ELECTRONIC DATA

INTERCHANGE

What is EDI???? It involves electronic exchange of business transactions documents over the internet and other networks between supply chains and trading partners. Data representing various business transactions documents such as purchase orders , invoices, request for quatations and shipping notices. These documents are automatically exchanged between computers using standard message formats. EDI software is used to convert a company’s own documents formats into standardized EDI formats as specified by various industry and international protocols. EDI over internet is growing B2B e-commerce application.

HISTORY OF EDI The general idea behind EDI was originated by a group of railroad companies in the mid-1960’s, in the United States. Much of the early work on EDI was driven by the industry sectors for:

• transportation• pharmaceuticals • groceries• automobiles• banking

It was not until the 1970’s, when work began for national EDI standards.

• reduced labor-intensive tasks such as data-entry;

• allowed the sender of data to control the exchange including receipt confirmation of by the other party

Retailer A

Retailer C

Retailer B

Retailer D

Wholesaler A

Wholesaler B

Wholesaler C

Wholesaler D

Original Model

How EDI works??1. a user places an order (i.e., a document) into

the computer.2. The order goes through an interface program.

The application edits the order and relays it to the intermediate EDI files.

3. The purchase order is changed to the EDI standard format the application can decipher.

4. The translation program can function with several programs, allowing the receiver’s system to interpret the order. The modem relays the order through a value added network.

5. The network proceeds to take the order. From the EDI format it is changed back into the sender’s original format.

Finally this allows the receiver to read the document.

Advantages of EDILower operating costsSaves time and moneyLess Errors = More

AccuracyNo data entry, so less

human errorIncreased ProductivityMore efficient personnel

and faster throughputFaster trading cycle

Streamlined processes for improved trading

relationships

High Dependence on the participation of trading partners

Costly for smaller companies

Difficult to agree on standard to be used

Disadvantages

What is commerce???

Commerce is a division of trade or production which deals with the exchange of goods and services from producer to final consumerIt comprises the trading of some thing of economic value such as goods , services, information, or money between two or more entities.

What is e-commerce?? Commonly Known as Electronic Marketing. “It consist of buying and selling goods and services over an electronic systems Such as the internet and other computer networks.”“E- commerce is the purchasing, selling and exchanging goods and services over computer networks(internet)through which transaction or terms of sale are performed Electronically.

Why to use e-commerce?

Low entry costs. Reduces transaction costs .Access to the global market. Secure market share.

A consumer uses Web browser to connect to the homepage of a merchant's Website on the Internet.

The consumer browses the catalog of products featured on the site and select items to purchase. The selected items are placed in the electronic equivalent of a shopping cart.

When the consumer is ready to complete the purchase of selected items, she provides a bill – to and ship-to address for purchase and delivery

How e-commerce works?

When the merchant's Web server receives this information, it computes the total cost of the order—including tax, shipping, and handling charges and then displays the total to the customer.

The customer can now provide payment information, such as a credit card number, and then submit the order.

When the credit card number is validated and the order is completed at the Commerce Server site, the merchant's site displays a receipt confirming the customer's purchase.

The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfillment

Types of e-commerce

Business-to-business (B2B) B2B stands for Business to Business. It consists of largest form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.  E.g.:-Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products.

Business-to-consumer (B2C):

It is the model taking businesses and consumers interaction. The basic concept of this model is to

sell the product online to the consumers.B2c is the direct trade between the company

and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s

website.

Consumer-to-consumer (C2C)

There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995.

PROS OF E-COMMERCE

No checkout queues

Reduce prices

You can shop anywhere in the world

Easy access 24 hours a day

Wide selection to cater for all consumers

Unable to examine products personally

Not everyone is connected to the Internet

There is the possibility of credit card number theft

On average only 1/9th of stock is available on the net

CONS OF E-COMMERCE

Future of E-commerce in India

According to business world estimate near about Sixty thousand new jobs will be created for the internet world alone in the next two yearse-Commerce transactions are expected to cross the Rs. 3500 crore milestone in 2010-11, a jump of around 350 percent from the 2008-09 figure of Rs. 1000 crore eBay said that consumers were trading goods worth almost three crore rupees everyday, across the globe.

M-COMMERCE

Definition of M-commerce

M-commerce can be defined as the “use of wireless handheld devices such as cellular phones and laptops to conduct commercial transactions online. Mobile commerce transactions continues to grow, and the term includes the purchase and sale of a wide range of goods and services, online banking, bill payment, information delivery and so on. Also known as m-commerce”.

Another definition of M-commerce

“Mobile commerce is any transaction, involving the transfer of ownership or right to use the goods and services, which is initiated and/or completed by using mobile access to computer-mediated networks with he help of an electronic device”

Mobile commerce refers to the wireless electronic commerce used for conducting commerce or business through a handy device like cellular phone. It is also said that it is next generation wireless e-commerce that needs no wire and plug in devices. Mobile commerce is usually called as ‘M-commerce’ in which user can do any sort of transaction including buying and selling of the goods, asking any services, transferring the ownership or rights, transacting and transferring the money by accessing wireless internet service on the mobile handset itself.

Mobile commerce is the activity of commencing commercial transaction between both B2C and B2B entities via mobile devices

It is a part of the broader, e-commerce market which accommodates any commercial transaction via internet

It increase the tendency to save time and energy, especially amongst the working population will further intensity the e-commerce market by a large extent

Mobile commerce(m-commerce) is a segment of Mobile Value Added Services(MVAS)

MVAS are the services provided by telecom operators directly or indirectly, beyond standard voice calls.

Mobile commerce (M-commerce) overview

In the current commerce industry, mobile commerce or M-commerce has been entered in finance, services, retails, telecommunication. In these sectors, M-commerce is not only being widely accepted but also it is being more used as a popular way of business/commerce :-

FINANCE SECTOR M-commerce works vastly in finance sector including all big and major

financial institutes, banks, stock market and share brokers. Whenever any user needs money or wants any sort of banking and finance related services, he/she can access the services or register services via voice calling or via Short Message Services(SMS). WAP/GPRS based mobile handsets allows user to access the official websites of the institutes.

Areas/uses OF M-COMMERCE

TELECOMMUNICATION SECTORS Mobile has played a giant role in communication technology through its

versatility and superiority. The easy usage has further made it extremely popular across the globe. It has already surpassed the fixed phone in the world . Software platform is essential for operating any mobile and this tool has revolutionized the communication world because of its functioning as a small computer.

besides this several bills can be paid using mobile and user can also check the available balance, status of the cheques, the status of the requested processing and customer care support.

SERVICES/ RETAIL SECTORS Services and retail sector are also among the leading sectors, which have

nurtures most from mobile commerce. M-commerce has proved a major boon for these sectors. Several business dealing no matter how big or small are being finalized on mobile phones.

Customer would be able to book the order , can hire carrier/courier services and above all could also pay the dues related to it through mobile.