Information Technology Reference
In-Depth Information
networks for computer viruses. They also fear that the cookies might cause a dramatic increase
in the volume of data traffic as the cookies report back to the advertisers and ad-placement
networks. The increase in volume could be enough to choke the network and seriously
degrade performance. Thus advertisers are frustrated in their attempt to gather data to
measure the number of views or effectiveness of mobile ads.
Mobile Coupons
About 2 percent of advertisers surveyed by Jupiter Research are using mobile coupons.
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The Clorox Company, Del Monte Corporation, General Mills, Kimberly-Clark, and Procter
& Gamble are collaborating with grocery retailer Kroger to test how consumers will react to
using mobile coupons. Users in the test must first download a mobile marketing application
to their cell phones so that coupons from the companies can be loaded onto their cell phones.
While in a Kroger store, a shopper can choose an item, select the appropriate coupon from
the cell phone, and have the coupon information sent to Kroger's in-store computer, which
identifies the shopper by her loyalty card. At checkout, the coupon discount is applied when
the loyalty card is scanned.
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As with any new technology, m-commerce will succeed only if it provides users with real
benefits. Companies involved in m-commerce must think through their strategies carefully
and ensure that they provide services that truly meet customers' needs.
Advantages of Electronic and Mobile Commerce
Conversion to an e-commerce or m-commerce system enables organizations to reduce the
cost of doing business, speed the flow of goods and information, increase the accuracy of
order processing and order fulfillment, and improve the level of customer service.
Reduce Costs
By eliminating or reducing time-consuming and labor-intensive steps throughout the order
and delivery process, more sales can be completed in the same period and with increased
accuracy. With increased speed and accuracy of customer order information, companies can
reduce the need for inventory—from raw materials to safety stocks and finished goods—at
all the intermediate manufacturing, storage, and transportation points.
Speed the Flow of Goods and Information
When organizations are connected via e-commerce, the flow of information is accelerated
because electronic connections and communications are already established. As a result, in-
formation can flow easily, directly, and rapidly from buyer to seller.
Increase Accuracy
By enabling buyers to enter their own product specifications and order information directly,
human data-entry error on the part of the supplier is eliminated.
Improve Customer Service
Increased and more detailed information about delivery dates and current status can increase
customer loyalty. In addition, the ability to consistently meet customers' desired delivery
dates with high-quality goods and services eliminates any incentive for customers to seek
other sources of supply.
Global Challenges for E-Commerce and M-Commerce
E-commerce and m-commerce offer enormous opportunities by allowing manufacturers to
buy at a low cost worldwide. They also offer enterprises the chance to sell to a global market
right from the start of their business. Moreover, they offer great promise for developing
countries, helping them to enter the prosperous global marketplace, and hence helping reduce
the gap between rich and poor countries. People and companies can get products and services
from around the world, instead of around the corner or across town. These opportunities,
however, come with numerous obstacles and issues, first identified in Chapter 1 as challenges
associated with all global systems.
