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Impact of E-commerce on Operation Management



E-commerce is possibly the most promising application of information technology witnessed in recent years. It is revolutionizing supply-chain management and has enormous potential for manufacturing, retail and service operations. Operations management has had to deal with a new type of business management in a business world that is vastly changing with new technology. The impact that E-commerce has had on how an operation of E-commerce has changed from extreme to barely noticeable. Management has also had to learn how to adopt new technology with the growing Ecommerce world. E-commerce has also allowed businesses to grow where before the business would be limited to the area that surrounded the business. The E-commerce in manufacturing, retailing and service operations is examined, and a framework for describing E-commerce components and their role in different areas of an organization is proposed. This paper presents the details and major elements of E-commerce opportunity and fundamentals. The Operation of E-commerce indifferent areas of Marketing, Buying, supply, sales and Production. The operation of E-Commerce mainly includes the Human resource management and the warehouse. Also, the framework describing the impact of E-commerce on operations is proposed. Finally, a summary of findings and conclusions
Contemporary Issues in
Business Management
and Economics
Dr. Sharad Dixit
Kirti Dixit
Abhishek Shukla
ISBN: 978-81-951936-9-1
Eureka Publications
Contemporary Issues in Business
Management and Economics
Dr. Sharad Dixit
Kirti Dixit
Abhishek Shukla
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ISBN: 978-81-951936-9-1
First Edition - 2021
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Table of Contents
S. No. Chapters Page No.
1. Contemporary Issues in Business Management
and Economics
Abhishek Shukla 1-10
2. An Empirical Study on Micro Small and
Medium Scale Enterprises MSMEs in Uttar
Dr. Sharad Dixit 11-18
3. A Review of International Trade Theories-Its
Linkages to Trade, Growth and Development
Saurabh Kumar Bharti, Dr. Syeedun Nisa 19-29
4. Achieving and Measuring Sustainable
Competitive Advantage in Organizations
Mr. I.W.M. Bandaranayake, Prof. M.D.
Pushpakumari 30-57
5. Assessing the attitude of stake holders towards
the elephant Tourism in Jaipur: A case study
on Hathi Gaon (Elephant Village)
Shraboni Puri 58-72
6. Business adaptation to crisis: An example in
COVID-19 crisis
Rujittika Mungmungpuntipantip, Viroj
Wiwanitkit 73-75
7. COVID-19 vaccine tours: A new business
during COVID-19 era
Khon Khon, Somsri Wiwanitkit
, Viroj
Wiwanitkit 76-78
8. CSR Initiatives by Selected Organisations
during COVID-19
Dr. Sunita Gupta 79-91
9. Digital Marketing in India: A Critical Review
Nidhi Thakur 92-98
10. E-Commerce Enlargement and Exceptions in
Nasif Ahmed 99-115
11. Emergence of Hedge Fund in India
Implication on the Capital Market
Arun Kumar 116-122
12. Impact of E-Commerce on Operations
Akriti Kumari 123-138
13. Insights into Customer Perception and
Preference towards Facemasks during
COVID-19 Pandemic: A Study upon
Generation Y and Generation Z Indians
Samrat Bharadwaj, Shabana Hussain 139-164
14. Nutritional Anaemia in North East India
Gayatri Gogoi 165-181
15. Role of Robotic Process Automation in the
Field of Accounting and Finance
Dr. Azmath Rukhsana 182-194
16. Social Media Platform and Women
Manasa Gowda 195-199
17. Socio-Intercultural Entrepreneurship
Capability Building and Development
José G. Vargas-Hernández 200-226
18. Workplace Civility in Higher Learning
Institutions-Developing Research Context
from Reviews and Cases
Ms. Arunima Kalita, Prof. Arup Barman 227-263
19. Zero Budget Edupreneurship in Times of
Economic Slump
Sivajith. S, Dr. Anil Nedumpana 264-273
Contemporary Issues in Business Management and Economics 123
Impact of E-Commerce on
Operations Management
Akriti Kumari1
1IMBA, Department of Business Administration University of
International Business and Economics Beijing, China.
E-commerce is possibly the most promising application of
information technology witnessed in recent years. It is
revolutionizing supply-chain management and has enormous
potential for manufacturing, retail and service operations.
Operations management has had to deal with a new type of
business management in a business world that is vastly
changing with new technology. The impact that E-commerce
has had on how an operation of E-commerce has changed from
extreme to barely noticeable. Management has also had to
learn how to adopt new technology with the growing E-
commerce world. E-commerce has also allowed businesses to
grow where before the business would be limited to the area
that surrounded the business. The E-commerce in
manufacturing, retailing and service operations is examined,
and a framework for describing E-commerce components and
their role in different areas of an organization is proposed. This
paper presents the details and major elements of E-commerce
opportunity and fundamentals. The Operation of E-commerce
indifferent areas of Marketing, Buying, supply, sales and
Production. The operation of E-Commerce mainly includes the
Human resource management and the warehouse. Also, the
framework describing the impact of E-commerce on operations
is proposed. Finally, a summary of ndings and conclusions.
Opportunity of E-commerce
E-commerce is a hot issue in the media and the field of informatics. Its
influence is perhaps most evident in the financial services and retailing
industries. In a short period of time, several E-commerce projects have
developed. Innovative smart cards for E-commerce, remote payments
ISBN: 978-81-951936-9-1
124 Impact of E-Commerce on Operations Management
and electronic checks, online trading of stocks, bonds, and associated
financial instruments, online banking, and online shopping are among
the projects. We're getting used to the Internet and appreciating its
capacity to deliver a plethora of different information from across the
world; millions of sites are only a click away, opening up new
commerce and information exchange opportunities. The usage of the
internet is no longer a novelty; it is becoming as much a part of our
everyday lives as television and telephones. With the rise of the Internet
and Internet use, we have experienced a genuine revolution, but now we
are witnessing a second Internet revolution, which is known as
electronic commerce. E-commerce is quickly expanding, and the
technologies and processes that enable trading over the Internet are
maturing. On the Internet, evidence of E-commerce may be seen
everywhere. Catalogs and online transactions are available on many
business websites, but E-commerce is much more. It encompasses
everything from sourcing through settlement, as well as all trade
procedures. The Internet has surpassed paper as the major driver of
modern E-commerce. Even though the focus has shifted from electronic
data interchange to the Internet, the emphasis remains on the technology
necessary to transmit information rather than enabling inter-and intra-
organizational business activities. E-commerce encompasses not just the
facilitation of individual commercial transactions, but also the
management of the relationships that lead to and result from those
transactions. E-commerce is the process of conducting business
electronically amongst different organizations to achieve a certain
corporate or individual goal. The marketing and purchase of products
and services through the Internet is a significant component of E-
commerce, often known as electronic trading. E-success commerce and
volume on the internet have been widely documented. Any computer
may become a window open to every business, large and small, around
the globe., if an atmosphere conducive to E-commerce growth and
flourishing is created. The Internet, as an electronic medium, has the
ability to drastically cut transaction and processing times while also
making information internationally accessible. Internet-based E-
commerce has been adopted as a method of lowering operating costs and
increasing income possibilities. The web's ubiquity and the availability
of browsers across platforms provide a common foundation on which E-
commerce applications, particularly in the workplace, may be created.
This single platform has decreased the importance of software
distribution and installation difficulties, allowing for the growth of E-
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Contemporary Issues in Business Management and Economics 125
commerce across Intranets, Extranets, and the Internet. E-commerce
opens up new avenues for worldwide marketing of physical items and
gives chances for new firms to emerge that provide information and
other knowledge-based intangible products. Although most E-commerce
is now focused on inter-corporate and inter-organizational transactions,
services for individual customers are fast emerging. The Internet is the
most obvious example of this, and it has been a significant accelerator in
the spread of E-commerce, fostering a common environment for all
types of electronic transactions. E-commerce refers to any type of
interactive commercial transaction facilitated by computer networks.
The rising number of businesses and individuals who are able to access
these networks, as well as the growing variety of methods in which firms
may conduct transactions electronically with other organizations and
directly with customers, is fueling the growth of e-commerce. Business-
to-business E-commerce appears to be larger than business-to-consumer
E-commerce at the moment, although this may change in the future.
Because E-commerce helps to E-commerce economic efficiency, these
developments are significant to the global E-commerce economy as well
as the E-commerce economies of individual countries.
E-commerce helps to increase E-commerce economic efficiency in five
ways. They are-
a) shrinking distances and time frames,
b) minimizing distribution and transaction costs,
c) quickening product development,
d) offering more information to buyers and sellers, and
e) enhancing customer choice and supplier reach.
Key fundamentals of E-commerce
E-commerce is a new term that refers to activities that involve the
buying, selling, and trading of items, services, and information through
computer networks, such as the Internet. There are four main viewpoints
on e-commerce:
a) From a communication standpoint, E-commerce is the delivery of
information, products/ services, or payments over phone lines,
computer networks, or other electronic methods.
b) E-commerce from a business process standpoint: E-commerce is the
use of technology to automate business transactions and workflows.
ISBN: 978-81-951936-9-1
126 Impact of E-Commerce on Operations Management
c) From a service viewpoint: E-commerce is a tool that satisfies the
need of businesses, customers, and management to reduce service
costs while enhancing product quality and speeding up service
d) From an online standpoint: E-commerce allows you to purchase and
sell items and information via the Internet, as well as use other
online services. E-commerce can be characterized in a variety of
ways. The best way to describe E-commerce is to compare it to
trading: E-commerce is the use of modern communication
technology to conduct business. It encompasses all aspects of the
trade, including the development of commercial markets, ordering,
supply chain management, and money transfer. E-commerce is a
broad term that encompasses a variety of technologies and practices
that may now be used to increase the efficiency of trade interactions.
Telephone, fax, electronic data interchange E-commerce electronic
mail, electronic money transfer, and the Internet - specifically the
Web-are examples of common application technologies.
Electronic mail (e-mail)
E-mail is the electronic transmission of messages produced and stored
by computers via a network. E-mail was one of the first applications of
the Internet and is currently the most popular; e-mail accounts for a
significant portion of all Internet traffic. Aside from the Internet, e-mail
can be sent between users of online services on private or public
networks. The term e-mail is nearly synonymous with messaging;
nevertheless, it only refers to one element of interpersonal messaging,
namely the exchange of text messages and attachments between persons.
An E-mail has long been recognized as a quick, flexible, and cost-
effective method of communication. It's really easy to use. Sending,
replying, and forwarding a message to one or many recipients is as
simple as following a few steps, regardless of geographic location. E-
mail is linked to an electronic postal system in which each message
transmitted to a mailbox is accompanied by an addressed envelope. The
message is sent to a delivery network, where it is routed through the
message transfer service until it reaches the mailbox of the intended
recipient. The recipients then log in to their mailboxes and open their
mail at their leisure. E-mail is a low-cost and easy method of
communication. It may be a simple and efficient means of
communicating information as workers spend more time away from
their desks. This can boost a person's productivity up to a point, beyond
ISBN: 978-81-951936-9-1
Contemporary Issues in Business Management and Economics 127
which the volume of e-mail might become so overwhelming that it
hinders rather than helps productivity. In these circumstances,
groupware emerges as a feasible alternative for facilitating electronic
contact among groups of individuals who must collaborate to complete
group activities. The more control groupware provides over the type of
member interactions, the more work-related conversations may be
encouraged. NetMeeting, for example, is an example of an Internet-
based groupware solution.
Electronic data interchange
Using e-mail to conduct routine business has its drawbacks. After a
certain amount of traffic, electronic data interchange E-commerce
becomes the favoured method. Electronic data interchange E-commerce
stands for electronic data interchange, which is the exchange of business
documents between computers without the need for human interaction.
Electronic data interchange E-commerce is capable of handling high-
volume transactional traffic between businesses. Large transaction
volumes are possible thanks to the formal document and transmission
standards inherent in Electronic data interchange E-commerce as well as
appropriate band-width. Electronic data interchange E-commerce allows
businesses to send and receive precisely formatted business orders,
payments, and even engineering drawings electronically through a direct
communication channel without the need for human interaction. When
Electronic data interchange E-commerce is incorporated into a
company’s E-commerce system, the technology's main benefit is
realized. According to Mohsen, Electronic data interchange E-commerce
will aid in the reduction of stocks, the promotion of JIT management, the
exchange of engineering information, and the improvement of work
schedules. Companies that have successfully used electronic data
interchange E-commerce have observed general benefits such as quicker
purchasing procedures, shorter transaction cycle times, greater inventory
rotations, and overall better service. Electronic data interchange E-
commerce allows suppliers to respond quickly to orders and consumers
to place orders automatically.
Internet and E-commerce
Because of the open standards of the Internet, large firms may easily
extend their trade communities, improving the efficiency of their
commercial operations. Smaller businesses who previously thought
proprietary communications technology was too difficult and expensive
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128 Impact of E-Commerce on Operations Management
to use may now pick the level of communication that is suitable for them
and profit from the Internet and E-commerce revolutions.
For organizations new to E-commerce, open standards provided by
Internet technologies are simple to adopt, quick to understand, and quick
and efficient to implement. Participating businesses' productivity and
competitiveness will considerably rise as a result of an Internet-based
electronic market-capabilities places and prospects, whether they are
suppliers or customers. The Internet acts as an online global marketplace
that operates 24 hours a day, with millions of sellers, customers,
products, and services. Companies may also utilize the Internet and its
capabilities to interact with customers, suppliers, and development
partners in a novel, cost-effective, and time-saving ways. Companies
will be able to shorten procurement cycles through the use of online
catalogues, ordering, and payment; reduce costs on both stock and
manufactured parts through competitive bidding; and reduce
development cycles and accelerate time-to-market through collaborative
engineering, product, and process design, regardless of location. It
guarantees that product information, marketing materials, and prices are
constantly current. It has a significant impact on communication speed,
particularly international communication. It cuts purchasing and
production cycles in half. Directly lowering communication costs and
speeding up communication can help decrease inventories and
associated inventory and purchasing expenses. It encourages tighter
relationships with consumers and suppliers, for example, websites allow
businesses to keep customers and suppliers informed about
developments that affect them and to engage in effective relationship
marketing. Internally and externally, e.g., websites, intranets, and
extranets, to give a quick and easy means of communicating information
about a firm and its goods. The ability to tap new markets or market
niches through alternative sales methods. The Internet and www provide
the possibility to extend E-commerce activity throughout the contract
cycle, allowing new suppliers to electronically service new clients and
even negotiate new contracts. Business-to-business and business-to-
consumer transactions are both possible on the internet. Internet
protocols and Web interfaces are used in Intranets and Extranets.
E-commerce in operations
E-commerce is moving away from mass production and toward demand-
driven, perhaps customized just-in-time manufacturing. IBM, General
ISBN: 978-81-951936-9-1
Contemporary Issues in Business Management and Economics 129
Motors, General Electric, and Boeing, for example, assemble products
for which the components are made in a variety of places. Sub
assemblers obtain supplies and parts from their vendors, and they may
work with one or more manufacturers. In multitier systems,
communication, cooperation, and coordination become crucial.
Assemblers can acquire sub-assemblies for 15-20 percent less money
and up to 80 percent faster via computerized bidding. These systems are
adaptive and flexible, allowing for quick modifications at a low cost.
Costly inventories, which were formerly a part of mass manufacturing
methods, may now be reduced. Companies in the service sector, such as
banks and stock trading firms, were already online before the Internet
since their business operations had been digitized. Businesses such as
banks supplied clients with the software on disc in the early years of
digitalization in the financial industry. The software that customers
placed on their PCs gave them access to the vendor's database through
private lines and, subsequently, the Internet. Companies began to allow
consumers to download software instead of receiving it on a disc as time
went on. Internet browsers now allow users to perform commercial
transactions with these service operations, therefore the software is no
longer required. Travel and real estate brokers, for example, extracted
data from computer systems installed in their offices. Customers
received information through mail and courier, or they had to come to
the agency office to obtain information and paperwork on service
transactions. Customers go to the office of real estate companies to see a
video clip or look at photographs of real estate for sale. Many travels and
real estate services are now accessible over the Internet from anywhere
and at any time. Customers get immediate access to services thanks to E-
commerce use of the Internet. As a result, most of an agent's or broker's
value-added duties may be automated. As more people accept E-
commerce as a viable alternative to the more traditional labour-intensive
processes that have long supported these types of service businesses,
human representatives will be less needed to provide direct service and
more needed to create and maintain the technical systems that support
the services. Now we'll look at how E-commerce may help companies
with their functional operations.
A market is a web of interactions and relationships where people
exchange information, goods, services, and money. When the
marketplace is electronic, the business centre is a network that enables
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130 Impact of E-Commerce on Operations Management
and supports business contacts and transactions rather than a physical
facility. Buyers and sellers are brought together on the electronic market,
although not always in the same area or at the same time. The market
conducts all required transactions, including the exchange of funds, to
allow the exchange. The introduction of E-commerce has altered
marketing practices. Traditional intermediaries, such as retailers, are
being transformed as a result of new computer-mediated connections. To
grasp the shifting role of the retailer in E-commerce, one just has to look
at the environment of an interactive home-shopping supermarket.
Business-to-business E-commerce platforms are still in their infancy on
the Internet. Then-suppliers are followed by Internet electronic markets
for business-to-business E-commerce, while the m-customers situation is
slowly emerging. Comprehensive Internet E-commerce systems should
provide secure and easy access, be simple to use, assist suppliers and
customers in overcoming differences in business time, location, and
language, and support the full trading process in business-to-business
Product marketing: E-commerce improves product and service
promotion by allowing for direct, information-rich, and interactive
interaction with customers.
New sales channels: Due to its direct support of consumer research
and the bi-directional nature of the contact, E-commerce generates a
new distribution channel for current items.
Direct savings: The cost of sending information to clients through
the Internet saves senders just a little amount of money. When
compared to the expenses of traditional distribution, direct delivery
of digital items saves a lot of money.
Shorter cycle time: The time it takes to offer digital products and
services might be as little as seconds. In addition, administrative
labour associated with physical delivery, particularly across
international boundaries, can be significantly minimized, decreasing
cycle time by more than 90%.
Customer service: Enabling consumers to access extensive
information online may substantially improve customer service.
Intelligent agents can also respond to typical e-mail queries in a
matter of seconds. Finally, help-desk software can speed up human
expert assistance. E-commerce is a firm believer in marketing
intelligence. Intelligence systems assist in gathering data to analyze
options and make decisions.
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Contemporary Issues in Business Management and Economics 131
E-commerce directly supports the following three intelligence
activities, the search for products, and management of search
criteria, and comparison of products found.
The main use of Electronic data interchange E-commerce is automated
purchasing and logistics between commercial partners with well-
established connections. Rather than the Electronic data interchange E-
commerce route connecting them, intelligence and important
information are usually centred on the computer systems of the
participants. The purchase and delivery of a product may indicate the
end of the negotiating stage or it may happen later. Product and
merchant brokering may be influenced by available payment or delivery
alternatives in specific situations. Direct selling has the potential to
disinter mediate supply chains on a broad scale, removing middlemen.
As businesses and individuals re-evaluate their trading patterns in
response to new E-commerce opportunities, some traditional
intermediary roles will be threatened; however, far from eliminating the
need for intermediaries, the Internet is currently generating a wide range
of new opportunities in the facilitation and mediation of electronic
trading environments. On-line purchasing environments are still in their
infancy, and in the next years, one may expect a significant rise in the
functionality of these settings, which will benefit both consumers and
sellers. Intelligent purchasing advisers will help customers define their
product needs, find product information, and choose the best supplier.
This might result in a shift in the power balance from sellers to buyers.
With the aid of quality function deployment, design for manufacturing,
and quality design, high-quality product design has been realized.
Various computer-based technologies have also aided in the
improvement of product design quality. To minimize the time, it takes to
develop new goods, they include computer-aided design, 3D modelling,
and Pro Engineer. Because firms must compete in a global market based
on flexibility and responsiveness, there is a need to minimize product
development cycle time, which represents a significant percentage of the
overall Lead time to deliver the product after receiving orders from
consumers. For new product development, concurrent engineering has
been used to increase communication between design and another
functional area by utilizing cross-functional, multi-disciplinary teams. It
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132 Impact of E-Commerce on Operations Management
needs input from both customers and internal employees. The Internet
may be used to fuel technologies like QFD and web-based data
collecting and mining, which can help improve design quality and boost
competitiveness in global marketplaces. Using the Internet and the
World Wide Web, design engineers in different regions of the country or
the world may share knowledge. This can help to save design time and
enhance the quality of product design information while also assisting in
the creation of goods that will gain market share. Companies are
employing a marketing strategy that anticipates and responds to the
requirements of existing and future consumers by continually refining
information about them. Customer relationship management is the term
for this activity. The program may be used to perform consumer needs
research in order to improve product design.
The utilization of quick, precise information systems is critical for
companies to keep in sync with changes in their operational and
competitive contexts. Business-to-business (B2B). E-commerce is
required for the deployment of e-manufacturing or e-service. MRP, SAP,
BAAN, Oracle, People soft, and IBM e-business are just a few of the
Internet-enabled supply chain management and enterprise resource
planning systems available today. Web-based manufacturing of products
and services reduces communication and data collecting restrictions. The
Web can help with customer and supplier engagement, data collecting,
and data analysis processes by using database management, data
warehousing, and data mining technologies. Service function
outsourcing is getting increasingly prevalent. Managers may utilize their
company's limited talents and resources for enhanced competitiveness
by selectively outsourcing and focusing on core capabilities.
Outsourcing allows businesses to secure many, if not all, of the skills
they need to execute business-to-business and business-to-consumer
transactions. E-commerce. Web-based interfaces, connection with
supplier catalogues and internal information systems, and built-in
business transaction rules based on purchase limitations or negotiated
contracts are some of the most complex IOS extensions that affect
supplier-customer interactions. Extremely tight supplier-customer
connections, such as those between parts suppliers and automakers,
might stimulate the use of IOS to connect suppliers to customer
inventory and production prediction data, therefore shifting the duty for
automated replenishment to suppliers.
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Contemporary Issues in Business Management and Economics 133
Sales and supply
E-commerce appears to be becoming the mainstream, and merchants are
beginning to recognize its importance in customer care. Many potential
web shoppers abandon their transactions due to dissatisfaction with the
procedure and security concerns regarding online transactions. The
Internet framework has evolved powerful ways to support the security
needs that are the cornerstone of E-commerce. Also created are E-
commerce models for business-to-business and consumer-to-business
transactions. In addition, the required regulatory framework is being
established. Human interaction is still a crucial component that makes
buying in the actual world more pleasant for most individuals than
shopping online, even with ongoing technology help. Many individuals
who shop for items or services on retail websites have so far completed
the purchase over the phone. E-commerce strategies and solutions to
improve customer service are starting to emerge. Internet telephony
might be the missing piece in the online purchasing puzzle. Internet
protocol calling may be a significant point of differentiation in the
increasingly congested field of online stores and full-fledged e-malls. If
vendors can use IP voice technology to establish icons and links for live
contact and call-back customer service, current retail websites will be
much more efficient and valuable, and future E-commerce enterprises
will have a more solid business model. A variety of new technology
systems are reshaping the future pattern of corporate rivalry by
providing new avenues through which to engage customers and allowing
new rivals to enter previously difficult-to-penetrate industries. Major
textile and garment producers, for example, which used to only make
and sell to middlemen, have realized the potential offered by these new
technologies to compete directly with large stores. Manufacturers' profit
margins for branded goods are being squeezed as retailers improve their
buying power through the increasing scale of operation. Retailers used to
have a huge edge in gaining market share for their brands by using
information obtained at the point of sale and having control over display
space allocation in shops. Furthermore, retailers requested a wide
selection of items from producers, but this did not always transfer into
the entire range of products being shown in retail stores. Only a small
number of items can get shelf space when there are competing opinions
on marketability. Manufacturers may get significant benefits from new
distribution channels by increasing exposure of their whole product line
and improving their competitive position by establishing close direct
contact with individuals who buy their products. Manufacturers have a
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134 Impact of E-Commerce on Operations Management
tremendous chance to sell and distribute directly to end-users thanks to
e-commerce. The smart kiosk is an e-commerce technology that certain
manufacturers have looked at. These are sophisticated gadgets that
evolved from bank-owned automated teller machine (ATM) systems. To
give product information and facilitate credit card purchases, touch
screen-operated terminals linked to distant servers employ hypermedia
systems. These systems, like other alternatives to traditional in-store
retailing, need to be backed up by efficient production or warehousing
networks that can deliver items to customers quickly. The role of
logistics is becoming increasingly important to success in this, as it is in
other areas of supply chain management. To be regarded as a viable
alternative to traditional shop merchants, it is not enough to sell a
product at a competitive price; it must also be delivered to the consumer
Alternative marketing channels, such as the Internet and interactive
cable and satellite-based teleshopping, are thought to have a lot of
potential in terms of altering the face of modern commerce. The Internet
was once primarily used to give product information and to portray a
certain corporate image via web pages, but the number of online
merchants and manufacturers is growing every day. Virtual malls have
been created to give exhibit space for groupings of shops, including
small businesses. Part of the confidence in the security of Internet
transactions is required to use the Internet for selling. As a result,
encryption techniques and related security technologies have progressed
to the point where Internet transactions may be less hazardous than
traditional face-to-face and phone transactions. Faster Internet
connectivity, enabled by improved phone modems, cable modems, faster
processors, more RAM, and other factors, has also contributed to the
growth of Internet-based E-commerce. The Internet may be used to
disseminate a variety of informative items, as well as digitized products
such as software and music. Internet distribution may result in
significant shipping cost reductions, as well as delivery at a pace that is
only dreamed of by companies that use other, more traditional delivery
means like a truck, air, and train. Even individuals who utilize traditional
forms of transportation may improve customer service by using Internet-
based technologies. Order tracking through the internet has become
commonplace. Customers may track their orders' progress without
having to contact the shipper directly. UPS was one of the first
companies to offer this type of web-based customer assistance.
ISBN: 978-81-951936-9-1
Contemporary Issues in Business Management and Economics 135
Human resource management
The labour market has made it to the internet. Simply typing ''jobs" into
any search engine will reveal the extent to which recruiters and job
seekers have infiltrated the internet. The internet is now an excellent
location for recruiters to look for candidates and job seekers to look for
openings. Many manufacturers, merchants, and service providers now
post job vacancies on their own websites, making it simple for qualified
candidates to apply. Furthermore, the data provided by candidates may
be routed to a database, allowing HRM staff to focus their study of
application data on individuals who satisfy certain search criteria.
Employees at certain organizations may now manage their benefits and
retirement accounts through the internet. Employees can use a scanner to
access information about their benefits or retirement funds, and in many
cases, they can make adjustments without the help of an HRM
professional. Employees will appreciate it, and HRM employees will
benefit from it since they will be relieved of some of the responsibilities
associated with providing information to employees about benefits,
retirement, policies, and other topics. These items may not appear to be
E-commerce at first glance, but they do come within the E-commerce
category. The Internet may also be used for multimedia training and
education. The Internet, Extranets, and Intranets may all be used to
acquire and offer education and training. Unlike education and training
given through seminars or the conventional classroom atmosphere,
people using the services can choose to use them at a convenient time
and at their own speed. Much of the education and training made
available in this way is interactive, which adds to its value by making it
less dull and more effective for consumers.
reduction of warehousing costs. Electronic data interchange E-commerce
allows for the storage of minimum supplies, resulting in cost savings in
storage, insurance, warehousing, and security. Greater audit trails lead to
better inventory control and accountability. Reduced manual processing
decreases the demand for personnel, resulting in labour cost reductions.
Just-in-time manufacturing refers to the capacity to create small batches
of finished items just when they are required, i.e. in response to market
demand; in an extended supply chain, Electronic data interchange E-
commerce results in minimum stock holdings by all parties, resulting in
ISBN: 978-81-951936-9-1
136 Impact of E-Commerce on Operations Management
lower supply chain system operating costs. Electronic data interchange
E-commerce also helps to improve cash ow vast improvements in
matching invoices against orders and receipts become possible leading
to timely payment. Reduced stock handling saves money.
Supplier expansion
Buyers can be empowered by E-commerce access to information and
suppliers since it gives them access to a bigger number of alternative
goods and allows them to explore a larger number of providers.
Companies may also make contact with a broader range of commercial
partners and customers and conduct business with them. Because E-
commerce may minimize, if not remove, time and geographical
constraints, many businesses can do business internationally. Buyers can
use intelligent agents to help them find the greatest pricing on items and
the best conditions from suppliers. These intelligent agents can do tasks
that would normally take a person a day or weeks to complete using
typical comparison-shopping methods such as phone calls, catalogues,
and a lot of time in seconds or minutes. Businesses may benefit from
networks by connecting with suppliers and consumers more frequently
and effectively, utilizing a range of mediums to deliver richer, more
customized messages.
An outline for enlightening the operations in an E-commerce
E-commerce is poised to become a pillar of modern business as the
internet grows in use. Businesses are creating demand for Internet access
by developing new service offerings that provide value to their
consumers. Many people believe that E-commerce is simply having a
website, but it is much more. Home banking, shopping in online stores
and malls, buying stocks, finding a job, running an auction, and
cooperating electronically on research and development projects are just
a few examples of E-commerce applications. To run these apps, you'll
need supporting data, as well as organizational architecture and systems.
Companies are realizing that having a web presence is now a
competitive requirement, especially for merchants that need to open
online stores. Despite this, there are few relevant frameworks in the E-
commerce literature to assist managers in comprehending E-potential.
commerce's The paradigm provided here connects E-commerce
application areas, E-commerce tools and systems, and organizational
ISBN: 978-81-951936-9-1
Contemporary Issues in Business Management and Economics 137
functional domains to show how E-commerce may assist functional
activities. Marketing can use E-commerce tools and systems such as
B2Bsystems, Internet orders, and Web sites to promote products or
services, develop sales channels, achieve direct cost savings, reduce
cycle time, and enhance and expand customer services.
Summary of ndings and conclusions
We looked at how e-commerce is affecting the operations of
manufacturers, retailers, and service providers. A framework is
presented for defining E-commerce components and their function in
operations. Breakthrough changes are possible for firms that fully
leverage E-commerce potential: changes that so drastically alter
customer expectations that they redefine the industry or create whole
new markets. Firms must grasp the possibilities of E-commerce its
components, their own companies, and the businesses of trading partners
in order to benefit from it. Strong relationships, as well as the
fundamental goods and structures that enable E-commerce must be the
emphasis of businesses. They must define, design, and implement the E-
commerce infrastructure that will enable their company to capitalize on
new business possibilities. Effective tactics for gaining a competitive
edge through E-commerce will be required for success in the twenty-first
century. E-commerce necessitates extensive infrastructural planning.
Pursuing E-commerce objectives with underpowered hardware,
insufficient bandwidth, shoddy software, and no cohesive data
management strategy is a prescription for catastrophe. The importance of
infrastructure planning cannot be overstated. A poorly designed system
works poorly at best and invites security issues at worst. The
infrastructure must be constructed with enough flexibility to allow for
adaptive modification, which will undoubtedly be required as E-
commerce evolves. Whether future E-commerce advancements generate
challenges or possibilities for a firm may be determined by good
infrastructure planning. Many infrastructure services have traditionally
been delivered via subscription with direct monthly aggregated billing.
Other business models, like instant payment for services, are made
possible by E-commerce. A universal shared billing infrastructure,
similar to the credit card associations, may be established instead of each
supplier providing individual user billing. This may be more flexible and
cost-effective for providers, as well as minimize credit risk. User
authentication, a fundamental component of E-commerce to prevent
fraud, has a severe drawback for users in the form of a loss of privacy.
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138 Impact of E-Commerce on Operations Management
Providers can track user actions and data warehousing across a range of
suppliers and providers utilizing authentication. Without a clear privacy
policy, the growth of a dynamic market might be stifled. A customer
service business can protect user privacy by enforcing privacy policies.
The world around us is evolving at a breakneck pace. The concerns
stated above, as well as those that exist or, will emerge, must be
addressed. The Internet, as well as other E-commerce related
innovations, have the potential to drastically alter how we communicate,
engage, receive information and entertainment, and purchase products
and services. Businesses must build business models that offer E-
commerce the prominence it deserves as a fundamental element in
corporate success if they are to survive and flourish in the twenty-first
century and beyond.
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Full-text available
Presents cases in which US firms successfully applied CIM and capitalized on the advantages of such an advanced technology. Addresses barriers to factory automation and steps for successful implementation. Finally, examines technologies that enhance CIM implementation.
eCommerce is set to revolutionise the way we do business. The companion papers to be found in the themed section of this edition outline some of the major technologies that underpin eCommerce. This paper sets the scene.
The rapid growth of the World Wide Web has created new industries and extended the reach of existing businesses. One of the areas on the verge of expansion is electronic commerce (EC(. While still in its infancy, EC is forecasted to increase by over an order of magnitude over the next several years. Notable success stories of selling over the Web—such as those of and Dell Computer—are often touted today. A major concern with the creation of EC systems today is the large amount of customization and systems integration work required. We present here the MediaXact™ system, a solution to this dilemma that provides a framework separating the service presentation and service logic from the functions that make up the service. This greatly simplifies customization and eases the integration with existing legacy systems and business logic.
Electronic funds transfer over financial networks is reasonably secure, but securing payments over open networks like the Internet poses challenges of a new dimension. This paper lays out the security requirements for electronic payment systems, surveys the state of the art in electronic payment technologies and sketches emerging developments.
Electronic commerce over the Internet is now tens of billions of dollars per year and growing. This article describes how objects used in EC can be located and protected from unauthorized access. It discusses the three kinds of EC: customer interactions with a business, business interactions with other businesses, and interactions within a business. It characterizes the object retrieval and access management required to support the types of EC. It describes how metadata expressed in XML can be used to locate objects for retrieval and how a public key infrastructure along with role-based access control can be used to implement the distributed authentication and access control necessary to support complex access policies. In addition, the article describes activities within the Information Technology Laboratory at the National Institute of Standards and Technology which contribute to the development of related standards and tests
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I. Morphett, Foreword, BT Technology Journal 17 (3) (1999) 23.
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W.M.P. VanderAalst, Process-oriented architectures forelectronic commerce and interorganizational workflow, Information Systems 24 (8) (1999) 639-671.
Opportunities and Chal-lenges for Government
  • Electronic Oecd
  • Commerce
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