Definition and History of E Commerce - Term Paper Example

Definition and History of E-Commerce When the telegraph was invented, it helped speed up human communication over long distances because it didn’t depend on human travel and was the infancy of e-commerce. This invention was followed shortly afterward by the telephone which evolved into the mobile and cell phones that have become an almost required part of everyday life. The development of the internet has further taken communications and trade beyond the scope of time and distance. With the advent of the internet and massive computing systems that are increasingly becoming smaller in physical scale, the world is continually proportionately shrinking in sociological terms and becoming economically interdependent. Officially, the definition of e-commerce, the interchange of electronic data, indicates a computer network activity facilitated by telephone, cable or satellite connections in which consumers and businesses are able to connect. By means of their computers, consumers, retailers,’ suppliers, manufacturers and many other types of businesses receive and place orders, bill customers, pay for goods and track shipments and inventory (Haubl & Trifts, 2000). Communication, so vital to commerce, has been greatly enhanced beginning with the telegraph, then the telephone and continuing with e-mail. Early communications systems involved guttural sounds, hand movements and occasional loud outbursts as individuals within the same tribe learned how to pass along important information. As early as 3500 B.C., the Chinese people were busy using written alphabets and printing messages on paper-like material which was used to pass messages across long distances with the postal service that began around 900 B.C. This printed form of language was bound into books beginning around 100 A.D. The shortened form of books, newspapers, began appearing in the cities as early as 1450, but the typewriter wasn’t invented until 1714. All of these methods of communication and commerce were effective, even to pass messages across space and time, but they all required the human component to transport them in order to be effective. Joseph Henry invented the first telegraph in 1831 which broke this long-standing restriction, allowing messages to be passed as quickly as a signal could be sent over a wire. Alexander Graham Bell reasoned that if a single sound could be sent via wire, why not a range of sounds, such as a human voice? He perfected his telephone in 1876 and the wires were in place for the first transcontinental phone call to be made in 1914. Things pretty much remained the same on the communications front for a while as inventors explored the possibilities of other forms of communication such as radio, photography, cinema and television (Rowland, 1997). About the time that television was becoming household equipment, the first computers were becoming available for scientific use. As early as 1951, they were being produced and sold on the general market. However, computers as a communication tool didn’t really become an option until the advent of APRANET, the first form of a networked internet that was developed in 1969. These connections were made faster with the introduction of cable wire services in 1972 (Rowland, 1997). At this point, communications methods began speeding up, constantly changing and improving efficiency. In Japan in 1979, the first mobile phones began to be used, not becoming popular worldwide until sometime around 1985. By then, personal computers and laptops had entered the marketplace, introducing the idea that communications could easily travel with you to home, work, school or wherever. These wireless services were available by 1981, with the growth in the internet market since serving to completely change the ways in which we communicate and trade globally (Rowland, 1997). Computers are becoming smaller, more readily available and more affordable for those in even small, out of the way places. Technologies are emerging that place computers in the hands of children who don’t even have access to electricity. Satellite connections are even making it possible for an individual to have global reach from the remotest regions of the deserts. This begins to illustrate the importance of the internet in greatly expanding the world’s available consumer base which itself both shapes and is shaped by these advancements. These tremendous advancements that provide individuals with a means of communicating their ideas worldwide with little more than a bit of electricity, an internet connection and a relatively inexpensive computer has changed the media industry, the forms of consumption and the world of business (Pack, 2003). Based upon its level of use in current society as it grows and expands in response to both consumer and corporate directives, it is safe to say that the internet will become even more integrated into the everyday life of individuals throughout the world in the years to come. As it becomes easier and easier to allow services and features to cross platforms from PC computer to handheld device and from cell phone to MP3 player and beyond, prices on electronics will continue to fall and make it possible for individuals in third world countries to join in the internet revolution. In a study cited by James McGuire (2005), it was determined that internet sales continue to grow, reaching $65 billion in 2004 which represented an increase of 26 percent over 2003. Despite the increasing numbers of online shoppers and the relative ease shoppers encounter as they enter an online retailer site, there are several negative factors not directly related to the consumer that nevertheless affect consumer behavior when determining whether to make an online purchase. One of the primary dangers being confronted is the issue of identity theft and information mining being conducted on reputable as well as questionable sites (Wolfinbarger & Gilly, 2003). Shopping and business will continue to be available online, expanded by increasing numbers of people finding means of securing an income online, reducing travelling time and expense while affording them more time with the family. This does not translate into nations of people locked in their homes, however, as all of the functions that are available on the computer would also be available in the handheld device and people would be able to stroll about as they wish. This also does not translate into the demise of all brick and mortar businesses just as it has not in the past ten years. Rather, brick and mortars will continue to integrate their businesses with internet and internet will continue to be integrated with the needs of brick and mortar. This worldwide establishment of the internet throughout most cultures and countries has revolutionized the way people live their lives on many fronts. With the introduction of the internet and communications occurring literally at the speed of light, new practices in modern living are evolving, such as e-commerce, e-trade and e-finance, creating a much more interconnected world even as we remain physically quite far apart. The addition of the internet has ushered in an age of highly technologically produced mass trade opportunities along with communication which has made it possible for individuals and businesses to gain access to far more information and trade more commerce than ever before in the history of mankind. Works Cited Haubl, G. & Trifts, V. “Consumer Decision Making in Online Shopping Environments: The Effects of Interactive Decision Aids.” Marketing Science. Vol. 19, N. 1, (2000). Rowland, Wade. The Sprit of the Web: The Age of Information From Telegraph to the Internet. Toronto: Somerville House, (1997). MacGuire, James. “The State of E-Commerce: Online Shopping Trends.” E-Commerce Guide. (August 2, 2005). October 27, 2007 Pack, Thomas. “Creating Community.” Information Technology. (2003). All Technology. October 27, 2007 Wolfinbarger, Mary & Gilly, Mary C. “Shopping Online for Freedom, Control, and Fun.” California Management Review. Vol. 43, N. 2, (2001), pp. 34-55. Read More