CS507 GDB Solution fall 12 January 2012

[Vuhelper]

All the Students of CS507 are directed to participate in the Graded MDB which will be opened from January 16, 2012 to January 17, 2012. This GMDB has 5% weightage in the final score, so all the students are advised to participate in it.



Note: Your answer must not be greater than 200 words.



E-commerce is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically.

E-commerce is divided into two main sectors, business-to-business (B2B) e-commerce and business to customer (B2C) e-commerce.



Question:

Elaborate how can Pakistan draw benefits by transforming into an e-economy?

[Vuhelper]

E-commerce:

IT is a sale and purchase of items using computer systems and internet. Funds involved in the transaction are transferred electronically. Many business started online have failed due to a few short comes. But many of them have become successful; it is an opportunity to enter in an e-economy at a mature stage. Now enterprises are learning from the mistakes of the pioneers. E-commerce has proved to be viable in B2B area whereas in B2C area it still have some potential to be tapped.

Benefits of E-economy for Pakistan:

It will enhance the ICT skills needed to participate in the E-economy.
European enterprise will be having the ability to compete in modern global market.
It will allow people to carry business without time and distance barriers.
The cost of sale is less than cost of manual system.
It is most suitable for niche products.
It is the cheapest mean of doing business.
Benefits for buyer:
Less time consuming
Increased alternatives to buy
Less time in resolving invoice, delivery etc
It also reduces the following costs;

Labor cost
Document preparation
Error, fraud detection and correction
Mail preparation
Reconciliation
Telephone expense
Data entry
Supervision expens
Operational benefits of e-economy include reduction in both time and personnel required to complete business process, strain and other resources.