1. Dr. S. P. SINGH Dept. of Computer Science & Engineering
MSH1011 – E-Business
Dr. S. P. SINGH
Dept. of Computer Science & Engineering

2. E-Commerce Definitions
Commerce – is the exchange of something of value between two entities
Business refers to
Commercial, professional or industrial organization
Commercial, professional or industrial activity
A particular area of economic activity
E-commerce is the conducting of commerce with goods and services over the Internet

3. Scene before E-Commerce
Sales force have been driving the marketing
Advertisements influence consumers' purchase behavior
Selling conducted in well insulated channels
Consumers constrained to search for best bargain for products
Information asymmetry of products

4. E-Commerce Features Ubiquity – available everywhere, anytime
Global reach – breaking barriers
Universal standards of Internet, the information highway
Richness of information
Interactivity
Information density for consumers
Personalization of information

5. History of E-Commerce E-Commerce I – between 1990 and 2001
E-Commerce II – 2001 onwards

6. E-Commerce I Explosive growth of Internet and web
Innumerable .com companies
Driven by new technology and young entrepreneur
Focus on new marketing techniques

7. E-Commerce for scientists
Worldwide knowledge store
Universal communication and computing environment
Self-governing and self-regulatory environment

8. E-Commerce for Economists
An ideal market
Infinite suppliers and global customers
Access to all relevant market information
Lower transaction costs
Transparent price and cost to customers
Dynamic pricing based on demand
No middlemen
Elimination of branding and monopoly

9. E-Commerce for entrepreneurs
ROI far above cost of borrowing
Access to customers worldwide
Increased ability to segment the market
New market place - First would get best
Attract customers with lowest prices

10. Crash of EC Companies Enormous IT capital expenditure due to Y2K
Telecom industry built excess capacity
Abnormal rise in valuation of .com companies

11. E-Commerce Successes and Failures
EC – a great technological success
B2C growth about 50% pa
Only 10% .com survived, and a handful made profits
Vision of friction-free market not fulfilled
Middlemen now aggregate content, products
Entrepreneurs' visions crashed

12. Predictions for E-Commerce
Web continues to penetrate businesses
Overall revenue continues growing
Prices rise to cover true costs of e-commerce
Cast of players changes to consolidate audience
Pure EC companies would be fewer
Regulations and control increase

13. E-Commerce Types B2B Business between companies B2b can be
Supplier-centric
Buyer centric
Intermediary-centric

14. E-Commerce Types B2C
Company sell to general public through shopping carts
Goods are
Easily digitized
Have standard specifications
Highly branded
Sold in sealed packets
Inexpensive
Can be distributed on-line

15. E-Commerce Types C2B
Consumer posts project with a set budget and requirements
Companies review and bid
Consumer reviews bids and selects a company

16. E-Commerce Types
C2C – consumers buy and sell using on line payment systems
B2E – company offers products and services to its employees
P2P – Internet users share computer resources directly without going through a central web server
M-Commerce – use wireless digital devices for transactions

17. E-Commerce Types with Government
G2G
G2E
G2B
G2C
B2G
C2G

18. Why E-Commerce? Most of business processes are information processing
Transactions between company and consumer
Transactions between trading partners
Transactions for information gathering
Transactions for information distribution
E-Commerce enables these seamlessly

19. Functions of E-Commerce
Communication
Process management
Service management
Transaction capabilities

20. Key Elements of a Business Model
Value proposition – how business satisfies its customers
Revenue model – how business earns money
Subscription model
Advertising model
Transaction fee model
Sales model
Affiliate model

21. Key Elements of a Business Model
Market opportunity – refers to a company's intended market
Competitive environment - refers to direct and indirect competition a company would face
Competitive advantage – an advantage a company may possess over competitors

22. Key Elements of a Business Model
Market strategy – how a firm intends to enter a new market and do business
Organizational development – how a company organizes itself to do business
Management team – is responsible to lead the business model to success

23. B2C Business Models
Portals – offer users powerful search engines with integrated services in one place
Generate revenue through advertisements, referral fees
Can be horizontal or vertical
E-tailers –Can be virtual merchant, clicks and mortar, catalog merchant, on line mail or manufacturer direct
Generate revenue through sales
Market opportunity is large
Product based model

24. B2C Business Models
Content providers – provide digital content or sell aggregates of others content
Charge subscription fee
May charge fee for individual content
May be free and earn money by advertisements
Must have exclusive content to offer

25. B2C Business Models
Transaction brokers – process transactions for customers and charge fee. They may also provide timely information and expert opinions. Convincing customers of their privacy and security are challenging tasks
Market creators – build market for buyers and sellers to meet. Charge for service.

26. B2C Business Models
Service providers – offer on line services and charge fee.
These offer valuable, convenient, time-saving, low-cost alternatives to traditional services
Make money through service fee, subscription fee
Community providers – create on line environment where people with similar interest can meet.
Earn money by selling customers' information and advertisements

27. B2B Business Models
Market place / Exchange (B2B hub) – facilitates suppliers and commercial buyers meet and conduct transactions
E-Distributer – supplies products and services directly to individual businesses
B2B service provider – sells business services to other companies
Matchmaker – links other businesses
Infomediary -

28. E-Commerce Architectural Framework
business
Technology
society EC

29. EC Framework E-commerce Applications Legal and Public Policy Framework
Info
Distribution
And
Messaging
tech
Legal and Public Policy
Framework
Network
Multimedia
Content
Publishing
tech
Business Service
Infrastructure
Secure Payment Protocols
Payment Infrastructure
Security and Encryption
Technology
Security and Encryption
Technology
Network Protocol Standards
Network Infrastructure

30. Advantages of E-Commerce
Distances do not matter
Market is open 24x7x365 days a year
Cost of setting up and integrating with existing setup is low
Add/remove products is easy
Exposure to vast market segments
Fast order processing
Lot of advice on line

31. Barriers to E-Commerce
No touch and feel of products
Reduced socialization
Short life of on line stores
Fear of hackers and vandalism
Only computer-literates can use EC
Access to Internet is not widespread
Lack of legal protection
Immature payment systems