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Using IT for E-commerce

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USING INFORMATION TECHNOLOGY FOR E-COMMERCE

MARINA PURNAMA AYU
7 A REGULER, STAN, TANGERANG
EMAIL: [email protected]

Abstract - This paper is established as part of the assignment given in subject Management Information
System for 7
th
Semester.

INTRODUCTION
E-commerce today plays a significant role in
growing business transactions. In some
industries, like transportation material and
medicine distribution, nearly half of sales
transaction is made through e-commerce.
Companies commonly build e-commerce with
the information technology as its platform.
Thus, this paper will describe what an e-
commerce is and how information technology
(IT) is used for it.

E-COMMERCE
Electronic commerce, commonly known
as e-commerce, is a type of industry where
buying and selling of product or service is
conducted over electronic systems such as the
Internet and other computer networks. But on a
broader view, we define e-commerce as the use
of the computer to facilitate all of the firm’s
operations, whether they are external or internal
transactions.
Firms using e-commerce are expected to
result in three main benefits: improved customer
service, improved relationships with suppliers
and the financial community, and increased in
return on stockholder and owner investments.
In 1960s and 1970s, US firms paid little
attention to the need of gathering information.
However, today the gathering, storage, and
dissemination of environmental information
represent an important computer application in
many companies around the world. The
application gathers information of the
competitors, and thus it is called competitive
intelligence (CI).

ELECTRONIC COMMERCE STRATEGY:
IOS, EDI, INTERNET, AND FIREWALL
If any problems occurred, a firm needs to
find several possible solutions by determining
the best electronic commerce strategy. Inter-
organizational System (IOS) is a combination of
firms that are linked functionally as a single
system to achieve a common objective. This is
called trading partners or business partners. The
trading partners may gain some benefit by their
IOS venture, such as: internal efficiency, inter-
organizational efficiency, offering unique
product features, reducing search-related costs,
and by increasing switching costs.
A term frequently used for IOS is EDI or
Electronic Data Interchange. EDI consists of
direct computer-to-computer transmission
among multiple firms of data in a machine-
readable structured format.
There are some choices of technology in
using EDI for building inter-organizational
system: direct connectivity, value-added
network, and the Internet. Direct connectivity is
a data communication links in a more traditional
way with its trading partners using circuits
provided by carriers, whereas value-added
network is provided not only with circuit but
also other EDI services by vendor. The internet
has more global network. The internet provides
links not only to traders, but also to consumers
all around the world.
Internet and website are currently the most
popular way to use an enterprise-wide network
in business. They work together as a single
system that can be used from any computer
platform. But, when the computer resources are
linked into the internet, they have a security risk.
Firms engaging in e-commerce may find
that hackers are attempting to get into their
computer systems much more frequently than
they expect. Therefore, they need a network
security. The internet security can be achieved
by means of firewall, a filter that restricts the
flow of data between the firm’s internal network
and the internet. It establishes one safeguard for
all computers on the network rather than
separate safeguard for each computer. Firewalls
can provide varying degrees of security
according to their type: packet-filtering firewall,
circuit-level firewall, or application-level
firewall.

REAL EXAMPLE: WORDPRESS AND
TWITTER FOR E-COMMERCE
Nowadays, besides using website, firms may
choose to make blogs as their e-commerce
platform. One of the most public known blog is
WordPress. There are 60 million installations of
WordPress. One-sixth of all sites, in the top
million sites by traffic, are powered by
WordPress. It is completely free, open source,
and built entirely by volunteers. It is constantly
updated to present better functionality and
security. Therefore, using blogs such as
WordPress might become a new alternative for
e-commerce platform.
Another new alternative in building e-
commerce platform is using Twitter. Twitter has
evolved and people engage with it so that it can
be used for business. The number of active
Twitter users has surpassed 500 million, and the
number is growing rapidly. So today, there is no
faster ways to send messages than twitter. It is
also more likely to become a business platform
because there are ways to complete transactions
on twitter itself. There are services such as
Chirpify that allow firms to accept payments
without requiring users to exit twitters. So it
may be cocluded that Twitter might be a new
great alternative for e-commerce today.

REFERENCE
[1.] Raymond McLeod, Jr., George Schell,
Management Information System-8
th
ed.,
Prentice Hall, London:2001
[2.] James O’Brien, George M. Marakas,
Management Information System,
McGraw Hill-Irwin, 2010.
[3.] http://ecommerce.about.com/od/ecom
merceresources/a/Wordpress-For-
Ecommerce.htm
[4.] http://ecommerce.about.com/od/Socia
l-Ecommerce/tp/Using-Twitter-For-
Ecommerce.htm




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