As defined by Computer Confluence: Tomorrow's Technology and You, electronic commerce (most popularly known as e-commerce) is the process of sharing business information, maintaining business relationships, and conducting business transactions through the use of telecommunications networks. Some of the first e-commerce relations date back to 1844 with the Morse telegraph network, but the 21st century consists of e-commerce being done with help from the Internet. With e-commerce, companies need to be able to share business information and conduct electronic transactions with customers, partners, etc. by use of the Internet. The term e-business is sometimes used interchangeably with the term e-commerce to refer to the online activities of a particular company or organization. Another thing that needs to be discussed are the three main configurations of e-commerce: intranets, extranets, and public Web sites. Intranet and Extranets are commonly used for inner-business relationships. However, public Web sites are the most common with the general population and will be the main configuration of discussion.



IT systems needed for e-commerce:

• Company IT systems needed:
  • Server computer (to store files)
  • Electronic payment such as PayPal (to let clients buy the companies products)
  • ISP (to be able to access the Internet)
  • Webpage creator software (to make your web site, also available are free creators such as wetpaint)
• Client IT systems needed:
  • Personal computer and accessories
  • ISP (for access to the Internet site)

E-commerce advantages and disadvantages:

• Advantages:
  • never leave your home (convenient)
  • easily find what you're looking for
  • takes a short amount of time
  • sometimes cheaper
• Disadvantages:
  • releasal of personal information such as credit card numbers
  • you have to wait to get what you ordered (if at all)
  • sometimes more costly

Issues of e-commerce:

• Reliability- some online information may be old or outdated, like something you can buy at Target.com could have changed prices without your knowledge
• Integrity- information is tampered with or changed by accident (ex. advisor to the website accidentally changes something)
• Security- private information can be stolen when giving the website your means of payment, especially credic card numbers
• Equality of Access- Internet is unaccessable in some countries, destroying the possibility of e-commerce

Sources:

• Computer Confluence: Tomorrow's Technology and You by George Beekman and Michael Quinn
• http://www.howstuffworks.com
• http://www.ecommerce-guide.com/solutions/customer_relations/print.php/3608016