The document discusses online business transactions and e-commerce applications. It begins by defining e-commerce as transacting or facilitating business over the internet. It then examines several e-commerce applications including banking, insurance, utility bill payment, online marketing, e-tailing, finance, and travel. For each application, the document outlines advantages and challenges, such as banks developing new e-commerce products to facilitate online transactions but also facing strategic and operational risks. Overall, the document provides an overview of key concepts of online business transactions and analyses popular e-commerce applications and their benefits and issues.

1. UNIT V
Online Business Transactions
By Dr. Dhobale J V
Associate Professor
School of Engineering & Technology
RNB Global University, Bikaner
RNB Global University, Bikaner. 1

2. Objectives
 Meaning, purpose, advantages and
disadvantages of online transacting.
 E-commerce applications in various industries
-banking, insurance, payment of utility bills,
online marketing, e-tailing (popularity, benefits,
problems and features)
 Online services (financial, travel and career),
auctions, online portal, online learning,
publishing and entertainment}
 Online shopping (amazon, snap deal, alibaba,
flipkart, etc.).
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3. Online Business Transaction
 Transacting or facilitating business on the
Internet is called ecommerce.
 Online business / Electronic commerce
(ecommerce) is a type of business model, or
segment of a larger business model, that
enables a firm or individual to conduct
business over an electronic network, typically
the internet.
 Electronic commerce operates in all four of the
major market segments: business to business
(B2B), business to consumer (B2C), consumer
to consumer (C2C) and consumer to business 3RNB Global University, Bikaner.

4. E-commerce
 It can be thought of as a more advanced form
of mail-order purchasing through a catalog.
 Almost any product or service can be offered
via ecommerce, from books and music to
financial services and plane tickets.
 Ecommerce has allowed firms to establish a
market presence, or to enhance an existing
market position, by providing a cheaper and
more efficient distribution chain for their
products or services.
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5. E-commerce
 When you purchase a good or service online,
you are participating in ecommerce.
Some advantages of ecommerce for
consumers are:
 Convenience.
 Selection.
 But ecommerce also has its disadvantages for
consumers:
 Limited customer service.
 No instant gratification.
 No ability to touch and see a product. 5RNB Global University, Bikaner.

6. E-commerce
 Ecommerce is short for "electronic
commerce."​
 Popular examples of ecommerce revolve
around buying and selling online. But the
ecommerce universe contains other types of
activities as well.
 Any form of business transaction conducted
electronically is ecommerce.
 Examples-
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7. E-commerce
 Online Shopping
 Electronic Payments
 Online Auctions
 Internet Banking
 Online Ticketing
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8. E-commerce Architecture
 E-commerce is based on the client-server
architecture.
 A client can be an application, which uses a
Graphical User Interface (GUI) that sends
request to a server for certain services.
 The server is the provider of the services
requested by the client.
 In E-commerce, a client refers to a customer
who requests for certain services and the
server refers to the business application
through which the services are provided.
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9. E-commerce Architecture
 The business application that provides
services is deployed on a Web' server.
 The E - Commerce Web server is a computer
program that provides services to "other
computer programs and serves requested
Hyper Text Mark-up Language (HTML) pages
or files.
 In client-server architecture, a machine can be
both a client as well as a server.
 There are two types of client server
architecture that E-commerce follows: two-tier
and three-tier. 9RNB Global University, Bikaner.

10. E-commerce Architecture
 Two-tier: In two-tier client-server architecture
the user interface runs on the client and the
database is stored on the server.
 The business application logic can either run
on the client or the server.
 The user application logic can either run on
the client or the server.
 It allows the client processes to run separately
from the server processes on different
computers.
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11. E-commerce Architecture
 Two-tier:
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12. E-commerce Architecture
 Thee-tier:
 The three-tier architecture emerged in the
1990s to overcome the limitations of the two-
tier architecture.
 In three-tier architecture, the user interface
and the business application logic, also known
as business rules and data storage and
access, are developed and maintained as
independent modules.
 The three-tier architecture includes three tiers:
top tier, middle tier and third tier.
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13. E-commerce Architecture
 Thee-tier:
 The top tier includes a user interface where
user services such as session, text input, and
dialog and display management reside.
 The middle tier provides process management
services such as process development,
process monitoring and process resourcing
that are shared by the multiple applications.
 The third tier provides database management
functionality.
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14. E-commerce Architecture
 Thee-tier:
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15. E-commerce Components
 The following figure shows the components
involved in E-commerce infrastructure:
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16. E-commerce Components
 Hardware
 E-Commerce Software – Catalog
Management, Product configuration, Shopping
cart, Transaction Processing, web-traffic data
analysis.
 Web-Server Software - security and
identification and retrieval and sending of Web
pages, Web log.
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17. E-commerce Applications
 Banking.
 Insurance.
 Payment of Utility Bills.
 Online Marketing.
 E-tailing.
 Finance.
 Travel.
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18. E-commerce Applications
 Banking: Like other companies, banks are
taking steps to expand the use of networking
technology in their business operations.
 For these institutions, however, the advent of
electronic commerce poses questions as well
as opportunities.
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19. E-commerce Applications
 Banking:
 Will the role of banks in e-commerce basically
mirror their role in traditional commerce? Or
will banks offer new products that will change
the nature of the banking business as e-
commerce expands?
 What risks might accompany such a shift in
banks’ traditional business?
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20. E-commerce Applications
 Banking: In this edition of Current Issues, we
explore the possible implications of e-
commerce for banks’ business activities.
 We find that banks are beginning to use the
Internet to deliver traditional banking products
in more efficient ways.
 In addition, we report that some banks have
taken the further step of developing new
products designed specifically to facilitate e-
commerce participation by their customers.
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21. E-commerce Applications
 Banking: Our analysis of banks’ entry into e-
commerce includes a look at the strategic and
operational risks banks may face in this arena.
 E-commerce will create new forms of
competition and compel banks to make
choices about the services they offer, the size
of their branch networks, and the extent of
their support for interbank payment networks.
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22. E-commerce Applications
 Banking:
 Participation in e-commerce will also increase
banks’ exposure to technological problems.
 Banks’ success in coping with such challenges
will help determine the scale of their influence
in the electronic marketplace.
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23. E-commerce Applications
 Banking Advantages:
 Banks have an important reason to pursue the
conduct of business on-line.
 If they fail to respond to the opportunities
posed by the Internet, they could be consigned
to a largely secondary role as commerce shifts
toward electronics over time.
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24. E-commerce Applications
 Banking Advantages:
 In that event, they would process payments for
buyers and sellers engaged in e-commerce,
but they would have little chance to engage
independently with buyers and sellers or to
offer their own products in the electronic
marketplace.
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25. E-commerce Applications
 Banking Advantages:
 By contrast, if banks do establish a presence
on the Internet, they should be in a position
both to market traditional banking products
more efficiently and to develop and sell new
products sought by e-commerce participants.
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26. E-commerce Applications
 Banking Advantages:
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27. E-commerce Applications
 Banking Advantages:
1. Electronic Delivery of Traditional Banking
Products.
2. Development of E-Commerce Products.
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28. E-commerce Applications
 Banking Challanges:
1. Risk Implications:
 Strategic —that is, banks may be unable to
adapt successfully to the changes in the
business environment created by e-
commerce.
 Operational—meaning that the computers
and network technology that support e-
commerce could malfunction
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29. E-commerce Applications
 Education – Case of EdX
 Insurance - Electronic Insurance and its
application in e-commerce – research Paper -
 Payment of Utility Bills – Telephones, Light
bills, Water charges.
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30. E-commerce Applications
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31. E-commerce Applications
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32. E-commerce Applications
 Challenges?
 Related to existing services.
 New e-commerce based services?
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33. E-commerce Applications
 Online Marketing - Internet marketing means
marketing of the products or services online. It
refers to the strategies and techniques that are
used for marketing of the products and
services online. Internet marketing strategies
includes web-designing, Search Engine
Optimization, E-mail marketing, online
promotions, blogs.
 Internet marketing helps in attracting
customers as more and more people use
internet now- a- days.
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34. E-commerce Applications
 Relationship between Internet Marketing
and E-commerce:
 Internet marketing and e-commerce has
marked its place in the world of technology.
The success of any business at present
strongly depends on Internet marketing as well
as e-commerce.
 Therefore business requires both. Internet
marketing and E-commerce both deals with
online transactions.
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35. E-commerce Applications
 Challenges of Online Marketing:-
1. Social Media Management
2. Getting Value From SEO (Search Engine
Optimization)
3. Multi-Device Usage
4. Optimizing The Mobile Experience
5. Competing With The Noise
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36. E-commerce Applications
 E-tailing - Electronic retailing is the sale of
goods and services through the internet.
 Electronic retailing, or e-tailing, can include
business-to-business (B2B) and business-to-
consumer (B2C) sales of products and
services, through subscriptions to website
content, or through advertising.
 E-tailing requires businesses to tailor
traditional business models to the rapidly
changing face of the internet and its users.
 Finance.
 Travel.
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37. E-commerce Applications
 Finance- Insurance & Banking.
 Travel - Travel and tourism are illustrating how
e-commerce can change the structure of an
industry—and in the process create new
business opportunities.
 Subsequent growth in travels.
 The tourism product in particular has to do
with emotional experiences; it is not just
business. 37RNB Global University, Bikaner.

38. E-commerce Applications
 Features-
1. Travel and tourism represent approximately
11% of the worldwide GDP, according to the
World Travel & Tourism Council.
2. As an umbrella industry, it relates to many
sectors such as culture or sports. Over 30
different industrial components have been
identified that serve travelers, which explains
the industry’s heterogeneity.
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39. E-commerce Applications
 Features-
3. The supply and demand sides form a
worldwide network, where both production
and distribution are based on cooperation.
4. The product is perishable and complex; for
example, an unsold hotel bed represents lost
income. The supplier risk of loss can be
reduced if information access is available.
5. The tourism product itself is a bundle of basic
products.
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40. E-commerce Applications
 Challenges-
1. The Web is changing the needs of
consumers, who are increasingly less loyal,
take more frequent vacations of shorter
duration, and take less time between
choosing and consuming a tourism product.
2. Numerous value-generating strategies.
3. Fierce Competition.
4. Mass customization.
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41. E-commerce Applications
 Challenges-
5. Flexibility
6. Information communication and coordination.
7. Technology Upgradation.
8. Supplier – price competition.
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42. Review
 Meaning, purpose, advantages and
disadvantages of online transacting.
 E-commerce applications in various industries
-banking, insurance, payment of utility bills,
online marketing, e-tailing (popularity, benefits,
problems and features)
 Online services (financial, travel and career),
auctions, online portal, online learning,
publishing and entertainment}
 Online shopping (amazon, snap deal, alibaba,
flipkart, etc.).
42RNB Global University, Bikaner.

43. Thank You!
RNB Global University, Bikaner. 43