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.
Reprinted from "The potential impact of e-commerce
on the rural South: Will it equalize or deepen the digital divide?"
by Beth Duncan and Virgil Culver, The Rural South: Preparing for
the Challenges of the 21st Century, November 2000 issue.
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Excerpt by: Beth Duncan and Virgil Culver
Source: Creating Quality Newsletter, Volume
10, Number 1, January 2001
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