Basics of e commerce(1)

BasicsBasics

Exploring E-CommerceExploring E-Commerce

What is e-Commerce and e-business?What is e-Commerce and e-business?

• Electronic commerce Electronic commerce (EC, or e- commerce) describes the process (EC, or e- commerce) describes the process of of buyingbuying,,sellingselling, , transferring, or exchanging of transferring, or exchanging of products, servicesproducts, services,, and/or informationand/or information via computer via computer networks,networks, including the Internet. including the Internet.

• E-business E-business refers to a broader definition of EC, not just refers to a broader definition of EC, not just the the buying and selling of goods and services, but buying and selling of goods and services, but also servicing customers, collaborating with also servicing customers, collaborating with business partners, conducting e-learning, and business partners, conducting e-learning, and conducting electronic transactionsconducting electronic transactions within an within an organization.organization.

Definitions by different means:-Definitions by different means:-

• From a communication perspectiveFrom a communication perspective, e-commerce , e-commerce is the delivery of information, products or is the delivery of information, products or payments via telephone lines, computer payments via telephone lines, computer networks or any other means.networks or any other means.

• From a business perspective ,From a business perspective ,e-commerce is the e-commerce is the application of technology toward the automation application of technology toward the automation of business transactions.of business transactions.

• From a online perspectiveFrom a online perspective, e-com provides , e-com provides capability of buying & selling products & capability of buying & selling products & information on the internet.information on the internet.

Commerce

E (Electronic)- Commerce

Traditional Commerce

Internet Commerce Mobile Commerce

Business Focused E-Commerce

Consumer focused E-Commerce

E-Commerce consists of:E-Commerce consists of:

• Electronic retailing (e-tailing)Electronic retailing (e-tailing)

• EDI (Electronic Data interchange)EDI (Electronic Data interchange)

• EFT (electronic Funds Transfer)EFT (electronic Funds Transfer)

Types of E-commerce

• Four Major Domain on which E-Commerce Works

Business (Organization)

Business (Organization) Consumer (Individual)

B2BBrokering sites

B2Ce.g. Amazon

Consumer (Individual)

C2Be.g Priceline

C2Ce.g eBay

Types of E-CommerceTypes of E-Commerce

• Business-to-Business(B-to-B) site:Business-to-Business(B-to-B) site:is a website that is dedicated to is a website that is dedicated to exchange of information, goods and services to other business rather than exchange of information, goods and services to other business rather than final consumers.final consumers.

• Business-to-Customer(B-to-C) site: Business-to-Customer(B-to-C) site: is a website where all transections is a website where all transections take place between a business house and the final consumer.take place between a business house and the final consumer.

• Consumers-to-businesses (C2B): Consumers-to-businesses (C2B): In C2B, consumers make known a In C2B, consumers make known a particular need for a product or service, and suppliers compete to provide particular need for a product or service, and suppliers compete to provide the product or service to consumers. An example is Priceline.com, where the product or service to consumers. An example is Priceline.com, where the customer names a product and the desired price, and Priceline tries to the customer names a product and the desired price, and Priceline tries to find a supplier to fulfill the stated need.find a supplier to fulfill the stated need.

• Consumer-to-consumer (C2C): Consumer-to-consumer (C2C): is a website where all the transections is a website where all the transections take place between a consumer and the website acting asa a platform that take place between a consumer and the website acting asa a platform that brings the buyer and the seller togther.brings the buyer and the seller togther.

Other types of E-Commerce are:Other types of E-Commerce are:

• Government-to-Consumer(G-to-C) site: Government-to-Consumer(G-to-C) site: website is an attempt by the government to website is an attempt by the government to reach out to people in general.reach out to people in general.

• Business-to-Government(B-to-G) site: Business-to-Government(B-to-G) site: website is a variation of the B-to-B web site. website is a variation of the B-to-B web site. This web site used by the government to This web site used by the government to exchange information with various business exchange information with various business houses across the world.houses across the world.

Types of E-Commerce SitesTypes of E-Commerce Sites

• Educational sitesEducational sites

• Financial sitesFinancial sites

• Auction sitesAuction sites

• News sitesNews sites

• Entertainment sitesEntertainment sites

History of E-commerceHistory of E-commerce

The U.S government extended the moratorium on Internet taxes until at least 2005.

2000

Retail spending over the Internet reaches $20 billion, according to Business.com.

1999

DSL, or Digital Subscriber Line, provides fast, always-on Internet service to subscribers across California. This prompts people to spend more time, and money, online.

1998

Two of the biggest names in e-commerce are launched: Amazon.com and eBay.com.

1995

Netscape arrived. Providing users a simple browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer.

1994

Compuserve offers online retail products to its customers. This gives people the first chance to buy things off their computer.

1992

EDI, or electronic data interchange, was standardized through ASC X12. This guaranteed that companies would be able to complete transactions with one another reliably.

1984

EventYear

http://www.business.com/

http://www.amazon.com/

http://www.amazon.com/

http://www.ebay.com/

http://www.netscape.com/

Advantages of E-CommerceAdvantages of E-Commerce

• Able to conduct business 24 x 7 x 365Able to conduct business 24 x 7 x 365

• Access the global marketplaceAccess the global marketplace

• SpeedSpeed

• Opportunity to reduce costOpportunity to reduce cost

• Platform independentPlatform independent

• Customer self serviceCustomer self service

• Large purchase per transactionLarge purchase per transaction

• People can shop in different waysPeople can shop in different ways

• Large catalogsLarge catalogs

• Improved customer relationImproved customer relation

Disadvantages of e-commerceDisadvantages of e-commerce

• Time for delivery of physical productsTime for delivery of physical products

• Limited and selected sensory informationLimited and selected sensory information

• Returning goodsReturning goods

• Privacy, security, payment, identityPrivacy, security, payment, identity

• Personal servicePersonal service

Types of E-commerce Types of E-commerce

• Inter-organizational e-commerce(B-to-B)Inter-organizational e-commerce(B-to-B)– Supplier managementSupplier management– Inventory managementInventory management– Distribution managementDistribution management– Payment managementPayment management

• Intra-organizational e-commerce(within business)Intra-organizational e-commerce(within business)1)1) Workgroup communicationWorkgroup communication2)2) Electronic publishingElectronic publishing

• Customer-to-Business e-commerceCustomer-to-Business e-commerce

• Business-to-customer e-commerceBusiness-to-customer e-commerce

• Customer-to-customer e-commerceCustomer-to-customer e-commerce

Features of E-Commerce

UbiquityUbiquity

•Marketplace is created or extended beyond traditional boundaries and removed from a geographic location. •Shopping can take place anywhere. •Reduced shopping costs.•Customer convenience enhanced

Internet Technology is available everywhere, at work, at home, and elsewhere via mobile device, anytime

Business SignificanceTechnology Dimension

Global ReachGlobal Reach

•Commerce is enabled across cultural and national boundaries seamlessly and without modification. •Marketplace includes potentially billions of consumers and millions of businesses world wide

Technology reaches beyond national boundaries


Universal StandardsUniversal Standards

•Lower market entry costs,•Reduce product search cost and by creating a single , one market place, price discovery becomes simpler, faster and more accurate•Easily find all the suppliers, prices, and delivery terms of a specific product anywhere in the world

There is one set of technology standard, namely Internet Standards


RichnessRichness

•E-Commerce technologies have changed the traditional tradeoff between Richness and the Reach. •The Internet and web can deliver to an audience of millions rich marketing messages in a way not possible with traditional technologies like radio, TV and magazines.

Video, Audio and Text Messages are possible


InteractivityInteractivity

•Consumers are engaged in a dialogue that dynamically adjusts the experience to the individual, and make the consumer a co- participant in the process of delivering goods to the market.•Similar to face-to-face experience but on a massive global scale

The technology that allows two way communication between merchant and consumer


Information DensityInformation Density

•Information processing, storage and communication costs drop dramatically while currency, accuracy and timeliness improve greatly. •Information becomes plentiful, cheap and accurate

The technology reduces information cost and raises quality


CustomizationCustomization

•Personalization of marketing messages and customization of products and services are based on individual characteristics

Technology allows personalized messages to be delivered to individuals as well as groups


Need for E-CommerceNeed for E-Commerce

• Increased competitionIncreased competition

• Reduction time to marketReduction time to market

• Improvement in payment processImprovement in payment process

• Electronic data interchangeElectronic data interchange

• Popular with consumers and suppliersPopular with consumers and suppliers

• To improve productivity and to generate profitTo improve productivity and to generate profit

Interdisciplinary nature of e-commerceInterdisciplinary nature of e-commerce

• MarketingMarketing• Computer sciencesComputer sciences• Consumer behaviorConsumer behavior• FinanceFinance• EconomicsEconomics• MISMIS• Accounting and auditingAccounting and auditing• ManagementManagement• Business laws and ethicsBusiness laws and ethics

Forces fueling e-commerceForces fueling e-commerce

• Economic forcesEconomic forces

• Market forcesMarket forces

• Technology forcesTechnology forces

In FutureIn Future

• While E-Commerce may not completely While E-Commerce may not completely replace other forms of Commerce, it is replace other forms of Commerce, it is likely to be the likely to be the dominant modedominant mode of the of the commercial transactions commercial transactions in the futurein the future..

• Colleges and SchoolsColleges and Schools including Business including Business Schools should reflect this trend in the Schools should reflect this trend in the curriculum curriculum to train the future generation to train the future generation of Managers.of Managers.

Basics of e commerce(1)

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