1. Entrepreneurship &
Commerce in IT
07
Sachintha Gunasena MBCS
http://lk.linkedin.com/in/sachinthadtg

2. recap so far…

3. Funding a Venture
• Personal Finances
• Friends & family
• Angel Investors
• Debt Financing
• Equity Financing
• Customer Financing
• Government-Sponsored Programs

4. Expanding a Venture
• Resource Optimisation
• Improve Entrepreneur Skills
• Generate New Ideas
• Goal & Mission Setting
• Penetration
• Diversification
• Five Forces Model

5. Ending a Venture
• Just take it
• Liquidation
• Selling to a friendly buyer
• Acquisition
• IPO
• Bankruptcy?

6. Today

7. Introduction to E-commerce
• The difference between e-commerce and e-business
• Unique features of e-commerce technology
• Types of e-commerce
• Growth of the Internet and the Web
• Origins and Growth of E-commerce
• E-commerce I and E-commerce II eras
• Organizing themes of e-commerce

8. E-Commerce
• trading in products or services using computer
networks
• commonly used medium:
• internet
• The buying and selling of products and services by
businesses and consumers through an electronic
medium, without using any paper documents.
• e.g.: eBay

9. Technologies Used for E-
Commerce
• mobile commerce
• electronic funds transfer
• supply chain management
• Internet marketing
• online transaction processing
• electronic data interchange (EDI)
• inventory management systems
• automated data collection systems

10. E-Business
• a company that does all or most of its
transactions through the Internet
• “The transformation of an organization’s
processes to deliver additional customer value
through the application of technologies,
philosophies and computing paradigm of the new
economy.”

11. Use of ICT to Enhance
Company Processes
• Production Processes
• Customer-focused Processes
• Internal Management Processes

12. Production Processes
• procurement
• ordering and replenishment of stocks
• processing of payments
• electronic links with suppliers
• production control processes

13. Customer-focused Processes
• promotional and marketing efforts
• selling over the Internet
• processing of customers’ purchase orders and
payments
• customer support

14. Internal Management
Processes
• employee services
• training
• internal information-sharing
• video-conferencing
• recruiting
• Electronic applications enhance information flow between production
and sales forces to improve sales force productivity.
• Workgroup communications and electronic publishing of internal
business information are likewise made more efficient.

15. Examples of E-
Commerce

16. Examples of E-Commerce
• Online Shopping
• Electronic Payments
• Online Auctions
• Internet Banking
• Online Ticketing

17. Online Shopping
• Buying and selling goods on the Internet is one of the
most popular examples of ecommerce.
• Sellers create storefronts that are the online
equivalents of retail outlets.
• Buyers browse and purchase products with mouse
clicks.
• Though Amazon.com is not the pioneer of online
shopping, it is arguably the most famous online
shopping destination.

18. Electronic Payments
• When you are buying goods online, there needs to
be a mechanism to pay online too.
• That is where payment processors and payment
gateways come into the picture.
• Electronic payments reduce the inefficiency
associated with writing and mailing checks.
• It also does away with many of the safety issues
that arise due to payment made in currency notes.

19. Online Auctions
• When you think online auction, you think eBay.
Physical auctions predate online auctions, but the
Internet made auctions accessible to a large
number of buyers and sellers.
• Online auctions are an efficient mechanism for
price discovery.
• Many buyers find the auction shopping mechanism
much interesting than regular storefront shopping.

20. Internet Banking
• Today it is possible for you to perform the entire
gamut of banking operations without visiting a
physical bank branch.
• Interfacing of websites with bank accounts, and
by extension credit cards, was the biggest driver
of ecommerce.

21. Online Ticketing
• Air tickets, movie tickets, train tickets, play tickets,
tickets to sporting events, and just about any kind
of tickets can be booked online.
• Online ticketing does away with the need to
queue up at ticket counters.

22. Types of E-Businesses

23. Types of E-Businesses
• online only
• mail order
• big bricks and clicks
• boutique bricks and clicks
• mainstream piggyback
• niche piggyback
• full multichannel

24. Types of E-Businesses
• Online Only
• the only way to see the products is online
• Examples: asos.com, lookfantastic.com, Made.com
• Mail Order
• a transactional website plus a printed catalogue, and possibly one or two
physical stores
• Examples: Boden, House of Bath, Lands End
• Big Bricks and Clicks
• lots of physical stores and an eCommerce website
• Example:Argos, Boots, Topshop

25. Types of E-Businesses
Cont.d
• Boutique Bricks and Clicks
• just one or two physical locations plus the eCommerce website
• Example: Boswells, Burford Needlecraft, Brownsfashion.com
• Mainstream PiggyBack
• using the likes of Amazon or eBay to market the products, with
no website of their own
• Example: Amazon, eBay

26. Types of E-Businesses
Cont.d
• Niche PiggyBack
• where sellers of similar products come together to market more easily,
usually retaining their own blog or eCommerce site elsewhere too.
• Example: The craft world (Etsy, Folksy), Hotels (hotels.com,
laterooms.com), jewellery (Boticca), and Books (abebooks.co.uk) are
good examples.
• Full Multichannel
• Using multiple shops, catalogues, and eCommerce – by far the most
complex and most difficult to achieve and run.
• Example: Bravissimo, Crew Clothing, Next

27. Features of E-
Commerce

28. Features of E-Commerce
• breaks geographical barrier
• saves precious time
• accurate information
• ubiquity
• impersonal interaction
• customers are truly king
• power of accessibility
• cuts supply chain
• ever changing nature of business
• technology can equally be a barrier

29. Features of E-Commerce
• Breaks geographical barrier
• Unlike traditional retail business, ecommerce is not bounded by
geographical barriers. Today an e commerce company can easily
sell its products to consumers residing in any part of the country.
• Saves precious time
• Ecommerce helps in saving the most important thing in today’s
modern world: ‘Time’. Consumers from the comfort of their home,
office and even café can buy any product they wish to buy.
Thanks to e commerce, consumers save lot of precious time that
is otherwise wasted if they opt for traditional shopping.

30. Features of E-Commerce
Cont.d
• Accurate information
• Today e commerce companies across the world are doling out product
information’s that are accurate & to the point, which eventually helps
consumers to make better buying decision. These information’s are free from
all the inaccuracy & hidden facts that are very much used by traditional retail
models as their selling strategy. Besides, e commerce companies also
provide accurate information to customers about billing payment & shipping.
• Ubiquity
• Ubiquity means state of being everywhere at once. With unprecedented
growth in the sales of tablets & smart phones, laptops and other internet
related gadgets, e commerce companies literally follow their consumers
wherever they go. E commerce shopping can be done even when consumer
is walking or jogging.

31. Features of E-Commerce
Cont.d
• Impersonal interaction
• Since e commerce technology completely depends on internet &
web to reach to its customers, the interaction with consumers will
always be impersonal in nature; as in it is not face-to-face
interaction.
• Customers are truly king in the e commerce world
• Today every month literally hundreds of e commerce companies
are popping up in every corner of the world. This intense among E
commerce companies is only befitting customers, who today have
more choices to choose from and discount vouchers to avail – for
instance Littlewoods Voucher Codes.

32. Features of E-Commerce
Cont.d
• Power of accessibility
• Since today e commerce is so easily accessible by the virtue of
power of internet, consumers can buy anything & everything as
and when they desire for. In fact a mere impulsive desire or slight
craving for a product can lead to expensive shopping, this is all
thanks to accessibility to shopping that is possible only via e
commerce technology.
• Cuts supply chain
• E commerce technology has immensely helped in cutting the
cumbersome supply chain of wholesale & retail and also
overreliance on sales force team. This only helps in reducing the
cost of the product, which eventually benefits the customer.

33. Features of E-Commerce
Cont.d
• Ever changing nature of business
• Since today technology is changing at lightening speed by every passing day,
the nature of e commerce business will also change along with it. Who knows
technology development in coming years will make e commerce more
customer friendly, or there can be other fundamental changes to the e
commerce business too.
• Technology can equally be a barrier
• Technology has helped e commerce companies to break geographical &
other barriers. However overreliance on technology & complete absence of
face to face interaction has created immense trust barrier between e
commerce companies and customers. This is especially true in the case of
conservative country like India where even today people don’t completely
trust e commerce companies, especially when it comes to on line payment.

34. Types of E-Commerce
• B2B
• B2C
• C2B
• C2C

35. B2B (Business-to-Business)
• Companies doing business with each other such
as manufacturers selling to distributors and
wholesalers selling to retailers. Pricing is based
on quantity of order and is often negotiable.

36. B2C (Business-to-Consumer)
• Businesses selling to the general public typically through
catalogs utilizing shopping cart software. By dollar
volume, B2B takes the prize, however B2C is really what
the average Joe has in mind with regards to ecommerce
as a whole.
• Having a hard time finding a book? Need to purchase a
custom, high-end computer system? How about a first
class, all-inclusive trip to a tropical island? With the
advent ecommerce, all three things can be purchased
literally in minutes without human interaction. Oh how far
we've come!

37. C2B (Consumer-to-Business)
• A consumer posts his project with a set budget
online and within hours companies review the
consumer's requirements and bid on the project.
The consumer reviews the bids and selects the
company that will complete the project. Elance
empowers consumers around the world by
providing the meeting ground and platform for
such transactions.

38. C2C (Consumer-to-
Consumer)
• 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.

39. Internet
• a global computer network providing a variety of
information and communication facilities,
consisting of interconnected networks using
standardized communication protocols.

40. Web
• The World Wide Web (www, W3) is an
information space where documents and other
web resources are identified by URIs, interlinked
by hypertext links, and can be accessed via the
Internet.
• It has become known simply as the Web.

41. Growth of Internet/Web
• http://www.internetlivestats.com/internet-users/

42. Origins of E-Commerce

43. Growth of E-Commerce

44. E-Commerce I Era

45. E-Commerce II Era

46. Organising Themes of E-
Commerce

47. References
• http://www.investorwords.com/1637/e_commerce.html#ixzz3kOEvFLzi
• http://www.investopedia.com/terms/e/ecommerce.asp
• http://www.dynamicwebs.com.au/tutorials/e-commerce.htm
• http://ecommerce.about.com/od/eCommerce-Basics/f/What-Is-Ecommerce.htm
• http://www.businessnewsdaily.com/4872-what-is-e-commerce.html
• https://en.wikipedia.org/wiki/E-commerce
• https://en.wikipedia.org/wiki/Types_of_e-commerce
• http://www.digitsmith.com/ecommerce-definition.html
• http://www.b2bmarketing.net/blog/posts/2012/11/29/seven-types-ecommerce-business-%E2%80%93-and-why-
it%E2%80%99s-essential-know-which-type-you-ar
• http://budiputra.com/10-unique-features-of-e-commerce-technology/
• http://www.woothemes.com/2015/06/ecommerce-platform-features/
• http://www.mountainmedia.com/c1/c91/ecommerce-features-overview-c118.html
• http://www.internetlivestats.com/internet-users/

48. Next Up…
• E-commerce business models and concepts

49. Thank you.
Sachintha Gunasena MBCS
http://lk.linkedin.com/in/sachinthadtg