ROLE OF E COMMERCE AND M COMMERCE

ROLE OF E – COMMERCE
AND
M - COMMERCE
MADE BY:- ROLLNO.
SAHIL NAGPAL 232
PRACHI DABAS (LEADER) 492
KARANBIR SINGH 152
GARIMA LONGIANY 1252
PAVAN KUMAR 842
MANOJ KUMAR 902
RAHUL 1462
LALTHANGLEEN SITLHOI 1052
Sri Guru Nanak Dev Khalsa College
(University of Delhi)
Submitted to:
(Supervisor)

LEARNING OBJECTIVES:
To explore more about E-Commerce and M-
Commerce in depth.
To identify the impact of E-Commerce and M
Commerce.
To recognise the benefits and limitations of E
Commerce and M-Commerce.
To identify the different classification of E-
commerce and M-Commerce
To identify the main barriers to the growth
and development of E-commerce and M
Commerce.

E-COMMERCE
E-commerce refers to the sale of goods or products through
online Stores.
Online stores are not just about selling products. Many work
on more sophisticated functions such as flight or hotel
booking systems, comparison sites, online brokers or
affiliate marketing schemes.
It’s a big area but still many companies operate in sectors
where this model of business isn’t always appropriate so
looking more widely at the internet and emerging
technology is important in presenting a presentation that is
of use to each and every person accessing it.

THIS IS HOW AN E – COMMERCE
WEBSITE LOOKS LIKE

E-COMMERCE (CONTD.…)
Electronic commerce (EC, E-Commerce)—a process
of buying, selling, transferring, or exchanging
products, services, and/or information via electronic
networks and computers.
A possible response is to introduce a variety of e-
commerce initiatives that can improve:
Supply chain operation
Information
Money from raw materials through factories
Increase customer service
Open up markets to more customers

E-COMMERCE (CONTD...)
E-commerce defined from the following perspectives:
Communications: Delivery of goods, services, information, or
payments over computer networks or any other electronic
means.

 Commercial (Trading): Provides capability of buying and
selling products, services, and information on the Internet and
via other online services.

 Business process: Doing business electronically by
completing business processes over electronic networks,
thereby substituting information for physical business
processes.

 Service: A tool that addresses the desire of governments,
firms, consumers, and management to cut service costs
while improving the quality of customer service and
increasing the speed of service delivery

E-Business
A broader definition of EC,
which includes:
 Buying and selling of
goods and services
 Servicing customers
 Collaborating with
business partners
 Conducting
electronic
transactions within an
organization

MAJOR DIFFERENCES IN E-COMMERCE AND
E-BUSINESS

HISTORY OF E-COMMERCE
 E-Commerce started over 40 years ago, and has
evolved over time.

Before the widespread uptake and commercial
use of THE INTERNET, the Electronic Data
Interchange (EDI), was used as the platform
for E-commerce.
EDI uses private communications networks
(VANs) to transmit standardized transaction
data between business partners and suppliers.

WHAT IS B2B E-COMMERCE?
B2B e-commerce is simply defined as e-
commerce between companies. This is the
type of e-commerce that deals with
relationships between and among businesses.
About 80% of e-commerce is of this type, and
most experts predict that B2B ecommerce
will continue to grow faster than the B2C
segment

(CONTD.)
The Internet allows many smaller
companies to participate in
government and private bids they
otherwise would be locked out of by
bigger competitors. Governments and
companies that let out the bids are
finding that they get lower bids through
the Internet because of the increased
number of bidders.

ALIBABA.COM IS THE BEST EXAMPLE OF B2B E
COMMERCE WHERE A BUSINESS ORGANISATION CAN
BUY FROM ANOTHER BUSINESS ORGANISATION IN
BULK.

(CONTD.)
It is the largest form of today’s commerce
In this form the buyers and sellers are
both business entities and does not
include individual consumer.

REGULAR MODES OF PAYMENT IN
B2B COMMERCE.

ADVANTAGES OF B2B E-COMMERCE
Some advantages of B2B ecommerce
are;
 Direct interaction with customers.
 Focused on sales promotion.
 Building customer loyalty.
 Savings in distribution costs

WEBSITES THAT ARE ENGAGED IN
B2B ECOMMERCE
 commodityindia.com
 Indiaconstruction.com
 clickforsteel.com
 etc.

EXAMPLE OF B2B
The more common B2B examples and best
practice models are IBM, Hewlett Packard
(HP), Cisco and Dell. Cisco, for instance,
receives over 90% of its product orders over
the Internet.

WHAT IS B2C E-COMMERCE?
Business-to-consumer e-commerce, or commerce
between companies and consumers, involves
customers gathering information; purchasing
physical goods (i.e., tangibles such as books or
consumer products) or information goods (or goods
of electronic material or digitized content, such as
software, or e-books); and, for information goods,
receiving products over an electronic network. It is
the second largest and the earliest form of e-
commerce. Its origins can be traced to online
retailing (or e-tailing).

WHAT IS B2C E-COMMERCE?
(CONTD.)
The more common applications of this type of
e-commerce are in the areas of purchasing
products and information, and personal
finance management, which pertains to the
management of personal investments and
finances with the use of online banking tools.

EXAMPLE OF B2C ECOMMERCE IS
FLIPKART.COM

BUSINESS-TO CONSUMER (B2C)
E-COMMERCE TRANSACTION
PROCESS
 Business-to Consumer (B2C) e commerce
transaction process includes;
 Customer identifies a need.
 Searches for the product or services to satisfy
the need.
 Selects a vendor and negotiates a price.
 Receives the product or services (delivery
logistics, inspection and acceptance).
 Makes payment.
 Gets service and warranty claims.

WEBSITES THAT ARE ENGAGED IN
(B2C) E-COMMERCE
 Travelocity.doc,
 hotels.com,
 rediff.com,
 jaldi.com,
 indiatimes.com,
 Jobclassfied.miday
 Eg online classes

CONSUMER-TO-BUSINESS (C2B)
E-COMMERCE
 Also called demand collection model.
 It enables buyers to name their own price,
often binding, for a specific good or services
generating demand
 A consumer posts his project with a set budget
online and within outs; companies review the
customers’ requirements and bids out the
project.
 Then the customer will review the bids and
selects the company that will complete the
project.
 Eg .stock market

THIS IS THE EXAMPLE OF C2B E –
COMMERCE WEBSITE PRICELINE.COM

C2B E-Commerce
Generally, in the
C2B ecommerce,
the customer
requests a specific
service from the
business.

WEBSITES ENGAGED IN C2B
E-COMMERCE
 razerfinish.com,
 ReverseAuction.com,
 priceline.com are few of them

Consumer-to-Consumer (C2C)
e-commerce
 It facilitates the online transaction of goods or
services between two peoples.
 However, there is not visible intermediary
involved, but the parties cannot carry out the
transactions without the platform, which is
provided by the online market such as eBay.
Examples:
 Advertisement of personal services over the
internet.
 Selling of knowledge and experts online.

THE MOST FAMOUS EXAMPLES OF C2C
E – COMMERCE WEBSITES ARE OLX.IN

Other Websites engaged in C2C
Are
 Baazee.com
 ICQ.com
 MSN.com
 ek.com.au
 careeron.com.au
 bidorbuy.com

PEER-TO-PEER (P2P) E-
COMMERCE

5. Peer-to-Peer (P2P) e-commerce
 It is a technology in itself that helps people to
directly share computer files and computer
resources without having a central web
server.
 To use this, both the peers should have to
install the software so that they can
communicate on the common platform.
Examples:
 Sharing of music’s, videos, and other digital
files electronically

ONE EXAMPLE OF P2P E – COMMERCE IS TO RENT
CARS BY A PEER TO PEER FOR A LIMITED PERIOD
OF TIME

MOBILE COMMERCE
(M – COMMERCE)

6. M-commerce
 It refers to the use of mobiles devices for
conducting the transactions.
 The mobile device holder can connect each
other and can conduct the business.
 This is not really a type of e commerce but a
mechanism in transaction.
 Many M-Commerce applications involve
internet enabled mobile devices. If such
transactions are targeted to individual, to
specific location, at specific times, they are
referred as location base ecommerce (L-
Ecommerce).

NOW PEOPLE CAN SHOP AND PAY DIRECTLY FROM
THEIR PHONE RATHER THAN USING A LAPTOP OR PC.

E-Government
 In E-Government a government
departments buys or sells goods,
services or information to business
(G2B) or to the individual citizens
(G2C) or to other government entity
(G2G).
 In E-Government; intranets, extranets
and the internet all are applied.
Eg: Filing returns through net

THIS IS THE WEBSITE OF GOVERNMENT OF
INDIA FOR FILING INCOME TAX RETURN

E-Learning
 When educations, training or
examination are provided online, it is
called E-Learning.
 It is practiced in Universities and
organizations, government
departments. When organizations give
training to their employees, it is called
E-Learning.

EDUCOMP SMAT CLASS IS AN EXAMPLE OF
E LEARNNG WHERE STUDENTS CAN LEARN
AND UNDERSTAND MORE EFFECTIVELY RATHER
OPENING THEIR BOOKS.

1. Community-based services: Payment of
utility bills, traffic fines, donations to charity
etc.
2. Shopping: Buying and selling goods and
services
3. Communication: E-mail, Net telephony
products can be commerce-enabled and
serviced via the Net.
HOW CAN E-COMMERCE BE USED?

HESE DAYS USE OF E – COMMERCE TECHNOLOGY IS
EING DONE BY THE DELHI TRAFFIC POLICE IN FILING
PENALTY AGAINST THE VIOLATORS OF LAW.

FOR WHAT E COMMERCE WORK?
1. Travel / Tourism.
2. Retail - items that don’t need personal touch
- music, books, gifts, Computers, electronic
items, Auctions.
3. Real Estate - houses and investment
properties. More efficient and effective
processes between businesses (B 2 B).

WITH THE EVOLUTION OF E – COMMERCE WE CAN
VEN BOOK AIR TICKETS ONLINE RATHER DIRECTLY
GOING TO THE BOOKING AGENT

OR WE COULD EVEN BUY A PROPERTY
ONLINE VIA DIFFERENT SITES LIKE 99ACRES,
MAGIC BRICK ETC.

FOR WHAT IT DOES NOT WORK?
1. Items which require “touch and trial”
• Luxury goods.
• Clothes - beyond T-shirts
2. Groceries - it works for some people
but market is restricted.

WHAT ARE THE RISKS?
Failure of the web site:
• problems with the surroundings, power
failure.
• failure of the hardware or software.
• attack through virus or computer
hackers.
Main issue: Secure payment scheme

FACTORS TO CONSIDER BEFORE
LAUNCHING INTO E-COMMERCE
Developing a deep, lasting relationship
with customers takes on even greater
importance on the Web.
Creating a meaningful presence on the
Web requires an ongoing investment of
resources – time, money, energy, and
talent.
Measuring the success of a Web-based
sales effort is essential to remaining
relevant to customers whose tastes,
needs, and preferences constantly change

BENEFITS AND LIMITATIONS OF
E-COMMERCE TO SOCIETY
Benefits
 Enables more
flexible working
practices
 Connects people.
 Facilitates delivery
of public services.
Limitations
 Breakdown in human
interaction.
 Social division.
 Reliance on
telecommunications
infrastructure, power and IT
skills.
 Wasted resources.

BENEFITS AND LIMITATIONS OF E-
COMMERCE TO CONSUMERS
Benefits
 24/7 access.
 More choices.
 Price comparisons.
 Improved delivery
processes.
 An environment of
competition
Limitations
 Computing equipment.
 A basic technical knowledge.
 Cost of access to the Internet.
 Cost of computing equipment.
 Lack of security and privacy of personal
data.
 Physical contact and relationships are
replaced by electronic processes.
 A lack of trust because they are
interacting with faceless computers.

BENEFITS AND LIMITATIONS OF E-COMMERCE
TO ORGANISATIONS
BENEFITS
 Operational cost savings.
 Mass customisation.
 Enables reduced
inventories.
 Lower
telecommunications cost.
LIMITATIONS
 Lack of sufficient system
security, reliability,
standards and
communication protocols.
 Rapidly evolving and
changing technology.
 Under pressure to innovate
 Facing increased
competition
 Problems with compatibility
of older and ‘newer’
technology.

MOBILE COMMERCE
Mobile Commerce is also known as M-Commerce.
M-Commerce is the buying and selling of goods and
services through wireless handheld devices.
M-Commerce is the process of paying for services using a
mobile phone or personal organizer.
67

NOW FOR PAYING INSTANT BILLS LIKE IN A RESTRAUNT.
OU CAN JUST SWIPE YOUR CREDIT/DEBIT CARD TO YOU
OBILE PHONE. BUT, HOWEVER THIS FEATURE IS LIMITED
ONLY FEW BRAND OF PHONES.

HISTORY
Mobile Commerce Services were first delivered in
1997, when the first two mobile-phone enabled Coca
Cola vending machines were installed in the Helsinki
area in Finland.
The M-Commerce server developed in late 1997 by
Kevin Duffey at Logica.
Since the launch of the iPhone, mobile Commerce has
moved away from SMS systems and into actual
applications. 69

OVERVIEW
M-Commerce is the ability to conduct Commerce
using a mobile device such as:
1. Mobile Phone
2. Personal Digital Assistant(PDA)
3. Smart Phone
70

DUE TO RAPIDLY CHANGING TECHNOLOGY THERE IS MORE
DEMAND OF M COMMERCE THAN E COMMERCE

CONTD..
Mobile Commerce from the Customer‘ s point of view
The customer wants to access information, goods and
services any time and in any place on his mobile device.
He can use his mobile device to purchase tickets for
events or public transport, pay for parking, download
content and even order books and CDs.
He should be offered appropriate payment methods.
MONDAY, APRIL 13, 2015 72

E TOLLS CAN BE PAID BY SIMPLY INSERTING
DEBIT/CREDIT CARD IN A CAR’S E PAYMENT BO

CONTD..
Mobile Commerce from the Provider`s point of view
The future development of the mobile telecommunication
sector is heading more and more towards value-added
services. Analysts forecast that soon half of mobile
operators‘ revenue will be earned through mobile
Commerce.
Innovative service scenarios will be needed that meet the
customer‘s expectations and business models that satisfy
all partners involved.

SERVICES AND APPLICATIONS
PROVIDED IN M COMMERCE
Mobile ticketing
Mobile Money Transfer
Content purchase and delivery
Information services
Mobile banking
Mobile Browsing
Mobile Purchase
Mobile marketing and advertising

SOME OF THE FAMOUS MOBILE
SERVICE PROVIDERS ARE VODAFONE

MOBILE TICKETING
 Mobile Ticketing is the process where the customers
can order, pay for, obtain and validate tickets from any
location and at any time using Mobile phones .
Tickets can be booked and cancelled on the mobile
device with the help of simple application downloads.
Delivery of tickets to mobile phones can be done in
the form of a SMS or by a MMS.

BOOK MY SHOW IS AN APPLICATION WHERE A
CONSUMER CAN EASILY BOOK/PRE BOOK
ICKETS FOR A MOVIE, AN EVENT AND SPORTS.

Contd..
Mobile Tickets can be purchased in a variety of ways
including online, via text messaging or in a secure
mobile application.
Mobile Ticketing is used in many applications like:
1. Airline ticketing
2. Cinema ticketing
3. Railway & Bus ticketing
4. Concert/Event ticketing
5. Consumer voucher distribution

Benefits to the ticket buyer
Instant delivery of mobile tickets at the time of
purchase.
Individual mobile tickets can be forwarded to a friend.
Quicker entry with no waiting in lines.
Benefits to the Event organizer
Reduced will call lines and staffing.
Guaranteed security, only one entry per barcode.
Event is 'greener' with reduced paper waste.MONDAY, APRIL 13, 2015 83

MOBILE MONEY
TRANSFER
Mobile Money Transfer refers to payment services
which are performed by using a mobile phone.
By using this service we can transfer money from one
person to other by using a mobile phone.
Ex: ICICI bank has started IMPS - Interbank Mobile
Payment Service. It is an interbank electronic instant
mobile money transfer service through mobile phones.
MONDAY, APRIL 13, 2015 84)

ELECOM SERVICE PROVIDERS LIKE VODAFONE
AND AIRTEL HAV PROVIDED A SERVICE WHERE
CUSTOMERS CAN TRANSFER THEIR MOBILE
BALANCE WITH THEIR FRIENDS AND FAMILY.

CONTENT PURCHASE AND
DELIVERY
Mobile content purchase and delivery mainly
consists of the sale of ring-tones, wallpapers,
and games for mobile phones.
The convergence of mobile phones, portable
audio players, and video players into a single
device is increasing the purchase and delivery
of full-length music tracks and video.

AS YOU CAN SEE HERE THAT A USER CAN
EASILY ACCESS THE WEB AND DOWNLOAD MUSIC,
IDEOS, WALLPAPERS DIRECTLY FROM HIS MOBILE.

INFORMATION
SERVICES
A wide variety of information services can be delivered
to mobile phone users in much the same way as it is
delivered to PCs. These services include:
News
Stock quotes
Sports scores
Traffic reporting

SIMILARLY USER CAN GET NEWS AND STOCK
PDATES ON THEIR MOBILE PHONES AND OTHER
PORTABLE ELECTRONIC DEVICES

MOBILE BANKING
Banks and other financial institutions use mobile
Commerce to allow their customers to access
account information and make transactions, such as
purchasing stocks, remitting money, receive
notifications, transfer money to other banks.

CONTD..
Mobile Banking Services are:
1. Mini-statements and checking of account history
2. Checking the balance
3. Recent transactions
4. PIN provision, Change of PIN and reminder over the
Internet
5. Cash-in, cash-out transactions on an ATM
MONDAY, APRIL 13, 2015 92GVPCE(A)

TH HDFC’S MOBILE BANKING APP THE CUSTOMERS CAN EASI
MANAGE THEIR ACCOUNTS, TRANSFER FUNDS,PAY BILLS AND
CHECK THEIR BALANCE.

The location of the mobile phone user is an important
piece of information used during Mobile Commerce or
M-Commerce transactions.
Knowing the location of the user allows for location-
based services such as:
1. Local discount offers
2. Tracking and monitoring of people
LOCATION BASED SERVICES

MOBILE PURCHASE
Some merchants provide mobile websites that are
customized for the smaller screen and limited user
interface of a mobile device.

MOBILE MARKETING AND
ADVERTISING
Mobile marketing is
highly responsive sort of
marketing campaign,
especially from brands’
experience point of view.
Corporations are now
using M-Commerce to
expand everything from
services to marketing
and advertisement.

Types of M-marketing and advertising:
Mobile Web Poster Mobile games
SMS advertising Mobile videos
MMS advertising Audio Advertisements

ADVANTAGES
 Advantages of M-Commerce are:
• Portability
• Instant connectivity
• Mobility
• Personalization
• Localization

DISADVANTAGES
 Small screens of most devices still limit types of file
and data transfer (i.e. streaming videos, etc.)
 Use of graphics limited
 User interface is often difficult to learn how to use
 Speed
 Limited storage capacity of devices

ROLE OF E COMMERCE AND M COMMERCE

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