Information Technology Reference
In-Depth Information
With mobile commerce
(m-commerce), people can use cell
phones to pay for goods and services
anywhere, anytime.
(Source: Courtesy of AP Photo/Itsuo
Inouye.)
E-commerce offers many advantages for streamlining work activities. Figure 1.9 provides
a brief example of how e-commerce can simplify the process of purchasing new office fur-
niture from an office-supply company. In the manual system, a corporate office worker must
get approval for a purchase that exceeds a certain amount. That request goes to the purchasing
department, which generates a formal purchase order to procure the goods from the approved
vendor. Business-to-business e-commerce automates the entire process. Employees go di-
rectly to the supplier's Web site, find the item in a catalog, and order what they need at a
price set by their company. If management approval is required, the manager is notified
automatically. As the use of e-commerce systems grows, companies are phasing out their
traditional systems. The resulting growth of e-commerce is creating many new business
opportunities.
Figure 1.9
Obtain
approval of
requisition
E-Commerce Greatly Simplifies
Purchasing
Prepare
requisition
Purchasing
department
Requisition
Vendor
Inbox
ACME Inc.
7 That St.
Anywhere, USA
01800
Traditional process for placing a purchase order
Vendor
Electronic
purchase order
E-commerce process for placing a purchase order
E-commerce can enhance a company's stock prices and market value. Today, several
e-commerce firms have teamed up with more traditional brick-and-mortar businesses to draw
from each other's strengths. For example, e-commerce customers can order products on a
Web site and pick them up at a nearby store.
