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FREE online courses on ECOMMERCE FUNDAMENTALS - Mechanics of E commerce -
Technological dimensions |
The technological dimensions of E-commerce can be classified
according to the three basic functions of any market environment:
Electronic communication infrastructures are required to
allow buyers and sellers to make and maintain contact with each other and to
facilitate the transfer of information about products and customer needs in the
marketplace. Information can be exchanged in
structured formats (as with EDI systems) or in relatively unstructured and
informal ways (as with telephone sales).
E-commerce makes extensive use of public telecommunication
network facilities such as voice telephony, fax, audio text and
teleconferencing. It also uses computer-based communication facilities over the
public network like data networking, e-mail, electronic bulletin boards, on-line
databases, Internet, broadcast and cable network services like interactive
television and videotext.
Particularly in enterprises,
E-commerce makes extensive use of private network technologies in local area
networks (LANs) and wide area networks (WANs).
Specific technologies are vital for structured information
exchanges, which are related directly to the setting up and completion of
commercial transactions and contractual obligations. Examples are EDI,
electronic point-of-sale devices, credit, debit and smart cards, Automated
Teller Machines (ATMs) and Electronic Funds Transfer (ETF).
Specialized technologies are required to lend administrative
and technical support to transactions carried out in the electronic marketplace.
This includes electronic achieving of product specifications and prices,
certification of buyer and seller identities, credit checks, guarantees and
address validation. Specific examples are credit card validation technologies,
bar-coding devices and electronic clearing and settlement mechanisms. EDI can be
applied to support as well as to transaction functions.
