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Dear Sir,
I am a currently taking part in a Masters Degree in engineering at the
university in Galway, Ireland where I am interested in finding out "digital
business" or ebusiness. I would appreciate it if you could me with
any information on the following question in relation to digital business.
What is the difference between business to business and business to customer/consumer
in terms of digital business and the benefits and limitations of each?
And how does the consumer and business benefit from the close relationship
through internet based transactions
I would be most grateful if you could forward any information on these
question. Hoping to hear from you soon.
Thanking you
Kevin
Dear Kevin:
Obviously, I can't answer your questions in detail as that would be doing
your research for you! And there'd be no fun in that.
A good place to start for general information, differentiating between
business to business (b-b) and business to consumer (b-c) e-commerce,
is "Electronic Commerce - An Introduction" which you can find
at
You will find that b-b e-commerce is about four times larger than the
b-c variety. Indeed, there is a long history of electronic trading relations
between businesses. This is because b-b e-commerce has clear benefits
in improving the efficiency of locating suppliers, communicating with
suppliers, ordering and payment. In many cases, the system is automated,
saving time, improving efficiency and saving costs via just-in-time delivery,
minimising inventories and that kind of thing. Of course the main success
of b-b e-commerce has been in cutting costs rather than boosting turnover.
That said, many small producers in developing countries have found the
Internet a good means of finding new buyers in new markets. And while
anecdotal evidence suggests they have been successful, I have seen no
surveys of actual results.
B-c electronic commerce is quite new and there are still a lot of questions
regarding actual benefits. Some benefits from the customer's point of
view is ability to order from anywhere in the world, wider choice, ability
to retrieve substantial product information, convenience, etc.
From the vendor's perspective, benefits include ability to reach a wider
market, potential for reduced costs (not needing to locate in an expensive
high-street location; minimising on staff, etc). Also, the overheads can
be comparatively low for the entrepreneur with a niche product as the
cost of establishing a web site can be less than establishing a bricks
and mortar shop on the high street.
I hope this is some food for thought. It is by no means comprehensive.
As Dublin is developing a thriving e-business culture, I think it could
be very interesting to survey new e-businesses in your local market to
find out what benefits they are discovering. If you do this, let me know
what you find out. I'm very interested.
Dr. Ecommerce
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