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Overview of Electronic Commerce

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With the internet and technology boom, E-Commerce has grown in to a fully fledged industry, which is day by day explored in to newer avenues, above is an overview of the E-Commerce industry in general and this topic will further explain the industry in detail.

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Overview of Electronic Commerce

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

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