Cycle time is the amount of time a particular organization takes to complete any process. Such processes include, collecting accounts receivables, returning a quotation, and getting product out into the marketplace. The latter, is probably the most common in e-commerce. According to a report published by the FedEx Center for Cycle Time Research at the University of Memphis, "All too often in organizations, less than 3% of the elapsed time performing a process has anything to do with real work." The rest is spent on "scheduling, waiting, needless repetition, getting lost (and) getting found."
However, with the emergence of e-commerce and the advances in technology, cycle time could be reduced. For example, obtaining music, one needs to go to the music store to get a physical copy of the album before the emergence of e-commerce. Now with e-commerce, one only needs a computer system and Internet connection to obtain those music digitally. E-commerce reduced delivery time of digitized products and services to mere seconds. Furthermore, e-commerce could eliminate activities that are non-value added.
Activities such as documentation and administrative works could be reduced by more than 90%. Everything is made through computer systems. Employees need not search around for information and walk around the office to pass product orders. All is done via e-commerce.
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Improved Employee Empowerment
Employee empowerment is the extent of authority given to the employee to make decisions independently by the organization. This is enabled when the company adopts a decentralization decision making process. It gives the employees more freedom.
With e-commerce, almost everything is made available with a click of the mouse. Such as, customer history, product information, delivery mode, payment mode, promotion and discounts. Employees could make decision on the spot without consulting their superiors. This means that sales could be finalised and closed faster. Hence, making more sales.
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Facilitate Customer Support
E-commerce enables the organization to provide value-added services and update to recurring customers and new customers alike. With the information in the organization's database, it could recommend the right products to the right customers.
For example:
I bought the items below from Amazon.com.
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Delivery estimate:December 23, 2008 A few weeks later, Amazon.com sent me an email recommending a product relevant to the goods that I've bought.
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With the help of e-commerce, the organization could lock customers in by giving them what they want and what they might want in the future by analyzing their buying habits.
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