The Impact of E-Commerce on International Business Essay

The Impact of E-Commerce on International Business - Essay Example And e-commerce often becomes handy in making products or services available to the consumer that may not be available in his country/area of residence. In simple words, e-commerce makes international markets easier, cheaper, and faster for the vendor as well as the consumer. But it must be admitted that e-commerce has its own disadvantages too, especially while coming to Internet security and delay in receiving the product ordered. The study on â€Å"Impact of E-Commerce on International Marketing† conducted by Payman, Rosamaria, Marco, Anand, Robert and Xiaowen in 2006 defines e-commerce as follows: â€Å"Electronic commerce primarily consists of the distributing, buying, selling, marketing and servicing of products or services over electronic communications systems such as the Internet and other computer networks like extranets, e-mail, e-books, databases and mobile phones† (Payman, Rosamaria, Macro, Anand, Robert, and Xiaowen). All kinds of commerce including B2B, B2 C and C2C activities are performed in a number of ways including electronic funds transfer, supply chain management, online marketing, etc. As per the above mentioned study (Payman et al.), a voluminous sale of $12.2 billion took place in 2003 via e-commerce. Today, the World Wide Web has emerged as the exclusive venue of e-commerce ventures as it is the most widespread communication network of the world. A number of e-commerce companies took their shape in 1990s, but the â€Å"dot.com† collapse of 2000 and 2001 was a major setback for them. It was at the beginning of the new millennium that e-commerce received the popular attention and acceptance which it boasts about today. The extent and expansion of e-commerce relies cliquishly on the expansion of technology. E-Commerce is widespread in almost all the developed countries but it is still in primary stages of growth in many industrialized countries and is apparently non-existent in a good proportion of the third world count ries. Electronic Commerce is, of course, a new methodology in global trade and commerce. A paper by Kuzic, Fisher and Scollar that studies the impact of e-commerce in Australia points out that e-commerce has its own tangible and intangible benefits. As Kuzic, Fisher and Scollary state, e-commerce is mainly â€Å"enhanced business efficiency, a boost in the automation of processes, transformation of traditional market chain, retained and expanded customer base, reduced operation costs and acquisition of a niche market† which are regarded as the tangible benefits; and, â€Å"enhancing education and well-being of consumers, consumer loyalty, competitive advantage and convenient shopping† are the intangible advantages. Many of these are clearly benefits that no other way of trading involves. E-Commerce is beneficial not only for the merchant but also for the consumer because it offers a wide range of products to choose the best from, and the remarkable speed of the process es cannot be found anywhere else. Compared to traditional markets, the transactions take place between the seller and buyer directly and no intermediates are present contrary to the traditional markets. When we think how the international market has been benefited out of e-commerce, a common opinion

Open Innovation in Managing Innovation in the Service Sectors Essay

Open Innovation in Managing Innovation in the Service Sectors - Essay Example The competitors or the rivals who want to win over the competition and succeed in the market gathers considerable resources creating their own powerhouses and make considerable advancement. However, the scenarios are different now and newcomers face enough competition for entering the market. Thus, they often do not conduct enough research and commits a mistake in adopting new ideas. Open innovation is an opportunity to them in which the companies can commercialize both their innovations as well as their own ideas from other firms and from within their own firms to the market using channels that provide pathways out of their current business. This report focuses on the use of open innovation in the services sector. The significance of open innovation in service sector Open innovation has taken a significant place in the world of business and competition. Today more than hundreds of companies are seen to have executives who are assigned the title Manager of Open Innovation. There is a lso the dozen of software companies and their intermediaries who provide consultation regarding services or product open innovation. Open Innovation is suggested to provide businesses a more profitable way to innovate as it creates new revenue channels for the company, amplify differentiation in the market, reduces cost and accelerates the time for which the business operates in the market. The innovation in capabilities and its management is industry or sector specific and not specific to any firm. An innovation of intangible product and services are hard to measure. Therefore, it should be remembered that innovation related to the product is quite different from innovation in services. Services are intangible and the customers need to feel them. This makes it mandatory for the organization to place the customers to a most crucial position, access tacit knowledge regarding the requirements and the demands of the customers and finally innovate their services in ways that it caters t o their needs. For instance, innovation in the financial service sector has occupied an important place. Financial innovation is not only restricted to design, distribution, and development of financial services and product but also modifying and altering the role of the financial institution. Financial innovation is done address the issues of tax and regulations. Over the past few years, the banks that are an integral part of the financial sector have done some major innovations such as automated teller machine, credit cards, and internet banking. Internet banking has not only changed the consumer’s behavior but also the way they conduct their business. In case of the business and financial service sector technology has become the key driver of innovation. An important and crucial transition has come in this sector through the integration of data, data analysis and technology (Chesbrough, 2011; Open Innovation Community, 2013; Institute of Directors, 2013). The integration o f technology has brought changes in the innovation platform of the financial service sector such as the shift from the use of paper money to plastic money and mobile wallet.