1. ECOMMERCE

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)

18. BENEFITS OF E-COMMERCE
 To organizations
 To consumers
 To society

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.