E-Commerce

1. Electronic commerce refers
to business activities
conducted using electronic
data transmission via the
internet and the World Wide
Wave.

2.  Business- to- consumer
 Business -to –business
 The transaction and business processes that
support selling and purchasing activities on the
Web

3. Web based e-commerce
 Electronic funds transfers (EFTs)
 Electronic data interchange (EDI)

4.  Attract prospect to your site
-Positive online experience
-Value over traditional retail
 Convert prospect to customer
-Provide customized service
-Online ordering, billing and payment
 Keep them coming back
-Online customer service
-Offer more products and conveniences

5.  The strategies are:-
 The element are linked with transmission of
electronic data. The name given to this is Inter-organizational
Systems (IOS)
 EDI (Electronic Data Interchange) is the means for
achieving IOS.
 Externals allows the sharing of sensitive
computer-based information with other firms
implementing the information technology
commonly associated with internet.
 Security and privacy are serious concerns.
 Externals have some processes as EDI but in
addition implement standard protocols to use the
communication net work.

6.  An IOS also known as Inter-Organizational
Information System, is a combination of
firms that are linked so that they can
function as a single system. They work
together to achieve common objectives.
The firms that form IOS are called Trading
Partners or Business Partners. The
organization that is the driving forces
behind the IOS is called as IOS sponsor.
The other connected organizations are
called IOS participants.

7.  Comparative Efficiency:- By joining an IOS, the trading
partners can provide their goods and services at lower
costs than their competitors. The comparative efficiency
consist of two groups – Internal efficiency & Inter-organizational
efficiency.
 Bargaining power:- It’s the power or the ability to resolve
disagreements with the firms supplies or customers to its
own advantages.
 EDI standards:- The electronic data that flaws along the
firm and its trading partners adhere to a standard format.
 Dagger of EDI implementation:- EDI is implemented in
three levels.
a). Level one users
b). Level-two users
c). Level-three users

8. Electronic Data Interchange (EDI) consists
of direct computer transmissions of data in a
machine-readable, structured format.
Features of EDI:-
Typical EDI linkages
Vendor stock replenishment (VSR)
Electronic fund transfer (EFT)

9.  There are Direct & Indirect benefits of EDI
approach
Direct benefits
1.Reduced errors
2.Reduced costs
3.Increased Operational efficiency
Indirect benefits
1. Increased ability to compete
2. Improved relationship with the trading
partners
3. Improved customer service

10. Unknown customer
Snooper
Unreliable Merchant

11.  Customer risks:-
-Stolen credentials or password
-Dishonest merchant
-Disputes over transaction
-Inappropriate use of transaction details
 Merchants risk:-
-Forged or copied instruments
-Disputed charges
-Insufficient funds in customers account
-Unauthorized redistribution of purchased items

12.  Authorization, Access Control:
-protect intranet from hordes
 Confidentiality, Data Integrity:
-Protect contents against snoopers
 Authentication:
-Both parties prove identity before starting
transaction
 Non-repudiation:
-Proof that the document originated by you
& only.

13.  A value added network is an independent
firm that offers connection and EDI
transaction forwarding services to buyers
and sellers engaged in EDI.
 VANs are responsible for ensuring the
security of data transmitted.
 VANs charged a fixed monthly fee plus a per-transaction
charge to subscribers.

14.  Identify specific need
 Search for products or services that will
satisfy the specific need
 Select a vendor
 Negotiate a purchase transaction
 Market payment
 Perform regular maintenance and make
warranty claims

15.  Conduct market research to identify
customer needs.
 Create product or services that will meet
customers needs.
 Advertise and promote product or service
 Negotiate a sale transaction
 Ship good and invoice customer
 Receive and process customer payments
 Provide after-sale support, maintenance,
and warranty service.

16.  Electronic fund transfer (EFT)
 Electronic data interchange (EDI)
 Internet commerce
 Electronic business (IBM style)

17.  Example of business processes:
 -Well suited to e commerce
 -Well suite to traditional commerce
 -A combination of both strategies

18.  Sale/purchase of books and CDs and other
commodities
 Online delivery of software
 Promotion and delivery of travel service
 Online shipment tracking

19.  Sales/purchase of high fashion clothing
 Sale/purchase of perishable food products
 Processing of small-denomination
transactions
 Sale of high-value jewelry and antiques

20.  Electronic commerce can increases sales and
decreases costs.
Web advertising reaches to potential
customers in the world.
Web creates virtual communities for specific
products or services.
 A business can reduce the costs by using e-commerce
in its sales support and order-tracking
processes.
 Electronic commerce increases purchasing
opportunities for the buyer.

21.  Some business processes are difficult to be
implemented through electronic commence.
 Return-on-investment is difficult to apply to
e-commerce.
 Businesses face cultural and legal obstacles
to conducting e-commerce.

22.  About 60 percent of all electronic commerce
sites are in English, languages barrier needs
to be overcome.
 The political structure of the world present
some challenges.
 Legal, tax, and privacy are concerns of the
international electronic commerce.

23.  Transaction costs were the main
motivation for moving economic
activity from markets to
hierarchically structured firms.
 Transaction costs are the total of all
costs that a buyer and seller incur
for business.
 Types of economic organization:
 -Market form
 -Hierarchically-structured form

24.  Business and individuals can use e-commerce
to reduce transaction
cost.
 Electronic commerce can make
network economic structure, which
rely on information sharing, much
easier to construct and maintain.