E-commerce plays an important role for both commercial and public sector organizations. This report investigates how e-commerce can be better utilized by these organizations. The report begins by providing background on e-commerce and defining the project aim and objectives. It then discusses the qualitative research method chosen. A literature review examines previous work on the topic. The main findings cover an overview of e-commerce and its categories. It analyzes e-commerce involvement in the public and private sectors in various countries and globally. Benefits and drawbacks of e-commerce for customers and businesses are presented. The report concludes by evaluating the project product and process. It aims to provide strategies for more successful e-commerce

1. E-Commerce
Project Title: An investigation into e-commerce and its uses in and
benefits for commercial and public-sector organization.
August 2011
Mr S.A Rajapaksha
(M.sc, B.sc, BMS, HND)
Sri Lanka.
E-Mail: rajapakshasagmail.com
.
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2. E-Commerce
Copyright declaration
“This work or any part thereof has not previously been presented in any
form to the University or to any other institutional body whether for assessment
or other purposes. Save for any express acknowledgements, references and/or
bibliographies cited in the work, I confirm that the intellectual content is the result
of my own efforts and no other person.
“It is acknowledged that the author of any project work shall own the
copyright. However, by submitting such copyright work for assessment, the
author grants to the University a perpetual royalty-free licence to do all or any of
those things referred to in section 16(i) of the Copyright Designs and Patents Act
1988 (viz. to copy work, to broadcast the work or to make an adaptation of the
work).
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3. E-Commerce
Acknowledgements
It is glad first of all to thank University of Wolverhampton and IDM campus for
conducting a degree in business computing and giving this valuable opportunity
that will make my future career success. I also would like to thank my parents
and my family members who always push me towards getting involved in such
valuable education opportunity and also encourage me to do it successfully.
It is really happy to say big thanks and so gratitude to my module leader Graham
Brown and IDM Module Coordinator Mr Dharsana Hettiarachchi and also Other
all module lectures coming from Wolverhampton university and IDM lectures for
conducting the degree programme with convenient way and providing
necessary steps to do Assignments and getting educated with followed subjects.
And also i must thank for my mates who always help me the way of archiving the
finally project successfully.
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4. E-Commerce
ABSTRACT
Ecommerce is plays the vital role of the both Government and Private sector
Organization as it is makes more convenient and effective process. Therefore
people also have to be follow the concept as it is allows the more efficient at the
day today busy environment.
Following chapters of the report contained information about the ecommerce
and the its various types, how globally and country wise ecommerce
involvement, benefits and drawbacks to the both businesses and customers
perspectives and finally necessary steps to be taken to avoid the some
limitations and advantages.
Benefits and the drawbacks of the Ecommerce area broadly discuss as it is the
report to be investigated. The report cover with the limited scope and the
suitable justification, but it can be expanded in to vast area.
Finally report discuss the progress of evaluating process and the product that
gone through to completed the report with the personal experiences passed
through the report.
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5. E-Commerce
CONTENTS
ABSTRACT ................................................................................. 4
Chapter 1: Introduction
1.1. Introduction of Chapter ............................................................................. 7
1.2. Background ............................................................................................... 8
1.3. Project Aim ................................................................................................ 9
1.4. Project Objectives ..................................................................................... 9
Chapter 2: Research Methods
2.1. Introduction ............................................................................................. 10
2.2. Definition of a Research Method ............................................................. 10
2.3. Why is a Research Method important? ................................................... 10
2.4. Types of Researh Methods ..................................................................... 11
2.4.1 Quantitative research...................................... ....................... 12
2.4.2 Quantitative research ............................................................... 12
2.5. Method comparision................................................................................ 13
2.6. Qualitative approach as the chosen method ........................................... 13
Chapter 3: Literature Review .......................................................................... 14
Chapter 4: Principal findings
4.1. Overview of E-Commerce ....................................................................... 19
4.2. Catogarization Of E-commerce ............................................................... 20
4.3. E-commerce in Public sector ......................................................................
4.3.2 Siberia Ecommerce Involement............. ............ ....................... 23
4.3.2 Sri Lanka Ecommerce Invlovement .............................................. 24
4.4. E-commerce in Private Sector ....................................................................
4.4.1 Ecommerce in Sri Lanka.......................................................... 26
4.4.2 How impact to the SL Organization........................................... 26
4.4.3 Advantages of aaecommerce to Sri Lanka................................... 27
4.5. Global E-commerce Involvement ............................................................ 28
4.5.1 Thailand Ecommerce Growth......................................................... 29
4.6. E-commerce Solutions and Services ...................................................... 30
4.7. Benifits of E-commerce
4.7.1 private Sector
4.7.1.1 Cumtomer Perspective ..................................................... 31
4.7.1.2 Business Perspective ................................................. 32
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6. E-Commerce
4.7.2 Public Sector
4.7.2.1 Cumtomer Perspective ...................................................... 34
4.7.2.2 Business Perspective ........................................................ 34
4.8. Drawbacks of Ecommerce
4.8.1 private Sector ................................................................................ 35
4.8.2 Public Sector ................................................................................. 36
4.9. Drawbacks Solutions.......................................................................... 37
Chapter 5: Conclusions .................................................................................. 38
Chapter 6: Evaluation
6.1. Product ................................................................................................... 39
6.2. Process ................................................................................................... 40
References........................................................................................................... 41
Bibliography ......................................................................................................... 44
Appendices
Appendix A ........................................................................................................... 45
Appendix B........................................................................................................... 46
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7. E-Commerce
Chapter 1: Introduction
Chapter one tells about background, project aim and the project objectives,
Currently E commerce plays a dramatic role around the world, with the new
technology, e commerce technology is getting updating when the Information
Technology is getting updating, this part will cover mainly how e – commerce will
affect the private sector and the public sector in country wise and global wise,
benefits and draw backs of e commerce in private and commercial sector.
This topic mainly focus in e-commerce because with the latest technology
citizens use to do these transactions online it is very easy and convenient for
them.
1.1. Background
E commerce was initially started in 1982 by United States it is known as Boston
computer exchange (Bill) but it started to expand in Western Europe twenty
years later, Companies such as E-bay and Pioneer started in 1994m
The modern world is full of computerized now; still Sri Lanka is in learning curve
but gradually Sri Lanka also coming as developed countries.
From the time that you are connected to the Internet that you can be consider as
part of Ecommerce. No one can be eliminate the concept of Ecommerce as
internet user always meet with the concept of ecommerce as S/he using the
internet for any requirement. Suppose that one user logging to the internet, for
looking some information about Ecommerce.
It is no doubt s/he will find plenty of information for free. And also you will
sometimes direct to site such as Amazon.com while you are referring the Google
links that asking to buy the book to refer as it is a very good book that written by
famous Author. So if its content is good user may buy it. so to create the e
concept in action is not a difficult task as it is make you easy and full of freedom
even you buy or not.
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8. E-Commerce
This report is about to investigation into How ecommerce is useful both private
and public sector organization. So in this report will be covered how Sri Lanka
Use the Ecommerce Concept as Developing country while how rest of the world
contribution to the Ecommerce such as Thailand the True Corporation try to
motivate their Country people by stating new project.
Even though it is true that there are hundreds of benefits using the Ecommerce,
but also there is risk in that as technology is renew day by day while some fraud
user try to hack the user’s personal details and credit cart. This is big issues that
most of users are not taking part of the Ecommerce even though they also
realise that how Ecommerce make easy them.
The Report also would be covered the following area in depth,
1. Introduction to Ecommerce with different types of ecommerce
2. Ecommerce in public and private sector
3. How ecommerce involvement in country wise and globally
4. Ecommerce Solution and services
5. Benefits of ecommerce in public and private sector organization
6. Drawbacks of ecommerce in public and private sector organization
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9. E-Commerce
1.2. Project Aim
To Evaluate how better to use this E-commerce concept for more successfully,
both commercial and public sector organization.
1.3. Project Objectives
 Research and Gathered into what is E-commerce concept
 Investigate how E-commerce involves in commercial and public
sector organizations.
 investigate how both private and public sector uses the E-commerce
concept
 Examine and elaborate the limitation which affected for e-commerce
process.
 Explore what are the strategies and techniques that can be adopted
for more successful procedure
 Suggest require actions to be taken for the use of successful
ecommerce process.
 Evaluate what are the benefits and drawbacks of using E-commerce
concept by commercial and public sector organization.
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10. E-Commerce
Chapter 2: Research Methods
2.1 Research definition
In this going to be discuss research types and what is a good research must
include. And what is the research include in this report.
2.2 Definition of a Research Method
According to Doctor Gwanmesia he mentioned “to make a research you must
know what is a good research is (Gwanmesia).
According to Kumar he has mentioned research is a particular way to find
answer for your questions and this has to be done according to three principles
Kumar (2005).
2.3 Why Research method is important
Research method is important mainly to save time and money the important of it
is gain correct information, it’s the duty of the researcher to identify the correct
information from the sources, this apply more to the secondary researcher
mainly there are two types of research
 Pure research- Pure research is defining new ideas thinking knowing
information in a specific field that Anon (no date) described.
 Applied research- Applied research is to resolve scientific problems this
method is more practical than the pure research, this will find solutions to
day to day problems which is occur in organizations
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11. E-Commerce
2.4 Types of Research
Quantitative research
This research deal with the measurement of attitudes, behaviours and perceptions
and includes interviewing methods such as telephone, intercept and door-to-door
interviews as well as self-completion methods such as mail outs and online surveys.
Anon(no date).
Qualitative research method
This research method is mainly deals with the human behaviour and it helps to
investigate their social and cultural lives and providing a detailed description about the
subject area.
Applied Research
Applied research is taking to solve practical problems
Case study research
This could hold many definitions and is usually used in the research of
information systems. It always investigates a real, practical situation especially
when the observation and situation are not clearly defined .
Ethnography research-This research is more realistic where the ethnographers
have to do field research according to their subject are by actually getting
involved in the lives or societies of their researches.
Evaluation research- This includes effectiveness and the performance of the
program.
Primary research
Primary research is a research which we find or research a new thing; it is need
more time than the secondary research because it is finding a new thing.
Secondary research
In Secondary researches do not find a new thing, backing up other professionals
arguments providing sufficient evidence. It consumes less time than the primary
research because do not research new things.
Among the above mentioned research methods the qualitative and the
quantitative methods are the most commonly used research methods. Because
of this most researchers follow these two methods in order to get a good idea
about the subject. Therefore it is very important to further analyse these two
methods.
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12. E-Commerce
2.4.1 Qualitative research method
Qualitative research is about exploring an issue and finding solutions and finding
solutions for those issues. Qualitative research can have several viewpoints
namely,
 What people say: the knowledge that they have and what they have
understand.
 What people do: actions they take and the behaviour of the project will be
considered.
 Culture: cultural forces and the culture within people will be analysed
 Needs and desires: what people need and the emotional desires, etc….
Qualitative research deals with the why factor but not the how of the project. And
analyze the unprocessed information such as the interviews, transcripts, videos,
audio tapes etc….Qualitative research further gain insight into people's attitudes,
behaviours, value systems, motivations, culture or lifestyles. Therefore the
researcher can obtain important business decisions, as well as research about
specific subject area Ereaut (2007).
Dealing with unprocessed information can sometime be very hard and time
consuming for the researcher because he/she needs to evaluate them
thoroughly in order to get the final outcome.
2.4.1 Quantitative research Method
Quantitative research is carried out when the researcher wants to know how
many and how often by mainly focusing on a target audience. It further analyze
the behavioural patterns, attitudes regarding the research. Quantitative research
generally evaluate a large number
Advantages of quantitative research (Conger,Bryman,et al)
 Flexible to follow un expected ideas during the research and explore the
process effectively
 Ability to study symbolic dimensions and social meaning
 Increased opportunities
 Sensitivity to contextual factors
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13. E-Commerce
2.5 Methods Comparison
It is requires to be selected the most suitable research methods for the preparing
this report and it is suitable to compare with the existing features in each
according to the Neil,J (2007) as follow,
Qualitative Research methods features
 Aims of the research will be completed as this is detailed description
process.
 Research knows roughly what S/He is researching for
 This is recommended to earlier phases of the research
 Various form of data are collected as words, images or objects
 Researcher is the instrument for the research process
 More rich type data is considered and it is time consuming and less effort
of generalized.
Quantitative Research methods features
 The aim is to clearly described features of what is intended to Observed
while the statically models.
 Researcher know clearly what is looking for
 Late phase of the project is to be concerned
 Statics and number format of data collected
 Intention of the research is clearly understand and plan before data is
collected
 Data is more efficient and sometime miss the details of the contextual
2.6 Concern the Qualitative approach as the chosen method
Qualitative method will be helpful to research the topic of Ecommerce and
roughly collected details of the Ecommerce as to be evaluates the users benefits
along with the drawbacks.
This method would be more appropriate as it is need to involve in the given case
study and how the real world practical involvement to be researched.
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14. E-Commerce
Chapter 3: Literature Review
Literature review is the most important part of the report in literature review has
to put sources and back up with arguments. A literature review can be a
precursor in the introduction of a research paper, or it can be an entire paper in
itself, often the first stage of large research projects, allowing the supervisor to
focus student in the correct path
(http://www.experiment-resources.com)
It is a critical and evaluative account of what has been published on a chosen
research topic (http://www.lboro.ac.uk)
Above two authors has been explained what is literature review in their view
points, the first author has been explained literature review will help the students
to do a research in a correct way this will apply in large research this will apply to
secondary research as well.
The second author has been published it is a critical evaluation what has been
published, the both the authors has been seen it in two different angles.
Focusing on both the definitions can think first one more meaningful it will cover
better idea than the second definition, main thing is guide the student in the
correct way if he or she goes in the wrong way that will be a big problem.
The next Topic of the research project is investigation into Ecommerce and its
uses. So it can be found many definitions to the Ecommerce by various authors
and through various resources available online or by books.
Two definitions have been listed in the report, an According to the Ward,S
overview “Ecommerce (or e-commerce) is the art and science of selling products
and/or services over the Internet.”
and
Andam,Z.R (2003) expands his views on Ecommerce as “Electronic commerce
or e-commerce refers to a wide range of online business activities for products
and services. It also pertains to any form of business transaction in which the
parties interact electronically rather than by physical exchanges or direct
physical contact.”
Both authors described Ecommerce in similar perspective but different
approaches. Ward,S’ definition elaborate as it is the way of archiving the product
or service by selling through the internet so it can be found as Ecommerce is a
online selling process of product and/or services.
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15. E-Commerce
But the Andam (2003) definition takes the Ecommerce concept in wider as
Ecommerce is takes place through online for the purpose of doing business
activities for product and services. He also further described that is not a directly
or physically doing the transaction as all parties involve electronically.
Even Both authors try to make their reader understand using similar concept but
second author get the clear description than first author as it is a just a definition
where second author elaborate it more understandable.
Next research was to collect the information about the Sri Lanka government
involvement in Ecommerce. It was mainly get required information from the
Survey on E-commerce implementation in the SME sector in Sri Lanka which
was conducted by the SLBDC for the Asia. (http://asiafoundation.org, 2002) it
has clearly described how SL Government involve in the Ecommerce and the
current difficulties and also the requirements that to be taken to develop the
ecommerce concept effectively in the country.
Then The Information and communication Technology in Sri Lanka
(http://www.icta.lk/ ) was very helpful to get the resources how currently SL
Government involving the Ecommerce By Launching what kind of project such
as NANASALA Project which is to Improve the Nation IT literacy. Genawardana
(2006) The Impact of firm-based characteristics on Adoption of E-commerce in
SME in Sri Lanka Online survey also was referred to get the how Ecommerce
Public sector Behaviors and response to the Ecommerce.
The next research is main part of Ecommerce which is the types of Ecommerce.
There were plenty of online resources were found that published by many
Authors and information was taken combining many authors views on websites
and EBooks as found details were different from another.
Dauglas (2010) describes four main types of ecommerce and Another seven
types that are available in the industry.
He mentioned this is a online buying, selling and exchange product and services
online. Following are the types that Dauglas (2010) described on the article.
 B2B (Business-to-Business)
 B2C(Business-to-Consumer)
 C2B(Consumer-to-Business)
 C2C(Consumer-to-Consumer)
Then the article is included following Ecommerce types that available.
 B2E, G2G, G2E, G2B, B2G, G2C, C2G
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16. E-Commerce
Andam (2003) discuss five main Ecommerce types as follow,
 B2B
 B2C
 B2G
 C2C)
 Mobile Commerce
The eBooks not include more types as Andam (2003) Broadly evaluated the this
five main types. It is found that Dauglas (2010) has not included m-commerce
concept as it is the trend of today ecommerce which is been growing while
Andam (2003) did not mentioned other available types of ecommerce except
Consumer-to-Business to get to know for readers.
When you take e commerce services can be categorized into sections such as
 E commerce consulting
 User Interface Design
 Internet Marketing
 Ecommerce solutions
E-commerce consulting
Analyse business and asses it is potential online
http://www.ecommercepartners.net)- in this link citizens can analyse business
and assess potential online with the consultation people.
User interface design
Taking about User Interface designing it has to attractive then only customers
will visit to the web site, from good interface designing can get a good profit.
Internet Marketing
According Randy Duermyer’s angle Internet marketing includes variety of things
at a certain time period, it consists banners, advertisements on websites
(http:/homebusiness.about.com)
According to Anon has defined Internet marketing is advertising and marketing
efforts can be used in web and electronic mail to make sales through electronic
commerce.( http://www.webopedia.com)
When comparing about these two definitions both the websites has been said it
is included the internet and the email, Internet marketing can be used by using
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17. E-Commerce
internet and e-mail, both the authors has been used the internet and electronic
mail. Taking both the references into consideration can mention for electronic
commerce both the internet and the e-mail is very essential for e-commerce, it
means electronic commerce cannot be done without the internet and e-mail.
Then the next part of the report was to find the Benefits and Drawback of using
Ecommerce for both public and private sector Organization. Manzoor,A (2010)
And Smart,S (2007) in their article and EBook had listed several Advantages
And Disadvantages of Using the Ecommerce. They are,
Advantages
1. More affordable than traditional EDI.
2. Allows more business partners to be reached than with EDI.
3. Can reach to a more geographically dispersed customer base.
4. Increase sales and Decrease cost
5. Easy to Advertise
6. Reduction in inventories.
Disadvantages
1. Some product are difficult to sell
2. Cost for technological change
3. Difficulties of integrating existing system to new one
4. Customer are fear to use credit card as if they feel Unconscious
Generally there was no difficult to research on benefits and drawbacks of
Ecommerce but it was complex to find information for public and private sector
separately. Different Authors have given their own perspectives on the topic and
information was collected and combined together and then aware the real world
Ecommerce activity by referring the Business Magazine and chat with the
Business Management Lecture of Open University and then included to the
report. So it was helpful to get the idea of what are the.
Next The report discuss the Global involvement according to the Shivers (2011)
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18. E-Commerce
prediction. He also has given the numeric description how global Ecommerce
developed year 2014. Pornwasin’s Article described the new project that is
intended to be begin at Thailand with the reasonable factors such as more
people used to use the Mobile rapidly with the internet facilities.
next was to research the Ecommerce services and solutions available to the
ecommerce involved business organization and customers over the world. It
Webnauts, (2010) described on his article with the descriptive way. Some
example was found by goggling as follow, they are,
1. Visual | soft ecommerce (http://www.visualsoft.co.uk)
2. SANVER E-Solutions (http://www.sanver.com)
Chapter 4-Principal Finding
4.1 Overview of E-Commerce Concept
According to the Susan Ward’s overview “Ecommerce (or e-commerce) is the art
and science of selling products and/or services over the Internet.” (Ward )
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19. E-Commerce
Ecommerce is “Electronic commerce or e-commerce refers to a wide range of
online business activities for products and services. It also pertains to any form
of business transaction in which the parties interact electronically rather than by
physical exchanges or direct physical contact.” That how Andam (2003) define
the ecommerce on his view.
By referring above definitions it can be make argument to Ecommerce as it is an
online executable process of online Buying and selling products and/or services
where it makes sufficient and comfortable transaction between businesses and
Customers / consumers. It is understandable there are some main component
where involve with the Ecommerce concept as;
Internet – where it is can be executed electronically between two or more parties
Product or Service – this is what is to be exchanges (Buy or sell)
Party – responsible for buying or selling (consumer or business)
Transaction – where order or buy through online transaction method such as
credit card.
Security – where both buyer and seller are to be protected by cheating or
misusing privacy information (pertcommerce.com).
 Refer Appendix A to see the Ecommerce process graphically.
4.2 Categorization of E-Commerce
Ecommerce can be categorizes into the major different types of e-commerce as
follow (Justin)
business-to-business (B2B)
This is the one type of Ecommerce that take buying and selling transaction
through online between Businesses. (Anon)
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20. E-Commerce
Here B2B concept mainly brings down the meaning of which transaction is
happening between two firms. For example chemconnect.com is a chemical
dealing website where brings two firms together ”on virtual Marketing place ”.
Srikanth (2000).
This method is can be identify more as its transaction chain is depend on many
B2B firms as Vora (2010) describes where its need to collect resources from
various firms such as “automobile manufacture makes several B2B transactions
such as buying tires, glass for windscreens, and rubber hoses for its vehicle”
Other Example: Online insurance policy management
online supply request
Employee benefit reporting Vora (2010).
business to-consumer (B2C)
This is the process of serving to customers its service or product. For example
can be taken from Chirah Vora’s automobile manufacture example as its final
transaction take place as vehicle sold to customer can ne consider Business to
Consumer transaction Vora(2010).
Example: Amazon.com
Business-to-government (B2G)
According to the view of Vora (2010), this can be describes as “public sector
marketing” where its make possibility of happening transaction of product or
service between various fields of government.
Consumer-to-consumer (C2C)
This method of E-commerce related to the process of buying and selling goods
and services to consumer to consumer through the online Wiley (no date).
C2C Ecommerce is a identified as online auction where one consumer post
product or service while other consumer is bid to purchase through online such
as very popular websites are eBay.com and Amazon.com Andam (2003).
Consumer to Business (C2B)
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21. E-Commerce
This means that consumer or any individual looking a business to sell product or
services. This is rarely can be seen in action even though it has identified C2B
as one form of Ecommerce type.
Mobile commerce (m-commerce).
Definition for the Mobile commerce is given by Consumer affairs Victoria,
Department of Justice as “use of handheld wireless devices to communicate,
interact, and transact via high-speed connection to the Internet."
So M-commerce is a new trend of e-commerce that is growing among the
consumers which means that every online transaction done in Ecommerce
integrated to the wireless handheld device such as palmtops, Smart Phone.
Consumer can buy order something on his way and collect that after he get back
home. This more efficient way to customer as they more concern on the
available time for the day today works.
By the organization perspective it is a most effective way to sales promotion as
they can send text massages to customers that promotes about new products.
And also businesses can get the feedback of new product quickly that customer
would not be charge for reply. (Anon)
According to the Douglas (2010) And Lewis (2010) it can also be found other
form of Ecommerce types available as follow,
 B2E (Business to Employee)
 G2G (Government-to-Government)
 G2E (Government-to-Employee)
 G2B (Government-to-Business)
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22. E-Commerce
 B2G (Business-to Government)
 G2C (Government-to-Citizen)
 C2G (Citizen-to-Government)
4.3 E commerce in Public sector
4.3.1 Serbia Government involvement in Ecommerce
Government of Serbia include e-business in their part of the strategy, they have
found a national strategy the steering committee be in charge the following
(Anon.)
 Analysis of the current situation in e-business in the country,
 Establishment of conditions, shortcomings and barriers to e-business
implementation,
 Elaboration of the strategy for creation of a framework for e-business
implementation,
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23. E-Commerce
 Following the progress and readjustment of the activities whenever
necessary,
 Removal of administrative barriers,
 Active cooperation and participation in international initiatives in the
sphere of e-business, including the Working Group Initiative for Electronic
Southeast Europe (e-SEE), the program e-Europe, UN/CEFACT,
UNCTAD, etc.
 Following the availability of new funds and standards for e-business.
Funds for e-business include e-mail or messages, internet (e.g. e-
documents, in HTML and XML and/or by use of web services), electronic
data interface (EDI), smart cards, electronic money transfer, automatic
data acceptance, bar codes, etc. the Information Society Department and
other relevant bodies should facilitate acceptance of the above means in
business practice in Serbia. When speaking of security in rendering
services over the net, medium level of encrypting methodology should be
used for data and information protection.
The government should in charge of both the private and public sector, they
should make new legislatives to increase the efficiency of the public sector. they
must work as a team to introduce the e-business of the country.(Anon)
4.3.2 Sri Lanka Government involvement in Ecommerce
By the time Sri Lanka (SL) government also has been involving in to used the
ecommerce concept for last few years and still it is proceeding. Most of
departments has own web sites that facilitate the people to get work done at
home or work place unlike to visit the exact place that done few years back.
SL already has published the Official websites (http://www.priu.gov.lk/) including
information of Government organization that connected in to the network. This
project is called Lanka Government Network (LGN) and the result of project is
shown billow,
 To provide most appropriate networking facility to Government
organization
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24. E-Commerce
 Secure the internet connectivity of organization.
 Given the IT training to the Government staff.
For example students of government schools can be get the result online as it’s
released using the official web site of Department of Sri Lanka
(http://www.doenets.lk/exam/). And also most of public services have their own
web sites to provide information to citizens that make people more
understandable. For example,
 http://www.inlandrevenue.gov.lk/
 http://www.customs.gov.lk/
 http://www.motortraffic.gov.lk/index.php
 http://www.airport.lk/
 http://www.rpd.gov.lk/services.htm
Then also online payments facilities and online buying facility has been
introduced as well. For example water bill can be paid through online using the
Sri Lanka water board websites that connect with this URL
http://www.waterboard.lk/. And Sri Lanka Telecom makes enable people to buy
product Online with the good direction through online by providing useful
information even how to buy online. This is called Teleshop Online available at
Sri Lanka Telecom (http://www.slt.lk/) web site. And also online billing payments
also has been activated to their customers while allow to access web mail server
online who are the web mail holders of SLT. (http://www.slt.lk/)
There are some projects that has been conducting by the SL Government as
following,
NANASALA : This is the project that aim to improve people’s IT literacy all over
the country to develop peoples, social and economical development of the
country. Currently 608 Centres has been open and 1000 centres intended to be
opened. (http://www.nanasala.lk/)
Lanka Gate: this is the project that stated to supply all the information related to
online information and services to local , international, government and
public/commercial sector organization and its users.
(http://www.srilanka.lk/en_US/web/guest/home?param=en_US)
This project mainly target to,
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25. E-Commerce
 provide general information of Sri Lanka
 get the government services online
 Integrate with the government e-services such as payment gateway.etc.
project result :
This is the government encouragement and flat form Government and private
sector organization to used the online services to their customers.
Country portal that provide every type of information to all accesses.
Benefits:
 Easy and efficiency access to get the information for people in the country
by saving their time and transaction cost.
 Low cost of information services to both Government and private sector
organization
Today Most of the banks are use the Ecommerce Concept as it is more reliable
among the people. Facilities such as, sampathnet online Banking service in
Sampath Bank of SL. So it is good chance to their customers to use account
online for the transactions. according to the web site of Sampath Bank
(http://www.sampath.lk/) also sampathvishwa is the another facility that customer
enables to used computer for all the transaction conducting by the bank. For
example,
 Investments
 Money transfer
 Payments for cyber shopping
4.4 Ecommerce in Private Sector
4.4.1 Ecommerce in Sri Lanka
Currently in Sri Lanka E –commerce involvement is very high in organizations, In
Sri Lanka majority of the investments of E-Commerce is done by private sector,
then it goes to partnerships finally it had goes to the public sector companies,
public sector companies are the least involvement in E commerce concept
according to the research by Doctor Kennady Gunawardane professor of Sri
Jayawardanepura University (Gunewardane)
Electronic Commerce is very new to Sri Lankan citizens; they have been not
very familiar to use E-commerce since Introduction of E-commerce in Sri Lankan
firms both private and public sector. Due to that, employees in organizations bit
hesitant to use electronic commerce.
Private sector in Sri Lanka is not very familiar with E-commerce, especially when
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26. E-Commerce
you take the telecommunication area it is very limited in main business centres
such as Colombo and Kandy. The bandwidth of the internet also limited, most of
the citizens are also not very familiar with the internet access. (Lane et al).
4.4.2 How E commerce will be impact to Sri Lankan organizations
As mentioned above by the authors in Sri Lanka, Kandy and Colombo are the
main business based areas, around their lot of private sector organizations has
been established. It can be categorized in to small medium enterprises and
Micro enterprises. According to authors view point first the authorize people of
Sri Lanka has to provide the facilities to increase the E-commerce infrastructure
in Sri Lanka. Especially in Sri Lanka private sector as mentioned earlier by
authors not computerized, still they have not been updated with the latest
technologies with relevant to E-commerce, still they have been using the
traditional methods which will directly impact the commercial sector in profit area
because there main idea is to gain profit. This will impact in many ways as you
can see below.
 Less Efficient – for example if you take a private bank if they not have
linked all the branches together it is difficult to deal with the customers
because of that aspect customers will does not go to that specific bank
again because it is not customer friendly.
 Short of Profit – When the private Sector is not fully computerized it will
occur problems, for example if we take E- purchasing, if a person needs
to buy a CD through the internet they should have such kind of facilities,
because if not they might not got go to the shop and purchase the CD
due to busyness of work, so the ultimate problem is the company will lose
the customer and they will lose the income too.
4.4.3 Advantages Of Ecommerce in Sri Lanka
Sri Lanka Mobitel is the national mobile service provider that uses the new
technology and complete services to their customers. To proceed the
ecommerce process internet speed and the unlimited connection is basic
requirements. So SL Mobitel is providing the require internet facilities to all over
the country organization and to their customers.
It is mainly include for their service,
 Online billing Payments
 Online shop for the mobile phones
 Online Information service
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27. E-Commerce
Benefits
 Consumers and organization gain the high speed mobile and internet
services.
 Customers allow paying their bills online and saving the transaction cost.
 Available to get the free 24 hour service when it’s required.
 Online mobile shopping and delivery to the customers with new
technological accessories.
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28. E-Commerce
4.5 Global E commerce involvement
Braganza (no date) explained that It is not a secret that people and businesses
interact with the internet has been growing day by day rapidly where it makes
the premises of global economy. That is why most new businesses are
beginning through the online for new group of people around the world.
Growth of E-Commerce in United Sates can be shown statically on Appendix A
where it is elaborate it has been growing year by year as it is difficult to found the
global growth of Ecommerce statics (see Appendix A).
When it consider the global Ecommerce Australia and Canada are the leading
countries for usage of Ecommerce. Shivers (2011) predict as it will be adjustable
as following.
According article of capturecommerce.com Tom Shivers elaborate as “If these
projections are accurate, annual ecommerce spending, in billions for 2014 will
be:
 North America $202.8
 Western Europe $166.5
 Asia-Pacific $93.2
 Latin America $27.1
 Eastern Europe & Russia $27.0
 Australia $4.9
 Africa & The Middle East $3.0 “.
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29. E-Commerce
4.5.1 Thailand Ecommerce Growth
Pornwasin (no date) describes on her article as Thailand mobile users has been
increasing year by year. So True Corporation is to introduce new mobile based
ecommerce service on weloveshopping.com as they believe the mobile is the
new trend in ecommerce.
Facilities by new project by True Corporation:
Expect to allow Thailand citizens to do transaction as customer to customer
where integrating the existing ecommerce platform.
Overall Thailand Ecommerce growth in this year is expected about 40 percent
and weloveshopping.com also expected the same rate.
To make new market opportunities to customer to customer e-commerce
Key points to start the project:
Over 6 millions of mobile users in Thailand.
Increasing the mobile users
Customer behaviors change whether they like to be online all the time or always
to be online.
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30. E-Commerce
4.6 E-Commerce Solutions and Services
E commerce Solution is a created software that use in effective way where used
to sell your product or services through online. Software or solution for your
website can be created and used according to your products and services
behaviors. Almost software will enable users to do transactions through software
as software solution facilitates the shopping cart as part of software. Webnauts,
(2010)
Payment process is basically done by shopping cart by accepting the viza,
master card, Credit card etc. in the business site. But there are some processes
that you need to enable in your business site such as order checkout and fulfill, if
it is need to be deliver need to include shipping and taxes charges.
So software solution is a complete process that enable to handle your business
site transaction automatically through online as customers doing the online
transaction and until the product or service reached to the customer. Therefore it
is facilitate you to done online transaction by using software solution for your
business site. There are many of ecommerce solution providers and it is no
restriction to used the suitable provider according to your product or service.
Some Ecommerce solution provider examples:
3. Visual | soft ecommerce (http://www.visualsoft.co.uk)
4. SANVER E-Solutions (http://www.sanver.com/)
5. osECOMMERCE (http://www.oscommerce.com/)
6. ingenuity.net (http://www.ingenuity.net/)
7. mountain media [m} (http://www.mountainmedia.com/)
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31. E-Commerce
4.7 Benefits of Ecommerce
Online transaction is the new trend that most of people and business
organization and also government where take part of internet users. So users of
internet have been growing more rapidly. Then automatically it is made the place
of global economy around the world where most of online activities such as
buying, selling, marketing product or service. Marshall (2010).
Private sector organization take the most use of Ecommerce concept than Public
sector as everything decided on the profit by private sector where sometimes
public sector has to be think of welfare and benefits to the people of country.
4.7.1 Private Sector
4.7.1.1 Customer perspective
Easy buying process
There are many opportunities to the online buyers to buy product by comparing
the quality and the prices through visiting many websites where its make the
market place at home or office anywhere around the world. Buyer can order
online where seller can facilitates buyer to buy If it is downloadable and no
additional distribution cost will be added to your transaction. But is it distribution
taking place offline distribution cost will be spent (Bora).
Convenient transaction
Manzoor (2008) also mentioned that online transaction make you more
convenient as you are not in the store or shop where your product or service
available. They also can be chosen most preferable payment method as they
are provided many payments gateways to online buyers.
Reduce product or service cost
Smart(2007) mentioned that both sales cost and marketing cost will be reduce
while Manzoor (2008) says that increase the sales and cost would be decrease.
Both had intended to mean that cost would not much than the normal market.
first author tries to say that cost for the business sale would be reduce while
second author mentioned that cost reduce and sales increase. Both get the two
views but same final result, it would be,
Ecommerce business websites enable customers to direct access to site and
purchase they intended. Therefore it is fully cutting down the cost that may be
charged by intermediates. So product and service can be cheaper as customer
does the purchase from direct suppliers.
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32. E-Commerce
Quickly awareness
Customer also enables to interact with other customer over the world and share
the experience between them and compare the products and prices as well. And
also customer get the information quickly as request that no waiting time to be. If
any changes done by the business organization customer will be quickly
informed as it has no complex task to be fulfilled for the change.
4.7.1.1 Business perspective
Effective and efficiency process
It is open to your customer 24 hours in 365 days. So anytime, anywhere
transaction can be take place even if you do not aware as everything is
happening through online system. So business no need to involve every time
where customer need to order the preferred product or service.
This is almost online activities are to be taken place as store is located online.
So any customer can be connected from anywhere around the world even there
is no any between person like retailer and also No limitation of selling your
product. (Anon)
Customer Satisfaction
Customer can be provided most required product or service according to the
customer preference as it is possible to make reliable business relationship with
customer. This can be happen by referring customer comments and suggestion
of the available product.
Low cost
No need to afford high cost as there is no require huge staff and additional
systems such as order tracking and billing systems service to handle the
transaction Marshall (2010).
Incorporating online transaction
Customer is doing the payments or transfer through online where that online
transaction process has been organized to process as customer buy available
product or service. (imi)
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33. E-Commerce
can be reached to the global customers
This is the major benefits available to the business as there are billions of people
using the internet for their day today activities. Internet has no restriction to
reaches any person from anywhere. So internet is a gateway to your business
where it makes market to customers in all over the world. So ecommerce
business site can be refer from anywhere in the world and do the purchase if the
product or service preferable to the customer.
Even though there are vast numbers of internet users over the world, it is your
business responsible to get attraction from the users to your product. Because
there are many competitors available as ecommerce is new trend to the
business market today.
promotion and updated information
advertising can be done without any cost on the business site even it is small
company. So products and services can be promoted easily as physical market
done promotion through TV, newspaper or by broachers. And also any party
involve in transaction can be exchange information even every country over the
world. Advertising or information exchange has no any constrain, in fact it is
done in your own business website Manzoor (2008).
But if it is new business no more consumers get to know there is online shop for
buy certain goods or services. Therefore first the organization has to go in to the
customers means aware the customers about the new site and products that are
available. Here it has to be done some advertising on television or some famous
networks such as Face book, Twitter . no more cost will be spent if new business
collected the thousand of customer to visit them online.
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34. E-Commerce
4.7.2 Public Sector
4.7.2.1 Customer Perspective
Make trust on the Transaction
When its concern of the public sector it is more reliable to do transaction through
online if you are facilitated public sector ecommerce facilities. So customer can
buy the product or service with the warranty as government sector cannot cheat
the citizen of the country.
Save time and transaction Cost
AS the citizen of a country it is need to get some information and services from
the Public or Government sector Organization and it will be simple if the
government organization used their services through Online. Public sector of
most countries of the world provided to their people to pay taxation through
online where it is reduce more time and making it is more reliable.
Suppose that person need to pay Electric or Water Bill, so person has to go to
the certain place and need to pay as it is time wasting task. But if it is facilitated
to pay online you can pay wherever you are.
Ex : http://www.waterboard.lk/
4.7.2.2 Business Perspective
Government Procurement
It can buy the product or services that required buy the government department
or public sector organizations. Its reducing the transaction or purchasing cost as
no intermediate or agency involve with the transaction.
And also it facilitates to published the required product or service through the
online as no cost will be expended. Blakeley and Matsuura (2001)
Can get high Demand.
Generally people are trust the public sector Organizations and like to do
transaction with them as it has the coverage of government. So if the
government can get this opportunity and begin with the new projects like Online
selling and buying and providing services , it will be in considerable position.
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35. E-Commerce
4.8 Draw backs of Ecommerce to public and private sector Organization
4.8.1 Private Sector Perspective
Shipping takes more Time
if your product is a physically to be delivered as it is cannot download; it will take
more time to reached product to you.
Customers are not preferred to buy some product online as customer need to
check the product physically. For example H/She wants to buy a computer Table
from furniture shop, but customer need to check its quality, comport and its
looks before purchase it. So such a business’s reduce the ability of customers
buying power through the online. King (2006)
AS King,W (2006) explains that it is not huge chance to businesses such as
furniture business as customer hesitate to buy product online. It is reasonable as
those product are expensive and to be valuable longer time. Therefore customer
needs to check before buy it. And also it might get too much time as there are
waiting list for order
Legal issues on security
As Ecommerce is taking place over the internet around the world such as across
the countries. This might be chance some hackers to earn money illegally and
theft the personal identity and information has become the serious problem over
the internet. Therefore some consumers hesitate to buy product or service online
Manzoor (2008).
changed of Technology
If the business is currently existing with the traditional system and it will be
difficult to integrate with new Database and Online system also it will be some
cost. Today technology is growing day by day and its probably need businesses
to be changed their existing online systems for the customer attraction and also
customer highly expect the new thing that means easiness and fast transaction
on the system. Then software development companies will serve you with high
in cost. Manzoor (2008)
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36. E-Commerce
4.8.2 Public Sector Perspective
Avoid the Income Tax:
Online transaction done easily just clicking the mouse point and specially across
the country to country transaction still to be consider as it is easily avoided by
the both buyer and seller. (Jrank)
Lack of ICT Knowledge
Even though Government intended to used the Ecommerce Concept still there is
some barriers such as Lack of It knowledge to the Citizens. So As the
government has to invest money on giving the opportunities to develop the ICT
knowledge and then only it can be used the Ecommerce projects that most
people can be obtained. So government need to start the development project
that makes high in cost. Andam (2003)
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37. E-Commerce
4.9 What are the steps that can be taken to accelerate and reduce the draw
backs and limitation that currently involve in Ecommerce.
By Private Sector
 Makes the Website with the fully information and used to post the useful
link that can support for the customers will make the interact with your
business.
 Customer always expects the multi features of the web site. Therefore
facility to customer to used the multiple searched that customer will not
escape the site. And also the attraction design and easiness of used the
site also should be considered.
 Building the real time based customer support service to help the
customer that will make the confidence towards the organization.
Public Sector:
Government can encourage using ecommerce for both organizations and
consumers by following responsibilities.
 Need to prepare fare policy environment that both parties can be
achievable and helpful.
 Use the ecommerce to government services such as online billing
payment.
 Facilitate organization to involve in online business with legal protection
for both buyer and seller.
 Reduce or eliminate the cost of duty for Clarence of foreign product. Then
more businesses will be take place among various nations.
 Invest to the improvement of the Infrastructures to develop the
communication services of the Country Manzoor (2010)
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38. E-Commerce
Chapter 05 - Conclusion
The project was based on the investigation into the benefits and its users in to
the public and private sector organization.
Firstly Ecommerce concept and types of Ecommerce was described with the
examples with the different authors views and mainly currently used of types
were elaborated.
Then the global and country wise involvement of the Ecommerce with the
current projects that has been taken By the Sri Lanka Government. It was clearly
helped to discuss the how current Ecommerce involvement done by the
Government.
Even though there were benefits and advantages of Ecommerce and also there
are some limitation and drawback that affected to the ecommerce process. So
as a private or public sector organization there are some tasks to be taken that
helped to reduce or eliminate.
With the new technological growth and also the trend of mobile users it almost
has been spread among the people over the world. So there were many sources
found that helped to carried out the above mentioned points to be completed.
Finally it was happy end with the positive self evaluating research project.
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39. E-Commerce
Chapter 6: Evaluation
This chapter consists of information about the self experience of the process of
report completed. It is done through the Product Evaluation
and Process Evaluation. How Ecommerce uses to the private and public sector
origination is the topic that would evaluate in the report. With the world is
passing towards the global world the topic “Ecommerce” was not the new thing
as currently though engaging and also there are some experience in it. but it had
to broadly discuss with the limited Scope with the reliable Sources. Following will
include how process and product evaluation had done.
6.1 Product Evaluation
My topic will consist of investigation of E-commerce to private and public sector
organization. There were some knowledge and awareness of the topic since
there is opportunities to involving in day to day life. but the fact that was to
research and find the reliable and suitable sources to the topic. Mainly the
knowledge and information were obtained by referring online articles. EBooks,
and magazine and newspapers. Plenty of information were found regarding the
topic and the fact that was to understand the complex aspects of the sources
and obtain the better knowledge as it was a secondary research.
When the found information used it was to concern the value of the source such
as Author, Published Date Etc. So even though found more sources online few
sources was used to report as it was to critically evaluate with the comparisons
and argument.
Time was the restriction of the work as there were some unavoidable
circumstances that concentrate on the project were bit diminished such as
Ration’s Funeral and New Year Festival. Anyhow time had to managed as there
was deadlines to submit draft report.
Objectives of the report was achieved with the report scope that what was the
final Objective to be archive as “Evaluate what are the benefits and
drawbacks of using E-commerce concept by commercial and public sector
organization” where it has included by identifies Business and Customer
perspectives for both public and private sector organization.
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40. E-Commerce
6.2 Process Evaluation
Finally hope that would be able to completed the good secondary research and
useful information contained report. most of the things that did according to the
research plan ,but some areas could not find much information, for some parts
has skipped due to limited time period, such as Ecommerce Process and How to
implement in the Organization Using What strategies. the biggest problem was
the time ,Managing time was the biggest problem both has to go parallel with
lecturers helped me on time aspect and almost pushed to the correct path when
there is snappy situations on the projects. but the Dedication and hard working
towards the achievements was easier to get the happy milestone.
AS mentioned, above sections were lot of draw backs such as short of
references, some were not specifically related to which was trying to search and
was pretty annoying for the research process as well. Some articles were there
but it was more complicates and did not understood it easily, Most of the topics
which were there in the Wikipedia site actually all the topics were their which
was trying to search but the problem was that found and supervisor told was that
is not reliable such as other sites because any one can edit and post back.
Then the deadline for the draft report made me more active and research
information even though had time constrains in one month period as there was
unavoidable circumstances, but the draft report submission did about 70% and
submitted and then there was time period to submit the final project with the
feedback of the University. Then it regularly used the collected information with
the good references and citation with the weaknesses that pointed out by the
feedback.
Finally it is must mentioned that it would be able to satisfy with the report as
there was experience in doing the professional report with the correct path and
the gained the much awareness and specially this chapter was much helpful to
aware that how to evaluate self work in own work. It is enormous experience that
gained and keeps it up towards the future professional life.
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41. E-Commerce
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may 2011]. < http://blog.webnauts.net/variety-of-uses-for-ecommerce-
solutions/>.
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44. E-Commerce
Bibliography
 Raynolds,J.(no date) The complete e-commerce book: design, build &
maintain a successful Web [online].[26th March 2011]. Available at
:<http://books.google.lk/books?id=ktYm0p9iYX0C&printsec=frontcover&dq=/E-
commerce&hl=en&ei=Yt_9Tf2eGIPuvQOR3IWbAw&sa=X&oi=book
_result&ct=result&resnum=1&ved=0CCwQ6AEwAA#v=onepage&q&f=false>
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Page 44 of 46

45. E-Commerce
Appendices
Appendix A
Figure 01: The Digital Ecommerce cycle
This image represent that how electronically proceeding the Ecommerce process as
Anon. Described in the Online article.
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46. E-Commerce
Appendix B
Following table elaborated how U.S Ecommerce process is been growing year 2000 to year
2007.
U.S. Retail Sales
Total Retail and Ecommerce Sales (in billions)
Year Total Ecommerce %
2000 $2,988,756 $27,673 0.90%
2001 $3,067,725 $34,353 1.10%
2002 $3,134,322 $44,842 1.40%
2003 $3,265,477 $56,615 1.70%
2004 $3,474,340 $70,938 2.00%
2005 $3,688,059 $87,397 2.40%
2006 $3,887,363 $106,583 2.70%
2007 $4,040,411 $127,690 3.20%
Table 01
Source: http://www.access-ecom.info/article.cfm?id=85&xid=MN
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