Dr.R.BASKARAN,DCSE1 E-Commerce Dr.R.BASKARAN Senior Lecturer Department of Computer Science and...

Dr.R.BASKARAN,DCSE 1

E-Commerce

Dr.R.BASKARANSenior Lecturer

Department of Computer Science and Engineering,Anna University,

Chennai – [email protected]


UNIT I

INTRODUCTION


What is E-Commerce ?

• Electronic commerce (EC) is an emerging concept that describes the buying and selling of products, services and information via computer networks, including the Internet.


What is E-Commerce ?

• E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network.


9%6%6%

22%

15%

8%

26%24%

21%

In pilot stage Starting toimplement

In use

1997 1998 1999

Figure: E-commerce on the rise.Source: 1999 SG Cowen/Datamation Networked Computing Survey

364434

775

623

E-commerce status at sitesFigure:E-commerce apps are a big driver for storage. Average installed online storage in gigabytes.Source: 1999 SG Cowen/Datamation Networked Computing Survey

No plans Start in 99/00 Expand in 99/00 Largely done


BenefitNewchannel forexistingbusiness

Improvedcustomerservice

Enabledentire newline ofbusiness

Reducedoperatingcosts

Improvedcycle time

% ofRespondents

25% 23% 18% 7% 5%

BenefitKeep pacewithtechnology

Reduced costof sales

Other Notavailable

None

% ofRespondents

5% 4% 6% 4% 3%

Table: E-commerce’s most promising potential benefits


Is e-commerce the same as e-business?

• In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals).

• In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network.


eBusiness Processes

WHY Customer Relationship

Redesign Business Processes (Outside-In)

Applying Technology

WHAT

HOW


eBusiness Key Concepts

• eBusiness– The strategy of how to automate old business models

with the aid of technology to maximize customer value

• eCommerce– The process of buying and selling over digital media

• eCRM (eCustomer Relationship Management)– The process of building, sustaining, and improving

eBusiness relationships with existing and potential customers through digital media


Types of E-commerce

• Business-to-business

• Business-to-government

• Business-to-consumer “Consumer Electronic Commerce” or “Retail Electronic Commerce”

• Government-to-consumer

• Consumer-to-consumer


C

B

C

B

Traditional versus E-Business Models?

C: Individual ConsumerB: Business


What is Consumer E-commerce?

• It is the online selling and buying of products and services: companies publish their catalogs online, and consumers order from the catalogs, make payments, and track the status of their orders online. In the typical scenario a customer uses a Web browser to access a Web-based virtual store through the Internet.


What is B2B?

• “B2B” is business-to- business commerce conducted over the Internet (called B2B e-commerce space, or e-marketplaces)

N


E-Market is …Web-based marketplace

• e-market is Web sites where buyers and sellers come together to communicate, exchange ideas, advertise, bid in auctions, conduct transactions, and coordinate inventory and fulfillment

BuyersBuyers

SellersSellers

MarketSiteMarketSite


Figure : A B2B Model(Source: Goldman Sachs Investment Research Report)

Banks,Financial Institutions

eCredit.com

Suppliers

Production materialsOperating goods, services

Enterprise Customers

LogisticsCelarix, NTE


What is B2C?

• B2C (or Extranets) is just web-enabled relationships between existing partners; they tend to be run by a single company seeking to lower the cost of doing business with its current suppliers or individual customers.

• Examples?

- Univercell.in– Amazon.com– Egghead.com


Enterprise

User ProfilesWorkflow

Business rulesPaymentAnalytics

Internet

Intranet

Figure: A B2C e-business Model


B2C Applications

• Electronic storefront• Electronic malls• Advertising online• Service online

– selling books, toys, computers– e-banking (cyberbanking)– online stock trading– online job market, travel, real estate


Figure : B2C and B2B Internet Commerce in the U.S. (Source: Forrester Research)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1998 1999 2000 2001 2002 2003

B2C

B2B

Billion


What is B2G e-commerce?

• B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations.

• Ex : E Tender


Customer-to-CustomerE-Commerce

• Customer-to-customer (C2C): • e-commerce in which both the buyer and the

seller are individuals (not businesses); involves activities such as auctions and classified ads


What is m-commerce?

• M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i.e., handheld devices such as cellular telephones and personal digital assistants (PDAs).


Industries affected by m-commerce

• Financial services

• Telecommunications

• Service/retail

• Information services


Forrester’s M-Commerce Sales Predictions, 2001-2005


Components of a typical successful e-commerce transaction loop

• The Seller

• Transaction partners

• Consumers (in a business-to-consumer transaction)

• Government

• The Internet


How is the Internet relevant to e-commerce?

• The Internet allows people from all over the world to get connected inexpensively and reliably. As a technical infrastructure, it is a global collection of networks, connected to share information using a common set of protocols.

• A vast network of people and information, the Internet is an enabler for e-commerce as it allows businesses to showcase and sell their products and services online and gives potential customers, prospects, and business partners access to information about these businesses and their products and services that would lead to purchase.


How important is an intranet for a business engaging in e-commerce?

• An intranet aids in the management of internal corporate information that may be interconnected with a company’s e-commerce transactions.

• It allows for the instantaneous flow of internal information, vital information is simultaneously processed and matched with data flowing from external e-commerce transactions, allowing for the efficient and effective integration of the corporation’s organizational processes.


E-COMMERCE SERVICES


IS ONLINE SHOPPING SAFE?

• Yes, Make sure you have a secure connection at the time of checkout.

• Online stores have "https" in the URL for the checkout-secure internet connection.

• These sites will encrypt your credit card number, making it impossible for someone to have and use your credit card number even if it is intercepted


ADVANTAGES

• Lower transaction costs

• Promote product internationally • People can shop in different ways.

• Improved customer relations

• Increased Sales


DRAWBACKS

• Loss of ability to inspect products from remote locations

• Rapid developing pace of underlying technologies

• Difficult to calculate return on investment

• Cultural and legal impediments

Dr.R.BASKARAN,DCSE1 E-Commerce Dr.R.BASKARAN Senior Lecturer Department of Computer Science and...

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