Wednesday, June 11, 2008

The history & revolution of E-commerce

I know it's kinda boring..but we must at least know who are our ancestors (in regards of E-commerce) right?HEHE.

The history of e-commerce comes in few phases, it was all started with the development of the Electronic Data Interchange (EDI). The standards of EDI is widely applied in the 1960’s to exchange business information and to do electronic transactions This includes in handling all aspects of business transactions such as ordering, acknowledgements, pricing, status, scheduling, shipping, receiving, invoices, payments, and financial reporting. Although there are few EDI format being practices in the early years, due to some limitations companies are still unable to interact with other companies.

However, in 1984 the Accredited Standards Committee (ASC) X12 develops standards for cross-industry electronic exchange of business information. These standards became stable and reliable in transferring large amounts of transactions .Today, ASC X12's members include companies shaping the new global economy and pioneering the next generation of cross-industry, interoperable e-commerce standards.

The next major phase occurred in 1992 when the Mosaic web-browser was made available. It was the first ‘point and click’ browser and quickly being adapted into a downloadable browser, Netscape, which allowed easier access to electronic commerce.This has allowed Pizza Hut in attempting to have its pizza ordering made online(incredible huh..) follows by the first online bank,flowers delivery and magazine subscriptions to be done by only one click(convenience makes it all).

Whilst in 1995, it was a hype when two biggest competitors in e-commerce are launched, and .Both companies provide global online shopping and online auctions.

In the of 1998, Digital Subscriber Line has provided a fast, always-on Internet service to subscribers across California. This prompts people to spend more time, and money through Internet.E-commerce becomes common to everyone and "boom" retail spending over the Internet reaches US 20 mil by the year of 1999.

Today the largest electronic commerce is Business-to-Business (B2B). Businesses involved in B2B sell their goods to other businesses. In 2001, this form of e-commerce had around US700 bil in transactions. Other varieties growing today include Consumer-to-Consumer (C2C) where consumers sell to each other, for example through auction sites. Peer-to-Peer (P2P) is another form of e-commerce that allows users to share resources and files directly,for examples Napster(music files sharing) in the early years til Bitcomet(multi format files sharing).

While in Malaysia(Malaysia BOLEH..LOL) ,E- commerce has gain much attention from governments, businesses and regional bodies.

Malaysia are seen to have a bright future in years to come. However, it can only remain so if there is consumer trust and confidence in it. Therefore, there is a need for online traders to be accountable and responsible to the consumer. Governments and businesses need to work together on an international platform to ensure specific standards are set, which will assist the electronic traders to meet their responsibilities more systematically. Both the business and government have a role to play in international consumer protection in the online marketplace, which can be global and borderless.

The government needs to provide a baseline for international consumer protection to ensure effectiveness of industry self-regulation and thus strengthen consumer confidence. Industry’s expertise and knowledge of commerce, and its ability to take that information and translate it into procedures for operating in the digital world at the same pace as the underlying technology evolves will allow it to implement the necessary codes of conduct (Kiranjit, 2004).

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