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E-commerce revolution.

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Introduction

Introduction One needs to look at the Internet phenomenon as an opportunity rather than a threat, realignment internally rather than just something happening remotely, external to one's business core. The Web-enabling of business is inevitable. The very nature in which companies communicate with their customers, suppliers and employees is undergoing a big change. Only minorities of businesses are cynical about the impact of the Net on business in India. According to a study conducted by Nasscom: Among user organizations, more than 90 per cent expressed keen interest about the increasing adoption of e-commerce and its potential benefits. Over 55 per cent of corporate respondents said that e-commerce transactions were integral to their corporate plans. Of these 85 per cent were industries that did not have direct or frequent contact with end consumption. About 23 per cent of top 500 companies in India have some form of e- commerce in place. The most commonly found business practice is to establish extranets or EDI (business-to-business) infrastructure for a learning period. This is subsequently upgraded to Internet-based access mechanisms. Over 90 per cent of the respondents cited, perceived efficiency in supply chain management as a motive for B2B e-commerce and enhanced customer service (customer relationship management) for B2C transactions. Despite the lack of a regulatory infrastructure, the total volume of e-commerce transactions in India was $100 million during 1999-2000. E- business transactions in India reached $400 million during 2000-01. Of this, $65 million comprised retail transactions and $335 million of B2B transactions. With the regulatory framework firmly in place, an improvement in telecom infrastructure and an increase in PC penetration lead to $900 million of e-commerce transactions in India by 2001-02. ...read more.

Middle

Only 26 percent of PC-owners were aware of E-commerce, with the majority of them indicating that they would prefer to not make purchases on-line until quality of products and delivery could be guaranteed. Penetration analysis of online services based on the NASSCOM (1999) study indicated that penetration rates of internet and E-commerce transactions in India are expected as follows: For Business-to-Business transactions, Indian industries are expected to reach online penetration of 2% by 2003 and 8% by 2008. It further expects that India's active Internet population would spend close to 1.4% of its total regular household spending through Internet purchases by 2003.It is expected that by 2003 Internet Business-to-Consumer transaction would constitute 80 percent of the revenue. Supply Chain Management optimization is one of the strongest drivers of global E-commerce solutions market, as it spurs Business-to-Business transactions. More than 68% of Indian software houses have informed of strong expertise in Supply Chain and Distribution Management solutions. Almost 32% of IT company respondents have identified web based consumer businesses as a major opportunity area, with expected paybacks beginning in 3-4 years. Some of the promising areas of E-commerce services are: legacy application integration; Internet application integration; EDI, Migration to web based models; new IT frameworks, integration with business strategy and strategic IT consulting (OECD, 1999). Opportunities for India If one looks at the opportunities for India at a macro level, till now outsourcing software and IT services from USA and other advanced countries was the norm. In this regard, India has emerged as a preferred destination with low cost operations, highly skilled labour and good software. ...read more.

Conclusion

For certain international E-commerce, one needs to know if E-commerce transactions should be classified as cross-border trade or consumption abroad. Likewise, a considered view on domestic taxation issues needs to be taken. Conclusion India clearly stands to gain from the E-commerce revolution, with probably the cheapest labour available and low barriers to entry, an agreed standard for implementation, it's a very practical business model For E-commerce. Also, Understanding e-commerce is a bit like learning how to drive a car. Reading the driver's manual is important, but ultimately you need to get behind the wheel and spend time navigating the roads to get a feel for what it is all about. Most e-commerce web sites are very large, often confusing and overwhelm the visitor with a huge amount of information. People cannot easily find what they are looking for. Moreover, the web site is presented in the same format to every visitor, irrespective of his needs. Now enforcing the E-commerce business model to the target audience and making it available to the common man without the fears of trading over the Internet need to be realized. As there exists a suitable legal framework and promotion of e-commerce enterprises and e-business initiatives. Even the security issues of cryptography and digital signatures addressed, e-commerce is a safe bet. Ever heard of M-commerce? This is another variant of E-commerce, by using mobile wireless devices. Did u know more people in India own a cell phone than credit cards? Why not be billed from your cell phone and at the end of the month receive statements (bills) on your monthly cell phone bills!!! . Isn't nearly everyone already tired carrying so many different plastic cards in their wallets, isn't this a much easier and simpler solution. ...read more.

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