The Problems of Identifying the Essential Business-to-Business E-Commerce Environment Components

Abstract

Electronic commerce is treated as one of the most efficientinstruments for business processes optimization,based on more effective control of information flows. Ecommerceinfrastructure is that part of the total economicinfrastructure that is needed to support e-commerce processesand to conduct electronic commerce transactions. Itincludes investment in computers, routers and other computerhardware; satellite, wire and optical communicationsand network channels; system and applicationssoftware. It also includes expenditure for support services,such as web site development and hosting, consulting,electronic payment and certification services as wellas human capital, such as programmers. In essence, ecommerceis the secure trading of goods, information orservices. Contrary to popular opinion, an e-commercesolution is not simply a single component, rather a collectionof individual parts that together allow informationexchange to take place across the electronic networks.The rapidity of e-commerce integration to economyshows that in the nearest future e-commerce will becomethe necessity for any and all business forms. E-commerceevolution is related to rapid perfection of informationtechnologies, their growing possibilities of adoption invarious areas and the cost of use decrease. The spread ofe-commerce in various economy sectors is related to themodern business characteristics: huge and constantlygrowing competition, decreasing variety of competitiveadvantages, durable treatment of profit, as the result ofcost reduction. As electronic commerce develops, it couldhave profound impacts on individual sectors of the economyas well as on macroeconomic performance and economicpolicies. Electronic commerce growth could havesignificant effects on the structure and functioning ofeconomies at the firm, and industry level as well. Thesechanges are likely to have influence on prices as well asthe composition of trade, labour markets and taxationrevenues. E-commerce integration to business processesis considered as realistic possibility to strengthen thecompany’s position in the market, so in near future it isvery believable for e-commerce to become the necessity(market entrance barrier) in some industry sectors, wheree-commerce models can generate considerable cost economy.In that case it can be concluded, that any companyin a small and medium-sized business sector must evaluatepossible benefits from e-commerce adoption in businessprocesses. Traditional competitive advantages likemodern technologies, low cost level or suitable geographicallocation become less significant because ofglobalization process. But before making decisions of ecommerceadoption in the company, it is important todefine and assess the main aspects of e-commerce environment.The paper aims to analyze the problems ofbusiness-to-business e-commerce environment assessmentand to identify the essential elements of this environment.