E-BUSINES and E-Commerce

E-BUSINES

and

E-Commerce

04/22/23 1

Electronic Commerce - Overview

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The elements of CommerceThe elements of Commerce When you get down to the actual elements of

commerce and commercial transactions, we need following list of elements of for typical commerce activities. In this case, the activity is the sale if some product by a retailor to a consumer.

If you would like to sell something to a consumer, at the very core of the matter is the something itself. You must have a product or service to offer.

You must also have a place from which to sell your product. For example telephone no can be a place.

You need to figure out a way to get people to come to your place. This process is known as “Marketing”.

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The elements of CommerceThe elements of Commerce We must have the following elements to conduct e-

commerce:

A product

A place to sell the product- in e-commerce, a web site displays the products in some way and acts as the place.

A way to get people to come to your web sites

A way to accept orders-normally on on-line form of some sort

A way to accept money- normally a merchant account handling credit card payments. This piece requires a secure ordering page and a connection to a bank. Or you may use traditional billing techniques either online or through the mail04/22/23

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The elements of CommerceThe elements of CommerceWe must have the following elements to conduct e-commerce:

A fulfillment facility to ship products to customers(often outsource-able). In the case of Software and Information, however, fulfillment can occur over the web through a file download mechanism.

A way to accept returns

A way to handle warranty claims if necessary

A way to provide customer service (often through email, on-line forms, on-line knowledge bases and FAQs Etc)

In addition, there is often a strong desire to integrate other business functions or practices into the e-commerce offering. An extremely simple example –you might want to be able to show the customer the exact status of an order.04/22/23

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The elements of CommerceThe elements of CommerceThe Lure of e-commerce

The following list summarizes what might be called the “The lure of e-commerce”

Lower transaction costs- if an e-commerce site is implemented well, the web can significantly lower both order-taking costs up front and customer services cost after the sale by automating process.

Large purchase per transaction – Amazon offers a feature that no normal store offers. When you read the description of a book, you also can see “ what other people who order this book also purchased”. That is, you can see the related books that people are actually buying. Because of the feature like these it is common for people to buy more books that might buy at a normal bookstore.

Integration into business cycle: A web site that is well integrated into the business cycle can offer customer more information that previously available. For example, if Dell tracks each computer through the manufacturing and shipping process, customer can see exactly where their order is at any time.

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What is Electronic Commerce?What is Electronic Commerce? EC defined from these perspectives

Communications

Business process

Service

Online

Collaborations

Community Electronic commerce encompasses the entire online process of developing,

marketing, selling, delivering, servicing, and paying for products and services transacted on internetworked, global marketplaces of customers, with the support of a worldwide network of business partners.

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Electronic Commerce (EC) from

communication perspective: e-commerce is a delivery of information, products/services, or payments via telephone line, computer network or any other means.

E-commerce from business process: E-Commerce is the application of technology towards automation of business transaction and workflows.

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E-Commerce from service perspective: E-Commerce is a tool that addresses the desire of firms, consumers, and management to cut services costs while improving the quality of goods and increasing the speed of service delivery.

From online perspective, e-commerce provides the capability of buying and selling products and information on the Internet and other services.

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What E-commerce offers?What E-commerce offers?People can shop in different ways: Traditional mail order

companies introduced the concept of shopping from home in your pajamas, and e-commerce offers this same luxury. New feature that web site offers includes:

The ability to build an order in several days

The ability to configure products and see actual price

The ability to compare prices between multiple vendors easily

The ability to easily build complicated custom orders

The ability to search large catalogs easily

Improved customer interactions: with automated tools it is possible to interact with customer in richer ways at virtually no cost. For example, the customer might get an e-mail when the order is confirmed, when the order is shipped and after the order arrives.

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What is Electronic Business?What is Electronic Business?

E-business is a broader definition of EC that includes not just the buying and selling of goods and services, but also

Servicing customers

Collaborating with business partners

Conducting electronic transactions within an organization

E-Business = E-Commerce + CRM + SCM

CRM = Customer Relationship Management

SCM = Supply Chain Management

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Classification of EC by the Classification of EC by the Nature of the TransactionNature of the Transaction

Business-to-business (B2B) : EC model in which all of the participants are businesses or other organizations

Business-to-consumer (B2C): EC model in which businesses sell to individual shoppers

Business-to-business-to-consumer (B2B2C): EC model in which a business provides some product or service to a client business; the client business maintains its own customers, to whom the product or service is provided

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Classification of EC by the Classification of EC by the Nature of the Transaction Nature of the Transaction (cont.)(cont.)

Consumer-to-business(C2B): individuals who use the Internet to sell products or services to organizations and /or seek sellers to bid on products or services they need

Consumer-to-consumer (C2C) : consumers sell directly to other consumers

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Regulatory status of e-commerce in NepalRegulatory status of e-commerce in Nepal

Electronic Transaction Act 2061 BS(2004 AD)

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Mobile CommerceMobile Commerce

© Reg Bhandari Master’s Degree in Computer Application

Some definitionSome definition

Definition:

“E-commerce over mobile devices” – (Robinson-Humphreys)

“The use of mobile handheld devices to communicate, interact via an always –on high speed connection to the internet” – (Forrester)

Examples of M-commerce Purchasing movie Tickets

Purchasing airlines Tickets

Hotel Booking and reservation

Restaurant booking and reservation

Searching for goods and services

Information customers for payback schedules and pay amount

Agenda of meeting


M-commerce servicesM-commerce services

Information –Based services Instant messaging

E-mail

Searching for movies using cell phone or handheld PDAs.

Eg. Google in AirTel, Euddy Etc.

Transaction-based services Purchasing stocks, concert tickets, music or games

Searching for best prices for an item using a cell phone and buying it in a physical store or on the web.

Personalized services Services that anticipate what a customer wants based on that

person’s location or data profiles, such as update airlines flight information.


M-Commerce Vs E-commerceM-Commerce Vs E-commerce

Technology E-commerce M-commerceDevice PC Smart phone’s,

PDAs

OS Ms-Windows, Linux, Unitx

Symbian(EPOC), PlamOS, Pocket PC

Presentation Standards

HTML HTML, WML, i-mode

Browser IE, Netscape, Opera Phone.com, Nokia browser, MS-Mobile Explorer and Micro browsers

Bearer Networks TCP/IP, Fixed Wire line Internet

GSM, GPRS, CDMA, CDPD(Cellular

digital Pocket data)


Application AreasApplication Areas

Finance services

Mobile banking

Wireless e-payment system

Micropayment

Wireless bill payment


M-commerce Challenges, Obstacles, M-commerce Challenges, Obstacles, Limitations and issuesLimitations and issues

Data transfer speed of cellular networks is comparatively slow, resulting in higher cost to customer. Cellular phones have limited memory and power suppliers. More web sites need to be designed specially for small wireless devices in account of its small screen and keyboard awkward to use. In case of payment through mobile is still unsecured.

M-commerce obstacles Complex standardization process

Multitude of network technologies

Infrastructure investment

Demand and uncertainty

Slow than anticipated WAP adoption

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The Benefits of ECThe Benefits of EC Benefits to Organizations

Expands the marketplace to national and international markets

Decreases the cost of creating, processing, distributing, storing and retrieving paper-based information

Allows reduced inventories and overhead by facilitating pull-type supply chain management The pull-type processing allows for customization of products and services which provides competitive advantage to its implementers

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The Benefits of ECThe Benefits of EC Benefits to Organizations

Reduces the time between the outlay of capital and the receipt of products and services

Supports business processes reengineering (BPR) efforts

Lowers telecommunications cost - the Internet is much cheaper than value added networks (VANs)

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Benefits of EC Benefits of EC (cont.)(cont.)

Benefits to consumers Enables consumers to shop or do other

transactions 24 hours a day, all year round from almost any location( 7× 24) (52 × 24) (365 × 24)

Provides consumers with more choices

Provides consumers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons

Allows quick delivery of products and services (in some cases) especially with digitized products

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Benefits of EC Benefits of EC (cont.)(cont.) Benefits to consumers

Consumers can receive relevant and detailed information in seconds, rather than in days or weeks

Makes it possible to participate in virtual auctions

Allows consumers to interact with other consumers in electronic communities and exchange ideas as well as compare experiences

Facilitates competition, which results in substantial discounts

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Benefits of EC Benefits of EC (cont.)(cont.)

Benefits to society Enables more individuals to work at home, and

to do less traveling for shopping, resulting in less traffic on the roads, and lower air pollution

Allows some merchandise to be sold at lower prices, benefiting less affluent people

Enables people in Third World countries and rural areas to enjoy products and services which otherwise are not available to them

Facilitates delivery of public services at a reduced cost, increases effectiveness, and/or improves quality

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The Limitations of ECThe Limitations of EC Technical limitations

There is a lack of universally accepted standards for quality, security, and reliability

The telecommunications bandwidth is insufficient Software development tools are still evolving There are difficulties in integrating the Internet

and EC software with some existing (especially legacy) applications and databases.

Special Web servers in addition to the network servers are needed (added cost).

Internet accessibility is still expensive and/or inconvenient

Documents

E-BUSINES and E-Commerce