However, by conducting their business through the web, more and more companies
are beginning to stake out a claim in this market, with large conglomerates quickly
adapting their business strategies to include the web as an enabling technology to
conduct a low-cost business. This ability of transforming key business processes
enabled by Internet technologies is termed as E-Commerce. The Internet has thus
provided a greater access to useful information allowing customers to make informed
choices. The removal of geographical trading barriers means that success will follow
organizations that (i) offer the best deal, (ii) make it easy for other businesses and
customers to trade with them, and, (iii) manage and leverage the advantages provided
by E-commerce, while still adhering to their core business goals. Thus, to be
effective, E-Commerce must be totally integrated into every business area of the
organization that has a service, management or quality focus. Early pioneers have
already been in the limelight for the past few years, and examples of new entrants into
markets making tremendous inroads into well established competition galore.
Moreover, those traditional companies without a stake in this market are struggling to
keep up with the newcomers.
Therefore, the rise of E-Commerce has been the greatest threat from the Internet
to most traditional companies. These companies are so tightly focused on their core
business segments that they neither have the resources to develop business strategies
for the new Internet environment, or they do not understand the implications of this
emerging business environment. Many analysts have predicted that those
organizations, which do not fully embrace a web-based business plan using E-
commerce as an enabling and driving force, stand to lose enormously in the next
decade when the Internet is still expected to grow at a rapid pace.
It is our perspective that with the rapid growth of consumer and business
software applications, customers will require software systems to be distributed,
interactive and intelligent (in a domain-specific sense), with ubiquitous human
interfaces, and the ability to exhibit intelligent cooperative behaviors. According to
Winograd, he states that “In the next fifty years, the increasing importance of
designing spaces for human communication and interaction will lead to expansion in
those aspects of computing that are focused on people, rather than machinery” [14].
We believe that E-Commerce software applications are not alien to such requirements
and will need to adhere to similar objectives. While business to business (B2B)
transactions will represent the largest revenue sector, revenue from customer-to-
business (C2B) and business-to-customer (B2C) applications will also gain further
attention. The PI believes that manufacturing companies that embrace the E-
commerce strategy will be able to reduce inventories, increase productivity and
profitability, cut costs and improve supplier relationships. Manufacturers will be able
to procure products for the lowest costs from suppliers, thereby reducing the costs of
procurement as well as growing their business without being dependent on specific
suppliers. By incorporating a smart analysis module, one may even be able to
optimize inventories by procuring supplies at an optimal price and time. Greater
independence from suppliers may help boost the overall operating efficiency and
productivity of manufacturing industries. E-commerce technologies can also replace
traditional paper-based workflow in a manufacturing environment with faster, more
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