eCommerce: A Living Technology™
eCommerce enables exchange of goods or services via electronic means between people. Today, it is made up of integrated technologies that are owned and operated by separate industries.
eCommerce, however, is evolving as people broaden their expectations to include all products and services they consume. The context in which eCommerce is used is also expanding from personal to work to vacation to…well…life. Reality is that eCommerce delivers the promise of information technology:
People have always shaped the future of commerce whether it is based on brick and mortar face-to-face exchange or an online transaction. The fundamentals of commerce has not changed but processes, people and technologies have. As eCommerce attempts to meet the expanding expectations of the free market, the separately owned integrated technologies that now make up eCommerce will coalesce.
That is, technology that helps search for products or services will coalesce with the technologies that enable act of purchase, and the delivery of products or services.
Defining Digital Coalescence
Digital Coalescence is more than algorithmic joining of technologies owned by separate industries. It is the fusion of people, processes and technology to reduce overall costs of enabling eCommerce without the limitation of industries and/or regulations. Extending the concept from technology to industries would result in absorption of these industries into one.
Future industries will be defined by how people want to use technology in their daily lives.
Addressing the Barrier: Costs of eCommerce
eCommerce like Commerce of yesteryears is shaped by the free market. And free market is insisting on driving costs out of the current processes and technologies.
Case in point is Walmart Pay. With the new payment app, Walmart “shoppers about to check out will be able to log in to their accounts on the app, scan a QR code at the cash register, and pay on their phone without producing cash or a credit card.” The use of credit card can cost merchants “1.5% to 3% of every card swipe to credit card companies.”
User trust and behaviour will still remain a challenge to overcome for these coalesced technologies. In others words, people or the free market will still decide what stays and what goes based on how easy it is to use.
But change in the cost structure is necessary to sustain growth and profitability in eCommerce. eCommerce solutions are expensive to build and maintain. It can require significant investment in people, process, technology and time while still retaining significant risk of failure not to mention fierce competition.
Digital Coalescence: Will it remove the costs in eCommerce?
Yes but only within the limits of the laws of physics. Search of products or services and payment methods are for the most part digital processes. Delivery of services can also be included in Digital Coalescence. But we will have to wait for the technology that transforms matter into energy and then back into matter to deliver physical products.
OPEN WRX Consulting Inc. is committed to helping companies improve competitiveness through effective decision making by applying strategy to tech solutions, building plans that create financial value and sharing knowledge that drives innovation.
Kiran has over ten years of experience in business and technology consulting, eCommerce, marketing and sales – in both the public and private sectors and across several industries. Her experience spans the spectrum from start-ups to Fortune 500 companies. By working closely with you on technology initiatives, Kiran can help stimulate your business strategy, deliver solutions and identify value.