Overview of Electronic Commerce

INTRODUCTION - 1

E-Commerce includes
Buying & Selling of goods
and services on the
Internet
B2B & B2C transactions
Substantial cost savings
Introduction - 2
Demands of E-commerce
Keeping pace with the
changing technology
Knowledge of web
languages
Knowledge of search
engines, web servers,
communications and
networking
Main Activities of E- Commerce - 1
Buying & selling of
Products

Shipping of products

Producing financial
statements
Main Activities of E-Commerce - 2
Role of Humans
Personalised
customer service
Sales
Corporate
development
New product
Research
Definition of Electronic Commerce
E commerce is:
A strategy
A technology
A system
A separate business
A sales approach
A mystery
 Broad Goals of Electronic
Commerce
Reduced costs
Lower product cycle time
Faster customer response
Improved service quality
 Electronic Commerce Technical
Components

Client or PC work station

Transaction server
Database server
Database transaction
Router and
Internet communication line
Functions of Electronic Commerce
Communication
Process management
Service management
Transaction management
Prospects of Electronic Commerce
People buying online is likely to double
year by year.
Areas expected to grow include financial
services, entertainment, travel and
groceries.
In the next few years e commerce is
likely to transform the world and the world
of marketing in particular.
Significance of Electronic
Commerce
Web-TV and digital
television
Telecommunication
Phones, Fax,
copiers PCs &
Printers &
E-mail
Integrated
machines
 Advantages of Electronic
Commerce
Distance
Time
Low cost
Flexibility
Greater access to market
Error reduction
Wider choice
No wastage of time
 Disadvantages of Electronic
Commerce - 1
Inability to touch the products
Discourages socialisation
Customer dissatisfaction as most
businessmen do not know how to run e
business
Hackers
Inability to reach out to women & elderly
persons
 Disadvantages of Electronic
Commerce -2

Internet access limited

Limited use of credit
cards
Difficulty in conforming to
EDI standards
Virus attacks
Pre-requisites of Electronic
Commerce
Website

A shopping cart
program

On-line payment
system
Lessons of Electronic Commerce
Evolution
On-line customers
do not go back to
the old ways
24 hrs/day
Shopping from
home
Technology
facilitates change
Meaning of Electronic Commerce
Product catalogs on the Internet
Inventory databases
Online point-of-sale and Transaction processing
Web retailing & wholesaling
EDI
Electronic Funds Transfer
Electronic banking
Interactive Marketing
Supply Chain Management
Meaning of Electronic Commerce
Electronic Mail
Voice Mail
Discussion Forums
Data conferencing
Video conferencing
Electronic Meeting Systems
Scope of Electronic Commerce
Linking Linking
With With
Suppliers Distributors &
Retailers

Enterprise
Management

Global Interface
E commerce With
Infrastructure Consumers
 Communications and
Collaborations
Virtual teams

Global
communications collaboration

Internal
External
Business
Electronic Commerce Systems
Online Point of Sale (POS) transaction
processing
Web retailing and wholesaling
EDI
EFT
Electronic Banking
Interactive Marketing
SCM
 Technologies Used
EDI
Bar codes
E- mails
Internet
www
Product data exchange
Electronic forms
 Electronic Commerce Analysis
Stages
i. The webmaster signs up at a storefront
analysis site.
ii. The analysis service launches an agent who
logs on to the webmasters e-commerce site.
iii. The agent tests the complete shopping
experience.
iv. The agent sends result to the webmaster.
 Electronic Commerce Technical
Architecture
organisations are satisfied with e-
commerce because, it is:

i. Cheap, easy and lucrative.

ii. Everyone (companies, customers,
suppliers) are doing it
iii. Brand building is easy
Two Faces of Electronic
Commerce
Sell side
Buy-side E-
procurement

Facets
Both sell-side and
buy-side solutions
Internet-based trading
exchanges
 Sell Side
Functions available for Real-time information for
Dealers customers

Spare parts order Part availability

Order tracing Price and

Warranty look-ups Status of their orders

Field service
 Buyside E- procurement
Applications

People soft Ariba

Commerce-one Walnut creek
Mountain view Oracle
Pleasanton SAP
Newton square
 Foundation of Commerce
Essentials
Collecting money from consumers
Collecting money from business partners
Improving the productivity of current processes
Developing & supporting new automated
processes
Changing how you deal with existing customers
and
Changing how you deal with new customers
Electronic Commerce Applications
-1
Retail stores e.g. book stores, music
stores etc.
Auction sites
Cooperating businesses
Banking services
Online payment through credit cards or e-
cash
Filing tax returns
Electronic Commerce Applications
-2

Publishing

Education

Training of employees etc.

The Net looks for the following companies
i. To a cable company
ii. To a software company
iii. To a big media conglomerate
iv. To an entrepreneur
 Electronic Commerce and
Electronic Business
C2C (customer to customer)
C2G (customer to Government)
G2G (Government to Government)
B2G (Business to Government)
B2P (Business to Peer)
P2P (Peer to Peer)
B2A (Business to Administration)
C2A (Customer to Administration)
 Foundation of Electronic
Commerce
Collecting money from customers
Collecting money from business partners
Improving productivity of current processes
Developing & supporting new automated
processes
Changing how you deal with existing customers
Changing how you deal with new customers
Electronic Commerce Development
How many visitors you would like to have
at your site?
What messages you want them to get?
Have you decided to build a community?
Is the site a transaction site?
Are there customer support requirements?
 Electronic Commerce goals
V/S
Business goals
E- commerce Business
Create customer Online customer
support database support function
Build security facility Sell products online
Develop vertical Create community of
interest interested prospects
 Electronic Commerce
V/S
Traditional Commerce

E commerce involves

Information technology
Telecommunications technology
Business processes
 Major segments of Electronic
Commerce

Inter- organisational (B2B)

Intra organisational (within business)

Retail