1. Amity School of Business BBA, Semester - II E - Commerce Arpan Sinha

2. Module -1
E-Commerce – Foundation
(Understanding E-Commerce)

3. E-Commerce
Electronic commerce is an emerging model of new selling and merchandising tools in which buyers are able to participate in all phases of a purchase decision, while stepping through those processes electronically rather than in a physical store or by phone (with a physical catalog). The processes in electronic commerce include enabling a customer to access product information, select items to purchase, purchase items securely, and have the purchase settled financially.
It is an emerging concept that describes the process of buying and selling or exchanging of products, services; and information via computer networks including the Internet.

4. Electronic Commerce : Introduction
E-Business
E-Commerce
Internet
Commerce

5. The Cycle of Electronic Commerce
Access
Searches
Queries
Surfing
Follow-on Sales
Customers
Online Ads
Online Orders
Standard Orders
Distribution
Online: soft goods
Delivery: hard goods
Electronic Customer Support

6. Components of Electronic Commerce
Processes
Institution
Marketing
Sales
Payment
Fulfillment
Support
Government
Merchants
Manufacturers
Suppliers
Consumers
Electronic
Commerce
Networks
Intranet
Extranet
Internet

7. Generic Framework of Electronic Commerce
Electronic Commerce Applications
Supply Chain Management Online Marketing and Advertising
Procurement & Purchasing Online Shopping
Audio and Video on Demand Online Financial Transaction
Entertainment and Gaming Education and Research
Common Business Services Infrastructure
(Security/Authentication, Electronic Payment, Directories/Catalogs)
Technical standards for electronic documents, multimedia contents, business transactions, and network protocols
Public policy, legal, economical development, and privacy issues
Multimedia Content & Network Publishing Infrastructure
(Digital Video, Electronic Books, World Wide Web)
Messaging & Information Distribution Infrastructure
(EDI, , HyperText Transfer Protocol)
Information Superhighway Infrastructure
(Telecom, Cable TV, Wireless, Internet)

8. E-Business
E-Business implies the use of web-based technology to buy and sell goods and services, create value and strengthen relationship with customers, suppliers, business partners, shareholders and employees E-business refers to a broader definition of e-commerce; it not only includes buying and selling but also servicing customers and collaborating with business partners through electronic media.
E-Business goes beyond e-commerce by integrating e-commerce tightly with business operations to improve performance, create value and enable new relationships between business firms and customers.

9. Difference between E-commerce and E-Business
The term e-commerce usually refers to monetary transactions that mainly include the buying or selling or products or services.
However, other business functions like marketing, customer education, customer support, getting raw materials etc come under the term of e-business as they all are business functions.

10. Myths about E-commerce
Setting up a E-commerce Web site is easy:
E-commerce means the end of mass marketing:
Everyone is doing it:
E-Commerce means a new economy:
Build it and they will come:

11. E-Commerce Advantages
E-Commerce Disadvantages

12. Constraints in E-Commerce
The Cost Factor
Security
System and Data Integrity
System Scalability
Fulfillment and Customer Relations Problems
Lack of E-Commerce Professionals
Corporate Vulnerability

13. Issues in E-Commerce Confidentiality: Privacy:
E-Commerce systems are based on Internet Technologies, which provide open and easy communications on a global basis. However, since Internet is unregulated, unmanaged and uncontrolled, it introduces a wide range of risks and threats to the systems operating on it. The following are the security issues related to e-commerce are:
Integrity:
Non-repudiation:
Authenticity:
Confidentiality:
Privacy:

14. Impact of E-Commerce
In Business : -
In Economic
In Society

15. Value Chain in E-commerce
VALUE CHAIN : a way of organizing the activities of a business so that each activity adds value (value added activity) or productivity to the total operations of the business.
It is a strategic tool for identifying how the critical components of a business tie together to deliver value for the business across the value-chain process.
Business receive raw materials as input, add value to them through various processes, and sell the finished product as output to customers. This means that organizations are open systems. They do not consist of isolated sets of function. They are a chain of value-creating activities that assure competitive advantages by the way they deliver value to the customers. A communication process that extends from a firm backward to suppliers and forward to customers ties all sorts of activities together – therefore, the value chain

16. Value Chain in E-commerce
Value chain activities are divided into two activities:
Primary Activities
Support Activities
Primary Activities of a business are:
Inbound Logistics:
Operations:
Outbound Logistics
Service

17. Value Chain in E-commerce
Support Activities of a business are :
Corporate Infrastructure:
Human Resources:
Technology development:

18. E-Commerce Strategies
Value proposition
Market opportunity
Competitive environment
Competitive advantage
Market strategy
Organization development plan
Management Team
Revenue Model

19. E-Commerce Business Models
Websites are not free; every one costs money to develop and maintain. The cost and potential revenue constitute a Business model.
It is a way of doing business to sustain a business-generate revenue. Free service has a business model, Free home pages fir into a business model.
The business model spells out how a company makes money by showing where it is in the value chain.
There are different models in e-commerce . Each model has it own unique features and offering.

20. E-Commerce Business Models
STOREFRONT MODEL
CLICK-AND-MORTAR MODEL
BROKER MODEL
SUBSCRIPTION-BASED ACCESS MODEL
PREPAID ACCESS MODEL
BUILT TO ORDER MERCHANT MODEL
VIRTUAL MALL MODEL

21. E-Business Challenges
Security :
Threat of hacking
Customer Privacy :
Lacks human warmth :
Sincerity of sellers and buyers
Information Overload

22. Thank you