The document provides an introduction to electronic commerce (e-commerce) presented by Khalid Khan from the Department of Computer Science at the University of Peshawar. It defines e-commerce and its differences from e-business. The history and types of e-commerce are discussed. The document outlines the key components of a successful e-commerce transaction loop and forces fueling the growth of e-commerce such as economic, market, and technology forces. Students are instructed to study relevant books and online materials on e-commerce and e-business.

1. IntroductIon to E-commErcE
Lecture-01
Khalid Khan
Department Of Computer
Science
University Of Peshawar

2.  Electronic Commerce & E-Buisness
How To Program By Dietel & Dietel
 Electronic Commerce A manager’s guide
by Ravi Kala Kota & Andrew B.Whinston
 Also study the relevant online material

3.  Introduction to Electronic Commerce
 Difference between E-Business & E-
Commerce
 History of Electronic Commerce
 Different types of E-Commerce
 Advantages of e-commerce for businesses?
 What forces are fuelling e-commerce?
 What are the components of a successful
e-commerce transaction loop?

4.  Commerce
◦ The exchange of commodities, buying and
selling, of products and services requiring
transportation, from location to location is
known as commerce.
 E-Commerce
◦ From a communications perspective, e-
commerce is the delivery of information,
products/services or payments via telephone

5.  From an online perspective, e-commerce
provides the capability of buying and selling
products and information on the internet and
other online services.

6.  It refers to a wide range of online business
activities for products and services.
 Any form of business transaction in which the
parties interact electronically rather than by
physical exchanges or direct physical contact.

7.  Electronic commerce or "e-Commerce"
 E-commerce covers online processes that touch
customers, suppliers and external partners,
including sales, marketing, order taking,
delivery, customer service, purchasing of raw
materials and supplies for production.
 More sophisticated system such as flight and
hotel reservation system.

8. e-Commerce breaks into two
components:
Online Shopping - the scope of information
and activities that provides the customer with
the information they need to conduct
business with you and make an informed
buying decision.

9.  Online Purchasing - the technology
infrastructure for the exchange of data and the
purchase of a product over the Internet. Online
purchasing is a metaphor used in business-to-
business e-Commerce for providing customers
with an online method of placing an order,
submitting a purchase order, or requesting a
quotation.

10.  e-Business is a super-set of e-Commerce.
◦ E-business includes e-commerce but also covers
internal processes such as production, inventory
management, product development, risk
management, finance, and human resources.
◦ E-business includes electronic mechanism to
distribute information not directly related to buying
and selling of goods.
 Examples:
 Product specifications, customer testimonials, and product
reviews.
 Purchasing activities on your site, e.g., order forms, shopping
carts, and credit card processing.
 Customers can’t interact directly with the firm. (territory barrier)

11. E-Business
E-Commerce

12.  The term e-commerce was originally conceived to
describe the process of conducting business transactions
electronically using technology from the Electronic Data
Interchange (EDI) and Electronic Funds Transfer ( EFT).

13.  These technologies, which first appeared in the
late 1970’s, allowed for the exchange of
information and the execution of electronic
transactions between businesses, typically in the
form of electronic purchase orders and invoices.
 EDI and EFT were the enabling technologies that
laid the groundwork for what we now know as e-
commerce.
 The Boston Computer Exchange, a marketplace
for used computer equipment started in 1982, was
one of the first known examples of e-commerce.

14.  Throughout the 1980’s, the proliferation of credit cards,
ATM machines and telephone banking was the next
step in the evolution of electronic commerce.
 The birth of companies such as eBay and Amazon
(launched in 1994) really began to lead the way in e-
commerce.
 Both eBay and Amazon were among the first to
establish prominent e-commerce brands. The most
prominent e-commerce categories today are computers,
books, office supplies, music, and a variety of
electronics.
 Dell.com,1997

15.  B2B( Business to Business E-commerce)
or Inter-Organizational E-commerce
 B2C( Business to Consumer E-commerce)
 C2B( Consumer to Business E-commerce)
 C2C( Consumer to Consumer E-
commerce) or Ecommerce Involving
Intermediaries
 Intra-organizational E-commerce
 m-commerce(Mobile E-commerce)
 Business to Government E-Commerce

16.  Companies doing business with each other such as
manufacturers selling to distributors and wholesalers selling to
retailers.
 Pricing is based on quantity of order and is often negotiable.
 B2B is used to improve business relationship among orgz.
(invoices, cheques, purchase orders, financial reports) are in
electronic for.
 For Example: Logistic companies
 Benefits:
 Supplier Management (reduce no. of suppliers, processing coast, and cycle time)
 Inventory Management (list of items/product, eliminate out of stock items)
 Distribution Management (list of ship’s cargo, purchase orders etc)
 Channel Management (reduce labour, time saving)
 Payment Management (electronic payment reduce clerical errors,
lower transaction fee and coast)

17.  In B2C seller is a business organization buyer is consumer.
 In this case costumer directly interacts with company, i.e.
books and cd’s buy online and internet used as a medium for
transaction.
 Newspapers reading and weather forecasting are used as a
B2C E-commerce.
 This type of e-commerce improve the flow of information
between firm and customers.
 Examples are ebay.com, and amazon.com.

18.  A consumer posts his project with a set budget online and
within hours companies review the consumer's requirements
and bid on the project.
 The consumer reviews the bids and selects the company
that will complete the project.
 Elance empowers consumers around the world by providing
the meeting ground and platform for such transactions.
 freelancing

19.  In this type both seller and buyers are consumers.
 There are many sites offering free classifieds, auctions and
forums where individuals can buy and sell.
 PayPal where people can send and receive money online
with ease.
 Olx.com auction service is a great example of where person-
to-person transactions take place everyday.

20.  The purpose of Intra-organizational applications is to help a
company maintain the relationships that are critical to
delivering superior customer value by paying close attention
to various functions in the organization.
 Benefits:
 Workgroup communications
 Electronic Publishing
 Sales force Productivity

21.  A platform for businesses to bid on government opportunities .
 It refers to the use of the Internet for public procurement,
licensing procedures, and other government-related
operations.
 It reduces the risk of irregularities.
 Income Tax Department, Excise and Taxation Department

22.  Mobile commerce is the buying and selling of goods and
services through wireless technology – i.e., cellular
telephones and personal digital assistants (PDAs).
 including mobile banking (when customers use their
handheld devices to access their accounts and pay their
bills).
 bill payment and account reviews can all be conducted from
the same handheld device.
 delivery of entertainment, financial news, sports figures and
traffic updates to a single mobile device.

24.  Reduction of costs in the business
 E-commerce serves as an “equalizer”. It enables
start-up and small- and medium-sized enterprises to reach
the global market.
 E-commerce makes “mass customization”
possible. E-commerce applications in this area include
easy-to-use ordering systems that allow customers to
choose and order products according to their personal and
unique specifications.
 E-commerce allows “network production.” This
refers to the parcelling out of the production process to
contractors who are geographically dispersed but who are
connected to each other via computer networks.
24

25.  There are at least three major forces fuelling e-commerce:
 Economic forces. One of the most evident benefits of e-
commerce is economic efficiency resulting from the
reduction in communications costs,
 low-cost technological infrastructure.
 speedier and more economic electronic transactions with suppliers.
 lower global information sharing and advertising costs.
 Market forces. Corporations are encouraged to use e-
commerce in marketing and promotion to capture
international markets, both big and small. The Internet is
likewise used as a medium for enhanced customer service
and support.
 Technology forces. The development of ICT is a key
factor in the growth of ecommerce.

26.  To maximize the benefits of e-commerce, a number of
technical as well as enabling issues have to be considered.
 A typical e-commerce transaction loop involves the following
major players and corresponding requisites:
1. The Seller should have the following components:
 A corporate Web site with e-commerce capabilities (e.g., a
secure transaction server);
 A corporate intranet so that orders are processed in an efficient
manner; and
 IT-literate employees to manage the information flows and
maintain the e-commerce system.

27. 2. Transaction partners include:
Banking institutions that offer transaction clearing services (e.g.,
processing credit card payments and electronic fund transfers);
National and international freight companies to enable the movement
of physical goods within, around and out of the country.
Authentication authority that serves as a trusted third party to ensure
the integrity and security of transactions.
3. Consumers (in a business-to-consumer transaction)
Form a critical mass of the population with access to the Internet
and disposable income enabling widespread use of credit cards; and
Possess a mindset for purchasing goods over the Internet rather
than by physically inspecting items.

28. 4. Firms/Businesses that together form a critical mass of
companies (especially within supply chains) with Internet access and
the capability to place and take orders over the Internet.
5. Government, to establish:
◦A legal framework governing e-commerce transactions (including
electronic documents, signatures, and the like); and
◦Legal institutions that would enforce the legal framework (i.e., laws
and regulations) and protect consumers and businesses from fraud,
among others.

29. 6. Internet, the successful use of which depends on
the following:
◦ A robust and reliable Internet infrastructure; and
◦ A pricing structure that doesn’t penalize consumers for spending
time on and buying goods over the Internet (e.g., a flat monthly
charge for both ISP access and local phone calls).

30.  Write Short note on the topics given below and
practically apply.
 Google AdWords
 Google AdSense
 Google Cloud Print.
 Google Cloud Connect.

31. THANK YOU