UNIT I INTRODUCTION

What is E-Commerce ? Electronic commerce (EC) is an emerging concept that describes the buying and selling of products, services and information via computer networks, including the Internet.

What is E-Commerce ? E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network.

Source: 1999 SG Cowen/Datamation Networked Computing Survey Figure: E-commerce on the rise. Source: 1999 SG Cowen/Datamation Networked Computing Survey Figure: E-commerce apps are a big driver for storage. Average installed online storage in gigabytes. Source: 1999 SG Cowen/Datamation Networked Computing Survey No plans Start in 99/00 Expand in 99/00 Largely done

Table: E-commerce’s most promising potential benefits New channel for existing business Improved customer service Enabled entire new line of Reduced operating costs cycle time % of Respondents 25% 23% 18% 7% 5% Keep pace with technology Reduced cost of sales Other Not available None 4% 6% 3%

Is e-commerce the same as e-business? In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals). In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network.

eBusiness Processes WHY Customer Relationship WHAT Redesign Business Processes (Outside-In) HOW Applying Technology

eBusiness Key Concepts The strategy of how to automate old business models with the aid of technology to maximize customer value eCommerce The process of buying and selling over digital media eCRM (eCustomer Relationship Management) The process of building, sustaining, and improving eBusiness relationships with existing and potential customers through digital media

Types of E-commerce Business-to-business Business-to-government Business-to-consumer “Consumer Electronic Commerce” or “Retail Electronic Commerce” Government-to-consumer Consumer-to-consumer

Traditional versus E-Business Models? C C B B C: Individual Consumer B: Business

What is Consumer E-commerce? It is the online selling and buying of products and services: companies publish their catalogs online, and consumers order from the catalogs, make payments, and track the status of their orders online. In the typical scenario a customer uses a Web browser to access a Web-based virtual store through the Internet.

What is B2B? “B2B” is business-to- business commerce conducted over the Internet (called B2B e-commerce space, or e-marketplaces) Why B2B is superior? B2B e-frastructure and e-markets are the continuous extension of previously installed technologies and current marketplace activities. In (our) views, continuous innovations represent superior investments because they build upon technology platform and economics that have already proven successful. N

E-Market is … Web-based marketplace e-market is Web sites where buyers and sellers come together to communicate, exchange ideas, advertise, bid in auctions, conduct transactions, and coordinate inventory and fulfillment Buyers Sellers MarketSite

Figure : A B2B Model (Source: Goldman Sachs Investment Research Report) Banks, Financial Institutions eCredit.com Suppliers Production materials Operating goods, services Invoices, Payment , Clearing Enterprise Customers Logistics Celarix, NTE Transportation, Warehousing

What is B2C? B2C (or Extranets) is just web-enabled relationships between existing partners; they tend to be run by a single company seeking to lower the cost of doing business with its current suppliers or individual customers. Examples? Amazon.com Egghead.com

Figure: A B2C e-business Model Enterprise User Profiles Workflow Business rules Payment Analytics Internet Firewall Intranet

B2C Applications Electronic storefront Electronic malls Advertising online Service online selling books, toys, computers e-banking (cyberbanking) online stock trading online job market, travel, real estate

Figure : B2C and B2B Internet Commerce in the U. S Figure : B2C and B2B Internet Commerce in the U.S. (Source: Forrester Research) Billion

What is B2G e-commerce? B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations.

Customer-to-Customer E-Commerce Customer-to-customer (C2C): e-commerce in which both the buyer and the seller are individuals (not businesses); involves activities such as auctions and classified ads C2C

What is m-commerce? M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i.e., handheld devices such as cellular telephones and personal digital assistants (PDAs).

Industries affected by m-commerce Financial services Telecommunications Service/retail Information services

Forrester’s M-Commerce Sales Predictions, 2001-2005

Components of a typical successful e-commerce transaction loop The Seller Transaction partners Consumers (in a business-to-consumer transaction) Government The Internet

How is the Internet relevant to e-commerce? The Internet allows people from all over the world to get connected inexpensively and reliably. As a technical infrastructure, it is a global collection of networks, connected to share information using a common set of protocols. A vast network of people and information, the Internet is an enabler for e-commerce as it allows businesses to showcase and sell their products and services online and gives potential customers, prospects, and business partners access to information about these businesses and their products and services that would lead to purchase.

How important is an intranet for a business engaging in e-commerce? An intranet aids in the management of internal corporate information that may be interconnected with a company’s e-commerce transactions. It allows for the instantaneous flow of internal information, vital information is simultaneously processed and matched with data flowing from external e-commerce transactions, allowing for the efficient and effective integration of the corporation’s organizational processes.

E-COMMERCE SERVICES

IS ONLINE SHOPPING SAFE? Yes, Make sure you have a secure connection at the time of checkout. Online stores have "https" in the URL for the checkout-secure internet connection. These sites will encrypt your credit card number, making it impossible for someone to have and use your credit card number even if it is intercepted

ADVANTAGES Lower transaction costs Promote product internationally People can shop in different ways. Improved customer relations Increased Sales

DRAWBACKS Loss of ability to inspect products from remote locations Rapid developing pace of underlying technologies Difficult to calculate return on investment Cultural and legal impediments