E-commerce application utilisation by South African SMME’s

Abstract

The Internet was functioning on Internet protocol (IP) and transmission control protocol (TCP) in the 1970s and soon afterwards electronic mail (email) was invented allowing messages to be sent from one person to another using packet switch services (PSS). However email did not form an information space for information to permanently exist. The World Wide Web (Web) arrived in the late 1980s, riding on top of the Internet providing a global and persistent information space available to everyone. This information space has assisted in small business facing dramatic change, often referred to as the 'e-commerce evolution'. Compared to the industrial revolution with the advent of the railways and electricity the magnitude of ecommerce is no less. Advances in the information technology (or e-comrnerce elements) and the use of Information systems (or applications) are the main drivers behind this e-commerce evolution. Some authors believe all businesses will be equal in the utilisation of e-commerce eroding any competitive advantage the one may have over the other. The 'digital economy' is now available with the explosive popularity of the Internet and the Web as seminal applications of e-commerce. In South Africa the maturity level of e-commerce adoption has increased from skepticism to positivism since the world wide availability of the Internet. Although e-commerce has generated a profusion of articles in South Africa, there has been a lack of research into the effects and benefits of e-commerce utilisation by small business. Various elements of e-commerce are explored highlighting the suitability of use towards a small business. This stUdy will explain the fundamentals that small business owners will need to understand to enable them to knowledgably participate in the global phenomenon of e-commerce. Authors nationally and internationally have explored the applications of e-commerce for example email and electronic data interchange (EDI).