In this research assignment I will focus on the cost effectiveness of electronic business.

E-business refers to a strategic focus with an emphasis on the functions that occur using electronic capabilities, the World Wide Web or the Internet to build and enhance relationships with clients and partners. E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. (wikidepia)1 .

Wherever the costs involved with transacting information are high, the gains from adopting e-business practices are highest. Reduced informational costs can not only facilitate given transactions, but can expand the set of transactions included within a specific market. By lowering the costs of bringing together geographically distant buyers and sellers, e-business increases the size of any given market. Larger markets make the trade of goods and services more reliable and efficient, in part because bigger markets often have lower average costs associated with them. E-business practices such as outsourcing, just-in-time inventory systems and matching markets such as consumer purchasing and auction sites are ideal (pepperdine.edu, James E.Prieger, Daniel Heil). 2.

The effects of electronic business to the economy is making products and services more cost affective and accessible to consumers. Time saving price matches are done for you, more options are available and detailed information about products and competitors are at hand. Creating more savvy consumers. This is a great route for new and smaller companies to have an opportunity to reach larger demographics and keep production cost low. Although it has created a competitive environment I believe it is fair to say e-business is a win win a win. Companies like Oracle have developed software applications to help companies manage their e-businesses.(www.oracle.com) 3. exposure for customer information and brand development. Using) integrated global business applications that enable organizations to make better decisions, reduce costs, and increase performance. In this global economy we are fortunate to have created this response. I believe without it the economy would be in worse financial state.
My conclusion is the Market place is finally reaping the rewards of cutting cost and getting a lot more. The use of this system is offering not only the customer but businesses new opportunities. By being exposed to different markets. Those buying and selling are showing proven success. Companies are able to offer more saving as a response to the competition, but still saving on production. As a new online shopper I am sometimes amazed at how much I learn by simply purchasing one item. The saving offers that are made to me and the suggestion of like products. Although I may not purchase the suggestion at that particular time, It exposes me to more options. Companies really gain so much through electronic business I think its so successful because it works for everyone.

reference:

1.http://en.wikipedia.org/wiki/Electronic_business (wikidepia)

2 http://digitalcommons.pepperdine.edu/cgi/viewcontent.cgi?article=1009&context=sppworkingpapers (pepperdine.edu, James E.Prieger, Daniel Heil)

3.www.oracle.com/us/products/applications/ebusiness/overview/index.html (www.oracle.com)