2. MEANING OF ECOMMERCE
Ecommerce comprises of 2 things
E + Commerce
“Electroniccommerce describes the buying
and selling of products, services and
information via computer networks including
the Internet.”
3. Products could be trading of any physical/digital
products such as food, book, games, cars etc.
Services could be distant education, online medical
consultation with an hospital outside the country or
arranging the trips etc.
4. DEFINITION
“A way of doing real time business transactions via
telecommunication networks, when the customer
and merchant are in different geographical places”
Dr. Heikki Mattila
5. Buying, Selling, Marketin
g & Servicing over Computer Electronic
of Networks Commerce
Products, Services &
Information
6. GOALS OF ECOMMERCE
Reduced cost
Lower product cycle time
Faster customer response
Improved Service Quality
7. DIMENSIONS OF ECOMMERCE
Traditional Commerce –
Product or goods are physical
Process of transactions are physical
Physical Agent
Pure E Commerce-
Product or services are digital
Process of transactions are digital
Delivery Agent is digital
Partial E commerce
Where any of two dimensions are physical
Example ( Amazon.com)
8. COMPARISON OF ECOMMERCE WITH
TRADITIONAL COMMERCE
Startup-Needs capital & Very little
financing
Market – region, nation Local to global
Knowledge-static competency Dynamic competency
TC requires interstate highway EC requires I highway
network
Nature of goods determines what Information and multimedia
type of vehicle is needed content determines what type
of vehicle is needed
9. COMPARISON OF ECOMMERCE WITH
TRADITIONAL COMMERCE
To move the vehicle some fuel Messaging software like
such as diesel, petrol or gas is email, EDI or point-to-point
required file transfer is used as fuel is
used to move the vehicle.
Goods are stored in E-documents are stored in
Warehouses multimedia servers
10. E-COMMERCE FROM DIFFERENT
PERSPECTIVE
1. Communications Perspective
EC is the delivery of information, products/services, or
payments over the telephone lines, computer networks
or any other electronic means.
2. Business Process Perspective
EC is the application of technology toward the
automation of business transactions and work flow.
11. 3. Service Perspective
EC is a tool that addresses the desire of
firms, consumers, and management to cut service
costs while improving the quality of goods and
increasing the speed of service delivery.
4. Online Perspective
EC provides the capability of buying and selling
products and information on the internet and other
online services.
12. Electronic Commerce Framework
Common business services infrastructure (security/authentification,
electronic payment, directories / catalogs)
The messaging and information distribution infrastructure
Multimedia content and network publishing infrastructure
Internet Super Highway( Network Infrastructure)
Public Technical standards for electronic
policy, legal and documents, multimedia and
privacy issues network protocols
13. 1.NETWORK INFRASTRUCTURE
I-way has many different types of transport systems
like Land based telephones, air based wireless,
Satellite Based Network
It also includes hardware, software and networking
devices such as routers, hubs, digital switches that
provide an interface with various networks
14. 2. MULTIMEDIA CONTENT AND NETWORK
PUBLISHING INFRASTRUCTURE
The Most prevalent architecture that enables
network publishing is WWW.
Contents are developed in form of HTML and are
published on WEB SERVER.
15. 3. MESSAGING AND INFORMATION
DISTRIBUTION INFRASTRUCTURE
Information contents consists of
text, numbers, pictures, audio and video.
Everything is in digital form.
To distribute the information Messaging vehicle i.e.
Middleware software is used.
Messaging vehicle provides way to communicate
unstructured as well as structured data
16. 4. COMMON BUSINESS SERVICES
INFRASTRUCTURE
This layer addresses shortcomings such as
inadequate online payment instruments and
inadequate information security
To handle these shortcomings it requires various
security mechanisms such as
Authentication
Confidentiality
Integrity
Non-Repudiation
17. TWO MAJOR PILLARS
Public policy issues deals with:
Cost of accessing information
Regulation to protect customer from fraud
To protect their right to privacy
Technical standards
Access of information on different devices
Interoperability of information (ex. Video standards for
video conferencing)
19. BENEFITS OF ECOMMERCE TO
ORGANIZATIONS
International
Marketplace
Operation Cost Savings
Reduced inventory level
Lower Tele Communication cost: Internet is
much cheaper than VANs
No more 24 hour constraint
Less expensive to expand business
20. BENEFITS TO CONSUMER
24/7 Access
More Choices
Price Comparisons
Quick delivery (Digitized products)
Disintermediation (no mediators)
More discount due to more competition
Interaction with other customers through e-
communities
21. BENEFITS TO SOCIETY
Enables more flexible working practices
Less travelling for shopping resulting in less
traffic and pollution
Increase standard of living
Can buy products and services that
otherwise are not available to them
Facilitates delivery of public services such
as health care, education and distribution of
government social services
22. LIMITATIONS
Technical limitations
Lack of System Security, Reliability, Standards.
Insufficient telecommunication bandwidth
Software development tools are still evolving and
changing
Incompatibility of Ecommerce Software
Vendors may need special web servers & other
infrastructure
23. Non Technical Limitations
Inability to touch and feel the products
Online stores don’t exist for very long
Lack of trust and user resistance
Not 100% safe
Small Businesses may find it difficult to conform
EDI standards
Reduces socialism
Accessibility to internet is still expensive /
inconvenient for potential customers
Not suitable for some perishable products
24. APPLICATIONS/SCOPE OF ECOMMERCE
Internet banking
Stock trading
Online shopping
E-auction
Education sector
E-governance
E-publishing for marketing, advertising, sales &
customer support
Supply chain management
Retail industry
Marketing
Inventory and logistics
Other online services e.g. tour & travel, health care,
legal & professional services
25. E-BUSINESS
E-commerce is a subset of e-business.
Business involves a whole set of
transactions that must be completed before
actually reaching the point where goods or
services change hands.
E-business is the conduct of business on
the Internet, not only buying and selling but
also servicing customers and collaborating
with business partners.