Effets of Digital Communication and Electronic Commerce in Australian Firms

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1. 4 Aim and Objectives

As the report topic suggests, the aim of the research was to understand the impacts that Australian firms experience from the use of digital communication in electronic commerce. This being said, the objectives from the aim are important part of considering. One of the objectives was to understand the concept behind digital communication and electronic commerce, through basic definition and relation of the two technologies (Ruediger, 2011). This was deemed imperative so as to introduce readers to the concept and form a basic platform of ensuring that everyone is at par with the topic. The second objective was to identify how various companies have exploited these technology and the effects on the same. The third objective was associated with the findings and was to come up with findings on data that suggests the effects of using the digital communication in the electronic commerce in the Australian firms.

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Literature Review

2.1 Digital Communication and Electronic Commerce

Digital communication is a term that Gallager (2012) defines as the use of electronic devices in sending and receiving information. This is a broad definition and he further explains that sending and receiving the information does have different contexts. The literal meaning of this is the use of cell phones for example to send and receive messages while the complex meaning is applied in Information Technology to imply the basic network that connects more than one electronic device for the purpose of communication. This context means that commutating is not just sending and receiving messages but also maintaining the connection for the purpose of the communication. In the current generation of technology, digital communication comprises several elements, from the electronic devices to the operation concepts. The concept of operation of these devices is well understood by the IT expert Uzun (2013) as he explains the Internet Protocols or rules that digital communication employs. This element of digital communication defines how the various communication devices are connected and the rules that govern the sharing of information. Further, he expounds on the way devices communicate with each other, suggesting that there exists a virtual link fostering the flow of information in both wireless and wired networks. The same goes to the communication between different devices for example the communication links and protocols between cell phones and computers. These accounts converge on the agreement that digital communication is the backbone of communication today. This is arguably because most people have embraced the use of personal computers and smart phones, all which largely rely on the use of internet according to Revels, Tojib, and Tsarenko (2010).

On the other hand, electronic commerce is the use of digital communication and devices in the buying and selling of goods and services. According to Kauffman (2009), electronic commerce basically exploits the internet; this is the channel in which the digital devices communicate in the various processes involved in electronic commerce. In regard to the processes, Alonso, Hagen and Lazcano (2014) highlight the basic processes and activities under each process in the electronic commerce. The insight from these researchers is that initiation of electronic commerce is done by the customer who first scans available goods or services in an organization’s online sector. This is then followed by selecting the preferred good or service and initialing the payment processes. The site then scans the payment request from the customer, allowing the process if the details fed in the online payment option is compatible with the customer’s account details. Such an account as stated by "Understanding Online Payment Options" (2012) contains details about the financial status of the account holder and is used alongside credit cards such as MasterCard. If the details are compatible and the account has enough funds to complete the payment, the firm automatically produces a code and sends it to the customer. The customer then enters this code sent mostly through email in the online payment site and a delivery is processed. The firm ensures that the product is delivered to the customer according to the details they provide such residential area in terms of physical address, as Perid & Steiger (2008) imply. This resembles the traditional delivery of mail through mail boxes located near houses and means that the responsibility of delivery is by the firm and not the customer. As such, electronic commerce relates with the digital communication considering that digital communication forms the infrastructure over which the electronic commerce takes place. As such, the electronic commerce relies entirely on digital communication especially through the internet.

2.2 Australian Firms that Exploit Digital Communication in Electronic Commerce

The Australian federal government has an account of various firms that exploit electronic commerce under various sectors in 2008. According to MacGregor and Vrazalic (2008), these included tourism, the food industry, government tenders, science and technology among others. This shows that the country has an indication of utilization of the type of commerce. Additionally, the federal and state governments have partnered to increase the coverage of this type of business because it has not fully exhausted the market (Seo, 2017). This is particularly through establishment of programs that support the growth of small business enterprises that do not consume a lot of funds especially for the development of the youth and women. This added to the fact that the small enterprises which according to the Australian Bureau of Statistics, comprise between 4 and 20 employees, contribute greatly to the economic growth in the country (Le & Valadkhani, 2014). With this category of firms in the country, the sector is able to easily adjust to the rapidly growing field of technology due the small size. Additionally, the sector has had the need to respond to the requirements that internet users have for example having to get every order delivered to them instead of travelling to stores and increase their internet competence. This means that the businesses with this size have found the use of electronic commerce very important in expanding the coverage at very few costs of internet as compared to larger firms.

Electronic commerce is also a common practice in Australia in the big firms. Many grocery supermarket chains have incorporated both physical and electronic commerce systems to maximize the base over which revenues

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