The paper “ Great Milestones and Effects of E-Commerce on a Company” is a brilliant example of a literature review on e-commerce. The management processes and activities of organizations have evolved significantly over the past few decades. Innovation, alongside creativity, has become the current critical skills that almost all organizations are employing towards the pursuit of success. The developed economies also rely on the abilities to improve the usefulness and values of services and products through innovations and creativity. Therefore, innovation is considered one of the key factors for the success of an organization.
As competition nationally and internationally keeps on widening, different firms have established new ideas to keep their operations, products, and services fresh on the selection boards of their intended consumers. The majority of business professionals and researchers agree that innovation is critical in the contemporary markets where quality and the ability to remain competitive are vital. According to Brooks (2013), most of the recent studies have revealed that the success of an organization depends majorly, if not entirely, on its ability to create and implement new ideas. This paper explores the important milestones and impacts of e-commerce in an organization.
It also outlines the recommendations for successful application and future development of e-commerce innovation in business. EcommerceElectronic commerce is defined as any business transaction or activity that is conducted through the internet. El Gawady (2005) defines it as a way of doing business through the internet based on the electronic processing and transmission of business data and the use of technology to conduct financial transactions. Swass (2003) describes e-commerce as the innovation that employs the use of the internet and as well as other digital tools to convey messages that enable successful and effective conduction of business activities. It has been over a decade now since the wide application of e-commerce in business.
This innovation has been possible following the invention of World Wide Web and field browsers combined with the capabilities of the internet that already existed to offers platforms for the generation of new ideas (Swass 2003; Mohamed et al. 2008; El Gawady 2005). This innovative business makes use of various online business market models. One of the electronic commerce market models is business-to-business, also known as B2B.
This model refers to the e-commerce activities and processes that happen between businesses (Tan et al. 2007; Chan & Swatman 2004). According to Tan et al. (2007), business-to-business one of the common electronic commerce models that various organizations employ, especially in developing countries such as China. This model was adopted in China in 1993 when the foreign business in the country started to use EDI to enhance efficiency in trading processes. The innovation then later took a new phase in 1997 when many organizations started using internet-based e-commerce. The other e-commerce market models include business-to-customer (B2C), customer-to-business (C2B) and customer-to-customer (C2C).
El Gawady (2005) explains that B2C refers to the electronic business activities that are customer-oriented rather than the organization. While the C2B employs the reversed pricing models where a customer determines the prices of the products of services that the organizations offer, C2C e-commerce models describe all the activities that use auction-style consisting of "person-to-person" transaction that does not consider the organization completely (Gadawy n. d., p.3). Therefore, e-commerce is a type of innovation in business that impacts the processes of conducting business and, hence, simplifies trade.