organization’s resources, aware
of
possible other
associated cost
and
resources that
may consume.
The brief description about the Internet above will give contribution to processing this
research. Knowledge about Internet itself will give illustration that Internet has a wide
range or no boundaries to achieve any market. The functions of Internet push some
business to use it as competitive advantage. And, the explanation of rules and guidelines
for a good citizen of Internet provides perception about the users of Internet in using or
not the Internet. Therefore, it is essential to understand about the Internet before doing
this research.
2.1.2
Electronic commerce
Electronic Commerce (E-commerce) is a new strategy to improve efficiency and
effectiveness within many business sectors. E-commerce is known as a worldwide
transaction of goods or services through electronic media such as fax, Internet or on-line
network
(Minoli
&
Minoli
1998, p62-63)
.
E-commerce has capabilities as follows
(Minoli
&
Minoli
1998, p31)
:
1. Enable
buyers
to
query
products,
service
information,
place
orders,
authorize
payment, and receive both goods and services on line
2. Enable
sellers
to
advertise
their
products,
receive
order,
collect
payments,
deliver
goods
and provide ongoing customer support
and
also,
notify
logistics organizations
electronically such as where to deliver the goods, when the goods to be delivered, etc
3. Enable
financial
organizations
as
intermediaries
to
accept
payment
authorization,
make
payment
to
sellers
and
inform
buyers
concerning
the
completeness of
transactions.
Thus, E-commerce
can make better efficiency
and effectiveness
in discovering
and
interacting with consumers, and in communicating with trading partners.
E-commerce, actually, gives advantages for many businesses. E-commerce provides
ability to streamline and automate the purchasing process so that it can minimize costs
related with handling sales order since the customers generate and send purchase order
directly while they are on-line. The other advantage is to lead generations by providing a
more complete database of company and product information, which can be updated as
required without incurring significant cost related with printing and distribution.
Moreover, E-commerce enables companies continuously to compile, tabulate and track
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