Welingkar’s Distance Learning Division

Overview of Electronic Commerce

We Learn – A Continuous Learning Forum

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

LinkingWith

Suppliers

Enterprise Management

GlobalE – commerceInfrastructure

LinkingWith

Distributors &Retailers

InterfaceWith

Consumers

Communications and Collaborations

Virtual teams

collaboration

Global communications

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

Stagesi. 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 itiii. 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 Dealers

Spare parts order

Order tracing

Warranty look-ups

Field service

• Real-time information for customers

Part availability

Price and

Status of their orders

Buyside E- procurement

Applications

• People soft• Commerce-one• Mountain view• Pleasanton• Newton square

• Ariba• Walnut creek• Oracle• SAP

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 companyii. To a software companyiii. To a big media conglomerateiv. 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• Create customer

support database• Build security facility• Develop ‘vertical

interest’

• Business • Online customer

support function• Sell products online• Create community of

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