Saturday, June 3, 2017

The impact of the IT-enabled business trends in e-commerce industry in next decade.

The impact of the technology in the way we live and do our business is increasing day by day. Advancements in Information Technology are the driving factor in determining the strategy of the businesses.

One such industry which relies heavily on IT is E-commerce industry. The right strategy for such an industry would be adaptive because the E-commerce industry must adapt its strategy with the changing IT trends. Here’s an exploration on how IT-enabled business trends transpose onto e-commerce industry.
  • Joining the social matrix: Developing a social matrix is very crucial for e-commerce industry considering its fast-paced environment where delivery time is a strategic advantage. How quickly one organization rolls out a new idea (i.e. from the inception of the idea to its rollout in the production environment) before the other competitors are determining factors in the success of the e-commerce organization. To reduce the delivery time of products and the rollout time of the application, all the players i.e. employees, suppliers, and customers must to able to communicate efficiently forming a social matrix.
  • Competing with ‘big data’ and advanced analytics: Understanding customer behaviour is very important to an e-commerce organization to maximize their sales and achieve the targets. To determine the customer behaviour, analysis of the customer data is required. A huge amount of data (Big Data) such as past purchase history, recently viewed products etc. are stored and analyzed to determine the pattern of the user shopping behaviour. So, that the user can be suggested products relevant to his/her liking which will improve the possibility of the sale.
  • Deploying the Internet of All Things: E-commerce organizations operate their business online for which they must either develop their own cloud servers or lease from some other company. Leasing these servers accounts for a major operational cost. Moreover, due to flexible nature of the industry, the number of servers fluctuates i.e. during the sale, upscaling of the servers is needed to serve increased traffic. To be profitable in the long run and reduce the operational cost developing in-house cloud servers is a must for any e-commerce company.
  • Automating knowledge work: To reduce the operational cost and improve productivity e-commerce companies have started to automate as many jobs as possible. With the advancement in technology, the processing speeds of computers have increased, significant advancements have been made in the field of AI. To leverage this, automation engineers are being hired to automate the jobs which were done manually. It will increase the efficiency, accuracy and reduce the chances of outage in the production environment.
  • Buying and selling as digital commerce leaps ahead: Developing and integrating a digital payment gateway is of at most importance for an e-commerce company to function. Keeping in mind the digital nature of the business most of the transactions are bound to happen online. So, developing an in-house digital payment gateway gives a strategic advantage, as its integration will be easy and it will provide customers smooth and enhanced user experience.

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