2: Technology - The driving force behind E-Commerce:

Amity School of Business

Jitendra Singh Tomar

09650512300
jitendratomar@hotmail.com
jitendratomar@rediffmail.com

Orator


• Part 2:

TECHNOLOGY:
ThE dRiViNg fOrCe BeHiNd E-CoMmErcE


World Wide Web
The Internet Today


The Internet Today
•A “Superhighway” was initially developed as a tool for people
(Originally scientists) to keep in touch with one another. It is still
the way many people use it in today’s date.
•On the personal side:
• It is giving people the power they never had before and
they are enjoying the tools available for their own benefit.
•On the business side:
• Acting as enabler of e-commerce, it is changing how
companies manager their business. Closed enterprise
systems are giving way to open system environments,
where customers connect to the company’s Web-site and
trading partners connect via an extranet and the internet.

Internet


The Internet Today
•It enables the user to:
• Send the messages to multiple people at the same time,
much like television or radio broadcasting.
• It began with message communication, but now it is
possible to transmit and receive computer data
containing graphics, voice, photos, and even full motion
vides.
•The unanticipated problems??
• The appropriateness of content is always questionable.
• The internet is littered with abandoned Web-sites.
• Non-updated blogs and profiles.
• Neglected sites – abandoned sites when business fails or
simple boredom lead to Web-site neglect.
Internet


The Internet Today
•Why neglected sites got built?
• New e-business that begin with Web sites, but are
abandoned on the Internet when the business fails.
• As long as business keeps pouring in, less time, less focus
and less motivation to update the Web site and when
orders begin to shrink, it is often too late to save the Web
site from major overhaul.
• Limited-time web sites for political, social, or special events
die quickly after the event.
•What services Internet offers?
• E-mail, file transfer, interest group membership, multimedia
displays, real-time broadcasting, shopping opportunities,
access to remote computers, and quick & easy
transmission of information.
Internet


World Wide Web
Beginning Of The Internet


Beginning of the Internet.
•The internet is the infrastructure that links thousands of networks
together.
•No one knows exactly how many computers are connected to
the Internet.
•Who is In-Charge of Internet?
• No one. No governing body is in control. The internet
backbone, through which Internet traffic flows, is owned
by private organizations.
•How & why it got formulated?
• The initial goal was to design a network that would
maintain the safe transition of data between military
computers at select sites through redundant
communication routes

Internet


• The built-in redundancy meant that in case of war, military
data transfer would continue uninterrupted.
• It also meant that no single site would be the vulnerable
one.
• In 1964, two nodes (computers) were connected to a
network on ARPAnet, which was the sponsor of the
research. This was the beginning of what we now call the
Internet.
• The initial goal was to design a network that would
maintain the safe transition of data between military
computers at select sites through redundant
communication routes

Internet


• ARPAnet was decommissioned in 1969.
• In 1984, it split into two interconnected networks. The
military part was named MILNET. The educational part,
which kept the name ARPAnet, became known as the
Internet.
• At first, Internet traffic was government related &
government subsidized and no ordinary person or
company could use its services.
• Things changed in April 1994, when the US government
relinquished control of the Internet to independent
governing bodies, which relaxed entry for almost
everyone.

Internet


World Wide Web
The General Terms


World Wide Web
•An organization of files designed around a group of servers on
the Internet programmed to handle requests from browser
software on users’ PCs.
Hyper Text
•Any text that contains links to other documents.
Hyper Link
•Connects current document to another location in the same
document or to another document on the same host computer.
TCP/IP
•A set of protocols or rules that provide the basis for operating
the internet.

The General Terms


HTTP
•Hyper Text Transfer Protocol makes possible transmission of
hypertext over networks. HTTP has been designated as the
protocol of the WWW.
VoIP
•Voice over Internet Protocol makes it possible to place a
telephone call over the Web.
Browser
•A software application that allows users to navigate the Web.
Spider
•A program that roams the Web from link to link identifying and
scanning pages. The index contains a copy of each Web page
gathered by the spider.

The General Terms


URL (Uniform Resource Locator)
•A name that represents the address of a specific Web site.
ISP (Internet Service Provider)
•A company that links users to the internet for a fee. They are like
the entrance ramp to the internet.
Telnet
•A protocol that allow users to log on to a computer and access
files from a remote location.
FTP
•A standard protocol that allows you to copy files from
computer to computer.
BBS (Bulletin Board System)
•A computer-based meeting and announcement system that
allows local people to exchange information free of charge.
The General Terms


First Generation Search Engine
•A search engine that returns results in schematic order,
constructing a term relevancy rating of each hit and presenting
search results in this order, also called “on the page” ranking.
Second Generation Search Engine
•A search engine that organizes search results by peer ranking,
concept, domain, or site rather than by relevancy. It is also
called “off the page” information.

The General Terms


World Wide Web
Some Effective Tips – Web Search


The right way to search
•Evaluate everything on the Internet for its appropriateness for
research use.
•Try out a handful of sites when researching a topic on the
Internet. Do not rely only on one site or one type of site.
•When searching for a proper name, capitalize the first letter or
each word.
•When searching for several names that are linked together, use
a comma to separate them (eg: Dr. Pratibha Patil, President).
•Use quotation marks when doing a phrase search (eg:
“Congressional E-Mail Address”), else engine will search for all
documents having these words separately or with some
combination.

Searching Tips


•Use hyphens when searching for words that must appear within
one word of each other (eg: cable-network).
•Use plus sign to find two or more words that must be in the
documents together (eg: bus schedule+delhi).
•For multiple-term search, decide on the logical relationship
between them. (eg: +Amartya+Economist will leave search
engine search for relationship between Amartya and Economy
with AND logic to apply).
•For searching an image, place colon between the word image
and the image topic name (eg: image: Microsoft).
•Use of asterisk will find all combinations of a word or word
fragment (eg: edu*). This will yield pages containing education,
educator, and the like.
Searching Tips


•To find URLs, use url: and the address fragment (url: amity). This
will match pages with the word amity in the URL.
•Work with different search engines, as no two search engines
work from the same index.

Searching Tips


World Wide Web
Merchandising - Facts to Remember


An online merchant should know some basic facts:
•People look up Websites with Search Engines.
• Out of three methods i.e. using URL, Bookmarking the sites
and Using Search Engines, the last method is the most
commonly used.
• A frequently visited website is one that appears on several
search engines.
•People usually use bookmarks to visit their favorite site.
• While advertising a website, encourage users or customers
to bookmark the site. It is easy, quick and the most
convenient way of visiting a website.
•A website must be quick and current.
• Users simply click away if the information they seek is not
displayed on the screen within few seconds.

Facts to Remember


• Slow speed, broken links and difficulty in finding a given
site do not promote loyalty.
•A web site should address the privacy & navigational issues.
• Censorship is the leading concern of Internet users,
followed by privacy concerns.
• Ease of navigation is an added concern for Web traffic.
• For commercial Website to build customer loyalty, it is
important to protect user information and ensure ease of
use of the Website at all times, regardless of the amount of
traffic.
•The “bottleneck” problem.
• Connecting to DSL or high speed line would help, but as
more and more people go that route, congestion is
bound to happen.
Facts to Remember


•People are reluctant to pay to surf a Website.
• Very few sites that began to charge for visits have stayed
in business.
• On the Web, about the only exceptions to the no-pay rule
are specialized services such as online stock services and
the likes.

Facts to Remember


World Wide Web
Search Engine Optimization


Search Engine Optimization:
SEO is a way of trying to increase the number of visitors to the
Website by ranking high in the search results displayed by a
search engine.
The closer the Website is to the top of the list, the greater the
chance of attracting more visitors.
•Optimization via Hyperlinks.
• Search engines usually figure out that linking anything on
your Web page is likely to be closely related to the
content of the page.
• This indicates to include the most important keyword
phrases in the hyperlink itself and surrounding text for
optimization of the Website.



• Optimization via Keywords and Meta-tags.
• Good meta-tags are very much needed to achieve good
listings in the search engine. Meta-tags are always part of
a well optimized page.
• In addition to meta-tags, heading tags and title tags are
two more important factors to consider when optimizing
the Webpage.
• Inclusion of most important keyword phrases in heading
tags, title tags and meta-tags allows Search engines to
effectively index the Website.
Caution
• Make sure not to copy competition's keyword phrases, as
they might not fit right, and that would be in violation of
copyright.



Be careful in optimization:
While optimizing the website, one thing to stay away from is
“spamming” the search engines.
Since traffic to your Website comes through search engines, they
are the last ones to be antagonized.
Here are things that search engines consider spamming;
•Listing keywords anywhere other than in your keyword tags.
•Using the same font color as the page’s background color or
having a white-link.
•Submitting identical pages.
•Using multiple instances of the same tag, such as using more
that one title tag.
•Submitting the same page to any search engine more than
once within 24 hours.


Internet Architecture
The Network


What is a Network?
It is a connection between at least two computers for the
purpose of sharing resources. All networks are based on the
concept of sharing.
Types of Networks
Internet architecture is addressed by two kinds of networks:
•Workgroup & Client-Server Architecture.
The latter type is what is expected in every e-merchant’s
technology infrastructure.
Workgroup is a simplified version of a network for small
business for in-house purposes. Knowing this arrangement
makes it easier to appreciate client/server architecture as
backbone for e-commerce.

The Network


Workgroup
•Computers in workgroup are linked together as equals, with no
centralized server or control.
•Computers can share their resources with other computers on
the same network as and when required.
•Users are network administrators in that they control access to
the resources that reside on their own computer.
•This arrangement could lead to chaos and security problem.
•This setup connects fewer than 10 computers.
•With each machine behaving like a server, it is difficult for users
to know what information is on which computer.
•On the flip side, low cost and ease of installation is one of the
biggest advantages.

The Network


Pros and Cons of Workgroup
•Benefits
• Users can control their own shared resources.
• Easy to install.
• Easy to configure the system.
• Inexpensive to purchase and operate.
• No dependence on a dedicated server.
• Ideal for small business.
• No need for a full-time network administrator.

The Network


Pros and Cons of Workgroup
•Drawbacks
• Network security is applied to one computer at a time.
• Every time a computer in the network is accessed,
performance suffers.
• Backup is performed on each machine separately to
protect shared resources.
• Users have to use a separate password on each computer
in the network.
• No centralized setup to locate, manage, or control
access to data.

The Network


Client-Server Networks
•A server is simply a special purpose computer or specialized
hardware and software designed for one function – to address a
client’s requests.
•A client is any computer or workstation connected to the server
within a network.
•One of the main advantages of client/server networks is
centralized control over network resources.
•A client/server system is a multi-user environment. More than
one authorized user can access any program or application that
resides on the server.
•Servers are usually fast computers with physical and logical
security capable of controlling who accesses what resources.
•All programs or applications reside on the server.

The Network


Pros and Cons of Client/Server network
•Benefits
• Ideal for more than 10 users
• Centralized security access and control
• Simpler network administration and control than
workgroup network.
• Users remember only one password.
• Ideal when user computers are not in close proximity.
• More scalable (upgradable) than workgroup network.

The Network


Pros and Cons of Client/Server network
•Drawbacks
• Network failure means clients are almost helpless.
• Specialized staff needed to manage the specialized
hardware and software.
• Higher costs than workgroup network because of
specialized hardware and software architecture.

The Network


Types of Client/Server network
•Two Tier Architecture
• When an organization has small network where users can
interact concurrently, they are suggested to have Two Tier
Architecture.
• It requires minimal operator intervention and is used
frequently in non-complex system
• This model has two main components:
• User System Interface
• Operating Platform (OS, DBMS, Internet Service)
• The operating platform has limited process management
capabilities.
• Primary limitations associated with this model are:
• When the number of users exceeds, performance
begins to deteriorate.
• Limited processing management restricts flexibility.
The Network


Types of Client/Server network
•Three Tier Architecture
• This model has three main components:
• User system Interface,
• Middleware (OS)
• Specialized Platform (DBMS, Internet Service)
• The middle tier manages control and integrity. It provides
improved access to resources, thus enhancing scalability
and flexibility even when more system components are
added.
• It can also perform queuing, application execution and
platform staging.

The Network


IP Address


IP Addresses
•It is a numerical label assigned to a device participating in a
computer network.
•This number identifies each host from every other host.
•For transmitting a message a source host needs to know only
the official IP address of the destination host regardless of
location.
•The version of IP address used currently is IPv4, consisting of 32
bits and is capable of connecting 2 32 = 4294967296 hosts on the
network.
•IPv4 contains four 8-bit blocks called octets. Each octet range
from 0 to 255, having 256 values in all.
•Eg: 192.168.1.25

IP Address


IP Addresses – Network and Sizes
•A 32 bit IP address by itself does not tell anything about the size
of its network, subnet, or host part. To detail this, networks are
classified as below:

• Class A
• Class B
• Class C
• Class D
• Class E

IP Address



• Class A
Beginning Bits : 0
• Class B Bits in Remainder of Network Part : 07
• Class C Bits in Local Part : 24
• Class D Maximum number of Networks : 128
Maximum number of Hosts : 16777216
• Class E

IP Address



• Class A
Beginning Bits : 10
• Class E

IP Address



• Class A
Beginning Bits : 110
• Class E

IP Address



Class D addresses begin with 1110 and are used for
• Class A multicasting. Unlike unicast, where the packet goes
• Class B to only one host IP address, IP multicasting means
the packet is broadcast to all the hosts on that
• Class C
subnet.
• Class D
• Class E Class E addresses are kept reserved with the
internet society.

IP Address


Network Hardware


Cable Types
•Twisted Pair
• Shielded Twisted Pair
• Unshielded Twisted Pair
•Co-axial Cable
•Fiber-Optic Cable
•Wireless Data Transmission
• Radio Transmission
• Microwave Transmission
• Infrared Wave Transmission

Network Hardware


Network components
•Network Interface Card
•Modem
•Hub
•Switch
•Router
•Bridge
•Gateway

Network Hardware


Design Consideration


Designing a Network - Factors to be kept in mind
When designing a network, factors to be kept in mind:
•Location
• Where will the network be installed?
• How convenient is the location?
• How easy is it to install the cabling, allocation of space
and similar issues?
•Capacity
• What is the optimum traffic capacity of the network?
• How efficient is its performance at that capacity?



•Distance limitation
• How far is the farthest PC to the server?
• How does distance affect network performance during
peak hours?
• How does distance compromise security?
•Cost
• What is the estimated cost of the proposed network
installation?
• Is the cost within the budget?
• What are the hidden costs?
• Given the cost, how to justify the return on investment?



•Potential Growth
• How easily and how well can the network be expanded
to meet the growing demands of the organization?
• What is the expected cost of such growth?
•Security
• How secure is the proposed network?
• What security measures should be incorporated?
• Who will be in charge of monitoring security?



Network Architecture – Hardware and Software Consideration
The factors considered when selecting network architecture:
•Hardware Requirement
• Hardware includes server, workstations, printers, switches,
routers, minicomputers, and backup systems.
• Amount of usage is also important.
•Software requirements
• These requirements depend largely on the profile of the
company.
• The software should meet immediate needs.
•Disaster recovery and fault-tolerance requirements.
• The system should have build in features that allows it to
recover from failure.
• Strategic use of RAID, PDC & ADCs, Network Architecture,
3 Tier CS Architecture. Design Consideration


Hosting your Web Site
Internet Service Provider


Internet Service Provider – What’s That?
•It is a specialized company that connects customers with PCs
and browsers to the Internet.
•For a fee, the ISP gives a software package, a user name, a
password, and an access phone number to the user.
•ISP helps the users to connect to the Internet Backbone.
•Today ISPs also offers Virtual Hosting / Virtual Domain as well.
•This allows the user to have its own Domain Name (
www.yourcompany.com) rather than using ISPs domain name
with a subdirectory (www.ISPdomain/userpage) designating
user’s site.
•Major companies design and maintain their own Web sites, but
more that one third of medium-size to small organizations use ISPs
Virtual Domain Services.



Types of Service Provider.
There are 5 types of Service Providers.
•The Internet Service Provider (ISP)
• An ISP provides an interface between the public phone
system and Internet digital phone lines. Which carry
packets instead of voice conversations.
• They are simply a specialized business that offers Internet
Access to the users.
•The Application Service Provider (ASP)
• ASP are the application renter who offers packaged
software for lease online and generally focuses on high-
end applications like databases and ERP.
• ASP allow small to midsize business to choose from menu
of applications without having to invest in the staffing or
infrastructure to support them.


•The Wireless Application Service Provider (WASP)
• It is a company that offers untethered applications.
• Hosting, developing and managing applications is similar
to that of an ASP.
• WASPs are specialized in integration of the Web and
Wireless networks.
• They deal with a wide range of H/W, mobile devices &
wireless network protocols making the job more complex.
•The Business Service Provider (BSP).
• It is an Internet service developer that rents only its own
proprietary applications via the Web. Generally, the
software is specific in function.



•The Wholesale Service Provider (WSP)
• The category of service provider that packages a
selection of BSP applications for distribution online.
• These service providers generally cater to small to midsize
businesses and can be important addition to large IT
operations.
• They fall into one of three categories:
• The large wholesale access providers,
• The smaller Internet Backbone providers,
• And the local ISPs.



Choosing an ISP


What to Consider?
There are special criteria to consider for implementing a
selection process.
•Size of the Pipeline or Bandwidth.
• High speed T1 (1.5 Mbps) and T3 (45 Mbps) lines connect
the ISP to the Internet backbone.
• Smaller ISPs often have ISDN connections or fractional T1
connections hampering the high level traffic.
•Powerful Hardware.
• Powerful Web servers, communication gears, fault-tolerant
architecture, ensure smooth running of Website.
•Security and Stability.
• ISPs are specialist in Web hosting. With high uptime, latest
software and expert installation , they ensure security and
stability.
Choosing an ISP


What to Consider?
•Customer Service and Technical Support.
• 24x7x365 is the basic requirement in today’s date.
• Upgrades, customization, security and scalability are the
high end support to be addressed.
• Critical problems solution should be given by Service
Provider with in reasonable or stipulated time.
•Backup
• The scheduled backup support is of keen interest as in
case of failure, the crucial business information remains
intact.
• Also, recovering a website ASAP is one major factor so as
to remain in business in case there is some kind of failure.

Choosing an ISP


What to Consider?
•E-Mail Capabilities.
• An ISP allows a certain number of e-mail addresses per
account.
• Business might want to have multiple e-mail boxes at the
Web hosting ISP which gives flexibility and independence.
•Platform Extension
• The feature allows the user to directly make changes to
the website, since the ISP supports the Development
Platform (like Front-Page) extensions.
•Database Access.
• For the dynamic Websites, it is necessary that the ISP
supports the DB platform used as back-end with the
Website.
• Also, ISP should have efficient DB administration Capacity.
Choosing an ISP


Registering a Domain Name


What is a Domain Name?
•On Internet, a domain name is a unique Internet Address to
represent a Web site.
•A Domain Name Service (DNS) Server translates between the
numeric Internet Protocol (IP) address used by the computer and
the English-like name identifier that users understand.

Selecting a Domain Name
•Choosing a domain name is a major step for any individual or
organization.
• When choosing a name, it is important to consider the
purpose of a domain name, which is to provide an easy way
to reach your web site.



Selecting a Domain Name
• The best domains have the following characteristics:
• Short - People don't like to type. A short domain name is
easier to type, read, and remember.
• Meaningful – A Short domain is nothing without meaning.
The domain should reflect the name of the company and
nature of business so that users can correlate address with
the company.
• Clear – Clarity is important when selecting a domain
name. Avoid a name that is difficult to spell or pronounce.



• Once domain name is selected, it should be registered to be
active. It could be registered with Domain name registration
companies. These companies provide interfaces to search for
available domain names, and they offer a variety of domain
name extensions that can be registered at the same time.
• The pitfalls to keep in mind while registering a domain name:
• Overcharging
• ISPs in general have their own algorithm of fees,
including setup fees, transfer fees, monthly fees,
special services fees and so on.
• Shop around for a reliable ISP with experience and
reputation for a quality technical support at a
reasonable charge.



• The pitfalls to keep in mind while registering a domain name:
• Domain Name Status
• Make sure the domain name is registered in your
name rather than in the name of the ISP.
• Make sure you own the exclusive right to your domain
name.
• Contractual Language
• Before committing, read the agreement the ISP
expects you to sign before the Website is formally and
legally on the Internet.
• Reputation of ISP
• Reputation of ISP is quite important and should be
checked prior to signing the contract as changing ISP
is neither pleasant nor convenient.


Implications for Management
E-Commerce


What companies should focus on?
•The growing of Online commerce will change business and
consumer relationships, shift value chains, and create
opportunities for healthy competition.
•Online applications are becoming strategic parts of a
company’s technology base, rather than tools for tactical
productivity gains.
•Online business, Online payments, online advertising, are time
based and location based values enhanced by online
application.
•With all these benefits and potential, though, serious problems
need to be addressed. The strategies of the companies may
annoy users rather than accommodating consumers with
unwanted information, especially at the wrong time.
•Customers may even switch away from the companies.
Management Implications


•The following issues must be addressed by the management:
• Consider the cultural and location based issues – These
arise from introducing the online environment. A company
with geographical locations must establish local expertise
in each core location to address local demands or
problems unique to business.
• Services advantageous to the business – the company has
to offer services that will be strategically advantageous to
the business. Also as business increase, company is bound
to face increase in customer demand & to use
technology for competitive advantage.
• Experiment with new technology and view the whole
effort as an investment in tomorrow’s way of doing
business. It will also generate awareness about effective
use of technology.


Implications for Management
Networks


The main implication of networking for management is that firms
need to have a work environment that technical people find
conducive for long-term employment and one that promotes a
career path for qualified employees.
Management should keep in mind the following factors as to
improve the culture:
•Constructive and timely feedback:
• One of the most important issues in managing and
motivating technical people is consistent and constructive
feedback on a day -to-day basis. This is especially true for
new hires. Feedback is also important in helping personnel
develop new skills and advance to more challenging
positions.



•Recognition and Appreciation of good, value added work.
• It is human nature that recognition is a rein-forcer,
especially when it is made in a timely manner. A simple
thanks from the hearts is what it often takes to restart a
project that has been going nowhere.
•Championing Staff Causes
• A champion in IT is someone who uses every opportunity
to promote a project with those on higher organizational
levels.
• Sometimes top management reluctantly approves a
project , not knowing how it is going to turn out.
• An IT manger can keep top managers interested and rein-
force the progress made by example, by scenarios, or by
online displays of completed work.



•Support Employee Career Goals.
• Technical employees should not only have opportunities
to undergo training and improve their skills, but they
should bale to utilize those skills . Technical people often
are motivated more by opportunities for creativity than by
money alone.
•Match Industry Salary Standards for In-House Personnel
• Regardless of how well IT personnel are treated, it is still
important to provide competitive salaries and attractive
benefits to discourage defection to the competition.
Organization now offer sign-up bonuses, stock options,
pleasant office surroundings flextime, and other
opportunities to ensure job satisfaction and loyalty. It
takes sensitivity, communication skills, timely feedback,
and a genuine interest in people and their careers to
make a department or a corporation successful.


Information Exchange
Electronic Data Interchange


What is EDI?
•Most B2B traffic is handles by a communication tool called
Electronic Data Interchange (EDI).
•EDI allows one computer system to communicate with another
computer system using a standardized electronic form.
•It is computer to computer transfer of business information
among businesses that use a specific standard format.
•The information exchanged could be transaction data, requests
for quotes, order acknowledgments, shipping status or schedule
and the like.
•EDI incorporates more than 3/4th of the total business
information exchanged between business houses in today’s
date.

EDI


Advantages of EDI
•Cost reduction and time saving
• By eliminating unnecessary paperwork, information flow
becomes more efficient.
• Eg: The seller’s EDI computer sending acknowledgments
and electronic billing eliminates the paper invoice.
•Improved B2B problem resolution.
• EDI responds quickly to business inquiries and transfer of
documents with an automatic audit trail to ensure
accuracy and consistency.
• Implementation of EDI and its various applications results
in improvement in information sharing and cooperation
between trading partners.

EDI


Advantages of EDI
•Accuracy with Integrity.
• Eliminating data entry means improved accuracy in the
way data is processed. This contributes to the integrity and
reliability of the business process.
• The receipt of more accurate and complete business
transactions through EDI improves information processing
in the affected application.
•Uses of EDI:
• Shortening order time.
• Cost cutting.
• Elimination of errors.
• Fast response.
• Accurate invoicing.
• EDI Payments.
EDI


Drawbacks of EDI
•Expensive
• EDI has yet to catch on as the perfect solution to
information flow or for doing business. EDI is expensive and
requires a heavy investment to launch and maintain the
technology.
• It requires VAN networking to operate at peak efficiency.
Only high-volume, large trading partners can afford this
investment.
•Non-User Friendly
• It is not easy to learn, use and implement.
•P2P
• EDI is point to point. Every contact requires special
hardware and software.

EDI


Mobile Commerce


What is M-Commerce?
•Business Transactions and Payments conducted in a non PC
based environment.
•M-commerce is the buying and selling of goods and services
through wireless handheld devices.
•M-Commerce is the process of paying for services using a
mobile phone or personal organizer.
•M-Commerce is the use of mobile devices to communicate,
inform transact and entertain using text and data via a
connection to public and private networks.
•M-commerce is also known as next-generation e-commerce, m-
commerce enables users to use the Internet without needing to
find a place to plug in.
•The emerging technology behind m-commerce is based on the
WIRELESS APPICATION PROTOCOL(WAP) .

M-Commerce


Advantages:
•The benefit of M-Commerce include customer satisfaction, cost
savings and new business opportunities.
•Use M-Commerce anytime, anywhere with the light-weighted
device.
•Single owner has control over data whereas the mobile device
can be highly personalized.
•M-Commerce can bring the buyer and seller together more
easily and facilitate greater profits and a closer customer
relationship.

M-Commerce


Disadvantages:
•Expensive cost
•Small screens won’t have clear display.
•Web sited not fully compatible with WAP.
•Slow speed.
•Limited for longer message.
•It hard way to fill the data.
•Security is not protected.

M-Commerce


83

Pros and Cons of Mobile Commerce
Desktop / PC Mobile Phone / PDA
 Greater Processing, multimedia  Online product browsing  Location based advertising
and display capabilities of PCs  Personalized Advertising  Greater Convenience
 Greater presentation facilities  Convenience for a  Capture of buying impulses
makes the PC more applicable technologically aware user.  Alternative payment mechanism
to larger purchases  Choice of many online stores e.g. Phone Bill
for a wide range of items  Supports new mobile services
discount Notifications.

E-Commerce M-Commerce
E-Commerce M-Commerce

 Dialup hassles  Distrust of technology, resistance  Smaller screen size can degrade
 Less possibility of impulse to change user experience
spending  Fears about security online  Small or immature input technologies
transactions  Market may be less open than
 Bad design of many user interfaces e-commerce market
 Slow connections if broadband  Tariffs are relatively high
access not available

84

2: Technology - The driving force behind E-Commerce:

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