E-commerce and its Importance in Business Research Proposal - 1

E-commerce and its Importance in Business - Research Proposal Example At the end of the entire study and based on the conclusion, few recommendations will be also provided to further improve the process or how organizations, as well as consumers, can make effective use of it. Â  With the rapid development of networking technologies during the early 1990’s human being witnessed the commercialization of internet services (Kalakota and Whinston, 1996, p.147). From that era organizations across the globe started to incorporate the internet into their system of operations in order to gain competitive advantage and to create a core competency for themselves (Reynolds, 2004, p.5). At the same time that is in the early 1990s, the concept of e-commerce was also introduced (Kurth, 2011, p.6). Earlier E-commerce was considered to be a core competency for the organizations, however, at present, it has become a necessity to survive in the marketplace (Ardisana, 2000). Â  Electronic commerce or what is commonly known as e-commerce is an application which facilitates online selling and buying of goods and services (Zhou, 2004, p.56). It offers facilities such as online fund transfer, electronic data exchange (EDI), and online marketing among others. The major advantages of using e-commerce are the maximization of speed in the context of service delivery, reduction in the overall cost and also quicker response to the customers (Rajaraman, 2010, p.12). Electronic commerce also plays a crucial role in the online payment process. Online payment method refers to the process of directly transferring funds to the seller’s bank account (Radu, 2003, p.2). The biggest advantage of an online payment option is that it instantly completes the entire process of payment.