Ease of formation and lower
investment requirements: Unlike a
host of procedural requirements for
setting up an industry, e-business is
relatively easy to start. The benefits of
internet technology accrue to big or
small business alike. In fact, internet
is responsible for the popularity of the
phrase: ‘networked individuals and
firms are more efficient than
networthed individuals.’ This means
that even if you do not have much of
the investment (networth) but have
contacts (network), you can do
fabulous business.
Convenience: Internet offers the
convenience of ‘24 hours × 7 days a
week × 365 days’ a year business that
allowed Rita and Rekha to go for
shopping well after midnight. Such
flexibility is available even to the
organisational personnel whereby they
can do work from wherever they are,
and whenever they may want to do it.
Speed: As already noted, much of
the buying or selling involves exchange
of information that internet allows at
the click of a mouse. This benefit
becomes all the more attractive in the
case of information-intensive products
such as softwares, movies, music,
e-books and journals that can even be
delivered online. Cycle time, i.e., the
time taken to complete a cycle from the
origin of demand to its fulfilment,
is substantially reduced due to
transformation of the business
processes from being sequential to
becoming parallel or simultaneous.
You know that in the digital era, money
is defined as electronic pulses at
the speed of light, thanks to the
electronic funds transfer technology of
e-commerce.