Unit 1final.pdf

19
e-Commerce Unit 1 Sikkim Manipal University Page No. 1 Unit 1 Introduction to e-Commerce Structure: 1.1 Introduction Learning objectives 1.2 e-Commerce or Electronic Commerce   An Overview 1.3 Electronic Commerce   Cutting edge 1.4 Electronic Commerce Framework Selecting the best e-commerce framework Electronic commerce and media convergence The anatomy of e-commerce applications e-Commerce applications Multimedia storage servers 1.5 Summary 1.6 Glossary 1.7 Terminal Questions 1.8 Answers 1.9 Case-Let 1.1 Introduction Electronic commerce, also termed as e-commerce, is a process of buying and selling of goods or services using electronic systems. These electronic systems can be either the Internet or other computer networks. e-Commerce is also known as e-business. The World Wide Web plays a major role in the implementation of e-commerce in most of the organisations. This unit introduces you to the concepts of e-commerce. It also helps you understand how electronic commerce acts as a cutting edge. In this unit, we will discuss the framework of electronic commerce and the role of media convergence in electronic commerce. We will also discuss the different applications of e-commerce and the anatomy of e-commerce applications. We shall also study about multimedia storage servers. Learning objectives  After stud ying this u nit, you sh ould be able to:  Describe e-commerce.  Define the e-commerce framework.

description

Unit 1final.pdf

Transcript of Unit 1final.pdf

  • 5/28/2018 Unit 1final.pdf

    1/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 1

    Unit 1 Introduction to e-Commerce

    Structure:

    1.1 Introduction

    Learning objectives

    1.2 e-Commerce or Electronic CommerceAn Overview

    1.3 Electronic CommerceCutting edge

    1.4 Electronic Commerce Framework

    Selecting the best e-commerce framework

    Electronic commerce and media convergence

    The anatomy of e-commerce applications

    e-Commerce applications

    Multimedia storage servers

    1.5 Summary

    1.6 Glossary

    1.7 Terminal Questions

    1.8 Answers

    1.9 Case-Let

    1.1 Introduction

    Electronic commerce, also termed as e-commerce, is a process of buying

    and selling of goods or services using electronic systems. These electronic

    systems can be either the Internet or other computer networks.

    e-Commerce is also known as e-business. The World Wide Web plays a

    major role in the implementation of e-commerce in most of the

    organisations.

    This unit introduces you to the concepts of e-commerce. It also helps you

    understand how electronic commerce acts as a cutting edge. In this unit, we

    will discuss the framework of electronic commerce and the role of media

    convergence in electronic commerce. We will also discuss the different

    applications of e-commerce and the anatomy of e-commerce applications.

    We shall also study about multimedia storage servers.Learning objectives

    After studying this unit, you should be able to:

    Describe e-commerce.

    Define the e-commerce framework.

  • 5/28/2018 Unit 1final.pdf

    2/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 2

    Analyse the role of media convergence in e-commerce.

    Explain the anatomy of e-commerce applications. List the different types of e-commerce applications.

    1.2 e-Commerce or Electronic Commerce An Overview

    Often referred to as simply e-commerce, electronic commerce1 refers to

    business that is conducted over the Internet using any of the applications

    that rely on the Internet, such ase-mail, instant messaging,shopping carts,

    Web services, UDDI, FTP, and EDI, among others. Electronic commerce

    can be between two businesses transmitting funds, goods, services and/or

    data or between a business and a consumer.

    Electronic Commerce or e-commerce is the latest concept in todays

    business scenario. Broadly speaking, the e-commerce business

    methodology addresses the needs of organisations, retailers and

    consumers to reduce the costs, while improving the quality of service and

    increasing the speed of delivery of goods.

    Today, e-commerce refers to buying and selling of information, products and

    services through computer networks. However, in the future, it may refer to

    carrying out business transactions through any of the myriad of networks

    that make up the Superhighway or I-way.

    Business-to-Business or B2B e-commerce is a process of conductingelectronic commerce between businesses. The e-commerce option is

    exercised in many companies that carry out B2B transactions. On the other

    hand, business-to-consumer or B2C is a process of conducting electronic

    commerce between businesses and consumers. The best example for B2C

    is electronic commerce implemented by companies such as Amazon.com,

    wherein a customer is directly online to the sellers computer using the

    internet. In Amazon.com, the business transactions are done both

    electronically and interactively in real-time for new books.

    1.3 Electronic Commerce

    Cutting edgeAs we now know the concept of e-commerce, let us discuss how

    e-commerce acts as a cutting edge in the present days business world.

    1 http://www.webopedia.com/TERM/E/electronic_commerce.html

    http://www.webopedia.com/TERM/I/Internet.htmlhttp://www.webopedia.com/TERM/A/application.htmlhttp://www.webopedia.com/TERM/E/e_mail.htmlhttp://www.webopedia.com/TERM/I/instant_messaging.htmlhttp://www.webopedia.com/TERM/W/Web_services.htmlhttp://www.webopedia.com/TERM/U/UDDI.htmlhttp://www.webopedia.com/TERM/F/FTP.htmlhttp://www.webopedia.com/TERM/E/EDI.htmlhttp://www.webopedia.com/TERM/E/EDI.htmlhttp://www.webopedia.com/TERM/F/FTP.htmlhttp://www.webopedia.com/TERM/U/UDDI.htmlhttp://www.webopedia.com/TERM/W/Web_services.htmlhttp://www.webopedia.com/TERM/I/instant_messaging.htmlhttp://www.webopedia.com/TERM/E/e_mail.htmlhttp://www.webopedia.com/TERM/A/application.htmlhttp://www.webopedia.com/TERM/I/Internet.html
  • 5/28/2018 Unit 1final.pdf

    3/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 3

    Electronic commerce can also be defined as a modern business technique,

    and it acts as a cutting edge

    2

    for business. It deals with the organisationalrequirements, trade, and customers to reduce the costs while improving the

    product quality and also increasing the speed of product delivery.

    The traditional business scenario is varying quickly because the customers

    and businesses search for flexibility to change business partners, proposals,

    and networks. When deciding on business approaches, most of the

    companies are looking outside and also within their organisations. These

    activities include setting up private electronic connections to customers,

    dealers, distributors, industry groups, and also opponents. This is done to

    improve the competency of business communications, to assist in

    expanding the market share, and to preserve long-standing feasibility intoday's business environment.

    Numerous networks make up the Information Superhighway (I-way). The

    Information Superhighway can develop this trend to another level in total. It

    also facilitates businesses to exchange information. This process is done

    continuously between varying customer groups, suppliers, and research

    partners in both commercial and academic world on an international basis.

    The importance of e-commerce is based on the truth that time is the most

    essential feature. Time plays a vital role for both business and customers in

    commercial markets. With e-commerce, more business dealings arehandled on the same day as very less time is spent on each deal from the

    business standpoint. This will also help the customer to save more time

    during their transactions. Hence, in this case, e-commerce helps in

    replacing the traditional commerce technique where a single transaction

    costs valuable time. With the help of e-commerce, an order is placed and

    then executed through internet quickly, without any difficulty. For example,

    traditional banking processes take more time whereas, at present a banking

    transaction is done via the Internet and the time spent is also less. Thus, it is

    proved that e-commerce is helpful to both businesses and customers, as

    payments and documentation are done with better effectiveness.

    e-Commerce is a more commercial and cost effective method than

    traditional commerce method. This is because by using e-commerce, the

    2 http://www.e-commerceprogram.com/

  • 5/28/2018 Unit 1final.pdf

    4/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 4

    dealers of products can save on the selling expenses, which they can use

    for expanding their business. For example, Dell, a big computer enterpriseadopts such a technique to carry out their transactions using internet,

    without the involvement of any third parties. Internet advertisement is

    cheaper, as compared to a roadside poster or promotion through television

    commercials. The total expenditure required to for business dealing in

    e-commerce is considerably less than a traditional commerce method. For

    example, only a head office is required to manage an e-commerce business

    rather than a head office with many branches. Other than that, the

    expenses for staff, maintenance, communications, and office rental is

    replaced by a single web hosting for the e-commerce industry.

    Connectivity plays a significant part for both customers and businessbecause it is the major factor which determines the entire business. From

    the business perspective, e-commerce offers more improved connectivity for

    its customers, as their personal websites can be accessed almost from any

    place via Internet. Hence, more customers can be in touch with the

    company's transactions, which results in removing the restrictions with

    respect to physical location. From the customers point of view,

    e-commerce is a very convenient and suitable method because:

    They can look through the entire list of catalogues without any

    disturbance.

    They can evaluate costs between products, and brands and alsopurchase from another country. This can be done while at home or at

    work, without moving a single inch from their chair.

    e-Commerce is more convenient for both customers and business, as online

    business has less formalities compared to traditional commerce techniques.

    In the international market scenario, e-commerce has given rise to various

    opportunities for many companies and financiers. For example, because of

    the success of e-commerce, more funds are invested in electronic

    securities, internet services, business plans, and new technologies. As a

    result, various e-commerce markets have evolved, improving the globalmarket.

  • 5/28/2018 Unit 1final.pdf

    5/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 5

    Activity 1:

    List some of the innovations that you are familiar with that have emergedsince the usage of e-commerce in recent business environment.

    Hint:Internet marketing

    Self-Assessment Questions

    1. __________ refers to business that is conducted over the internet using

    any of the applications that rely on the Internet.

    2. _________ e-commerce is a process of conducting electronic

    commerce between businesses.

    3. Numerous networks make up the ________.

    4. The importance of e-commerce is based on the truth that time is themost essential feature. (True/False)?

    5. ________ plays a significant part for both customers and business

    because it is the major factor which determines the entire business.

    1.4 Electronic Commerce Framework

    A framework can be defined as a structure for supporting or attaching

    something else, particularly a support that is used as the foundation for

    something being created. Hence, an e-commerce framework comprises the

    set of infrastructure required for carrying out the e-commerce business. This

    set of infrastructure typically includes the network requirements and thedifferent software applications that are for e-commerce.

    The e-commerce vision summarised above assumes a series of essential

    infrastructure services and values steady with a broad architectural

    framework. This framework must allow flexibility, interoperability and

    directness necessary for the successful development of electronic

    commerce. The e-commerce framework offers a set of options to the

    customers. Most of the electronic commerce plans have different strategies

    for security and privacy, their skill to deal with the payments, and their

    usability to different transactions. They also vary in their business models.

    Such variations promote innovation and allows for supplier and customer

    options. But yet, you need a broad framework to gain wide acceptance. This

    includes the following requirements and peculiarities of carrying out various

    business forms in this upcoming electronic environment.

  • 5/28/2018 Unit 1final.pdf

    6/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 6

    Interoperability: Electronic commerce is based on a common set of

    required services and standards that allow interoperability. Service providersand application designers use these services and standards as building

    blocks. They achieve the goals and objectives of e-commerce by combining,

    enhancing and customising these building blocks as per the requirements.

    Maximum flexibility for innovation: The innovation in e-commerce will

    grow and be established in ways that are impossible to visualise. This will

    result in evolution of new services and businesses. We can already see that

    many electronic marketplaces are giving rise to new openings for new

    services and businesses. Existing services and products will be specified

    and adapted. Hence, the electronic commerce framework plays a vital part

    in adapting the changes and then later dealing with the new applications.

    Information-intensive products:It is observed that the most important set

    of products that are sold through e-commerce are the pure information

    products. For example: electronic journals, catalogues, videos, interactive

    video games, software programs, electronic coupons, and so on. They also

    include electronic keys to cars, hotel rooms, storage sections, and airport

    boarding gates. Some of these products can be designed or modified by a

    customer. For example, customers want their own selection of articles to be

    attached in an electronic book, or modify their own clothing designs. This

    capability calls for a customer-driven activity a design phase, to the

    purchase cycle. Hence, it is necessary to have all the activities in the

    process of the transaction designing, customising, ordering, billing,

    payment and distribution tightly integrated and happening simultaneously.

    New revenue collecting techniques: We already know about the

    traditional techniques of revenue collection, for example, payment upon

    receipt, advance payment, and so on. At present, electronic commerce

    supports more improved methods of revenue collection. For example, an

    information product service provider will allocate the product broadly and

    then charge on a usage basis -- which means charging the customer only

    when the information is used. This information can be a software program, adigital record, or an electronic key used to open and start a rental car.

    Meterware is a new strategy implemented in recording and billing

    customers constantly depending on their product usage. Along with

  • 5/28/2018 Unit 1final.pdf

    7/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 7

    Meterware, electronic cash and cheques also help in gaining new customers

    and sharing products.Legacy systems: The legacy systems that are prevailing in electronic

    commerce field include mainframe-based agreement, paper cheques, and

    payment systems, and so on. An electronic commerce infrastructure gains

    success only when it allows the user to easily shift from traditional systems

    to innovative, electronic systems, and applications and processes.

    Transaction devices: e-Commerce dealings include different kinds of

    legacy and recently formed devices, media, and systems over which

    transactions take place. Hence, it is necessary that e-commerce adapts the

    technologies and devices required for reaching and maintaining the mass

    market.

    We can conclude that an electronic commerce framework developed with all

    of these needs and considerations in mind will form a strong basis for an

    extremely useful and effective electronic commerce infrastructure.

    1.4.1 Selecting the best e-commerce framework

    Deciding on the best e-commerce framework is one of the major challenges

    for any organisation. The framework should be selected based on the three

    evaluation points:

    Features.

    Requirements.

    Luxuries.

    Figure 1.1 explains the three evaluation points of e-commerce framework.

    Figure 1.1: Three Evaluation Points of e-Commerce Framework

  • 5/28/2018 Unit 1final.pdf

    8/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 8

    Featuresare those elements of the framework that make it more prominent

    and clear from other offerings.Requirementsare the basic requirements of the framework that allow it to

    do its work. If one among these is lost, then it becomes difficult to use a

    particular framework, even with the presence of any other features.

    Luxuries are the components whose presence is not so important, but they

    are required to make the case for a framework that comes at a bonus price.

    The luxury components add something extra to the system to make it worthy

    of the premium price. The three important factors to look for in any

    e-commerce framework are:

    Template management.

    Core framework functionality.

    Search engine features.

    The framework should be adaptable in order to be able to cope with future

    evolution of the site and market. At the same time, it should be able to

    support the existing business and make it as easy as possible.

    You cannot create content that will be suitable for submission to search

    engines, unless you achieve good integration with search engine

    optimisation functions. Failing to do so will lead to your site creator spending

    considerable time preparing submission pages instead of making use of that

    valuable time for extending the site.

    So long as you can balance between the cost and the benefits, it is worth

    paying the extra amount to have a framework that saves you from all that

    work involved in maintaining the infrastructure and processing payments.

    The end result is profitability, as expensive manual work is removed from

    the process.

    1.4.2 Electronic commerce and media convergence

    By now you must be familiar with the e-commerce framework. Let us now

    discuss the role of media convergence in e-commerce.

    Media Convergence3 is a process of interlinking of computing and

    information technology organisations, telecommunication networks, and

    3 http://www.britannica.com/EBchecked/topic/1425043/media-convergence

  • 5/28/2018 Unit 1final.pdf

    9/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 9

    content providers from various media. These media include journals,

    newspapers, music, television, radio, and entertainment software. Mediaconvergence conveys jointly the three Cs and they are computing,

    communications, and content.

    Convergence happens at two major levels:

    1. Technologies: Creative content is transformed into industry-related

    digital forms for delivery. This is done via broadband or wireless

    networks to exhibit on various computer or computer-related devices

    and also on cellular telephones to personal digital assistants (PDAs) to

    digital video recorders (DVRs).

    2. Industries: Companies that are spread all over the business spectrum

    starting from media to telecommunications to technology, combine orcreate strategic agreements. The purpose of these alliances is to

    expand new business models that can yield profit from the emerging

    customer expectations of availability of content.

    We all are aware that there is a rapid growth with respect to usage of

    electronic applications and the internet and people, all over the world, have

    entered the digital age because of technological development. Most of the

    media-related organisations are experimenting with new openings and

    concerns - afforded by what is termed as "convergence". The act of

    combining together of different media and integrating new personalised

    services is both inspiring and overpowering.

    The implementation of high-quality computers, changing to digital platforms,

    and formation of high-speed computer networks has helped us with new

    ways of doing things. The old explanations that provided division between

    TV, Radio, Cable, Newspapers, and Films are gone forever. During 1990s,

    there was evolution of ownership convergence which resulted in creation of

    media-based multinational companies. For example, Disney, Viacom, Sony,

    and so on. From the customers perspective, the Internet has also changed

    our favourite delivery systems, which include newspapers that provide video

    and TV that offer interactive conversations, and radio that offers web-cams.

    Media convergence has a major part to play in the field of e-commerce and

    information technology. Media convergence is particularly a blending of

    television, personal computer, and telecommunications. This helps in

    providing a high-speed Internet access, traditional television programs and

  • 5/28/2018 Unit 1final.pdf

    10/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 10

    interactive services in a single box. The convergence at a technological

    level will facilitate audio, video, and data to be conveyed to customers usinga single pipeline. This pipeline may be in the form of wire which could be

    cable or DSL, or may be wireless. This will help the customers to not only

    access the Internet from a single box, but also access high-speed networks

    through various access points including TVs, PCs, mobile phones and other

    mobile devices, public booth, and home appliances.

    Activity 2:

    Visit http://syntaxclothes.com/ and collect information on the major

    factors they consider in creating an e-commerce framework.

    Hint:Template management

    Self Assessment Questions

    6. The _________ in e-commerce will grow and be established in ways

    that are impossible to visualise.

    7. ________ is a new strategy implemented in recording and billing

    customers constantly depending on their product usage.

    8. A process of interlinking of computing and information technology

    organisations, telecommunication networks, and content providers

    from various mediums is _________.

    9. Creative content is transformed into industry-related digital forms for

    delivery. (True/False).10. The convergence at a ________ level will facilitate audio, video, and

    data to be conveyed to customers using a single pipeline.

    1.4.3 The Anatomy of e-commerce applications

    In the previous section, we discussed about e-commerce and media

    convergence. Let us now discuss about the anatomy of e-commerce

    applications.

    Currently, the best and the easiest form of interaction between businessmen

    and customers is the Internet. Online buying & selling of products, which

    includes websites, is gaining popularity because of rapidly advancingtechnology-related concepts. Online business is developing quickly through

    different software that allow customers to perform buying and selling

    activities without much difficulty.

  • 5/28/2018 Unit 1final.pdf

    11/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 11

    As discussed in the previous sections, e-commerce applications comprise

    multimedia content and multimedia storage servers as well as theinformation delivery system, the devices that function as interfaces for

    various e-commerce applications and the network service providers that

    serve as access points.

    1.4.4 e-Commerce applications

    As you must have understood by now, a number of software and hardware

    applications are used to carry out the e-commerce transactions. Some

    common e-commerce applications include:

    Email.

    Enterprise content management.

    Instant messaging.

    Newsgroups.

    Online shopping and order tracking.

    Online banking.

    Online office suites.

    Domestic and international payment systems.

    Shopping cart software.

    Teleconferencing.

    Electronic tickets.

    Some of the benefits of e-commerce applications include: Expanding geographical reach.

    Expanding customer base.

    Increasing visibility with the help of Search Engine Marketing.

    Providing the required business information to customers.

    Making the website available 24/7/365.

    Building customer reliability.

    Reducing marketing and advertising expenses.

    Collecting customer data.

    Increasing sales.

    e-Commerce applications must have the skill to deal with the activities

    involved in a business. Those skills include accepting and managing

    payments, handling the checkout pipeline, and choosing, collecting and

    distributing products to customers. Apart from these, companies use the

  • 5/28/2018 Unit 1final.pdf

    12/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 12

    applications to improve the online experience of customers and in turn

    enhance customer traffic.Electronic Payment Systems

    An electronic payment system (EPS)4 is a system of financial exchange

    between buyers and sellers in the online environment that is facilitated by a

    digital financial instrument (such as encrypted credit card numbers,

    electronic cheques, or digital cash) backed by a bank, an intermediary, or by

    legal tender.

    EPS plays an important role in e-commerce because it is necessary to close

    the e-commerce loop, since billing and payment are the last activities in any

    sales transactions. In developing countries, the underdeveloped electronic

    payments system is a serious impediment to the growth of e-commerce. In

    these countries, entrepreneurs are not able to accept credit card payments

    over the Internet due to legal and business concerns. The primary issue is

    transaction security.

    Search Engines: A Search engine is a program which accesses a vast

    record of information on the World Wide Web. It includes individual words in

    web files and location of the files containing the words. For example, you

    are the user of a search engine and you want to find a file, then type a

    query. This is followed by a group of keywords connected by Boolean

    connectors such as and and or. In some cases, a natural languagesentence is also used. Once you enter your query and do a search, the

    search engine will throw up all the files that contain the keywords that were

    used in your search. For example, the query Java & compiler will return with

    the addresses of all those web files that have the words Java and

    compiler.

    Other commercial websites

    Other commercial websites used in e-commerce include:

    Anonymous remailer:It is a website which allows you to send an email

    anonymously or secretly to some recipient.

    Link checking sites: The site to which you submit the address of a web

    page is a link checking site. It will save this address in a database and

    4http://en.wikibooks.org/wiki/E-Commerce_and_E-Business/

    e-Commerce_Applications:_Issues_and_Prospects

  • 5/28/2018 Unit 1final.pdf

    13/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 13

    then at times verify if the document is still available. If it notices that a

    document is not available, then it sends an email to the customer whohad requested the site to observe the document.

    Archive sites: The websites that offer customers a facility to store their

    files or documents at a safe location are archive sites. This site protects

    against any harm being done to the computer or fear of losing some

    important data. Archive sites users need to register with it using a login

    name and a password. The users are then asked to follow a set of

    instructions that help them to carry out the process of gathering their

    files together to be sent to the remote location.

    Change notification sites:Variations on link checking sites are change

    notification sites. In this site, the customer is informed when thedocument is altered, but not when a web document is unavailable. For

    example, you visit a tourism website and when browsing, you see a

    page which contains an advertisement about some holiday package to a

    particular destination. With the help of this application, you can keep

    abreast of any updation to that particular page.

    E-mail providers: The sites which offer free email facilities, which

    provide a facility of sending anonymous mail and constructing mailing

    lists are e-mail providers. E-mail providers are very useful for the users

    who cannot afford the usual mailing software. This site is also helpful for

    frequent travellers who can visit such sites from any part of the world.

    The major drawback of this site is that it is slow as compared to

    conventional mailing services such as Microsoft Outlook and Eudora.

    Anatomy of an e-commerce Website

    Consider an e-commerce website as a storefront for products or services

    that you wish to sell online. Your main task is to convert your website user

    into actual customers. You must have a lot of interesting content and

    products on your website to attract search engines and also to notify

    potential customers.

    Given below are the main parts of an e-commerce site: Online product catalogue is the main place used to store and handle

    the information about products or collection of products.

    Shopping cart is a commonly used interface that customers apply to

    pick products that they want to purchase. The shopping cart helps in

  • 5/28/2018 Unit 1final.pdf

    14/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 14

    maintaining information about the products that your customer wishes to

    buy and also support them with the checkout process. Checkout systemgathers required payment details from the customer,

    which also include shipping & billing addresses, credit card details, or

    other payment mechanism details. It may also be organised to present

    shipping rates, taxes, vouchers, or estimate other variations to arrive at

    the final cost.

    Payment gateway is a protected service that moves payment and credit

    card details from your website to a merchant account assigned by a

    bank or financial organisation that deals with online transactions. It also

    handles any response or the feedback that is got from the bank, for

    example, when a customer has inadequate funds or is using an invalid

    credit card.

    Merchant account is a special bank account that permits your website

    to allow online payments to be done through credit or debit cards. The

    banks that have merchant account facility charge changing fees per

    transaction and transaction types.

    Fulfilment is when the order is worked through e-commerce website

    and then results in a completed order that is shipped out.

    1.4.5 Multimedia storage servers

    Due to recent advancement in communication and technologies, it hasbecome possible and economically practical to offer online access to

    various information sources such as books, magazines, pictures, video

    clips, and scientific data. The planning of such services includes providing

    multimedia storage servers that are linked to customer sites with the help of

    high-speed networks. Customers of such services are allowed to recover

    multimedia objects from the server for real-time playback at their own sites.

    Moreover, the recovery can be interactive, which means that customers may

    stop, break, continue, and also record and correct the media information if

    they have the consent to do so.

    The design of such multimedia services varies considerably from traditional

    text/numeric storage and recovery services. This is because of two basic

    features of digital audio and video:

    Real-time storage and retrieval: Both audio and video media are

    repeatedly referred to as continuous media (CM). This is because they

  • 5/28/2018 Unit 1final.pdf

    15/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 15

    consist of a series of media quanta, for example, video frames or audio

    samples which communicate the meaning only when accessedconstantly in time. Additionally, a multimedia object usually includes

    some media constituents whose playback is temporally coordinated.

    Large data transfer rate and storage space necessity: Playback of digital

    video and audio transfer data at a very high rate. Therefore, a

    multimedia service has to give useful mechanisms for storing,

    recovering, and controlling data in huge quantities at high speeds.

    As a result, the crucial components in the design phase of such multimedia

    services include:

    Multimedia storage servers that help in supporting continuous recovery

    of media information from the storage subsystem.

    Network subsystems that guarantee synchronous and appropriate

    delivery of media information to the display sites.

    Some of the multimedia objects include images, text, audio, and video.

    Multimedia storage servers assist in providing access to these multimedia

    objects. The design of such servers primarily varies from usual servers

    because of:

    Real-time storage and retrieval requirements.

    Large storage space and data transfer rate needs of digital multimedia.

    There is development of various multimedia applications because of rapidprogress in the fields of communication, compression technology, and also

    Internet. Examples for such applications are interactive multiplayer games,

    distance education, online virtual worlds, and so on.

    These applications vary from the usual applications in two ways and they

    are:

    1. Firstly, they provide storage, transmission, and processing of

    heterogeneous data types which include text, image, audio, and video

    that vary in their features (for example, size, data rate, real-time

    requirements, so on).

    2. Secondly, different from conventional best-effort applications, these

    applications require varied performance requirements for example,

    regarding timeliness on the networks and operating systems.

  • 5/28/2018 Unit 1final.pdf

    16/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 16

    Activity 3:

    Make a list of some common e-commerce applications that you arefamiliar with.

    Hint: Online shopping and order tracking

    Self Assessment Questions

    11. A ________ is a program which accesses a vast record of information

    on the World Wide Web.

    12. A website which allows you to send an email anonymously or secretly

    to some recipient is ________.

    13. The site to which you submit the address of a web page is _________.

    14. ________ are very useful for the users who cannot afford the usualmailing software.

    15. _________ is a protected service that moves payment and credit card

    details from your website to a merchant account.

    16. ________ are linked to customer sites with the help of high-speed

    networks.

    1.5 Summary

    Electronic commerce or e-commerce deals with purchasing and selling of

    products or services via electronic systems. These electronic systems are

    mostly in the form of Internet. There are different names given to electroniccommerce, which include e-commerce and or e-business. The Internet has

    been extremely helpful in carrying out trade electronically.

    The traditional business situation is changing quickly as the customers and

    businesses search for flexibility to change business partners, plans, and

    networks. The companies are searching for activities outside and also within

    their organisations to decide on business strategies. These activities include

    setting up private electronic connections to customers, dealers, distributors,

    industry groups and also opponents. Electronic commerce plans have

    different approaches for their security and privacy, their ability to handle

    payments, and their usability to different transactions. They also vary in theirbusiness tactics.

    The e-commerce framework comprises the exclusive hardware and

    software requirements that make the business transactions happen on the

  • 5/28/2018 Unit 1final.pdf

    17/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 17

    Internet. It includes some specific applications like search engine, online

    payment applications, online shopping carts and so on.Media convergence plays a crucial role in e-commerce and information

    technology. Media convergence refers to a merger of television, personal

    computer, and telecommunications into a single box. This facilitates the

    users to have high-speed Internet access, traditional television programs,

    and interactive services in a single application. Multi-media servers play a

    very important role in e-commerce, as they are required to store and

    transform all forms of information like data, voice, music and video.

    1.6 Glossary

    Term Description

    Anonymous Having no recognition, name, identity, or known source

    Convergence The occurrence of two or more things coming together

    Interoperability The capability to exchange and use information

    Peculiarity A weird or strange feature

    Teleconferencing A meeting of people who are in different locations held usingtelecommunications equipment as closed-circuit television

    1.7 Terminal Questions

    1. Explain briefly how e-commerce acts as a cutting edge in todays

    business world.

    2. Explain any three requirements needed to create a broad e-commerce

    framework and also to perform various business activities.

    3. Explain briefly the role of media convergence in e-commerce.

    4. List some common applications related to e-commerce.

    5. Explain briefly any three commercial websites.

    6. Explain the main parts of an e-commerce site.

    1.8 Answers

    Self Assessment Questions

    1. Electronic commerce

    2. Business-to-Business

    3. Information Superhighway.

    4. True

  • 5/28/2018 Unit 1final.pdf

    18/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 18

    5. Connectivity

    6. Innovation7. Meterware

    8. Media Convergence

    9. True

    10. Technological

    11. Search engine

    12. Anonymous remailer

    13. Link checking site

    14. E-mail providers

    15. Payment gateway

    16. Multimedia storage serversTerminal Questions

    1. Refer section 1.3 Electronic CommerceCutting Edge.

    2. Refer section 1.4 Electronic Commerce Framework.

    3. Refer section 1.4.2 Electronic commerce and media convergence.

    4. Refer section 1.4.4 e-Commerce applications.

    5. Refer section 1.4.4 e-Commerce applications.

    6. Refer section 1.4.4 e-Commerce applications.

    1.9 Case-Let

    Patrick Allis International: Serving multiple customers

    Patrick Allis International is the worlds leading designer and distributor of

    clothing, accessories, and perfumes. The products are sold in

    departmental stores, and also online and in the companys own retail

    stores. Before Patrick Allis International thought of starting a new online

    presence, it already had a brochure website. But this site had many

    issues which included outdated and useless design and images,

    branding problems, and also lacked interactivity. It was very difficult to

    revise and update the site because there was no integrated content

    management system. Hence, this demanded Patrick Allis to create a newonline presence to have a proper interaction with visitors, financiers, and

    also job seekers. Hence, they consulted Trinity Partners to find the

    solution for this problem.

  • 5/28/2018 Unit 1final.pdf

    19/19

    e-Commerce Unit 1

    Sikkim Manipal University Page No. 19

    Solution:

    Trinity Partners initiated the process with an established Website

    Requirement Specification (WRS) stepwise approach and methodically

    implementing research & strategy, designing and information

    architecture.

    Both Patrick Allis International and Trinity Partners defined all the goals

    for the new site which included enhancing the customer experience,

    improving the interaction with various customer groups, and also

    competently promoting the companys multiple brands.

    Then Trinity Partners designed the new site, setting up a clear, user-

    friendly navigation, and also creating attractive visuals, with stylish flashimages to give an aesthetic look for advertisements.

    Success:

    Patrick Allis International now has developed an influential online

    communication tool it had imagined. This in turn has helped in improving

    the interaction with visitors, financiers and job seekers. It has also helped

    in increasing the brands visibility and also enhancing recognition.

    Questions:

    1. What were the problems faced by Patrick Allis International from the

    companys brochure website?

    Hint: Outdated and useless design and images.2. What were the goals defined by both Patrick Allis International and

    Trinity Partners for creation of new site?

    Hint: Enhancing the customer experience.

    http://www.ecommercepartners.net/Case-Studies/Perry-Ellis.shtml

    References

    http://en.wikipedia.org/wiki/Electronic_commerce

    http://www.e-commerceprogram.com/

    http://www.britannica.com/EBchecked/topic/1425043/media-

    convergence