Aisling McCartney 15:58, 24 Aug 2004 (EST) Daniel Newton 15:58, 24 Aug 2004 (EST)
The Internet is a relatively ‘new’ mechanism, yet is has changed the face of society, education, and business. The impact of the World Wide Web on the corporate world has been tremendous, and as a result many eBusinesses have emerged in this risky dynamic global market.
In fact IBM believes that this change in the business operations is the most significant facet of the development brought by the Internet (http://www-8.ibm.com/eBusiness/nz/whatis.html). A survey of the top 500 Australian private businesses in 1998, conducted by IBIS Business Information, revealed that 75 per cent of the companies were doing business online (Kerin et al, 2003: 44).
Daniel Newton 13:16, 9 Sep 2004 (EST)
EBusiness literally means “electronic business�, and refers to businesses that use the Internet as a tool to promote, advertise and sell products and services (http://www.kimbwei.com/what/ebizdefined.html). The United States of America Bureau define eBusiness as “any process that a business organization conducts over a computer-mediated network� (http://www.census.gov/epcd/www/ebusines.htm). These electronic businesses can include non-profit, government and for-profit organisations.
A corporate firm can utilise the internet to mix “advertising, information and entertainment related to its (the company’s) product� or service to attract, capture, and interact with consumers (Kerin et al, 2003: 44). The Internet allows eBusinesses to integrate advertising campaigns, public relations, market research, commerce, and relationship building online. Not only does the Internet connect the business with the consumer, but it also connects businesses with businesses and consumers with consumers.
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Daniel Newton 13:16, 9 Sep 2004 (EST)
The Internet for some eBusinesses represents one of the best direct sales media to date, aligning online advertising with an outside advertising campaign. However, for other eBusinesses the Internet has become integral to the mechanics of the company itself (Belch & Belch, 2004: 485).
David A. Aaker, a business professor and author from the University of California-Berkeley, advocates the latter of the two strategies. Aaker does not only believe that the internet can be crucial to increasing the success of “the synergies and impact among the firm’s individual programs�, but that the Internet can also amplify and unite the Integrated Marketing Communication strategy and brand image (2002: 48-57).
The Internet provides companies with the ability to sell and buy products and services online, build consumer-business relationships, research target markets, manage information, and raise brand and product awareness. UKCeB, a company with 12 years of eBusiness experience, believe companies need to go online to achieve the necessary “flexible, adaptive, and pragmatic approach� to survive in the competitive and ever-changing marketplace (http://www.ukceb.org.uk/2/28/17/Importance_of_e.pm).
Business professors Neal, Quester and Hawkins believe that the rapid adoption of the internet symbolises one of the biggest revolutions in the business world. They believe that the growth of e-consumers provides a whole new marketing avenue for companies to tap into. Neal, Quester and Hawkins also predict that this marketing channel appears to be quite sustainable and integral for future companies (2004:7).
If this prediction is correct, then the corporate hysteria surrounding companies adopting the Internet as a marketing tool is justified, and the prospect of eBusiness seems an inviting opportunity.
Daniel Newton 13:17, 9 Sep 2004 (EST)
Although the industry has grown rapidly over the past decade, the transition from Bricks-and-Mortar to online business did not occur overnight. EBusiness grew from an organisational need to incorporate new technologies to improve customer relations, business practices and information exchange (Kalakota & Whinston 1997, p. 5). The emergence of the ‘New Economy’ meant that businesses had to succumb to pressures of individualization, virtualization, globalization and intellectualization in order to survive (May 2000, p. 3) As with many technological innovations that are developed in the face of military adversity, the first application of eBusiness can be traced back to 1948 and U.S. Army. The Army needed to develop a standardized tracking system in order to get vital supplies into the U.S.S.R. This resulted in a standard manifest system that could be transmitted across telephone lines (Hayes 2002). Since that time, the industry grew to include such technologies as EFT, EDI, and Email. The development of the World Wide Web in the 1990’s by Tim Berners-Lee, added a new dimension to the industry by enabling companies to conduct business over the Internet. Since then, the industry has experienced rapid growth with new markets opening up everyday. As new technologies develop, costs are reduced and a larger audience can be reached (Tuokkola 1998). The future for eBusiness is expansive. The industry and its associated technologies will allow for a truly global market. Current social and cultural barriers will be demolished as more consumers gain access to the internet (Tuokkola 1998). The industry is on the verge of a massive explosion which will see it at the forefront of all business applications for the future.
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Aisling McCartney 12:42, 9 Sep 2004 (EST)
Online auctioning is a business that facilitates both the user who tries to sell their products, and the company that hosts the online auction. It is a far-reaching online trade post that has become popular in recent years because of the ease of the transaction process.
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Daniel Newton 13:17, 9 Sep 2004 (EST)
Online advertising, or e-Advertising, is one component of eBusiness that has exploded since business adopted the online medium. Advertisers attempt to satisfy their businesses communication objectives through a wide range of Internet tools. These communication objectives include such things like creating awareness of the company, generating interest in the company, disseminating information across to the user, creating an image for the company, creating a strong brand. The tools that the advertisers use to achieve these objectives include web banners, sponsorships, pop-ups/pop-downs, interstitials, push technologies and hyperlinks.
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Daniel Newton 13:17, 9 Sep 2004 (EST)
Another important goal for businesses is to understand their online consumers and build relationships with them. Public Relations and Relationship Building over the Internet is constructed in a unique way, differing from the traditional interaction. Relationships can be built by sending emails, offering free downloads to add to their product or another company’s product, and providing games or activities to play online.
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Virtual_Communities_in_Public_Relations
Daniel Newton 13:17, 9 Sep 2004 (EST)
To understand the online consumers an eBusiness deals with, or to understand consumers in general, the Internet has created a far-reaching consumer base, in which to conduct Marketing Research. Such online research methods like conducting online surveys have become more cost effective, visually appealing and interactive. They also have real-time data capture, have the ability to recontact respondents, give respondents anonymity, personalise questions and increase participation and cooperation. However despite these advantages there do remain problems such as the security and validity of the data collected and self-selective errors (Zikmund, 2003: 97-98, 167-170, 271-276).
Daniel Newton 13:17, 9 Sep 2004 (EST)
The Security of data is not the only security risk that eBusinesses face. The introduction of networked companies has opened up piracy, viral, hacking and vandal issues that companies now have to deal with. Despite security filters and locks that e-companies can invest in, eBusinesses and their intellectual property is at risk.
EBusinesses utilise the web as a transaction channel, however the methods of the transaction differ. Online companies can auction products, sell products directly, provide a service and more to companies and consumers in the marketplace.
Daniel Newton 13:18, 9 Sep 2004 (EST)
The introduction and growth eBusiness has produced many Political, Social and Ethical Implications. Business innovation and the development of new technologies impact heavily on political, social and cultural structures, which often lead to ethical debates. Although the opportunities created by eBusiness are endless, there are also many problems associated with the industry that need to be addressed before it can progress.
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Is there a special e-commerce ethics?
Aisling McCartney 12:42, 9 Sep 2004 (EST)
Business-to-Consumer (B2C) Applications are seen to have benefited the greatest from the introduction eBusiness (May 2000, p.82). The evolution from Bricks-and-Mortar to the Internet has allowed many businesses to reduce costs, increase efficiency, improve customer relationships and enter new niche markets. Kalakota and Whinston (1997, p. 2) believe that online B2C applications will eventually replace the traditional business model altogether.
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Aisling McCartney 12:43, 9 Sep 2004 (EST)
Although B2C companies are viewed as the major players in the industry, Business-to-Business (B2B) Applications have benefited greatly from the transition online. Like B2C applications, online practices allow for cheaper, easier and better quality information flow between businesses (Hayes, 2002) as well as reducing costs, increasing efficiency and improving relationships.
Aisling McCartney 12:44, 9 Sep 2004 (EST)
Consumer-to-Consumer (C2C) Applications is a relatively new area of eBusiness. Whereas once business activities were confined to transactions between corporations and their consumers, the introduction of the Internet has broadened this definition to include individual transactions between consumers. As the ‘New Economy’ encourages a more individualistic and consumer-driven approach to business, the explosion of C2C applications is imminent.
Aisling McCartney 12:45, 9 Sep 2004 (EST)
EBusiness is an ever-evolving industry that requires the development and application of New Technologies. New software and hardware innovation and acquisition are required for corporations to remain profitable in this volatile and highly competitive industry. New technologies are essential.
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Aisling McCartney 12:46, 9 Sep 2004 (EST)
EBusiness is an emerging industry that will ultimately shape the future of consumerism. Areas such as advertising, public relations, marketing and journalism are established industries that have been greatly affected by the introduction of the internet. In addition to this, the influence of eBusiness is highlighted by the creation of new technologies, markets and business opportunities but the potential for growth is enormous. Although once considered a product of science fiction, online business practices have now become an integral part of society. The industry has grown substantially over the past few years and, as technology permits, will continue to do so well into the future.
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