The history & evolution of e-commerce

The History Of E-commerce

This is a history of how Information Technology has transformed into business processes. History of e-commerce dates back to the invention of the very old notion of “sell and buy” process. E-commerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites.

The word e-commerce or electronic commerce was founded late in the 1970’s. The term was introduced for transactions done via computer to computer, transactions like important company data transfers, fund codes transfers, bank document transfers, purchase orders, bills or invoices; in other words all the data transfer related to commerce done electronically. E-Commerce is not just a term but a revolution for the online industry. All the tasks, letters, messages and data transferred within a flick of a second at any place no matter how far or how near. This all was impossible even for a thought or a dream, for things to be like that just a few years ago.

Well, e-Commerce has revolutionized further & has been converted into e-Business with the optimum usage of resources such as the internet, credit cards, e-commerce software, shopping carts solution. Loads of companies are shifting to e-commerce & e-business solutions because of easy availability of clients & a better & more forward approach towards the market. These modern techniques provide new & healthy business without much needed investment.

E-Business has been termed to be the fastest growing industry in this modern era of computers & finance. E-Business has proved to be the most effective way for marketing products worldwide by just a click of a button with the help of several e-commerce soft wares.

Although the Internet began to advance in popularity among the general public in 199t4, it took approximaely four years to develop the security protocols (for example, HTTP) and DSL which allowed rapid access and a persistent connection to the Internet. In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word commerce was changed. People began to define the term e-commerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services. Although the dot-com collapse in 2000 led to unfortunate results and many of e-commerce companies disappeared, the “brick and mortar” retailers recognized the advantages of electronic commerce and began to add such capabilities to their web sites (e.g., after the online grocery store Webvan came to ruin, two supermarket chains, Albertsons and Safeway, began to use e-commerce to enable their customers to buy groceries online). By the end of 2001, the largest form of e-commerce, Business-to-Business (B2B) model, had around $700 billion in transactions.

Evolution Of E-commerce

A quick glimpse at the data promises much more evolution in the years to come. Forrester Research, for example, predicted American firms alone would sell US$316 billion in goods and services via the Web by 2010. That figure would more than double 2004's online spending to account for some 12 percent of all retail sales, up from about 7 percent today. Base on the data, a quick glimpse at the data promises much more evolution in the years to come. Forrester Research, for example, predicted America firms alone would sell US$316 billion in goods and services via the Web by 2010.

The term of e-commerce mean the process of execution of electronically transactions to leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically.Large organizations have been investing in development of EDI since sixties. It has not gained reasonable acceptance until eighties. EDI has never reached the level of popularity of the web-based e-commerce for several reasons:

~high cost of EDI prohibited small businesses and medium-sized companies from participating

in the electronic commerce;
~slow development of standards hindered the growth of EDI; and
~the complexity of developing EDI applications limited its adaptation to a narrow user base.

From the internet to Intranets to Extranets has been a speedy journey in the past 5 years. The 3 C’s of first generation E-commerce: Content, Community, and Commerce have now evolved into 7 C’s of second generation E-commerce: Content (e.g. Yahoo), Community (Ivillage), Commerce (e.g. Amazon), Communication (e.g. Doubleclick), Connectivity (e.g. Cisco), Collaboration (Mercata - now defunct), and Customization (e.g. Netperceptions). Each of these C’s reflect an evolution of features that has its roots in first enabling automated processes (such as procurement) to extending these processes externally with other consumers as well as business partners.

First generation E-commerce sites running HTML have paved the way for more complex and dynamic web sites that tie together processes from order-entry to inventory control to financial record keeping. Wireless devices are now being web enabled and for conducting business to consumer E-commerce transactions. Success in the e-marketplace will depend on companies being able to respond to needs of the ever-changing marketplace and forming partnerships, alliances, and collaborations with others to deliver value that may not have been possible with individual efforts. The ability to innovate, change, recover from setbacks will be hallmarks of success in this competitive arena. Generic models of B2C commerce are outdated and newer efforts are needed to leverage the untapped potential offered in the digital medium.

There is an acute shortage of personnel with the right mix of technology and managerial competencies. With continuing education and real-world experience that reflects trends in current marketplace, today’s IT professionals should seize opportunities that are available in the dynamic E-commerce field and position themselves to be leaders of the next generation E-commerce that is constantly creating rapid transformation in Internet time.