Question

depicts differences in the business process flows for traditional retail businesses and e-Commerce businesses.

1.What are the key differences between these process flows? Explain your answer.

depicts differences in business process activities for traditional retail and e-Commerce businesses

1.In your opinion, what are the key technology differences between the traditional and e-Commerce business models? Each student could interpret the answer from a different perspective; the key is how well the student explains the answer.

Answer 1

Traditional retail business involves providing services and products to the customers face to face and it is the oldest version of the business process where the main two kinds of actions that are trade and trading auxiliaries involved in the business purpose. E-commerce business involves electronic transaction and internet services for business operations. All business activities are optimized through internet facilities.

The differences that are involved in the traditional and e-commerce business discussed below:

• exchange:

Traditional commerce believes in the manual exchange of services and products. There are no scopes to interact with the customers in a face to face manner in the e-commerce trade.

• time:

It is not possible to continue the business in 24/7 hours in the traditional business as labor cost is involved in this case but in the e-commerce business, the business can be operated anytime.

• Physical interaction:

Traditional trade makes chances to the customers by inspecting the good’s quality and the services physically. In e-commerce, it is not possible for the customer to identify the product’s quality physically.

• geography:

Geographical location is the limitation for the traditional business as there is a huge amount of cost involved to build the new retail shops in various geographical locations. But the e-commerce services can be operated from anywhere of the world by the only one requirement that is the internet connection.

• Mode of delivery:

Traditional retail business involves instant delivery of the products but the delivery process in case of e-commerce is time-consuming.

In my perspective, the key technical difference is that e-commerce business utilize the constantly upgraded internet technologies in order to optimize their services in all over the world and that is the lack in the traditional business process as there is no involvement of the internet services and as a result traditional business is facing the geographical barriers for optimizing their business.