impact of e commerce on organisations

She says that while firms have made efforts to make their platforms mobile-friendly, she thinks that this will take on an even greater importance. Using e-commerce this way, he is pioneering a more cost-effective strategy for learning about customers and gleaning insights that he can then apply to his business at large. This study examines how e-commerce creates value for firms from the perspective of dynamic capability theory. He says that year over year, his firm has posted double-digit growth in the country, a significant increase for an already-successful business—and one that resulted from a culture that is unwavering in its positivity about e-commerce. Other firms, executives, and professionals have witnessed a flattening effect in their leadership, the old and established hierarchies fading away in favor of a structure in which all employees must take ownership of the tasks in front of them. The reality of e-commerce is change, which is also the only constant in the market. THE IMPACT OF E-COMMERCE ON BUSINESS VALUE IN SERVICE ORGANISATIONS ABSTRACT T H E S I S SUBMITTED FOR THE AWARD OF THE DEGREE OF Doctor of Philosophy IN BUSINESS ADMINISTRATION BY MAIRAJ SALIM Under the Supervision of DR. JAVAID AKHTER Associate Professor of Business Administration Faculty of Management Studies and Research He aims to cultivate strong connections so that he can continue to expand his retail e-commerce business, stating the need to “have scale to become profitable.”. The impact of e-commerce on business activity Selling through websites is the fastest growing method of trading worldwide. While it may appear that e-commerce is the perfect choice to solve your business problems, there are still a number of disadvantages to switching from selling at a physical location to using online retail. An anonymous retail e-commerce professional points out that because of growth in e-commerce, retail is always available to customers. Negative Effects of E-Commerce on Society  Unemployment  Some organizations or businesses move from being a brick organization, where they are based in a store, and move to become an online, more globally available company and therefore have no need for the staff they have employed in their stores. E-Commerce and Traditional High Street Organizations The nature of the market place changes with time as different aspects influence its way of operation. Human resources are able to get themselves placed in any organization by posting resumes through internet, Some organizations also permit people to work from their home. Mr. David Ennes, SVP of Asia and Global Head of Travel Retail at Remy Cointreau, on the other hand, says that as far as online sales go, his firm has operated on a limited basis, bucking the trend in a sense. He begins by saying that “the leader must be adaptable to change.” This advice is similar to the advice that he offered regarding culture, and he goes on to specify that “the leader must be so number driven, across social and technological, all marketing channels and be on the pulse with the social aspect for both the positive or negative side.” Put another way, the leader must be both aware and responsive, picking up on any factors that could affect the business and then devising an appropriate strategy to address those factors. To gain a better understanding of what retail e-commerce looks like today—specifically the culture and leadership in retail e-commerce—and what it will look like a few years from now, we spoke with a group of senior industry executives and asked them for their thoughts. E-Commerce and Its Impact on Organizations E-Commerce and its Impact on Organizations Brief History about Amazon.com Amazon.com, Inc. is one of the well liked E-Commerce websites on the internet. Abstract. It would make sense, for example, that cultures among retail e-commerce professionals would account for the nature of the competition that firms are up against today. Impact of introducing an e-Commerce system to an organisation eCommerce has changed the way the world does business and has given consumers convenience, more choice and lower prices whilst enabling businesses to sell to a global market. Maplin, meanwhile, moved their operation completely online, though their IT Director described it differently: “We haven’t changed Maplin, we’ve changed the model to make it more efficient and not have that massive cost base, which included 217 stores” [6]. 1. https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf The prevalence of ecommerce is continuously growing and there is no sign of slowing down. Because of the importance of every decision that leaders make during the crisis and the ever-changing circumstances with which all firms must contend, leadership can mean the difference between successfully navigating the crisis and not. Although e-commerce is growing in general and that should benefit all retail e-commerce firms, Amazon’s upward trend is a certainty as well. Moreover, the online portal is computerized and automated saving a crucial amount of money. Increase in customer base results in increased production. Regarding targeted marketing, he says that all platforms will adopt a more personalized approach to the results and pages that they display to users, and regarding omnichannel, he says that more metro areas will see new brick-and-mortar locations opening, catering to the top-spending shoppers who make significant purchases both online and in person. The best thing that caters to e-commerce is buying options which are quick, user-friendly, and convenient. Covering rent, utilities, sales staff, and other payments, brick-and-mortar stores are at a natural disadvantage, which explains at least in part their lag behind e-commerce over the last five years. The main aspect of ecommerce involves doing business on the web and includes: Business to business (B2B) trading which involves a business such as a company trading with another business on the world wide web. Mr. Laxton, over the next 2–3 years, believes that fewer retailers are likely to survive in their current form, and he foresees an increase in consolidations. While this arrangement may not be universal, it is typical for many retailers that were in operation prior to the emergence of e-commerce, including Tesco and IKEA, retailers from the UK and Sweden respectively that have built successful hybrid strategies during the e-commerce shift [4] [5]. Leaders make decisions both on the principles that they stand for and on the pressures that their environments put on them. Positive reviews will create a strong brand image of the brand and will build trust in more customers to buy that product while negative reviews will help you to understand the areas of improvement and satisfy your customers in a better way. E-commerce generally refers to different types of business transactions in which product information and service data are exchanged over the internet. Doing this, he leads his teams by delegating work to them based on the insights that they are constantly gleaning from their testing and tracking. 2. https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/ Drawing a connection between leadership and insight, Mr. Laxton lists a number of areas in which firms can benefit from fostering collaboration and empowering all employees to embrace their roles as leaders. In the beginning of e-commerce, it was believed that organisations went online because of the perceived economic value of e-commerce. Though the benefits of E-commerce are many but creating a right user-friendly and secure platform for your e-commerce portal is also an art. As a direct link is established between buyer and seller the portal is able to create an effective supply chain. Looking to make new talent comfortable, he is open to factoring their aspirations into the business over the coming years. Despite the worldwide clamor for more e-commerce in recent years, Mr. Ennes explains, “[W]e are just starting some experiments like in Singapore.”. To ease your trouble we are highlighting a few major benefits of E-commerce to an organization in this article. Highlighting his firm’s growth in Canada over the last year, Mr. Kelly believes that his firm has found success in e-commerce by accepting that it was a positive development—not something that they needed to fight but something that they needed to integrate and leverage for themselves. Violation of intellectual property is also one of the common … It has the potential to undermine the application of domestic and national tax rules. incorporate e-commerce with strategy will implement firm strategy effectively. The anonymous professional also offers some sound advice for dealing with this potential downpour of service requests and environmental shifts: “You need to address points diligently and efficiently and make sure changes are done quickly and adapt to a different time and technology.” Thinking on one’s toes, leaders in e-commerce today must be ready to shift to new platforms and tools just as the retails who have become them have done (or failed to do and suffered the consequences). The mission of the Journal of Electronic Commerce in Organizations (JECO) is to provide comprehensive coverage and understanding of the social, cultural, organizational, human, and cognitive impacts of innovative e-commerce technologies and advances on organizations around the world. In the recent years, E-banking is one of the most important revolutions in the banking sector of Pakistan. According to data from the US Census Bureau, e-commerce sales increased 16.7% between Q4 2018 and Q4 2019, compared to an increase of only 3.8% across all retail during the same period [1]. Faster rates of innovation and diffusion may create more knowledge-based products. Today, in all aspects of our daily lives, the Internet has become an undivided … Stating this, he is setting himself apart from firms that assume young professionals will, rather than look for opportunities elsewhere, acquiesce to established ways of doing business. During the COVID-19 era, leadership has, as we all know, taken on a new meaning. The mission of the Journal of Electronic Commerce in Organizations (JECO) is to provide comprehensive coverage and understanding of the social, cultural, organizational, human, and cognitive impacts of innovative e-commerce technologies and advances on organizations around the world. The mission of the Journal of Electronic Commerce in Organizations (JECO) is to provide comprehensive coverage and understanding of the social, cultural, organizational, human, and cognitive impacts of innovative e-commerce technologies and advances on organizations around the world. The reality of our technological world is seeping into and transforming the mindsets and beliefs that these executives and leaders use to make decisions about their businesses. Mr. Mollard also mentions home delivery as a possible value-add for retail e-commerce businesses, stating that he tries to create “responses tailored to increasingly ubiquitous clients.” Rather than eliminating the work inherent to retail, e-commerce creates opportunities for more work, by implementing the right tools to satisfy people’s needs even more fully than retail would have otherwise. E-commerce bridges the gap between the job seekers and job givers in the society. 5. https://www.businessinsider.com/ikeas-online-sales-surge-43-2019-9 Mr. Bucaille also says “Client and data will be more and more at the center of the organization.” This too would line up with the movement that we have seen over the last five years, the rise of big data taking retail by storm and its integration into the market showing no signs of slowing down. The COVID-19 crisis has created a uniquely challenging situation, but it is only one iteration of the constant challenge that all e-commerce firms should expect. Throughout this crisis and during all other, smaller crises in the future, the right leaders will be able to guide their firms forward. Specifically, he says that buying, marketing, and e-commerce can all benefit from “collective insight,” pointing to a leadership style in which multiple people offer their opinions and submit their viewpoints as a means of arriving at the right answer. Suggesting that “consumer data is different in this space,” Mr. Connell says that because it is possible to track a digital footprint, it is possible to know customers more completely, understand their holistic needs and what they want. While it is clearly more convenient for customers that their preferred retailers are only a few clicks or a few swipes away from them at any time, this also means that the service (and the people who oversee it) must be available at any time as well. Low Financial Cost. In 2014, e-commerce sales totaled just over $1.3 trillion, no small sum, but in 2019 they had grown to $3.5 trillion. He says, “When a firm (i.e. All rights reserved, Follow To Stay Tuned With Us On Social Communities, Software Development Company, CRM & ERP Development, important benefit of having an e-commerce website, GET EXPERT ADVICE ON BUILDING E-COMMERCE APPLICATION. It would also make sense that firms would adapt their sales and marketing efforts to big data, seeing the results that others have driven for themselves by doing so. Mr. Ennes states that compared to classic sales channels, the online sales channel in China has driven substantial profits. One of its main Benefits Of Ecommerce is the absence of middleman that reduces the cost price to a greater degree. As the name suggests, traditional high street organisations are based on a dated form of strategy to executing business. The Social and Cognitive Impacts of E-Commerce on Modern Organizations includes articles addressing the social, cultural, organizational, and cognitive impacts of e-commerce technologies and advances on organizations around the world. The corporate raison d’être, ambition, values, and project will undoubtedly evolve, but I don’t see any cause and effect between the rise of e-commerce and any leadership style.” For him, like Truffaut itself, leadership is an absolute concept, one defined by people rather than technology. He again draws a parallel between the philosophical side of leadership and the technical side of it, saying that a leader should be able to “[get] people to array the offerings and convert, what that means to get items in their basket and to buy.” In this sense, leadership in e-commerce is akin to leadership in traditional sales, guiding customers to a desired action in order to generate revenue. … There is a positive relationship between e-commerce and firm strategy. There are as many leadership styles as there are leaders, but it is still useful to examine how retail e-commerce leaders believe the growth in e-commerce has impacted their personal leadership styles and encouraged or inspired them to think and behave in certain ways. Companies that. Because there are many perspectives to take of the changes that e-commerce has ushered into retail, there are also many variables that a retail e-commerce firm can focus on as they are building their culture. Mr. Ennes notes that only five years ago, online sales for Remy Cointreau were non-existent in China as well, accounting for none of the firm’s business there. Progressing from a niche sales outlet into the sales outlet of preference for many customers, e-commerce is poised to continue to grow at a similar pace, exceeding $6.5 trillion in worldwide sales by 2023 [2]. To bring this process more to life for his employees, Mr. Connell says that he is always trying to “[develop] visual management.” Showing his teams the progress that they are making and pointing out the impact their progress has on the business, he keeps people engaged and working hard, encouraging them to see themselves as parts of a whole while also seeing themselves as taking ownership of complete projects and driving specific results, as he says, “keep building momentum, engagement and team work across the organization.”. Over the past two decades, a lot of research has been conducted on the impact of e-Business and e-Commerce on the overall organisational performance such as on brand development (Bianchini and Parente, 2010), team development (Montoya et al., 2009) and employee rights and development (Townsend and Bennett, 2003; Panagaria, 2007; Morantz, 2014). 5.Impact on employment and labor policy:- While we cannot expect all firms and all professionals to respond to the realities of the e-commerce environment identically, it does seem reasonable to assume that we can identify commonalities between cultures. In a traditional market, retailers run a majority of their business with personal relations, branding & references. Also planning for the years ahead, Mr. Laxton says that he will continue to build brand relationships, collaborating with the right firms in order to satisfy his customers’ needs. An anonymous retail e-commerce professional says that looking around at the e-commerce landscape, what stands out most to her is how much more frequently consumers are using their mobile devices to place their orders. Kevin Kelly, a senior leader in retail e-commerce, looks more to the past to describe the realities of the current e-commerce culture, reflecting on the way that many firms stumbled when e-commerce started to appear. Let’s examine what that looks like. He quotes the age-old mantra “try often, fail fast, learn from it,” but he recommends taking this a step further, making it systematic to the organization so that employees view failure (as long as education accompanies it) as a regular part of doing business. Role of eCommerce in Business The main way in which e commerce will affect the economy, in general, is its impact on productivity and inflation. Understanding exactly what they are can help you leverage them to your advantage: 1. As the anonymous professional says, “[leaders] need to be on the pulse point looking at different things and technologies and always available.” In an environment where change is constant and unceasing, leaders must be able to res- pond to it constantly—and unceasingly. By satisfying their needs instantly, one can build a strong & long-term relationship with their customers. While the changes of e-commerce may seem most striking when put into statistics and interpreted as changes in market share, their effects are also causing executives, leaders, and other professionals to reconsider their philosophies and strategies as they work with one another. Referring to his market specifically, he says that “pure play retailers” are “retailers struggling to give consumers enough touch points for bikes.” He also notes that distribution and marketing costs have become unsustainable for many retailers, who are under an enormous pressure to continue to spend to keep up with their competitors but unable to justify doing so in the long term. E-commerce is more current and effective in the present market place. E-Commerce and Its Impact on Organizations E-Commerce and its Impact on Organizations Brief History about Amazon.com Amazon.com, Inc. is one of the well liked E-Commerce websites on the internet. With promising numbers like these, there are many retailers who consider e-commerce business in today’s’ scenario. Role of eCommerce in Business The main way in which e commerce will affect the economy, in general, is its impact on productivity and inflation. Mr. Mollard, meanwhile, focuses more on the steps that he will need to take to keep his employees up to date, “[equipping them] with digital tools to remain on a par with their clients’ level of information.”. The elephant in the room, of course, is the largest retailer in the world: Amazon. For many people in the world, e-commerce becomes one of the most preferred ways of shopping as they enjoy their shopping due to its easiness and convince. Online stores are not restricted to geographical boundaries like a physical store and so it gives you a platform to sell your product & services across the globe and target your customers without any location limit & restriction. Physical retail … Ecommerce businesses are fast gaining grounds and changing the way of doing business. One anonymous professional at a global luxury retailer working in e-commerce agrees with Mr. Mollard’s assessment that a hybrid strategy is most viable, saying that she has seen significant growth around omnichannel and retail e-commerce in conjunction with brick-and-mortar stores. E-commerce traders effortlessly keep an eye on the behavior of their buyer's habit and customize their offerings to suit the buyer's requirement. Leadership, like culture, is different for everyone and from one moment to the next. The organizations that implement e-commerce have tremendous advantage in quality, cost, profit, and employee motivation (Singh, 2002). The National Retail Federation expects retail to grow from 8% to 12% in 2018. In mature Omni-Channel organizations, we often see E-commerce reporting directly to the CEO as its impact is broader managed across the organization. Growing up on the internet, the younger generations think about their personal and professional lives in different terms than the generations that have come before them, and by pointing this out, Mr. Mollard says that leaders must take responsibility for it, putting their younger employees at ease so that they are able to thrive in the workplace. How to choose the best candidate between two applicants? E business provides you an opportunity to reach more and new customers. The advantages are:-. This dissertation proposal is aimed at demonstrating the need to carry out research on the impacts of e-Commerce on traditional high street organisations. These impacts include those of e-commerce on consumer behavior, as well as on organizational behavior, … These impacts include those of e-commerce on consumer behavior, as well as on organizational behavior, … This unit would further enable students gaining knowledge about the ways of developing e-commerce strategies by organisations. The firms equipped with effective leaders, which is to say leaders who are following intelligent business processes, will be able to emerge from the crisis either unscathed or perhaps even stronger than they were going into it. 3. https://www.fastcompany.com/90382936/amazons-hunger-for-grocery-stores-goes-beyond-whole-foods However, this will be beneficial for the customer’s also, as they can purchase their products whenever they need, no matter whether it is early morning or mid-night and they can make the purchase from anywhere be it their office or their home. E-commerce has two types of trading and that is business-to-customer (B2C) and business-to-business (B2B). An online store also eliminates the travel cost of a customer and provides ease full shopping experience both to the customers as well as the seller. 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