CS507 - Information Systems 1st GDB Solution

E-commerce is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically.
E-commerce is divided into two main sectors, business-to-business (B2B) e-commerce and business to customer (B2C) e-commerce.

Question:
Elaborate how can Pakistan draw benefits by transforming into an e-economy?


Note: Your answer must not be greater than 200 words.

Information and communication technologies (ICT) are having a profound impact on the potential for economic growth and have become one of the main sources of competitiveness and increases in incomes.

One characteristic of the e-Economy is the emergence of new business models. A substantial number of these have failed, along with many "dotcoms". Others however, have proved to be viable, notably in the business-to-business (B2B) area. Entering the e-Economy at a more mature stage may constitute an opportunity rather than a disadvantage for European enterprises which have learnt from the mistakes of pioneers. Enterprises can now use tried and tested technologies, as well as viable business models - more specifically B2C (business-to-consumer) whose potential has still to be tapped.


Maximizing the benefits of the e-Economy for Pakistan

This Communication highlights the steps that will have to be taken to maximize the benefits arising to European enterprises from the e-Economy.
· The fostering of a culture of entrepreneurship.
· Enhancing the ICT skills levels needed to participate effectively in the e-Economy.
· Raise the ability of European enterprises to compete in a modern global economy.
· Further improving the functioning of the internal market.

E-commerce:
IT is a sale and purchase of items using computer systems and internet. Funds involved in the transaction are transferred electronically. Many business started online have failed due to a few short comes. But many of them have become successful; it is an opportunity to enter in an e-economy at a mature stage. Now enterprises are learning from the mistakes of the pioneers. E-commerce has proved to be viable in B2B area whereas in B2C area it still have some potential to be tapped.
Benefits of E-economy for Pakistan:

It will enhance the ICT skills needed to participate in the E-economy.
European enterprise will be having the ability to compete in modern global market.
It will allow people to carry business without time and distance barriers.
The cost of sale is less than cost of manual system.
It is most suitable for niche products.
It is the cheapest mean of doing business.
Benefits for buyer:
Less time consuming
Increased alternatives to buy
Less time in resolving invoice, delivery etc
It also reduces the following costs;

Labor cost
Document preparation
Error, fraud detection and correction
Mail preparation
Reconciliation
Telephone expense
Data entry
Supervision expens
Operational benefits of e-economy include reduction in both time and personnel required to complete business process, strain and other resources.