Benefits of e-Business

  1. Ease of formation and lower investment requirements: Unlike a host of procedural requirements for setting up an industry, e-business is relatively easy to start. The benefits of internet technology accrue to big or small business alike. In fact, Internet is responsible for the popularity of the phrase: ‘networked individuals and firms are more efficient than networthed individuals.’ This means that even if you do not have much of the investment (networth) but have contacts (network), you can do fabulous business. Imagine a restaurant that does not have any requirement of a physical space. Yes, you may have an online ‘menu’ representing the best of cuisines from the best of restaurants the world over that you have networked with. The customer visits your website, decides the menu, places the order that in turn is routed to the estaurant located closest to his location. The food is delivered and the payment collected by the restaurant staff and the amount due to you as a client solicitor is credited to your account through an electronic clearing system.

2. Convenience: Internet offers the convenience of ‘24 hours × 7 days a week × 365 days’ a year business that allowed Rita and Rekha to go for shopping well after midnight. Such flexibility is available even to the organisational personnel whereby they can do work from wherever they are,   and whenever they may want to do it.Yes, e-business is truly a business as enabled and enhanced by electronics and offers the advantage of accessing anything, anywhere, anytime.

3. Speed: As already noted, much of the buying or selling involves exchange of information that Internet allows at the click of a mouse. This benefit becomes all the more attractive in the case of information-intensive products. such as softwares, movies, music, e-books and journals that can even be delivered online. Cycle time, i.e., the time taken to complete a cycle from the origin of demand to its fulfilment, is substantially reduced due to transformation of the business processes from being sequential to becoming parallel or simultaneous. You know that in the digital era, money is defined as electronic pulses at the speed of light, thanks to the electronic funds transfer technology of e-commerce.

4. Global reach/access: Internet is truly without boundaries. On the one hand, it allows the seller an access to the global market; on the other hand, it affords to the buyer a freedom to choose products from almost any part of the world. It would not be an exaggeration to say that in the absence of internet, globalisation would have been considerably restricted in scope and speed. 

5. Movement towards a paperless society: Use of Internet has considerably reduced dependence on paperwork and the attendant ‘red tape.’ You know that Maruti Udyog does bulk of its sourcing of supplies of materials and components in a paper less fashion. Even the government departments and regulatory authorities are increasingly  moving in this direction whereby they allow electronic filing of returns and reports. In fact, e-commerce tools are effecting the administrative reforms aimed at speeding up the process of granting permissions, approvals and licences. In this respect, the provisions of Information Technology Act 2000 are quite noteworthy.

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