Business use of the internet for electronic commerce in Iran
Abstract:
Abstract:
The Internet is an extremely important new technology, and its revolution is bigger than any one realized. This paper is based on a survey of 467 companies that use Internet or have their own domain name and/or web site. This paper discuses about their Business or IS manager's experiences, and satisfaction in Iran, as well as research on barriers to EC, and strategies for success. Through the use of this survey conducted between July 2001and April 2002, extensive data is presented, highlights, of which are shown below.
About 69% of businesses are Email and 18% have their own domain name and/or web site. 17% of business indicate that they don't use computer at all. After e-mail, the leading use of the Internet is information gathering and research fallow by ordering and selling goods and services and just about 46(10%) of businesses are using the Internet for online banking.
Survey results show that the main target of companies is business-to- business (45%) and 5 8%of companies are using their online storefront to sell goods and services (which have their own domain name and/or web site) since companies began using specific EC solution, 56% experienced increased business activity. In next year 79% wish to expand business operations to meet additional demand. For these companies who respond to our survey, a large number agree that EC systems aren't easy to use, that system cost aren't reasonable and that overall satisfaction is about average
I .Introduction
The emerging of EC has created business paradigm, one that presents marketers with noteworthy opportunity and challenges. The need for EC stem from the demand with in business and government to develop and use information technology in order to achieve better customer satisfaction, and more effective infra- and inter-organizational co-ordination (Cockburn & Wilson, 1996,Dutta, Kwan, & seveg,1997; Kalakota&Whinston, 1996; Kardaras,2001; Vadapalli & Rammamurthy, 1997-1998;
Webster, 1994; El-Sawy, 2001).
Rapid advancements in networking technology coupled with the growth of the Internet and the World Wide Web have revolutionized the way that business is conduct. Electronic business offers companies' fundamental new ways to expand the markets in which they compete, streamline their corporate business processes to deliver products and services more efficiently and attract and retain customers in new and innovative ways .(Papazoglou&Tsalgatidou, 2000)
The potential of EC however, is not confined to individual companies but extends to whole nations. Government are considered as a key stakeholder in successful development of EC and their commitment and support must be ensured (Kardaras&Karrakostas, 2001).The increasing attention to organizations and governments toward EC can be easily justified by the importance and magnitude of it's anticipated impacts on both the economic and social environmert (Cooper, Duncan,&Wl1etston.l996;ECD.l999).
Companies are investing heavily to leverage the Internet and transform their traditional business into
e- business. Organizations have traditionally invested in non-internet related information technology, established electronic links with selected suppliers and buyers, and enjoyed productivity and efficiency. However, the Internet is fundamentally different from other IT because of its ubiquitous and open nature, low access costs, and the ease of using related applications (Barua, Whinston, &Yin, 2000). The Internet is creating a unique global market place that has the potential to change profoundly the way international business is conceptualized and configured. The use of internet for globalmarketing enables firms to leap-frog the conventional stages of intemationalization, as it removes all geographical constraints, permits the instant establishment of virtual branches through out the world, and allows direct and immediate foreign market entry to the smallest of businesses (Hughes&glaister, 2001).
The key question is not whether to deploy Internet technology-companies have no choice if they want to stay competitive-but how to deploy it. Here, there is reason for optimism. Internet technology provides better opportunities for companies to establish distinctive strategic positioning than did previous generations of information technology. Gaining such a competitive advantage does not require a radically new approach to business. It requires building on the proven principles of effective strategy. The Internet perse will rarely be competitive advantage. Many of companies that succeed will be ones that use the Internet as a complement to traditional ways of competing, not those that set their Internet initiatives apart from their established operations.
That is particularly good news for established companies, which are often in the best position to made Internet and traditional approaches in ways that buttress existing advantages. But dot-com can also be winners-if they understand the trade-offs between Internet and traditional approaches and can fashion truly distinctive strategies. Far from making strategy less important, as some have argued, the Internet actually makes strategy more essential than ever (Porter, E.M.2001 ).
The Internet changes many things about business, but it does not change the need for a structured and balanced approach to investment. Indeed, the broad nature of Internet opportunities, from improvement in operating efficiency to inventions of entirely new business models and even industries, makes it more important than ever to think comprehensively about the whole investment portfolios. The evolution of e-business remains unpredictable fact underscored to the dizzying volatility in the stock prices of Internet companies .Because Internet markets remain in such flux. it is impossible to gauge with any certainty a particular business's future market position. And without reliable data on market position, traditional planning frameworks become meaningless. Related to the uncertainly is the speed with market conditions change
The challenges that managers and entrepreneurs face in trying to capitalize on the Internet are complex and often daunting. But they do not require a whole new approach to business. Success on the Internet hinges as much on planning traditional management discipline as on staining knowledgeable on the latest Internet trends and technologies. Indeed, the process of generating new investment options, categorizing them in consistent ways, and evaluating them against coherent and meaningful criteria is some things that successful companies have always done. What changes in the Internet era is not the way you plan your investment but the tools you use (Tjan, K.A., 2001).
As with any new technology, there are a number of issues that need to be addressed before creating a successful presence on the Internet. The following issues must be considered to achieve success with any EC site (Peypoch, 1998; Levy, 1998; Ghosh, 1998):
· Ease of use
· Security of personal information
· Performance
· Reliability
· Integration with existing system
· Adherence to open standards
· Access to infrastructure and market space
· Restriction on contents
The importance of EC is reflected by the size and growth rate of the electronic markets worldwide . The size of EC market is growing rapidly (shaw. Grander. &Thomas, 1997). In it's most recent forecast, Forrester Research predicts B2B revenues over the Internet will reach US$2.7 trillion in 2004, accounting for 17% of all B2B sales (Blackman, 2000). Such a large volume of online transactions would represent a seven fold increase over the US $ 406 billion Forrester expects in 2000 (Web, 2002.).Jupiter communications was predicting the overall Business-to-Business (B2B) market (not just retail) would hit $6.3 trillion by 2005, up from $33ti billion. Jupiter recast it's projection to $ 5.4 trillion for 2006, with exchanges part of that number. Now online B2B commerce, says Jupiter, will account for 36% of all B2B spending in 2005-up from 4% in 2001. Far from rising to precendented heights spending has shrunk considerably, said a recent Jupiter report (Stankevich & carbato. D., 2002).
About 69% of businesses are Email and 18% have their own domain name and/or web site. 17% of business indicate that they don't use computer at all. After e-mail, the leading use of the Internet is information gathering and research fallow by ordering and selling goods and services and just about 46(10%) of businesses are using the Internet for online banking.
Survey results show that the main target of companies is business-to- business (45%) and 5 8%of companies are using their online storefront to sell goods and services (which have their own domain name and/or web site) since companies began using specific EC solution, 56% experienced increased business activity. In next year 79% wish to expand business operations to meet additional demand. For these companies who respond to our survey, a large number agree that EC systems aren't easy to use, that system cost aren't reasonable and that overall satisfaction is about average
I .Introduction
The emerging of EC has created business paradigm, one that presents marketers with noteworthy opportunity and challenges. The need for EC stem from the demand with in business and government to develop and use information technology in order to achieve better customer satisfaction, and more effective infra- and inter-organizational co-ordination (Cockburn & Wilson, 1996,Dutta, Kwan, & seveg,1997; Kalakota&Whinston, 1996; Kardaras,2001; Vadapalli & Rammamurthy, 1997-1998;
Webster, 1994; El-Sawy, 2001).
Rapid advancements in networking technology coupled with the growth of the Internet and the World Wide Web have revolutionized the way that business is conduct. Electronic business offers companies' fundamental new ways to expand the markets in which they compete, streamline their corporate business processes to deliver products and services more efficiently and attract and retain customers in new and innovative ways .(Papazoglou&Tsalgatidou, 2000)
The potential of EC however, is not confined to individual companies but extends to whole nations. Government are considered as a key stakeholder in successful development of EC and their commitment and support must be ensured (Kardaras&Karrakostas, 2001).The increasing attention to organizations and governments toward EC can be easily justified by the importance and magnitude of it's anticipated impacts on both the economic and social environmert (Cooper, Duncan,&Wl1etston.l996;ECD.l999).
Companies are investing heavily to leverage the Internet and transform their traditional business into
e- business. Organizations have traditionally invested in non-internet related information technology, established electronic links with selected suppliers and buyers, and enjoyed productivity and efficiency. However, the Internet is fundamentally different from other IT because of its ubiquitous and open nature, low access costs, and the ease of using related applications (Barua, Whinston, &Yin, 2000). The Internet is creating a unique global market place that has the potential to change profoundly the way international business is conceptualized and configured. The use of internet for globalmarketing enables firms to leap-frog the conventional stages of intemationalization, as it removes all geographical constraints, permits the instant establishment of virtual branches through out the world, and allows direct and immediate foreign market entry to the smallest of businesses (Hughes&glaister, 2001).
The key question is not whether to deploy Internet technology-companies have no choice if they want to stay competitive-but how to deploy it. Here, there is reason for optimism. Internet technology provides better opportunities for companies to establish distinctive strategic positioning than did previous generations of information technology. Gaining such a competitive advantage does not require a radically new approach to business. It requires building on the proven principles of effective strategy. The Internet perse will rarely be competitive advantage. Many of companies that succeed will be ones that use the Internet as a complement to traditional ways of competing, not those that set their Internet initiatives apart from their established operations.
That is particularly good news for established companies, which are often in the best position to made Internet and traditional approaches in ways that buttress existing advantages. But dot-com can also be winners-if they understand the trade-offs between Internet and traditional approaches and can fashion truly distinctive strategies. Far from making strategy less important, as some have argued, the Internet actually makes strategy more essential than ever (Porter, E.M.2001 ).
The Internet changes many things about business, but it does not change the need for a structured and balanced approach to investment. Indeed, the broad nature of Internet opportunities, from improvement in operating efficiency to inventions of entirely new business models and even industries, makes it more important than ever to think comprehensively about the whole investment portfolios. The evolution of e-business remains unpredictable fact underscored to the dizzying volatility in the stock prices of Internet companies .Because Internet markets remain in such flux. it is impossible to gauge with any certainty a particular business's future market position. And without reliable data on market position, traditional planning frameworks become meaningless. Related to the uncertainly is the speed with market conditions change
The challenges that managers and entrepreneurs face in trying to capitalize on the Internet are complex and often daunting. But they do not require a whole new approach to business. Success on the Internet hinges as much on planning traditional management discipline as on staining knowledgeable on the latest Internet trends and technologies. Indeed, the process of generating new investment options, categorizing them in consistent ways, and evaluating them against coherent and meaningful criteria is some things that successful companies have always done. What changes in the Internet era is not the way you plan your investment but the tools you use (Tjan, K.A., 2001).
As with any new technology, there are a number of issues that need to be addressed before creating a successful presence on the Internet. The following issues must be considered to achieve success with any EC site (Peypoch, 1998; Levy, 1998; Ghosh, 1998):
· Ease of use
· Security of personal information
· Performance
· Reliability
· Integration with existing system
· Adherence to open standards
· Access to infrastructure and market space
· Restriction on contents
The importance of EC is reflected by the size and growth rate of the electronic markets worldwide . The size of EC market is growing rapidly (shaw. Grander. &Thomas, 1997). In it's most recent forecast, Forrester Research predicts B2B revenues over the Internet will reach US$2.7 trillion in 2004, accounting for 17% of all B2B sales (Blackman, 2000). Such a large volume of online transactions would represent a seven fold increase over the US $ 406 billion Forrester expects in 2000 (Web, 2002.).Jupiter communications was predicting the overall Business-to-Business (B2B) market (not just retail) would hit $6.3 trillion by 2005, up from $33ti billion. Jupiter recast it's projection to $ 5.4 trillion for 2006, with exchanges part of that number. Now online B2B commerce, says Jupiter, will account for 36% of all B2B spending in 2005-up from 4% in 2001. Far from rising to precendented heights spending has shrunk considerably, said a recent Jupiter report (Stankevich & carbato. D., 2002).
by saeed safaraei
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