May-2015

COMMUNIQUE
E-COMMERCE
E-COMMERCE: A
POWERFUL TOOL OF
MODERN BUSINESS
METHODOLOGY
E-commerce helps to improve organizational efficiency, optimize
the supply chain, reach customers online and anticipate buying
behaviour. But education and information on e-commerce has a very
vital role to play especially in developing countries including India
where most of the players are in the SME sector
CMA Tapas Kr. Sarkar
Assistant Professor,
Ramananda College,
Bishnupur
IN the era of globalization the recent
trend of utilizing information technology
in commerce has opened up an entirely
new channel of trading where buyers
and sellers never meet each other at any corner
of the world, may not even be involved in
setting up a dialog, in any possible manner, but
the business takes place. The new concept of
commerce in the area of business, trade, and
financial service with the help of technology
is called e-commerce. The aim of this study
is to consolidate the key drivers, impact and
models that have arisen from the new area of
e-commerce and to provide an understanding
of its application, importance and barrier to
commercial activities. According to the editor-in-chief
of International Journal of Electronic
Commerce, Vladimir Zwass, ‘Electronic
commerce is sharing business information,
maintaining business relationships and conducting
business transactions by means of
telecommunications networks’. According to
Zwass, electronic commerce has been re-defined
by the dynamics of the Internet and traditional
e-commerce is rapidly moving to the
Internet.
It is generally defined as a modern business
methodology that addresses the needs of business
houses, merchants and customers to optimize
quality of goods and services at a lower
cost with a high speed of delivery, through the
use of network enabled technologies.
Besides developed countries, some developing
countries, including India, have developed
arrangements and mechanisms for governing
e-commerce within their commercial
activities. In India AICTE recommended to
include Electronic Commerce as an essential
part of every technical and management
program and the Government has provided
financial assistance for setting up Electronic
Commerce laboratories. RBI norms and
regulations has proved to a major handle for
e-commerce even though VSNL India’s monopolistic
ISP does want to jump on to the
electronic transaction bandwagon with the
advent of private ISP’s and India new and positive
attitude towards IT and new IT policy
70 the MANAGEMENT ACCOUNTANT MAY 2015
www.icmai.in