Even though it is currently the most visible, Business 2 Consumer (B2C) is only part of e-commerce. Business 2 Business (B2B) e-commerce is quickly emerging as an area of economic growth and expansion. According to a recent survey by the National Association of Manufacturers, more than two-thirds of American manufacturers still do not conduct business electronically. However, that is predicted to change in the near future.
Businesses are beginning to move their supply networks and sales channels online and are participating in new online marketplaces. Businesses also are expanding their use of networked systems to improve internal business processes to coordinate product design, manage inventory, improve customer service, and reduce administrative and managerial costs. Some businesses may face barriers to adopting e-commerce, including a lack of knowledge about the technology and its costs; insufficient information about the benefits of e-commerce and applicable business models; shortage of technically trained employees; complex and user-discouraging e-commerce implementations; the absence of unbiased, qualified assistance; and lack of funds. The South cannot afford to let these barriers hold e-commerce development back.
By failing to participate in e-commerce, companies are missing opportunities for lowering costs, increasing productivity, expanding market access, and improving relationships with customers and business partners. By not making the transition to the new way of doing business, businesses run a serious risk of becoming less competitive, affecting both their present market positions and long-term viability. As larger companies (with more available funds to transition) integrate e-commerce into their businesses, small firms run the risk of being excluded if they are unable to establish strong e-commerce ties with others in their supply chains.
Businesses are beginning to move their supply networks and sales channels online and are participating in new online marketplaces. Businesses also are expanding their use of networked systems to improve internal business processes to coordinate product design, manage inventory, improve customer service, and reduce administrative and managerial costs. Some businesses may face barriers to adopting e-commerce, including a lack of knowledge about the technology and its costs; insufficient information about the benefits of e-commerce and applicable business models; shortage of technically trained employees; complex and user-discouraging e-commerce implementations; the absence of unbiased, qualified assistance; and lack of funds. The South cannot afford to let these barriers hold e-commerce development back.
By failing to participate in e-commerce, companies are missing opportunities for lowering costs, increasing productivity, expanding market access, and improving relationships with customers and business partners. By not making the transition to the new way of doing business, businesses run a serious risk of becoming less competitive, affecting both their present market positions and long-term viability. As larger companies (with more available funds to transition) integrate e-commerce into their businesses, small firms run the risk of being excluded if they are unable to establish strong e-commerce ties with others in their supply chains.
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