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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 webmaster’s 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

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Overview of E-commerce

  • 2. INTRODUCTION - 1 E-Commerce includes Buying & Selling of goods and services on the Internet B2B & B2C transactions Substantial cost savings
  • 3. 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
  • 4. Main Activities of E- Commerce - 1 Buying & selling of Products Shipping of products Producing financial statements
  • 5. Main Activities of E-Commerce - 2 Role of Humans Personalised customer service Sales Corporate development New product Research
  • 6. Definition of Electronic Commerce E – commerce is: A strategy A technology A system A separate business A sales approach A mystery
  • 7. Broad Goals of Electronic Commerce Reduced costs Lower product cycle time Faster customer response Improved service quality
  • 8. Electronic Commerce Technical Components Client or PC work station Transaction server Database server Database transaction Router and Internet communication line
  • 9. Functions of Electronic Commerce Communication Process management Service management Transaction management
  • 10. 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.
  • 11. Significance of Electronic Commerce Web-TV and digital television Telecommunication Phones, Fax, copiers PCs & Printers & E-mail Integrated machines
  • 12. Advantages of Electronic Commerce Distance Time Low cost Flexibility Greater access to market Error reduction Wider choice No wastage of time
  • 13. 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
  • 14. Disadvantages of Electronic Commerce -2 Internet access limited Limited use of credit cards Difficulty in conforming to EDI standards Virus attacks
  • 15. Pre-requisites of Electronic Commerce Website A shopping cart program On-line payment system
  • 16. 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
  • 17. 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
  • 18. Meaning of Electronic Commerce Electronic Mail Voice Mail Discussion Forums Data conferencing Video conferencing Electronic Meeting Systems
  • 19. Scope of Electronic Commerce Linking Linking With With Suppliers Distributors & Retailers Enterprise Management Global Interface E – commerce With Infrastructure Consumers
  • 20. Communications and Collaborations Virtual teams Global communications collaboration Internal External Business
  • 21. Electronic Commerce Systems Online Point of Sale (POS) transaction processing Web retailing and wholesaling EDI EFT Electronic Banking Interactive Marketing SCM
  • 22. Technologies Used EDI Bar codes E- mails Internet www Product data exchange Electronic forms
  • 23. 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 webmaster’s e-commerce site. iii. The agent tests the complete shopping experience. iv. The agent sends result to the webmaster.
  • 24. 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
  • 25. Two Faces of Electronic Commerce Sell side Buy-side – E- procurement Facets Both sell-side and buy-side solutions Internet-based trading exchanges
  • 26. 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
  • 27. Buyside E- procurement Applications People soft Ariba Commerce-one Walnut creek Mountain view Oracle Pleasanton SAP Newton square
  • 28. 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
  • 29. 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
  • 30. Electronic Commerce Applications -2 Publishing Education Training of employees etc.
  • 31. 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
  • 32. 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)
  • 33. 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
  • 34. 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?
  • 35. 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
  • 36. Electronic Commerce V/S Traditional Commerce E – commerce involves • Information technology • Telecommunications technology • Business processes
  • 37. Major segments of Electronic Commerce Inter- organisational (B2B) Intra – organisational (within business) Retail