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E-Commerce: Definition, Types and Trends. Introduction Your name Where did u do your internship Your goals Your interests and hobbies.

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Presentation on theme: "E-Commerce: Definition, Types and Trends. Introduction Your name Where did u do your internship Your goals Your interests and hobbies."— Presentation transcript:

1 E-Commerce: Definition, Types and Trends

2 Introduction Your name Where did u do your internship Your goals Your interests and hobbies

3 My introduction B.E, MBA(systems),CCNA,PMP with 15 years IT industry experience B.E, MBA(systems),CCNA,PMP with 15 years IT industry experience Skills: Portfolio and Program management, project management, IT infrastructure management, IT Service delivery Skills: Portfolio and Program management, project management, IT infrastructure management, IT Service delivery Worked with various organizations, Symantec, JPMorgan, Kotak, Satyam, NCR, Zenith Worked with various organizations, Symantec, JPMorgan, Kotak, Satyam, NCR, Zenith Vice President PMI Mumbai chapter Vice President PMI Mumbai chapter Visiting faculty for various institutions across country Visiting faculty for various institutions across country

4 Traditional business process Conduct market research to identify customer needs. Conduct market research to identify customer needs. Create product or service that will meet customer's needs. Create product or service that will meet customer's needs. Advertise and promote product or service Advertise and promote product or service Negotiate a sale transaction, including: Negotiate a sale transaction, including: * Delivery logistics * Inspection, testing and acceptance Ship goods and Invoice customer Ship goods and Invoice customer Receive and process customer payments Receive and process customer payments Provide after-sales support, maintenance and warranty service. Provide after-sales support, maintenance and warranty service.

5 E-Business One of the first to use the term was IBM, when, in October, 1997, it launched a thematic campaign built around the term One of the first to use the term was IBM, when, in October, 1997, it launched a thematic campaign built around the term e-business can be said to include e-service, the provision of services and tasks over the Internet by application service providerse-business can be said to include e-service, the provision of services and tasks over the Internet by application service providers One of the first to report sales in the millions of dollars directly from the Web was Dell ComputerOne of the first to report sales in the millions of dollars directly from the Web was Dell Computer Exploiting the convenience, availability, and world-wide reach of the Internet, many companies, such as Amazon.com, the book sellers, have already discovered how to use the Internet successfullyExploiting the convenience, availability, and world-wide reach of the Internet, many companies, such as Amazon.com, the book sellers, have already discovered how to use the Internet successfully.

6 E-commerce: Definition Started in 1983 at Boston Computer Exchange by Alax Randall Actually started with EDI(1960s) Actually started with EDI(1960s) Too many docs( invoice, Pos,bill of landing…all have same set of info) and lots of time and money Too many docs( invoice, Pos,bill of landing…all have same set of info) and lots of time and money Process: Entering data into computers, printing paper forms and reentering at other side, each with their unique format Process: Entering data into computers, printing paper forms and reentering at other side, each with their unique format Set of standards created for exchanging data electronically Set of standards created for exchanging data electronically

7 E-commerce: Definition Traditional business process: Conduct market research to identify customer needs. Conduct market research to identify customer needs. Create product or service that will meet customer's needs. Create product or service that will meet customer's needs. Advertise and promote product or service Advertise and promote product or service Negotiate a sale transaction, including: * Delivery logistics * Inspection, testing and acceptance Negotiate a sale transaction, including: * Delivery logistics * Inspection, testing and acceptance Ship goods and Invoice customer Ship goods and Invoice customer Receive and process customer payments Receive and process customer payments Provide after-sales support, maintenance and warranty service. Provide after-sales support, maintenance and warranty service.

8 E-commerce: Definition No widely accepted definition. In loose sense it means doing business over the internet, selling products [goods and services] which are delivered offline as well as products which can be “digitalized” and delivered on line. “e-commerce is the online transaction of business, featuring linked computer systems of the vendor, host and buyer. Electronic transactions involve the transfer of ownership or rights to use a good or service” [US Department of Commerce]

9 E-commerce: Scope E-commerce is a sub-set of e-business E-commerce is a sub-set of e-business E-business: application of ICT to all aspects of companies operations: i.e. customer relations management (CRM); enterprise resource planning (ERP); sales force management (SFM); electronic procurement (EP) E-commerce: Functions Communication [on-line catalogue] Communication [on-line catalogue] Transaction [shopping carts: browse and select items and make buying decision] Transaction [shopping carts: browse and select items and make buying decision] Payment [electronic payment methods] Payment [electronic payment methods]

10 E-commerce Characteristics Operates on a bona fide basis [no prior arrangement between customer and seller] Operates on a bona fide basis [no prior arrangement between customer and seller] Operates over the Internet; using all or any combination of technologies designed to exchange data [ , mobile phone, EDI]; to access data [share databases or electronic bulleting boards]; and to capture data [bar coding and magnetic or optical character readers Operates over the Internet; using all or any combination of technologies designed to exchange data [ , mobile phone, EDI]; to access data [share databases or electronic bulleting boards]; and to capture data [bar coding and magnetic or optical character readers Requires buyer adhering to a contract [I AGREE, I DON’T AGREE Requires buyer adhering to a contract [I AGREE, I DON’T AGREE

11 E-commerce Market Structure Portal (POR): Engages in building a community of consumers of information about products. Focal points for influencing the channel traffic into web sites managed by providers.(e.g ebay.in as a portal) Portal (POR): Engages in building a community of consumers of information about products. Focal points for influencing the channel traffic into web sites managed by providers.(e.g ebay.in as a portal) Market Maker (MMK): F acilitates business transactions that take place between supplier and buyer, and provides value through a system of implicit or explicit guarantee of security and trust.(e.g ebay as a company) Market Maker (MMK): F acilitates business transactions that take place between supplier and buyer, and provides value through a system of implicit or explicit guarantee of security and trust.(e.g ebay as a company) Product/service Provider (PSP): Conduct directly business over the internet, customized information systems and business processes.(e.g Apple, Sony etc) Product/service Provider (PSP): Conduct directly business over the internet, customized information systems and business processes.(e.g Apple, Sony etc)

12 E-commerce: Elements A good or service to be offered A good or service to be offered Customer needs to know how to find the product [marketing, portals] Customer needs to know how to find the product [marketing, portals] Exchange of money [electronic or conventional financial transactions] Exchange of money [electronic or conventional financial transactions] Delivery mechanism [on-line, off- line] Delivery mechanism [on-line, off- line] Customer service and communication Customer service and communication

13 G2G e.g. coordination G2B e.g. information G2C B2G e.g. procurement( tenders) B2B e.g. e- commerce(in diamart.com) B2C e.g. e- commerce(eb ay,amazon) C2G e.g. taxes C2B e.g. price comparisons(pri cline.com) C2C e.g. auction markets(ebay and amazon) Government Business Consumer Government Business Consumer E-commerce and Broader Internet Applications Source OECD (2000)

14 E-commerce Market Segments B2B : Transactions between companies. The biggest and more successful [70-75% of total e-commerce sales] Linked with supply chain management, going beyond simple buying and selling transactions increasingly involving supply chain technologies. B2B : Transactions between companies. The biggest and more successful [70-75% of total e-commerce sales] Linked with supply chain management, going beyond simple buying and selling transactions increasingly involving supply chain technologies. B2C : Business selling to households. Growing segment of the market. More complex due to information gaps; has not done as good as B2B. B2C : Business selling to households. Growing segment of the market. More complex due to information gaps; has not done as good as B2B. C2C : Facilitates transactions between two individuals. Requires a platform (MMK). E-Bay C2C : Facilitates transactions between two individuals. Requires a platform (MMK). E-Bay B2G : Government procurement through internet. Seeks more transparency and greater competition B2G : Government procurement through internet. Seeks more transparency and greater competition C2B: Reverse auction [new trend] C2B: Reverse auction [new trend]

15 E-Commerce: Advantages Being able to conduct business 24 x 7 x 365 Being able to conduct business 24 x 7 x 365 Access the global marketplace Access the global marketplace Speed Speed Opportunity to reduce costs Opportunity to reduce costs Computer platform-independent Computer platform-independent Efficient applications development environment Efficient applications development environment Allowing customer self service and 'customer outsourcing‘ Allowing customer self service and 'customer outsourcing‘ Stepping beyond borders to a global view Stepping beyond borders to a global view

16 E-Commerce: disadvantages Time for delivery of physical products Time for delivery of physical products Physical product, supplier & delivery uncertainty Physical product, supplier & delivery uncertainty Perishable goods Perishable goods Limited and selected sensory information Limited and selected sensory information Returning goods Returning goods Privacy, security, payment, identity, contract. Privacy, security, payment, identity, contract. Defined services & the unexpected Defined services & the unexpected Personal service Personal service Size and number of transactions Size and number of transactions

17 E-Commerce: Key Success factors Selection and value Selection and value Performance and service Performance and service Look and feel Look and feel Advertising and Incentive Advertising and Incentive Personal attention Personal attention Community Relationships Community Relationships Security and Reliability Security and Reliability

18 E-Commerce: Impact Widening global digital divide Widening global digital divide Changes in the business regulations Changes in the business regulations 90% of the internet users are in industrialized countries as US and Canada(57%) 90% of the internet users are in industrialized countries as US and Canada(57%) Internet users in Middle east and Africa only 1% Internet users in Middle east and Africa only 1% Technical, legal and governance issues Technical, legal and governance issues

19 E-Commerce: Strategy Online vs offline strategy Online vs offline strategy Speed of transactions Speed of transactions Appropriate amount of resources for advertising Appropriate amount of resources for advertising Integration of ecommerce components with the overall site design Integration of ecommerce components with the overall site design Multiple ways to communicate for customers Multiple ways to communicate for customers Search capability that really works Search capability that really works Home or an index page on website Home or an index page on website

20 E-Commerce: Examples

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24 E-Commerce: Videos 6ZO4aY 6ZO4aY 6ZO4aY 6ZO4aY 5IQgIU 5IQgIU 5IQgIU 5IQgIU b_j0eE b_j0eE


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