Can
E-Commerce really make an impact upon they business world? Will people
be prepared to buy things without actually seeing them in real life? What
must happen to the current paradigm to make the difference?
E-Commerce is being hyped as the next business revolution. Will it change
things, just as the "out of town" supermarket did?
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The
wonderful world of E-Commerce
Analysts
are forecasting a boom in e-commerce. Online shopping, education and training
and financial services lead the list of areas that will increasingly confront
us during the next few years.
Assuming that the current problems: security; accessibility (despite
the huge numbers of PCs and modems that are sold each year not everybody
actually has the capability to access the internet); and usability are
solved then how will e-commerce change our lives.
We are already seeing some services that are the precursors of the new
e-commerce world. EDS & HP have built a World Cup store which allows
fans to purchase official World Cup merchandise online 24 hours a day,
7 days a week. As the World Cup is a global competition the continuous
coverage is a major advantage - it would not necessarily be a good idea
for a local football team. The Investext Group have unveiled a Web site
that enables financial analysts, for a fee, to access a large up-to-date
collection of company, industry and market research reports. As this is
online it is not necessary to order a report and have sent by mail - the
research can continue uninterrupted with the results being available earlier.
Sainsburys and Tesco are testing services that enable people to
order provisions over the network and have them delivered, for a fee,
to the house within a few hours. It will be interesting to find whether
people use this for fresh produce.
It seems that what will happen is that the paradigm will change. Amazon
Books are a good example of a network service that is different from an
equivalent bookshop. Online you can see what the critics have said, what
people who have bought the book have also read and read some extracts.
Searching for information on a book is much easier than a normal bookshop.
Socially the biggest areas of change will be in education and training
- it will not be necessary to go to a classroom, training will be done
on the PC with online interaction with the tutor who will know exactly
what has been read, the results of the tests, the trends. Studies have
shown that this is the best way to learn. The better the workforce the
better the opportunities for business to move into the added-value rather
than just cost efficiency.
The biggest area of change will be in advertising and marketing. Rather
than inferring the purchasing trends from the analysis of masses of data
through data warehousing the marketing and advertising can focus on the
customer through the information they have collected from the loyalty
cards. As e-commerce adds to this "intelligence" the businesses
opportunities will be identified - this will be the real change that e-commerce
will make to business and society.
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