Question

2. Explain how electronic commerce can reduce cycle time, improve employees’ empowerment, and facilitate customer support.

Answer 1

Ecommerce is the transaction and trading of goods and services that are done online or through the internet.

Ecommerce can reduce the cycle time in a way that reduces the transaction cost of supplying goods from the producers to the customers by eliminating the intermediaries or middlemen in the transaction process. The customer can directly place orders and do payments online by visiting the website of the company which reduces producers' transaction costs and consumer's cost of visiting the physical store. Most importantly, it reduces the cycle time in a way that reduces the time it takes for the good or service to reach the final customer by reducing the number of middlemen.

We know that e-commerce reduces many intermediaries and middlemen in the process of supplying goods and services. Thus, there are very few people who are in charge of maintaining the website, checking for errors, engineers who build the website, etc. Thus, when there are few poeple looking after work, it increases the responsibilities over them and thus empowers them in their work.

The best part about e-commerce is that it facilitates customer support. Customer satisfaction is of utmost importance while running a business. A company should provide customer support through better communication opportunities and technological support and listen to the satisfaction and dissatisfaction of its customers and provide solutions as early as possible. Though e-commerce it is now easy for both the company and the customers to get in touch with each other. Customers can easily visit the website or contact customer support if they face any issue regarding the goods or services. And, customer support helps them in the best possible way.