Thursday, June 12, 2008

How e-commerce can reduce cycle time, improve employees' empowerment and facilitate customer support?

Cycle time
E-commerce can reduce cycle time. In other words, it shortening the time needed for a business to complete a productive activity from its beginning to end. It is extremely significant for increasing productivity and competitiveness for a company.

The uses of e-commerce causes the elimination of intermediaries which exist in a traditional distribution channel. This process also known as disintermediation. The intermediaries refer to third party which exist between the sellers and buyers. For example, wholesalers, distributors, and retailers. By using e-commerce, the intermediaries can be eliminated. The manufacturers or sellers can bypass the wholesalers, distributors and retailers, selling directly to the customers.

For example, passengers can access to AirAsia website and booking air tickets directly from AirAsia. Passengers can book their air tickets through Internet and need not book through a travel agent. The intermediary has been eliminated and causes the reduction in time cycle.

Employees' Empowerment
E-commerce can improve a company's employees empowerment by giving them the authority to act and make decisions on their own. Management can delegate authority to individual or a team of employees who can then execute the work faster and with fewer delays.

For example, sales persons and customer service employees are empowered and given the authority to make their own decisions regarding sales and customer service problems through the uses of e-commerce in order to increase to customer loyalty.

Customer Support
As a subsequents of digital revolution, the bargaining power of customers is stronger than ever, and that power is growing. The availability of information and the ability to make quick comparisons online increases this trend. Customers are essential to a business because the success or failure of a business is depend on customers. Therefore, a company must make their customers happy in order to keep them.

For example, e-commerce can facilitate customers support through an online FAQ (frequently asked questions). If customers have doubts about how to collect their online booked air tickets, he or she can access to the airline website and search for the solution through FAQ site..
Print this post

No comments: