E - Commerce E-Commerce is an integration of communication, data management and security...
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Transcript of E - Commerce E-Commerce is an integration of communication, data management and security...
E - Commerce
E-Commerce is an integration of communication, data management and security capabilities that allows organizations to exchange information about sale of goods and services.
Electronic v/s Traditional Commerce
• Information exchange
network computers / person – person
• Processing
Electronic / Paper
• Cost
Reduced / More
• Advertisement
throughout the world / limited area
•Expansion
Easier & cheaper / Difficult & Expensive
•Identifications required
Digital signature / Driver’s license, passport
• Processing Time
Less / More
• Market Analysis
Easier / Difficult
• Banking
Net Banking / Traditional Banking
(e Cash, e Check, EFT etc.) / (Cash, Check, Credit cards etc.)
Electronic Commerce
Electronic Document Interchange
Electronic Publishing
Electronic Messaging
Corporate Digital Library
Electronic Fund Transfer(EFT)
Marketing, Advertising
Electronic Data Interchange (EDI)
Sales, Customer Support
E- Mail, Video ConferencingFax, Mobile Services
Information Sharing
Collaborative Work
E – Commerce Major Spread Areas
Corporate Digital Library
Information Sharing
• Technical Data Interchange
Collaborative Work
• Virtual & Team Based Enterprise
• Outsourcing
•Demand driven Manufacturing
• Net Banking
Advantages of E- Commerce• Instant World wide availability
• Reduce paperwork
• More affordable
Lower Sales & Marketing costs
Reduced processing costs
Reduced inventory cost
• Reduced cycle time
• Improved product analysis
• Easier entry into new markets
• Improved market analysis
• Better customer service
• Faster access of information
• Easy access to geographically remote areas
• Net Banking
E-Commerce Categories• B to C (Business to Consumer)
• Virtual storefront
• E-Banking
•B to B (Business to Business)
• Supplier Management
• Inventory Management
• Distribution Management
• Payment Management
• C to C (Consumer to Consumer)
• Auction using Sites (eBay, Baazi)
B2B / B2C
Inter corporate sales Corporate to customer sales
More investigative Less investigative
Lesser Media attention Greater media attention
Sites more informative & Sites to attract traffic, convert to buyers
Technical
Direct or Shared channel Shared channel
90% of E-commerce revenue 10% of total E-commerce revenue
Requires negotiations Requires discounts, attractive offers
B2B Business ModelsMarketplace / Exchange (B2B hubs) eg. OracleExchange.com DirectAg.com, e-Steel.com
(Bring buyers & sellers together to reduce procurement costs)
• E-Distributor eg. Grainger.com
( Connects businesses directly with others reducing sales cycle)
• Service Providers eg. Employeematters.com
(Supports companies through online business services)
•Matchmaker eg. iShip.com
( Helps businesses find what they want and need on the net)
•Informediary eg. Doubleclick.net
( Gathers information about customers and use it to help advertisers find appropriate audiences )
B2C Business Models• Portal eg. Yahoo.com, AOL.com, MSN.com, Rediff.com etc.
(integrated package of services as search, news, chat, music downloads, calculators etc.)
• E-tailer eg. Amazon.com,Wallmart.com etc.
(On line version of retail, distribution store)
• Content Provider eg. WSI, sportsline.com, CNN.com etc.
(Information & news provider)
• Transaction Broker eg. E-Trade.com etc.
(online transactions brokers, travel agents etc.)
• Service Provider eg. xDrive.com, myCFO.com etc.
(sells services)
• Community Providers eg. About.com, iVallage.com etc.
(Individuals with common interests & hobbies share notes)
Virtual Enterprise
It is an organization composed of geographically dispersed membership, intersecting several traditional organizations, communicating using electronic means.
• within large corporations
• part of business alliances
• Among individuals working independently
Communication channel
Leased lines Internet
Software
Internet servers Reporting software
Database software Accounting software
• Hardware
Server Phone connection
LAN Cable MODEM
Setup
Successful Storefront Ingredients
• Generating Demands
• Ordering
• Fulfillment
• Processing Payments
• Service & Support
• Security
•Community
Generating Demands• Traffic attracted
• Lookers converted to buyers
Online Advertisement
• Banner Ads.
• Targeted E-Mail
• Reference Bouncers
• Partnership
• Contest Promotions
Ordering• Consistent
• Attributes not overstated
• Pages to have consistent look & feel
• Maintain navigation bars
• Eliminate redundant information
• Ease ordering
• Calculate total costs
• use shopping carts
• Accept different payment substitutes
• Include bail out mechanism
Fulfillment
• Create orders
• Sent confirmation / tracking number
• Timely undamaged delivery
Processing Payments
• e-Cash (Digicash.com)
•Check Model (Checkfree.com)
• Credit Model (Credit Cards)
Service & Support
• Automatic call back
• Click to dial
• Co-browsing
Security
• Data confidentiality (encryption,decryption)
• Authentication (Digital Signature)
• Access Control (Firewalls)
• Data Integrity (encryption, Digital Signature)
Community
• Build Loyalty
•Encourage repeat business
• E-Mail special offers
• Cross sell related items
• Crediting frequent business
EDI (Electronic Data Interchange)
Computer to computer exchange of standardized information.
ANSI (American National Standard Institute)
EDI is the transmission in the standard syntax of unambiguous information of business or strategic significance between computers of independent organizations.
Customer
Vendor
PO generated by purchasing system
Sales order entry system
Examples of EDI
Customer
Vendor
Invoice generated by billing system
Accounts payable system
Examples of EDI
Features of EDI• Primary tool a Software which transforms data
to & from ANSI ASC X12 standard format.
• Begins & End with exit & entry points of business applications.
• Uses point to point connectivity
• Data transmitted by
• Dedicated mode
• Dial up mode
Dial up mode
• Direct communication using Net
• VAN provider engaged EDI on NET
Wall-Mart : Links with suppliers (Seminole Manufacturing Co. Ltd.) to reduce delivery time.
General motors : Fund transfer, shipping receipts are sent from GM plant to the computer center where they are matched against electronic invoices and purchase orders.
US Customs : Accepts electronic custom documentation in advance of goods shipment which reduces port delay.
• Buyer benefits:
1. Lower inventory level
2. Quick Order Acknowledgement
3. Efficient invoice progressing
4.Productivity enhancing tool
• Supplier Benefits
1. Elimination of problems and delays caused by order entry errors
2. Personal reduction
3. Inventory reduction
4. Improved Cash flow
5. Improved Customer Service
6. Improved Sales tracking Cost Savings.
Benefits of EDI
VAN ’s “Electronic Mailbox” used to deposit EDI transactions & retrieve messages when convenient.
VAN (Value Added Network)
VANTrading Company Transport Company
Financial Institution Manufacturing Company
Translate incoming document
Route to Mailbox ID
Releases data at user’s request
Improved quality
• Focus on core competencies
• Better record keeping
• Reduce process time
• Reduced Inventory
• Better information for management decision
• Enjoy low total cost of ownership
• Expand trading partner community
•Ability to support multiple data formats and standards
Advantages of VAN
FEDI
(Financial Electronic Data Interchange)
Electronic transfer of payments between a payer, a payee & their respective banks.
EFT (Electronic Fund Transfer)
ACH ( Automated Clearing House)
EFT
Instantaneous payment using online transactions
Payers Bank Payees BankFunds Transfer
ACH
Payers Bank Payees Bank
X Y
VAN
Clearing House
Remittance Information Remittance Information
Payment Authorization
Payment Settlement
Notice
Transfer of Funds