which are selling goods or gives serves use e-commercial over the internet and this effects the prices manager of the company says that “Some people put on their web site so cheap prices and when people search the internet, they can see them and confused. We talked with these companies to change their prices but it is free economy strategy, so we could do anything. (Karahan, 2010 manager of the company)
Eloctronic Business Benefits
“The global nature of the technology, low cost, opportunity to reach hundreds of millions of people, interactive nature, variety of possibilities and resourcefulness and rapid growth of the supporting infrastructures result in many potential benefits to organization” (Turban, Lea, King, Chung, 2000 p14, 15)
There were many advantages and benefits of using e-commerce for the company. Firstly when a company compared traditional system with e-commerce system, it was recognized that the company have more costumer and more business partners than before. More costumers generally mean more profit. This is the most important and the biggest benefit for the organization. Electronic commerce does the company national and international too and the company can quickly and easily find more costumers. (Turban, Lea, King, Chung, 2000)
Moreover the technology provides the company faster access to some information. Whenever the company needs information about costumer or how many products they sold, they can see them easily.
In addition, it was reduced paper cost by using new technology. It drops the cost of creating and retrieving paper-based information. “For example, by introducing an electronic procurement system, companies can cut the purchasing administrative cost by as much %85.” (Turban, Lea, King, Chung, 2000)
If the business gives an advertisement every single month and generally each month there is a different advertisement. They have to change them every month and it is a big paper cost. The business is doing its advertisement with mail or using internet advertises at the moment. Their paper cost lower than before.
The business also can improve customer services with e-commerce. It can be given much information about product which costumers can get easily in the web site. However whenever buyers need help about product or using web-site, it is being served 24 hours every day. It provides to company good impression for the organisation.
E-commerce also reduce production cycle time. Building a product takes time to build for the business. Starting with the design phase and ending with the finished product. “The internet based e-commerce enables the reduction of this cycle time by allowing the production teams to electronically share design specifications and refinement process. The reduction in the production cycle time helps to reduce fix overheads associated with each unit product. That saving in the cost of production can be passed in to the costumer or may be used to achieve higher profit.” (Bhusry,2004)
If the company uses electronic commerce, it does not need any licenses or does not have to pay anything for the license. E-commerce also provide to company corporate image, increased training flexibility. In addition, it can be provided that, new business partners, increased productivity and simplified as well. (Turban,2004)
Using electronic commerce have many benefits to company and the most important is; the company get more profit than using traditional type of sales.