Computers figure so heavily in our daily
lives that it is difficult to understand why early
computer experts did not foresee much demand for these
specialized machines. For example, in the 1940s, the
chairman of IBM thought a total of five machines could be
sold worldwide. Since then, a succession of breakthroughs
has created a new economic sector: Information
Technologies (IT) - the ever growing variety of ways in
which we are able to gather, store, analyze, share, and
display information.
The convergence of computer and
telecommunications technologies has revolutionized how we
get, store, retrieve, and share information. Consumers now
routinely use computer networks to identify sellers,
evaluate products and services, compare prices, and exert
market leverage. Electronic commerce (e-commerce) are
business processes which shift transactions to the
Internet. E-commerce is growing at a rapid rate. The value
of e-commerce transactions, while still small relative to
the size of the U.S. economy, continues to show strong
growth despite a recent economic downturn. More
significant than the dollar amount of these transactions,
however, are the new business processes.
Many new
Internet-based companies and traditional producers of
goods and services are working to transform their business
processes into e-commerce processes in an effort to lower
costs, improve customer service, and increase
productivity, with varying degrees of success. These kinds
of e-commerce transactions over the Internet --
business-to-consumer (B2C) and business-to-business (B2B)
-- have grown so fast over the last five years that many
experts continue to underestimate their growth and
development
More than half of the nation is now
online. In 2000, 98% of U.S. schools had Internet access.
The number of households with Internet access has
increased to 50.5% in 2001. Use of broadband services such
as cable, satellite, and DSL is rapidly expanding.
Wireless Internet access for notebooks via WLANs in
airports, hotels and cafes is also becoming increasingly
popular. Among U.S. Internet users, 39% of individuals are
making online purchases and forecasters at the U.S.
Department of Commerce suggest that business to business
e-commerce may reach the 300 billion dollar mark in 2002.
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