e - Commerce

Session - 1

What’s in the store Today?

• Intro to e – Commerce

• Characteristics, Advantages &

Disadvantages

• Value Chain

• EC – Channels

• Business Models

Distribution Chain

• Traditional

– Wholesaler, Retailer

• Partial

– Retailer

• Direct (Total Disintermediation)

– Customer

e – Business

• eBusiness

– The strategy of how to automate old business

models with the aid of technology to maximize

customer value

e – Commerce

• e - Commerce

– The process of buying and selling over digital

media

e – CRM

• e - CRM (e - Customer Relationship

Management)

– The process of building, sustaining, and

improving eBusiness relationships with

existing and potential customers through

digital media

Conventional

Organisation Design

E – enterprise

Top heavy Org Structure Flat organisation

structure

Manual & document

based work flows

Paperless workflows

Longer business

process cycles

Responsive process

cycles

Low usage of

technology

Internet, Wireless &

Network technologies

Advantages

• Information technology infrastructure: The Internet provides a universal and easy-to-use set of technologies and technology standards that can be adopted by all organizations.

• Direct communication between trading partners: Disintermediation removes intermediate layers and streamlines processes.

Advantages contd.

• Round the clock service: Web sites available to consumers 24 hours

• Extended distribution channels: Outlets created for attracting customers who otherwise would not patronize a firm

• Reduced transaction costs: Costs of searching for buyers declines

Value Chain

• Information asymmetry: One party in a transaction has more information than the other. The Internet decreases information asymmetry.

• Increases richness: The Internet increases the depth, detail, and scope of information.

• Increases reach: The Internet increases the number of people who can be contacted efficiently.

eBusiness Process

WHY Customer Relationship

Redesign Business Processes (Outside-In)

Applying Technology

WHAT

HOW

Benefit

New

channel for

existing

business

Improved

customer

service

Enabled

entire new

line of

business

Reduced

operating

costs

Improved

cycle time

% of

Respondents

25% 23% 18% 7% 5%

Benefit

Keep pace

with

technology

Reduced cost

of sales

Other Not

available

None

% of

Respondents

5% 4% 6% 4% 3%

Table: E-commerce’s most promising potential benefits

Enterprise

User Profiles

Workflow

Business rules

Payment

Analytics

Internet

Intranet

eBusiness - Process

Diversification of EC Channel

Internet

Location

user

setting

goods/service

Access whenever you want and

wherever you are

Everyday life

information

Cellar phone

Digital TV Product information

in a realistic visual

Shopping whenever

you want

ＰＣGame appliance

From children to adults

Digital content

Business Model

C

B

C

BC: Individual Consumer

B: Business

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

– Amazon.com

Enterprise

User Profiles

Workflow

Business rules

Payment

Analytics

Internet

Intranet

eBusiness - Process

B2B

• “B2B” is business-to- business

commerce conducted over the

Internet (called B2B e-commerce

space, or e-marketplaces)

Banks,

Financial Institutions

Suppliers

Production materials

Operating goods, services

Enterprise Customers

Logistics

B2B Revenue Model

• B2B companies exhibit varying business models, depending on the key products and services they offer. The models include:

– transaction fees,

– auction-driving commissions,

– advertising,

– content subscriptions,

– software licensing

E-Channel

Management

Procurement

Network

Trading

Network

E-Customer Relationship

E-Commerce

E-Portal Management

E-Services

SCM/ERP

Bu

sinesse

s

Bu

sinesses &

Con

sum

ers

1:NM:1 M:N

Knowledge Management/Business Intelligence

C2B

• Consumer - to - business (C2B):

Customer initiates actions after login

into seller’s website or to server. Bank

transactions, Deciding prices of goods

for purchasing

Examples

Service Organisation E –Business

Model

Internet

Banking

ICICI B2C

Billing

Generation

Citibank B2C

Bill Payments ICICI B2B

News Sharing TOI B2C

Tender’s Any industry

like Gujarat ref.

B2B

Service Organisation E –Business

Model

Greetings /

messaging

Through ISP’s

VSNL , MTNL C2C

Servicing LG B2C

Information

Sharing

B2B / B2C

Configuring

product /

complete

business cycle

IBM / DELL C2B

EDI

• Electronic Data Interchange : - Enables

the computer-to-computer exchange

between two organizations of standard

transactions.

• It automates exchange of documents

such as purchase orders, invoices and

shipping notices.

To be continued in Session 2