Week 1 Part 1 Task 2: Information Systems

Two important information systems that a business can use are electronic commerce (e-commerce) and mobile commerce. E-commerce revolutionized traditional commerce. The desktop computer would be able to free the customer from the need to visit a retail outlet. Now, we are in an era of buying everywhere. Handheld devices that can access the internet are revolutionizing "traditional" ecommerce. This type of e-commerce on mobile devices is called mobile commerce (m-commerce).

             E-commerce is any business transaction performed electronically. It involves conducting business activities using electronic data transmission, telecommunications networks, and streamlined work processes. There are essentially 3 main subsets of e-commerce: business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C).

·         B2B) e-commerce is when all parties involved are companies. A sale can take days to months to complete.

·         B2C e-commerce is when customers deal directly with a business, avoiding any “middleman”, and buy directly from the company. A sale can take days to weeks to complete.

·         C2C e-commerce involves consumers selling directly to other consumers using a third party such as online auction (ebay, craigslist, ubid), usually taking hours to days to complete a sale.

An e-commerce system has many stages that consumers experience in the sales life cycle. There is a model for purchasing over the Internet which includes the following components:

·         Search and identification

·         Selection and negotiation

·         Purchasing products and services electronically

·         Product and service delivery

·         After-sales service

M-commerce relies on the use of wireless devices, such as personal digital assistants (PDAs), cell phones, and smart phones, to place orders and conduct business. This is online sales transactions that use wireless electronic devices to interact with computer networks that have the ability to conduct online merchandise purchases. There are some restrictions that make m-commerce not accessible throughout all parts of the world. One important issue is user-friendliness. It must be as easy to purchase an item on a wireless device as it is to purchase it on a PC. Also, network speed and security is also a major concern for users. The technology needed for m-commerce is the wireless application protocol (WAP) which is a standard set of rules for Internet applications that run on handheld, wireless devices.

There are a few benefits to the transition from e-commerce to m-commerce. E-commerce relies heavily on internet and allows only restricted access. Alternatively, m-commerce doesn’t require any internet connectivity. You can access any kind of website anytime and anywhere. M-commerce offers independent access to the user. Power failures during transaction processes on ecommerce sites could lead to undesired results. M-commerce is power-independent.