Chapter 1. Electronic Trade

Summary

In a world where networks, software and computers provide the nervous system that any information-intensive business needs to compete, it should be no surprise that electronic business is seen by many as a natural progression in the way that we buy and sell. This chapter introduces the notion of electronic business, and has described its constituent elements – a shop-front, buyer and seller catalogues combined with some mechanism for billing, settlement and fulfilment. In addition to outlining the technical requirements and options for eBusiness, we also take a look at the nature of the electronic market, and consider some of the ‘look and feel’ issues that make systems usable and appealing.

There are two main messages in this chapter. The first is that eBusiness is unlikely to be a passing fad – it offers genuine advantages in terms of speed, flexibility and the removal of cost from the supply chain. From a business point of view, it is the key to competitive advantage. The second message is that an eBusiness is not a commodity purchase – to succeed requires a bit of thought, and a fair bit of know-how.