The roots of electronic commerce lie in the earliest use of computers for the exchange of electronic data, with files sent by modem from one computer to another. Such files could be as simple as a single order or as complex as a database of names and financial information. Allegiance Health Care has a history of leveraging new technologies. The company, which makes and distributes medical and surgical products for acute-care hospitals and ancillary sites such as surgery centers, began using electronics to improve its productivity back in the 1960s. We had customers transmitting their orders to us over phone lines using paper tapes and punch cards.
Electronic commerce can take a number of forms.
The lack of human intervention is one of the characteristics that distinguish forms of EDI from electronic commerce in general. The automatic identification of products through unique identifiers increased recordkeeping speed and reduced errors from human input. Standards for universal product numbers were developed to help ensure accuracy, because errors in reading the codes could throw a business into disarray. The risk involved was heightened by the expanded use of bar codes by hospitals seeking to track patients, lab samples, lab reports, devices, and even x-rays. When you are relying on bar codes for risk management, stock replenishment, and charge-backs, you have got to be sure they are correct.