What is EDI????
It involves electronic exchange of business transactions
documents over the internet and other networks between supply
chains and trading partners.
Data representing various business transactions documents such
as purchase orders , invoices, request for quatations and shipping
These documents are automatically exchanged between
computers using standard message formats.
EDI software is used to convert a company’s own documents
formats into standardized EDI formats as specified by various
industry and international protocols.
EDI over internet is growing B2B e-commerce application.
HISTORY OF EDI
The general idea behind EDI was originated by a group of railroad
companies in the mid-1960’s, in the United States.
Much of the early work on EDI was driven by the industry sectors for:
It was not until the 1970’s, when work began for national EDI
•reduced labor-intensive tasks such as data-entry;
•allowed the sender of data to control the
exchange including receipt confirmation of by
the other party
How EDI works??
1. a user places an order (i.e., a document) into
2. The order goes through an interface program.
The application edits the order and relays it to
the intermediate EDI files.
3. The purchase order is changed to the EDI
standard format the application can decipher.
4. The translation program can function with
several programs, allowing the receiver’s system
to interpret the order. The modem relays the
order through a value added network.
5. The network proceeds to take the order. From
the EDI format it is changed back into the
sender’s original format.
Finally this allows the receiver to read the
Advantages of EDI
Lower operating costs
Saves time and money
Less Errors = More Accuracy
No data entry, so less human
More efficient personnel and
Faster trading cycle
Streamlined processes for
improved trading relationships
High Dependence on
the participation of
Costly for smaller
Difficult to agree on
standard to be used
What is commerce???
Commerce is a division of trade or
production which deals with the exchange
of goods and services from producer to
It comprises the trading of some thing of
economic value such as goods , services,
information, or money between two or
What is e-commerce??
Commonly Known as Electronic
“It consist of buying and selling
goods and services over an electronic
systems Such as the internet and other
“E- commerce is the purchasing,
selling and exchanging goods and
services over computer
transaction or terms of sale are
Why to use e-commerce?
Low entry costs.
Access to the global
Secure market share.
A consumer uses Web browser to connect to the
homepage of a merchant's Website on the Internet.
The consumer browses the catalog of products
featured on the site and select items to purchase. The
selected items are placed in the electronic
equivalent of a shopping cart.
When the consumer is ready to complete the
purchase of selected items, she provides a bill – to
and ship-to address for purchase and delivery
When the merchant's Web server receives this
information, it computes the total cost of the order—
including tax, shipping, and handling charges and then
displays the total to the customer.
The customer can now provide payment information,
such as a credit card number, and then submit the order.
When the credit card number is validated and the
order is completed at the Commerce Server site, the
merchant's site displays a receipt confirming the
The Commerce Server site then forwards the order to a
Processing Network for payment processing and
B2B stands for Business to Business. It
consists of largest form of Ecommerce.
This model defines that Buyer and
seller are two different entities. It is
similar to manufacturer issuing goods
to the retailer or wholesaler.
E.g.:-Dell deals computers and other
associated accessories online but it is
does not make up all those products.
So, in govern to deal those products,
first step is to purchases them from
unlike businesses i.e. the producers of
It is the model taking businesses and consumers
interaction. The basic concept of this model is to
sell the product online to the consumers.
B2c is the direct trade between the company and
consumers. It provides direct selling through online.
For example: if you want to sell goods and services
to customer so that anybody can purchase any
products directly from supplier’s website.
There are many sites offering free classifieds,
auctions, and forums where individuals can buy and
sell thanks to online payment systems like PayPal
where people can send and receive money online
with ease. eBay's auction service is a great example
of where person-to-person transactions take place
everyday since 1995.
PROS OF E-COMMERCE
No checkout queues
You can shop anywhere in
Easy access 24 hours a day
Wide selection to cater for
Unable to examine
Not everyone is connected
to the Internet
There is the possibility of
credit card number theft
On average only 1/9th of
stock is available on the net
CONS OF E-COMMERCE
Future of E-commerce in India
According to business world estimate
near about Sixty thousand new jobs will
be created for the internet world alone
in the next two years
e-Commerce transactions are
expected to cross the Rs. 3500 crore
milestone in 2010-11, a jump of around
350 percent from the 2008-09 figure of
Rs. 1000 crore
eBay said that consumers were
trading goods worth almost three crore
rupees everyday, across the globe.
Definition of M-commerce
M-commerce can be defined as the “use of wireless handheld devices
such as cellular phones and laptops to conduct commercial transactions
online. Mobile commerce transactions continues to grow, and the term
includes the purchase and sale of a wide range of goods and services,
online banking, bill payment, information delivery and so on. Also known
Another definition of
“Mobile commerce is any transaction, involving the transfer of ownership or
right to use the goods and services, which is initiated and/or completed by
using mobile access to computer-mediated networks with he help of an
Mobile commerce refers to the wireless electronic commerce
used for conducting commerce or business through a handy
device like cellular phone. It is also said that it is next
generation wireless e-commerce that needs no wire and plug
in devices. Mobile commerce is usually called as ‘M-
commerce’ in which user can do any sort of transaction
including buying and selling of the goods, asking any
services, transferring the ownership or rights, transacting and
transferring the money by accessing wireless internet service
on the mobile handset itself.
Mobile commerce is the activity of commencing commercial
transaction between both B2C and B2B entities via mobile
It is a part of the broader, e-commerce market which
accommodates any commercial transaction via internet
It increase the tendency to save time and energy, especially
amongst the working population will further intensity the e-
commerce market by a large extent
Mobile commerce(m-commerce) is a segment of Mobile Value
MVAS are the services provided by telecom operators directly
or indirectly, beyond standard voice calls.
In the current commerce industry, mobile commerce or M-commerce has been
entered in finance, services, retails, telecommunication. In these sectors, M-
commerce is not only being widely accepted but also it is being more used as a
popular way of business/commerce :-
M-commerce works vastly in finance sector including all big and major financial
institutes, banks, stock market and share brokers. Whenever any user needs
money or wants any sort of banking and finance related services, he/she can
access the services or register services via voice calling or via Short Message
Services(SMS). WAP/GPRS based mobile handsets allows user to access the
official websites of the institutes.
Areas/uses OF M-COMMERCE
Mobile has played a giant role in communication technology through its
versatility and superiority. The easy usage has further made it extremely
popular across the globe. It has already surpassed the fixed phone in the world
. Software platform is essential for operating any mobile and this tool has
revolutionized the communication world because of its functioning as a small
besides this several bills can be paid using mobile and user can also check the
available balance, status of the cheques, the status of the requested processing
and customer care support.
SERVICES/ RETAIL SECTORS
Services and retail sector are also among the leading sectors, which have
nurtures most from mobile commerce. M-commerce has proved a major boon for
these sectors. Several business dealing no matter how big or small are being
finalized on mobile phones.
Customer would be able to book the order , can hire carrier/courier services
and above all could also pay the dues related to it through mobile.