Ecom

1. Applications Of E-
Business

2. E-Business Models
 Classification by Distribution Channel
 Bricks and Motar
 Bricks and clicks
 Pure-play e-business

3. E-Business Models
 Virtual (pure-play) e-tailers
Firms that sell directly to consumers over the
Internet without maintaining a physical sales
channel
Amazon, Flipkart,
3-3

4. E-Business Models
 Bricks and clicks retailers
Brick-and-mortar retailers that offer a transactional
Web site from which to conduct business
Example: Croma, Reliance Fresh,
 brick-and-mortar retailers
Retailers who do business in the non-Internet,
physical world in traditional brick-and-mortar stores
Example: local grocery store
3-4

5. Brands Opting for Bricks and clicks

6. Applications of e-business
 Internal business systems:
 Customer relationship Management
 Enterprise resource planning
 Document Management systems
 Human resources Management

7. Cont…..
 Enterprise communication and
collaboration
 VoIP
 Content management system
 E-mail
 Voice mail
 Web conferencing
 Business process Managment

8. Cont……..
 Electronic commerce
 Internet shop
 Supply chain Management
 Online marketing
 Offline marketing

9. What is E-Procurement?
E : Electronic
Procurement : the process of obtaining
supplies, especially for an government or
organization
E- Procurement : the business-to-
business purchase and sale of supplies
and services over the Internet.
Also Known as: Supplier Exchange
Definition: E-procurement is the business-
to-business purchase and sale of

10. E-Procurement Vs Traditional Procurement
Traditional
Purchasing
Need
Inform purcha-
sing
Department
Get
Approval
Create
Purchase
Order
Receive in
one week
Request for
quotation
Get
Approval
Internet
purchasing
Need
Search
approved
electronic
catalog
order
Receive in 2
days
Approve
online

11. E-Tools that replace traditional
procurement
 E-sourcing supports the specification phase; it identifies
suppliers that can be used in the selection phase.
 E-tendering supports the selection phase; it facilitates the
REOI and ITB/RFP activities, usually including support for
the analysis and assessment activities.
 E-reverse auctioning supports the contract phase; it
enables closing a deal with a supplier;
 E-ordering and web-based ERP is the process of creating
and approving procurement requisitions, placing purchase
orders, as well as receiving goods and services ordered, by
using a software system based on the Internet.
 E-informing is not directly associated with a phase in the
procurement process; it is the process of gathering and
distributing procurement information both from and to
internal and external parties using Internet technology.

12. What is electronic communication?
 Electronic communication consist of three
basic components, a transmitter, a
communication channel (medium), and a
receiver. Messages are converted to
electrical signals and sent over electrical or
fiber-optic cable or free space to a receiver.

13. Types of Electronic Communication
 E-mail
 Podcasting
 Discussion Boards
 Blogs
 Text Messaging
 Chatting, etc.

14. What is an auction?
1
4
• Auction is an process of buying and selling goods or
services by offering them up for bid, taking bids, and
then selling the item to the highest bidder.
• An auction is generally an event in which goods are sold to the highest bidder. By
being open to the public, an auction ensures a wide range of bids, and sometimes
items at auction can fetch surprisingly high prices.

15. E Auction
 The electronic auction (eAuction) is an e-
business transaction between auctioneers and
bidders, which takes place on an electronic
marketplace.
 The auctioneer offers his goods, commodities
or services on an auction side on the internet.
Interested parties can submit their bid for the
product to be auctioned in certain specified
periods. The auction is transparent, all
interested parties are allowed to participate
the auction in a timely manner.[1][2][3]

16. Types of Auctions
• Reserve auction
• Reverse auction
• Silent auction
• Top-Up Auction
• Walrasian auction
16

17. E Trading
 Electronic trading, sometimes called etrading, is a
method of buying and selling securities (such as stocks,
and bonds), foreign exchange or financial
derivatives electronically.
 Information technology is used to bring together buyers
and sellers through an electronic trading platform and
network to create virtual market places.
 They can include various exchange-based systems, such
as NASDAQ, NYSE Arca and Globex, as well as other
types of trading platforms, such as electronic
communication networks (ECNs).

18. Edi(Electronic Data Interchange)
 EDI (Electronic Data Interchange) is the
transfer of data from one computer system to
another by standardized message formatting,
without the need for human
intervention. EDI permits multiple companies -
- possibly in different countries -- to exchange
documents electronically.

19. 19
WHAT IS ELECTRONIC DATA
INTERCHANGE?
 Definition
 Exchange of electronic data between companies
using precisely defined transactions
 EDI covers most things that are traditionally done
using paper-based communication.
 Ex:
 Consider the Postal System

20. 20
WHAT IS ELECTRONIC DATA
INTERCHANGE?
 A Definition From Net:
 (EDI) is about doing business and carrying out
transactions with your trading partners electronically.
 EDI covers most things that are traditionally done
using paper-based communication.

21. 21
Electronic Data Interchange
Figure 11.3 Suppliers, manufacturers, and retailers cooperate in some of the most
successful applications of EDI.

22. 22
Electronic Data Exchange
 How does EDI work?
Supplier’s proposal sent electronically to purchasing
organization.
 Electronic contract approved over network.
 Supplier manufactures and packages goods, attaching
shipping data recorded on a bar code.
 Quantities shipped and prices entered in system and
flowed to invoicing program; invoices transmitted to
purchasing organization

23. 23
Electronic Data Exchange
 Manufacturer ships order.
 Shipment notice EDI transaction sent (not shown)
 Purchasing organization receives packages, scans
bar code, and compares data to invoices actual items
received.
 Payment approval transferred electronically.
 Bank transfers funds from purchaser to supplier’s
account using electronic fund transfer (EFT).

24. 24
Electronic Data Interchange
Figure 11.4

25. 25
EDI Example

26. 26

27. Value Added Network (VAN)
 A third party network performing services beyond
the transmission of data. For example, VANs
provide mailbox, data security, and data
archiving services. Many also offer e-mail
services.

28. 28
EDI Standards
 EDI requires companies to agree on standards
 Compatible hardware and software
 Agreed upon electronic form format
 Established EDI standards
 Automotive Industry Action Group (AIAG)
 X.12 de facto umbrella standard in U.S. and
Canada
 EDI for Administration, Commerce, and Trade
(EDIFACT) umbrella of standards in Europe

29. 29
How to Subscribe to EDI
 Larger companies purchase hardware
and software
 Medium and small companies seek
third-party service
 Value-added networking (VAN)
 Managed network services available for a
fee

30. 30
EDI Applications
Who Uses EDI?
Any company that (buys, sells goods, services) can
potentially use EDI.
 Because it supports the entire business cycle
 EDI can streamline the relationship that any
company has with its (customers, distributors,
suppliers)

31. 31
EDI Applications
Where Is EDI Used?
 Sample EDI application areas
 Ex:
 Purchasing
 Inventory
 Billing
 Distribution
 Price notification
 Financial
 Freight rate notifications
 Sales & cash management

32. 32
EDI Applications
Types of EDI Activity
 Currently EDI is primarily used for:
 Purchase orders
 Bills of lading
 Invoices
 Healthcare claims
 Financial exchanges

33. 33
EDI USERS AND TYPES OF
ACTIVITIES
Difference between EDI & electronic funds transfer (EFT)
 EFT is also used to exchange information electronically.
 Financial EDI is the exchange of payment and bank balance information
between a company and its bank or another company.
 EFT is the exchange of information between two banks that results in value
being transferred.
 It is possible for financial EDI to be bank to bank, but EFT does no bank-
to-company exchanges.

34. 34
EDI USERS AND TYPES OF
ACTIVITIES
Business Processing Considerations
 EDI is changing the way companies do business
 shifting the ordering process from a snail-like
 paper-intensive system to a computerized one
 The nature of business relationships, both internal and
external, is changing

35. 35
EDI USERS AND TYPES OF
ACTIVITIES
 Ex:
 A salesperson who used to receive and write orders
has become a product advisor
 Customers conducting business with firms that have
multiple divisions now request centralized electronic
transmission

36. Advantages of EDI
 Transactions speed
 Direct transmission
 Cut down the possibility of human error
 Reduces the risk of lost data
 Improves productivity

37. Disadvantages Of EDI
 Standardizes programs and procedures
 Lack of a common understanding and
limited education
 Complex to use
 Difficult to quantify return ROI (return on
investment )