What is E-commerce and e-business

In the emerging global economy, e-commerce and e-business have increasingly be-
come a necessary component of business strategy and a strong catalyst for eco-
nomic development. The integration of information and communications technology
(ICT) in business has revolutionized relationships within organizations and those be-
tween and among organizations and individuals. Specifically, the use of ICT in busi-
ness has enhanced productivity, encouraged greater customer participation, and ena-
bled mass customization, besides reducing costs.
With developments in the Internet and Web-based technologies, distinctions be-
tween traditional markets and the global electronic marketplace-such as business
capital size, among others-are gradually being narrowed down. The name of the
game is strategic positioning, the ability of a company to determine emerging op-
portunities and utilize the necessary human capital skills (such as intellectual re-
sources) to make the most of these opportunities through an e-business strategy
that is simple, workable and practicable within the context of a global information
milieu and new economic environment. With its effect of leveling the playing field,
e-commerce coupled with the appropriate strategy and policy approach enables
small and medium scale enterprises to compete with large and capital-rich busi-
nesses.
On another plane, developing countries are given increased access to the global
marketplace, where they compete with and complement the more developed econo-
mies. Most, if not all, developing countries are already participating in e-commerce,
either as sellers or buyers. However, to facilitate e-commerce growth in these coun-
tries, the relatively underdeveloped information infrastructure must be improved.
Among the areas for policy intervention are:
●
High Internet access costs, including connection service fees, communication
fees, and hosting charges for websites with sufficient bandwidth;
●
Limited availability of credit cards and a nationwide credit card system;
●
Underdeveloped transportation infrastructure resulting in slow and uncertain
delivery of goods and services;
●
Network security problems and insufficient security safeguards;
●
Lack of skilled human resources and key technologies (i.e., inadequate profes-
sional IT workforce);
●
Content restriction on national security and other public policy grounds, which
greatly affect business in the field of information services, such as the media
and entertainment sectors;