How E-Commerce can reduce cycle time, improve employees' empowerment and facilitate customer support.

Friday, June 13, 2008

E-commerce is the process of buying, selling, or exchanging products, services, or information via computer networks. It can perform faster and efficiency to the traders by reducing cycle time, improve employees’ empowerment and facilitate customer support.


Cycle time is the time required to complete a given process. For example, customer orders process which is included of many sub-process such as order entry, assembly, inspection, packaging, and shipping. By conducting E-commerce, it can eliminate or reduce non-value-added activity, which is defined as any activity that does not add value to the product like repair due to defects, machine set-up, inspection, testing and schedule delays, so it can lower the cost and the product can be deliver on time or even faster. Dell Co. is a successful example which use E-procurement for improve purchasing of components, collaborative commerce with its supplier and others.
Employee is the human capital for the organization even through in E-commerce. Empowerment of employees meant that giving the authority to the employees to make decision regarding all the aspect of E-business. An intranet is created in order to allow the employees to access the internal corporate or government network and update and provide guidance about the company’s activity or its products and services, and respond to customers' product information requests and handle the complaints. Ford motor Co. had just been awarded ‘Best internal corporate website ever’ in year 2001. Its intranet support over 175,000 users across 92 countries, which also allow employee to customize their site and view to get information and tools they need for their job.

Customers are the very livelihood of business organizations. So, customer satisfaction is as a necessary condition for the success of organizations. Therefore, various types of E-commerce solutions are accommodated to the retailer as to facilitate the customer support. Then, customers can easily to get the information about the product and service, asking question (FAQ), and select the available given product, collaborate with the company better and others.

E-commerce could create competitive advantages; reduce cost/ cost leadershipand widening strategic network amongtraders for the company.

2 comments:

wonderful said...

The article do not explain the way of e-commerce improve employees' empowerment and the application.

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