Digital Technology and Business: Importance of E-Commerce and Various Technologies in E-Commerce Business

Digital Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Importance of E-Commerce...................................................................................................1
Development of E-Commerce................................................................................................2
Description of various technologies in E-commerce Business..............................................3
Technological platforms and software used in E-Commerce.................................................4
Types of Businesses using E-Commerce...............................................................................5
Relation between the Digital technologies and traditional and modern theories or modes of
business management structures and practices.......................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Digital business refers to those businesses which utilize various electronic tools, gadgets,
systems, latest technology and resources that producers generate data to enhance the performance
of production, marketing and sales of the products and services of the organisation. E-Commerce
can be related to the use of various technologies and systems in order to trade the goods and
services of the company to its respective customers. In the constantly changing world the digital
transformation is also very rapid which has led to the changes in the trading activities of a
business. E-commerce was also developed for enhancing the trading activities of the business by
taking it on the online platforms. Digital technology is changing consistently along with it. The
idea of e-commerce is also changing its shape, since the establishment of various e-commerce
platforms has intensified the competition among the companies. The following report will be
describing the importance of digital technology and e-commerce that is used by businesses for
enhancing their trading activities. Moreover, it has been explaining about the implications of
managing digital businesses across the globalized world and explains the development of e-
commerce and various technologies that are used by E-Commerce business. Furthermore, this
report will demonstrate the technology and software that are used in e-commerce and various
types of businesses that use e-commerce for enhancing their trading activities. In the end this
report will demonstrate the relationship between the digital technology of traditional and modern
businesses, their management structures and business practices.
MAIN BODY
Importance of E-Commerce
The main advantages of using e-commerce in the business is to increase the revenues of the
organisation by utilising less costlier advertisement equipment and place the products where
maximum number of customers can reach it. E-Commerce activities are helpful in raising the
total profit margin and return on investment because very little cost is involved in using the E-
Commerce platforms for the trading activities of the business(Chaffey, Edmundson-Bird and
Hemphill, 2019).
Another advantage of e-commerce is it has to enhance the brand awareness of the
organisation because it easily markets the products and services of the company. With the help of
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effective marketing strategies and e-commerce and organisation does not only trade the services
easily but it also enhances the chances for creating a better brand image of the organisation.
E-commerce also enhances the ability of organisations to reach maximum number of
customers because it is not limited or restricted by the boundaries of a country location. With the
help of e-commerce activities the products and services of the organisation can be digitally
placed in any part of the world where the customers can make orders directly with the company.
E-Commerce also reduces the cost of promotion because the various E-Commerce
platforms perform their own advertisement activities that help the organisation in reducing their
advertisement cost. Due to the promotion activities like big billion sales, clear stock sales,
festival feast, etc. that are performed by various E-Commerce platforms like Flipkart and
Amazon enhance the selling activities of the organisation with a very reasonable
cost(Boojihawon and Ngoasong, 2018).
Digital marketing also provides the opportunities for directly communicating with the
customers who helps in developing the product effectively and efficiently that are most suitable
for the customers. This reduces the cost of market research and helps to provide better insights to
the customers regarding the products and services produced by the company.
Development of E-Commerce
Development of e-commerce occurred in 4 phases with different composition and
strategies in all the phases.
The first phase (1996-2003) of e-commerce involved the use of the Dot-com bubble by the
US and the innovation of internet and network technology which brought the bandwidth
connection to the world. The network technology was in the beginning phase and the
development of email was the primary achievement of this phase of e-commerce development.
The second phase (2004-2009) of e-commerce was the rebirth of global electronic business
in many countries and in multiple languages. This phase was concentrated on the language
translation and foreign currency conversion for enhancing the network technology and
interactive web for the customers (Witkowski, Koralewska and Huk, 2020).
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