P. 1
E Commerce

E Commerce

|Views: 12|Likes:
Published by Sibi Kochumon

More info:

Categories:Types, Research
Published by: Sibi Kochumon on Mar 21, 2013
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less






Internet has become an important medium for doing global business based on the state of the art technology. Electronic commerce has two major aspects: economical and technological. The stress of this course will show you how to get started in the complex and exciting world of Electronic Commerce. New standards and new facilities are constantly emerging and their proper understanding is essential for the success of an operation, and especially for those who are assigned a duty to select, establish, and maintain the necessary infrastructure. What is e-Commerce? E-commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services, and information via computer networks including the internet. Definition of E-Commerce from Different Perspective 1. Communications Perspective  EC is the delivery of information,products/services, or payments over thetelephone lines, computer networks orany other electronic means. 2. Business Process Perspective  EC is the application of technology towardthe automation of business transactionsand work flow. 3. Service Perspective  EC is a tool that addresses the desire offirms, consumers, and management tocut service costs while improving the quality of goods and increasing thespeed of service delivery. 4. Online Perspective  EC provides the capability of buyingand selling products and information onthe internet and other online services.

Electronic commerce, commonly known as e-commerce or e-comm, is the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well.  Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. E-commerce can be divided into:       E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes gathered into a "virtual mall" The gathering and use of demographic data through Web contacts Electronic Data Interchange (EDI), the business-to-business exchange of data E-mail and fax and their use as media for reaching prospects and established customers (for example, with newsletters) Business-to-business buying and selling The security of business transactions

Benefit of e-Commerce       Access new markets and extend service offerings to customers Broaden current geographical parameters to operate globally Reduce the cost of marketing and promotion Improve customer service Strengthen relationships with customers and suppliers Streamline business processes and administrative functions

Scope of E-Commerce              Marketing, sales and sales promotion Pre-sales, subcontracts, supply Financing and insurance Commercial transactions: ordering, delivery, payment Product service and maintenance Co-operative product development Distributed co-operative working•Use of public and private services Business-to-administrations (e.g. customs, etc) Transport and logistics Public procurement Automatic trading of digital goods Accounting Dispute resolution

Activities of E-commerce?       Increasing the speed of service delivery. Use of computer networks to search and retrieve information in support of human and corporate decision –making. Buying and selling of information, products and services via computer network. Faster customer response and improve services quality. Advertising on the internet. Online electronic commerce payments i.e., electronic funds transfer.

The growth and acceptance of credit cards. Slow development of standards hindered the growth of EDI. cables. modems. electricity. History of ecommerce dates back to the invention of the very old notion of "sell and buy". These were both introduced in the late 1970s. Some authors will track back the history of e commerce to the invention of the telephone at the end of last century. It has not gained reasonable acceptance until eighties. Ecommerce became possible in 1991 when the Internet was opened to commercial use. electronic commerce was identified as the facilitation of commercial transactions electronically. automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). computers. EDI has never reached the level of popularity of the webbased ecommerce for several reasons:    High cost of EDI prohibited small businesses and medium-sized companies from participating in the electronic commerce. Originally.HISTORY The history of e commerce is a history of how Information Technology has transformed business processes. Since that date thousands of businesses have taken up residence at web sites. data mining and data warehousing. Tim Berners-Lee invented the WorldWideWeb web browser and transformed an academic telecommunication network into a worldwide everyman everyday communication . Large organizations have been investing in development of EDI since sixties. and the Internet. electronic commerce would include enterprise resource planning systems (ERP). Another form of e-commerce was the airline reservation system typified by Sabre in the USA and Travicom in the UK. allowing businesses to send commercial documents like purchase orders or invoices electronically. In 1990. and The complexity of developing EDI applications limited its adaptation to a narrow user base. EDI (Electronic Data Interchange) is widely viewed as the beginning of ecommerce if we consider ecommerce as the networking of business communities and digitalization of business information. Beginning in the 1990s.

Office Depot and Hewlett Packard. By the end of 2000. as a meta markup language. Commercial enterprise on the Internet was strictly prohibited by NSF until 1991. .system called internet/www. which are the obstacles of EDI development.[1] Although the Internet became popular worldwide around 1994 with the adoption of Mosaic web browser. XML. but it has not solved the problem of slow development of e commerce standards. Dell. According to statistics. History of ecommerce is a history of a new. It is a world which we are all building together brick by brick. computers.e. virtual world which is evolving according to the customer advantage. Web Services offers a flexible and effective architecture for the implementation. Currently there are 5 largest and most famous worldwide Internet retailers: Amazon. books. laying a secure foundation for the future generations. There is no doubt that XML and the Web Services will shape the course of e commerce in years to come History of ecommerce is unthinkable without Amazon and Ebay which were among the first Internet companies to allow electronic transactions. Since then people began to associate a word "ecommerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services. XML and Web Services Besides the availability of technical infrastructures. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Internet. SSL encryption enabled on Netscape 1. the popularity of the Web is largely attributed to the low cost of access and simplicity of HTML authoring. office supplies and other consumer electronics.0 Browser in late 1994) and DSL allowing continual connection to the Internet. provides a development tool for defining format of data interchange in a wide variety of business communities. Staples. The Internet and the Web have overcome the technical difficulty of EDI. the most popular categories of products sold in the World Wide Web are music. many European and American business companies offered their services through the World Wide Web. it took about five years to introduce security protocols (i.

E.merce. has not been a widely accepted terminology. Electronic Business. Ecommerce and Electronic Commerce has been used interchangeably. We expand Institutions as E-commerce Players. David Kosiur described the Components of Electronic Commerce in three dimensions (Processes. however. The distinction between E-commerce and E-business has become blurred. The concept has been broadened to include all business activities of a sales cycle. Institutions and Networks) in his 1997 book Understanding Electronic Com. Networks as Technologies and add Markets as the fourth dimension of E-commerce.Commerce In Action .DISCUSSION Concepts of Electronic Commerce Electronic commerce is narrowly defined as buying and selling products/services over the Internet.

The consumer then receives an email shortly afterwards. This second scenario keeps the consumer accurately informed throughout the entire ordering process. From there. The shopping cart application has been setup by the merchant to display all products and services offered.). the consumer is typically connected to an online transaction server located somewhere else on the internet which runs software commonly referred to as a shopping cart application. as well as calculate pricing. the credit card was authorized. . the consumer decides that he wants to purchase something. In both scenarios. Scenario 1 The consumer‘s credit card information goes directly through a private gateway to a processing network. confirming the order being received. so he enters all pertinent credit card information and a sales order is produced..How e-Commerce Works The consumer first moves through the internet to the merchant‘s web site. back orders. orders submitted after office hours or during holidays.. FTP. Shop Online. Buy Now. At the web site.g. shipping charges. we will assume an ecommerce implementation that uses the second scenario mentioned above. and that the product will ultimately be shipped. the sales order can now take two totally different paths for confirming to the consumer that the order is officially placed. or SSL connection) where the order can be reviewed first and then approved for credit card authorization through a processing network. After choosing to visit the web store. Scenario 2 The consumer‘s entire order and credit card information is electronically submitted back to the merchant‘s server (usually via email. This generally takes place in no more than 5-7 seconds and the consumer is then informed that the order was received. However. where the issuing and acquiring banks complete or deny the transaction. the process is transparent to the consumer and appears virtually the same. the first scenario is a more simplistic method of setting up a shopping cart application and does not take into consideration any back office issues that may delay shipment (i. the credit card being authorized. or an image of a shopping cart button are common entry points into a web store). etc. the consumer is briefly given an introduction to the product or services the merchant offers.e. etc. items out of stock. For the sake of this tutorial. and status on when the product will exactly be shipped. Depending on the ecommerce implementation. ManageMore‘s eCommerce Manager relies on the second scenario to handle all of its ecommerce orders. taxes. It is at this point that the consumer makes the decision to visit the web store by clicking on a link or button located on the web page (e.

However. This can be relatively easy or somewhat difficult. 3. or AuthorizeNet™ (i. the following should also be noted: 1. Constantly changing to a new merchant account provider when your old one goes out-of. A simple web search on ―credit card processor‖ should be enough to get you started. . 4.e. . Intellicharge Interface) software. PC Charge™. These products are sold separately from ManageMore and eliminate the need for merchant terminal devices or separate time consuming steps to approve credit cards. and the type of business you are running. you may need to find a merchant account provider that specializes in internet payment transactions. This refers to transactions where the customer is not present and only the credit card number and expiration date are being used for approving the charges. years in business.There are several basic steps you will need to accomplish before becoming Commerce Enabled.refundable fee before you get approved.Your merchant account provider must allow you to handle non-swiped credit card transactions. In order for credit card authorization to be automatic from within ManageMore. you should do a little research on the company‘s reputation.When choosing a merchant account provider. many businesses would sign up for credit card processing through their own commercial banking institutions. you must ensure that your merchant account provider has credit card processors that connect with IC Verify™. Depending on how you process credit cards (especially if you plan on using Scenario 1 from the introduction). . and company size. In the past. When choosing a merchant account provider. depending on which country you live in. the internet has now made it simple to shop around for the best credit card discount rates from an endless amount of merchant account providers worldwide. 2.Avoid merchant account providers that ask for a non.      Getting a Merchant Bank Account Web Hosting Web Design Considerations Registering a Domain Name Obtaining a Digital Certificate Let us review each step in more detail below: Getting a Merchant Bank Account In order to be able to accept credit cards. . you must apply for an account with a credit card merchant account provider.business can be costly and time consuming.

3. 2. . (Scenario 1 will not be discussed further in this article as it pertains to larger organizations which are not concerned with the high expense of running their own web server. it doesn‘t make sense to lock your company into a commitment for any period of time. If not. You will need to setup an account for internet access with the ISP of your choice. As with any company you do business with. These fees can come in the form of an application fee. 5. a separate data line will not be necessary if you use the Intellicharge Interface for electronic payment. etc.You should be able to find a merchant account provider that can offer you discount credit cards rates ranging from 1. The following should be noted when searching for an Internet Service Provider: 1. Choose an ISP that is known for having few interruptions of service. There are actually two scenarios that can be used for web hosting. . make sure the ISP is reputable.25 cent per transaction. Typically expect to pay around $100 to $500 for getting an account setup to accept credit cards and sometimes electronic checks. etc. Choose an ISP that consistently has fast connection speeds.Avoid merchant account providers that require 1 or 2 year contract terms.Expect merchant account providers to have some form of a sign up fee after being approved only. . You will need a dedicated phone line or data line for processing credit cards and electronic checks. while Scenario 2 involves farming out all web hosting administration to an ISP. Choose an ISP that is known for good technical support and has knowledgeable people familiar with ecommerce sites. hiring permanent IT staff.] 6. Web Hosting Web hosting is a very important step in this process.75% to 2.)An Internet Service Provider (ISP) is a company that provides you with internet access and limited hard drive space on their web servers for hosting your web site. processing fee. as this is how you gain a presence on the internet in the first place.75% and no more than . dealing with security. Since there are so many merchant account providers available.5. contact Intellisoft regarding our merchant account provider affiliates and the free Intellicharge Interface just for signing up with them. Scenario1 involves setting up and maintaining your own web server. software fee. 7. 8. Always try to find an ISP that can provide a local telephone number for you to connect to the internet. . 4. Note: If your computer or local area network is already connected to the internet.

and the sophistication of the shopping cart application itself. like SoftCart by Mercantec. If you plan on using ManageMore‘s eCommerce Manager module for the back end office. Online transaction providers will usually provide one shopping cart solution they feel is better than the many others that exist and differ by price. please contact Intellisoft.x by Mercantec For a list of known online transaction providers that offer the shopping cart applications mentioned above. the eCommerce Manager module was designed to work with specific shopping cart applications for proper retrieval and processing of web orders. and ease of use. However. number of products listed on the shopping cart application. layout. 3. In the case of ManageMore. 2. when adding a web store to your web site. Most businesses will rent these online web store programs rather than committing to such a steep investment. Web Design Considerations With little knowledge of HTML and a lot of patience.There are a lot of online transaction providers out there. appearance. you can probably create your own corporate web site with the help of products like Microsoft FrontPage™ or DreamWeaver™. and they all have varying packages. it will be a requirement for your online transaction provider to use one of the following shopping cart applications: • SoftCart 4. allow .Now.Rental pricing for the use of shopping cart programs vary depending on number of transactions generated a month. The following should be noted when dealing with shopping cart applications: 1. Deciding on a provider‘s package that fits your needs is perhaps the most important aspect.x by Mercantec • SoftCart 5. Many small businesses tend to choose CSP‘s for creating a web store because it gives them the flexibility of choosing a provider that offers competitive pricing and the best shopping cart application for their needs. here is the part that gets a bit tricky to understand. functionality. The online transaction providers that offer the actual web store itself can sometimes be hosted by your same ISP or may require a completely different provider.Online transaction providers will either sell or rent you the use of an online shopping cart application for your business. referred to as a Commerce Service Provider (CSP). Most shopping cart applications. Be forewarned that purchasing an online shopping cart application is very expensive. you may want to seek the help of professional web designers to make the look and feel of your web store consistent with the rest of your corporate web site.

There are many to choose from. In layman terms. enables SSL (Secure Socket Layer encryption) on the web server. Select a unique domain name you would like others to use for finding your web site. also known as a SSL Server Certificate.Domain names are the names for computers on the Internet that correspond to IP (Internet protocol) numbers to route information to addresses on the Internet network. for customers to find your web site by typing ―123.whois. just do a web search on ―domain name registrar‖ to get you started. the same ISP or CSP you choose can provide web design and consultation. SSL protects communications so you can take credit card orders securely and ensure that hackers cannot eavesdrop on you.mybiz. your peers the whole world.The basics for registering a domain name are:1. Domain names serve as a convenient way of locating information and people on the Internet. Registering a Domain Name If your business already has a corporate web site implemented. Contact a domain name registrar on the internet to register for a domain name. 2. One place to go for checking availability of a domain name is www.456‖ or by typing something simple to remember like ―www.its templates to be modified just for this purpose. In many cases.123.net3. Expect a registration fee of $10 .456. then you probably already have a domain name and don‘t need to read this section.There are many other questions that arise when considering a domain name for your business that go outside the scope of this tutorial Obtaining a Digital Certificate A digital certificate. Any ecommerce company that provides you with an online web . Your domain name says who you are to your clients.$100 annually for the central registrar to keep your domain name active on the internet.com?‖ Registering a domain name is one of the most important decisions you can make for your online identity. will it be important to you.

• Managing trading-partner relationships. . In the past EDI was conducted on a direct link of some form between the two businesses where as today the most popular connection is the internet. E-Commerce technologies have allowed even the smallest businesses to improve the processes for interfacing with customers.Consumer to Consumer B2B . B2B E-Commerce could be used as a significant enabler in their move towards greater trading partner collaboration. This might be the ultimate objective.cally to each other. but. B2B e-commerce currently makes up about 94% of all e-commerce transactions. but it was in the provision of customer service and support to their overseas distributors that the greatest benefits have been achieved.Business to Business B2B . For many Welsh SMEs B2B E-Commerce is synonymous with the vision of integrated supply chains. The two businesses pass information electroni.Consumer to Business B2E . They are now able to develop services for individual clients rather than provide a standard service. Using the Web to sell more products was an initial consideration.TYPES OF E-COMMERCE There are a number of different types of E-Commerce       B2B .Business to Business B2C . in the short term. E-Commerce can be used in the following processes: • Procurement. They evaluated all aspects of their business process to determine where the greatest return could be obtained. Typically in the B2B environment.Business to Business e-commerce has been in use for quit a few years and is more commonly known as EDI (electronic data interchange). • order fulfillment. Pentwyn Splicers based in Pontypool manufacture pneumatic splicers for the UK and world textile market.Business to Employee C2C .Business to Consumer C2B .

The supplier may be an existing retail outlet such as a high street store. information about customers and company operations. and cultivate relationships with customers. and share. B2C . He requires a flight in the first week of December and is only willing to pay $250. the airline offers Harry a return fare for $250. and automate corporate processes to deliver the right products and services to customers quickly and cost-effectively. The user accesses the Internet site http://wwww. Due to it being a slow period. The wine is then dis. Streamline the supply chain.something which many dot. develop.au and follows the links to read a report on the recommended wines. insurance quotes. but they usually have a sound commercial structure as well as in-depth experi. it has been this type of business that has been successful in using eCommerce to deliver services to customers. After reading the tasting notes the user follows the links to place an order along with delivery and payment details directly into the merchants inventory system. Example : Harry is planning a holiday in Darwin.Consumer to Business Consumer to Business is a growing arena where the consumer requests a specific service from the business. analyze. manufacturing.ence of running a business . or weather forecasts.patched from the suppliers warehouse and in theory is delivered to the consumer without delay. Dodgy Brothers Airways accesses the facility and sees Harry‘s submission.craigs.com. B2C can also relate to receiving information such as share prices.coms lacked. in order to make better decisions. retain. Capture. These businesses may have been slow in gearing-up for eCommerce compared to the innovative dot. C2B . . causing many to fail Example : A home user wishes to purchase some good quality wine. on-line newspapers. This is where the consumer accesses the system of the supplier. It is still a two way function but is usually done solely through the Internet.An alternative way of thinking of B2B eCommerce is to think of it as being used to: Attract. Harry places a submission with in a web based C2B facility. and procurement processes.Business to Consumer Business to Consumer e-commerce is relatively new to Australia.com start ups.

The consumer lists items for sale with a commercial auction site. . B2A is the least developed area of e-Commerce and it relates to the way that public sector organisations.Search Engines 9.E-Banking 4.. E-MARKETING : E-Marketing also known as Internet marketing.Government.Government plays a significant part in achieving this objective. Web marketing. The intranet is usually access through the organisations network. B2C. Also known as e.E-Advertising 3. 1.E Marketing 2. C2C. at both a central and local level. advertising and sales.Mobile Commerce 5.Online training 8. In reality this site should be call C2B2C. it can and is often extended to an Entrant which uses the Internet but restricts uses by signon and password. The site provider usually charges a transaction cost. Other consumers access the site and place bids on the items.B2E .Business to Employee Business to Employee e-commerce is growing in use. B2B.Entertainment 1. It is the marketing of products or services over the internet. An intranet is a web site developed to provide employees of an organisation with information. It is consider to be broad in scope because not refers to marketing on the internet but also done in Email and wireless media. C2C . E-COMMERCE APPLICATIONS: Globally E-Commerce is applied in the following fields. it has the potential to increase the domestic and business use of e-Commerce as traditional services are increasingly being delivered over the Internet. Internet marketing is inexpensive when examine the ratio of cost to the reach of the target. including design development. E-Marketing ties together the creative and technical aspects of the internet. The site then provides a connection between the seller and buyer to complete the transaction.E-Learning 6. Internet marketing is associated with several business models ie. are providing their services on-line. This form of e-commerce is more commonly known as an ‗Intranet‘. The UK government is committed to ensuring this country is at the forefront of e-Commerce and it is essential that e.Consumer to Consumer These sites are usually some form of an auction site. Online marketing.E-Shopping 7.

Fund Transfer Investing through internet Banking Shopping Customers should never share personal information‘s like pin nos. and as many times as you want.. E-BANKING OR INTERNET BANKING: Means any user with a personal computer and browser can get connected to his banks. Best example for E-Banking is ATM. website to perform any of the banking functions.. Social network advertising. transfer between ALCS. Balance enquiries. online classified advertising etc. Through internet banking. An online advertisement also offers various forms of animation. . with any one.e. email advertising. web-enabled.2. The term online advertisement comprises all sorts of banner advertisement. Example: Banner ads. An ATM is an electronic fund transfer terminal capable of handling cash deposits. cash withdrawals. passwords. In internet banking system the bank has a centralized data base i. you can check your transactions at any time of the day. in game advertising and key soon.. 3. etc.. E-ADVERTISING: It is also known as online advertising it is a form of promotion that uses internet and world wide web to deliver marketing messages to attracts customers. The growth of these particular media attracts the attention of advertisers as a more productive source to bring in consumers. SERVICES THROUGH E-BANKING:     Bill payment service. and pay bills.

wallpapers and games of mobile phones. such as mobile phone. MOBILE-COMMERCE: Mobile Commerce also known as M-Commerce. Scores  MOBILE BANKING: Banks and other financial institutions used mobile commerce to allow their customers to assess account information and make transactions. The internet. Content is delivered via. withdrawals etc.E-Learning applications and processes include web-based learning.4. is the ability to conduct. sometimes abbreviated to CBL. E-Learning is naturally suited to distance and flexible learning. and ED-ROM. or video tape. satellite TV.E-Learning is essentially the computer and network-enabled transfer of skills and knowledge. Local base services  Local discount offers  Local weather  Information services  News  Sports. SERVICES ARE:     Mobile ticketing Mobile Vouchers. E-LEARNING: E-Learning comprises all forms of electronically supported learning and teaching. commerce as a mobile device. E-Learning can .  MOBILE BROWSING: Using a mobile browser. Computer-Based Learning. computer-based learning. audio. 5. such as purchasing. Coupons and Mobile contract purchase and delivery mainly consumes of the sale of ring tones. but can also be used conjunction with face-to-face teaching. refers to the use of computers as a key component of the education environment. intranet/extranet..A www browser on mobile device customers can shop online without having to be at their personal computer.

such as  Billing to mobile phones and landline. e-store. ONLINE SHOPPING:Online shopping is the process where by consumer directly buy goods or services from a sell in real time. tracking.commerce      An online shop. web store.it is a form of E. online store. The process is called business-to-consumer (B2C) online shopping.  Debit cards. In order to shop online. internet shop web shop.also refer to the educational website such as those offering learning scenarios worst and interactive exercises for children. Communication technologies are used in E-Learning. . Online shopping widened the target audience to men and women of the middle class. A learning management system (LMS) is software used for delivering. When a business buys from another business it is called business-to-business (B2B) online shopping. one must be able to have access to a computer. 6. e-shop. and many consumers have internet access both at work and at home. Another major advantage for retailers is the ability to rapidly switch suppliers and vendors without disrupting users shopping experience.  Gift cards  Postal money order. and managing training /education. Online shoppers commonly use credit card to make payments . however some systems enable users to create accounts and pay by alternative means .  Cheque. or virtual shop evokes the physical analogy of buying products or services in a shopping center. a bank account and debit card.    Online stores are usually available 24 hours a day. without an intermediary services over the internet . Online One advantage of shopping online is being able to quickly seek out deals for items or services with many different vendors.

Some search engines. such as GOOGLE. images. designed to facilitate communication between the members. information.   Most search engines support the use of Boolean operator AND.      The search results are generally presented in list of result and are often called hits. the engine examines its index and provides a listing of best matching according to its criteria.7. 8. ONLINE TRADING:An online trading community provides participants with a structured method for trading bantering (exchanging goods with goods) or selling goods and services. Search engines work by storing information about many web pages. While trading any used items online. be sure to include the condition and quality of the product so as the receiver can determine its overall value. A formal trading community consists of a website or network of websites that facilitates and track made transactions. and other types of files. and NOT. When a user enters a query into a search engine (typically by using keywords). store all or part of the source page as well as information about the web pages.     These communities often have forums and chat rooms. Some search engines also mine data available in database or open directories. OR. . The information may consist of web pages. which they retrieve from the HTML it self. SEARCH ENGINE:A web search engine is designed to search for information on the WWW and FTP servers. A trading circle is a form of online trading design to facilitate viewing of television series and episode media.

 Video games. online firms. Online books /newspapers.  Television/films. .  Radio. but rather a unique interactions of all of the above media. etc. online radio.    Computer based systems have been used as an entertainment medium in the form of video games . Online social networking websites are one of the biggest sources of E-entertainment for today‘s tech-savvy (who have knowledge interest in) generation. and online games are common place in internet where we can entertain. ENTERTAINMENT:The conventional media that have been used for entertainment are  Books/magazines. The internet as an entertainment media is not a elastic by itself. CD .9. online television. ROMs ..

and forwarded to the supplier‘s mailbox. translate it into his own local form.CHALLENGES IN ELECTRONIC COMMERCE What is EC? For more than two decades. These technologies have primarily been used to support business transactions between organizations that have estab. transmitted to a VAN. typically asynchronous or bisynchronous • Value-Added Network (VAN): a store and forward mechanism for exchanging business messages Using an electronic commerce system . obtain the EDI purchase order. the retailer may create a purchase order to replenish his inventory. vendors are bringing the product directly to the consumer via electronic shopping malls. organizations have conducted business electronically by employing a variety of electronic commerce solutions. an organization enters the electronic market by establishing trading partner agreements with retailers or wholesalers of their choosing. These electronic malls provide the consumer with powerful browsing and searching capabilities. retailer and the wholesaler). or implementation conventions. The supplier will check his mailbox. the core components typically include: • Workflow Application: A forms interface that aids the user in creating outgoing requests or viewing incoming requests. • Electronic Data Interchange (EDI) Translator: A mapping between the local format and a globally understood format. • Communications: A mechanism for transmitting the data. More recently. payment mechanisms.lished relationships (i. Although these systems differ substantially in terms of features and complexity. an organization must choose the components of their electronic commerce system. where consumers and businesses are meeting electronically. it will be translated into its EDI equivalent. such as terms of transfer. In this emerging business-to. a retailer may maintain an electronic merchandise inventory and update the inventory database when items are received from suppliers or sold to customers.e. These agreements may include any items that cannot be reconciled electronically. business relationships will have to be automatically negotiated. process the request. and ship the item. When the inventory of a particular item is low. After establishing the proper business relationships. In the traditional scenario. As the purchase order passes through the system. due largely to the popularity of the Internet and the World Wide Web. Information that appears in these forms may also be stored in a local database. The Challenge . somewhat duplicating the traditional shopping experience.consumer model.

advances in resource discovery technologies will be critical. One can imagine. Building Blocks In the heterogeneous. As the amount of information that can be exchanged grows. Applications will require programmable interfaces to message queuing. The seamless location and transfer of information will allow consumers and providers to exchange business information. traditional communications protocols will give way to a set of faster and more reliable protocols. Middleware communications will be used to hide the complexity of the underlying communications protocols. emerging middleware technologies will complement the suite of standards and standards to provide seamless location. transfer. Competing technologies will always be available. This Marketplace will be used by all application domains to procure commodities and order supplies. electronic commerce applications will require easy-to-use. Instead. where entire business paradigms must be established electronically. database access. and a consumer will procure goods and services. Using this Electronic Marketplace. It is imperative that the communications infrastructure be able to support these and future services in a flexible and efficient manner. remote procedure calls.As the information technology industry moves towards the creation of an open. a manufacturer will obtain product or parts information. In the Electronic Marketplace. security services. To aid the consumer in finding useful and necessary information from amongst the vast sea of resources that will ultimately be available. that over time. and quite often there will be no clear winner. but will not provide for the integration of that information into their business processes. the Electronic Marketplace will be populated with a myriad of products and services. transfer. Coupling this feature with directory services provides a method for organizations to dynamically register business capabilities as they move on and off the information highway. Key components that will be necessary to advance resource discovery techniques are distributed naming and directory services. Distributed naming services provide an environment that allows functions to move transparently among computing platforms. distributed environment that makes up this Electronic Marketplace. robust. Current data translation practices allow for a syntactic translation of information. and integration of business information. a full suite of middleware services. competitive Electronic Marketplace. it must provide an infrastructure that supports the seamless location. No longer will interoperability be achieved by using a single set of standards. it . a purchasing agent will competitively procure supplies. and data and protocol conversion services. and integration of business information in a secure and reliable manner. As such. which works well when semantic differences can be settled out of band. and object request brokers. information and services will be accessible via methods that are as wide and as varied as the vendors and consumers that populate and use them.

The first three services can be achieved through public-key cryptosystems that employ digital signature. message formats. Upon user authentication. pilots. resource discovery. complementary programs. the National Institute of Standards and Technology has established two cooperative. develops. Applications will require a full suite of end-to-end security services. E-Commerce Communities What it is that will drive e-commerce in the   .will be necessary to carry both the semantics and syntax of data elements through the data translation process. regardless of the complexity of the underlying algorithms. either through standards. Non-repudiation can be added through the use of a certification authority. integrity. and integration technologies. Recent work in the area of cryptographic API‘s promises to provide a well-defined. The CAIT. This joint fellowship provides vendors with the tools they need to quickly implement emerging technologies while researchers remain focused in their development of new technologies. under the guidance of industry participants. demonstrations. Security services will be imperative in the daily operation of the Electronic Marketplace. non-repudiation. and demonstrates critical new technologies and applications. identifies. Through on-going projects in the areas of database access. highlevel interface to security services. Security is a prime example of a situation where competing solutions exist and there is no clear winner in sight. These solutions are achieved by demonstrating interoperability among middleware technologies. encryption. Promotes technical awareness via presentations. Solutions To directly address the issues of building an information infrastructure that will support an Electronic Marketplace. The ECIF provides a laboratory environment that supports technology transfer through rapid prototypes. and key exchange technologies. confidentiality. NIST fosters joint research projects aimed at bringing together the research community and the vendor community. the CAIT and ECIF focus on the following:  Where enabling services and technology are not yet commercially available. standards and defect standards. facilitators and mediators. and certificate management systems. including authentication. publications. traditional access control or role-based access control methods can be employed to define access rights. or through the use of mediators and facilitators. and the demonstration of existing and emerging Electronic Commerce technologies. Perhaps the biggest challenge in creating this Electronic Marketplace will be to overcome current interoperability problems caused by competing security algorithms. Differences in message formats and certificate management systems must similarly be overcome. the integration of key infrastructure components and services. Where components are commercially available. NIST creates test beds and pilots aimed at achieving interoperable solutions. and access control. secure messaging. and consulting.

audio. and more. improved support functions. Consumers will often have good ideas about product improvements or good or bad experiences with the product. The tools that form online communities include discussion or forum software. a company may gather ideas about new product offerings. If I were a consumer doing my marketing online or a business inquiring about brand availability from a supplier. improvement of existing products. the online version of my cat food brand inquiry might be fulfilled simply via a popup notification window on my return visit. two-way mailing lists. video. you might make a customer service representative available via video and audio. integration with business processes. that same type of interaction could easily be supported within an e-commerce setting using one of several options. too. I believe community solutions will soon become more integrated and far-reaching. Such a strategy currently requires multiple technical approaches. instant messaging. then you provide me a one-on-one analysis of how I could save money by switching companies.commerce applications into our business models. online collaboration tools. Suppose you set up a moderated discussion group or a two. assuming your e-commerce application was enabled to take my feedback.way mailing list to get people talking about your products. So what is community and how do you form one? A successful community strategy must embrace the idea of moving the one. However. and those participating usually have a darn good idea of what they want. chat functions. For example. Online conversation with business partners will also give net positive results. You may choose to invest slowly at first and increase your community commitment over time. and overall performance matter. it‘s community.on-one communication that occurs offline into the virtual world of e-commerce. Or. We certainly have the technology to build great business-to-consumer and business-to-business e. But I predict that those who invest in community will see a large increase in repeat business. attributes such as viable application design. By implementing these types of open communication. .future? — in a word. And. A private discussion area or secured online meetings can go a long way toward building stronger relationships between companies. Community is also a wise strategic investment in other ways. This will also serve to potentially drive new business opportunities for both parties. Online business is much more exacting. The same type of solutions can be enabled for business-to-business transactions. yes. Better to let me contact you and supply my long-distance requirements. all of which will likely yield repeat business. and the opportunity to go after new forms of e-commerce revenue. in a more sophisticated version. or methods of bolstering support. Imagine if I transferred my cat food interaction into the virtual world. The feedback should be supplied without a long or scripted marketing pitch.

vertical and industry-specific interoperable B2B emarkets across the globe. This allows critical business information to be stored in a digital form that can be retrieved instantly and transmitted electroni. both big and small. The Internet is likewise used as a medium for . particularly multimedia convergence Economic Forces One of the most evident benefits of e-commerce is economic efficiency resulting from the reduction in communications costs. suppliers. Among the companies with efficient corporate intranets are Procter and Gamble.commerce strategy. It is strategically and dynamically linked to the Global Trading Web (GTW). marketing and customer interaction forces. Market Forces Corporations are encouraged to use e-commerce in marketing and promotion to capture international markets. medium or large) to trading partners. However. on the other hand. we need to factor in the human part of the equation if e-commerce is to be successful. The e-hub serves as the center for management of content and the processing of business transactions with support services such as financial clearance and information services. IBM. Internal integration is best exemplified by corporate intranets. and technology.Building community has to be at the heart of any successful e.NET is Asia‘s largest B2B e-hub. SESAMi. and independent contractors into one community communicating in a virtual environment (with the Internet as medium). Have you formed your community strategy? WHAT FORCES ARE FUELING E-COMMERCE? There are at least three major forces fuelling e-commerce: economic forces. External integration refers to the electronic networking of corporations. buying and selling goods and services online in real time. Certainly I do not think we can totally mimic offline human interaction in an online setting. lower global information sharing and advertising costs. Because of this very important link. and of business operations and processes. is the networking of the various departments within a corporation. low-cost technological infrastructure. Internal integration. ecommerce settings today are very inhuman in nature. speedier and more economic electronic transactions with suppliers. Economic integration is either external or internal.cally. SESAMi reaches an extensive network of regional. the world‘s largest network of trading communities on the Internet. EG.NET: Linking Asian Markets through B2B Hubs SESAMi. e-marketplaces and internal enterprise systems for the purpose of sourcing out supplies. a virtual exchange integrating and connecting businesses (small. Nestle and Intel. customers/clients. and cheaper customer service alternatives.

technological advances in digitizing content. Technology Forces The development of ICT is a key factor in the growth of e. 2. and customer support. It includes any process that a business organization (either a for-profit. At present the high costs of installing landlines in sparsely populated rural areas is a disincentive to telecommunications companies to install telephones in these areas. which include procurement. From the standpoint of firms/ businesses and consumers. A more comprehensive definition of e-business is: ―The transformation of an organization‘s processes to deliver additional customer value through the application of technologies. among others.‖ Three primary processes are enhanced in e-business: 1. It is a lot easier for companies to provide their target consumers with more detailed product and service information using the Internet. on the other hand. This development will ensure affordable access to information even by those in rural areas and will spare the government the trouble and cost of installing expensive landlines Is e-Commerce the Same as e-Business? While some use e-commerce and e-business interchangeably. philosophies and computing paradigm of the new economy. television broadcast. ICT is used to enhance one‘s business. In ecommerce. they are distinct concepts. and . electronic links with suppliers. Installing landlines in rural areas can become more attractive to the private sector if revenues from these landlines are not limited to local and long distance telephone charges. which include promotional and marketing efforts. Moreover. cable television. processing of customers‘ purchase orders and payments. and more economical as the need to set up separate networks for telephone services. and Internet access is eliminated. the principle of universal access can be made more achievable with convergence. selling over the Internet. having only one information provider means lower communications costs. governmental or non-profit entity) conducts over a computer-mediated network. among others. easier. and production control processes. Customer-focused processes. In e-business. faster. but also include cable TV and Internet charges. processing of payments.commerce. ordering and replenishment of stocks. Production processes. For instance. compression and the promotion of open systems technology have paved the way for the convergence of communication services into one single platform.enhanced customer service and support. information and communications technology (ICT) is used in inter-business or interorganizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals). This in turn has made communication more efficient.

business? The Internet economy is a broader concept than e-commerce and e-business. Internal management processes. Electronic payments of tax refunds. internal information-sharing. The Internet economy pertains to all economic activities using electronic networks as a medium for commerce or those activities involved in both building the networks linked to the Internet and the purchase of application services such as the provision of enabling hardware and software and network equipment for Web-based/online retail and shopping malls (or ―e-malls‖).conferencing. 4. E-commerce increases the speed & accuracy with which business can exchange information. 5. A business can reduce the coasts of handling sales inquiries. 7. E-commerce provides buyers with a wider range of choices than traditional commerce because buyers can consider many different products & services from a wider variety of sellers. and recruiting. public retirement & welfare support cost less to issue & arrive securely & quickly when transmitted over the Internet. providing price quotes & determining product availability by using sales support & order-taking processes. It is made up of three major segments: physical (ICT) infrastructure. business infrastructure. training. 2. 6. The Web is useful in creating virtual communities that become ideal target markets for specific types of products or services. E-commerce can increase sales. It includes ecommerce and e-business. Is the Internet economy synonymous with e-commerce and e. It can decrease coasts. which include employee services. 8.3. video. 3. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. . Workgroup communications and electronic publishing of internal business information are likewise made more efficient. E-commerce can make products & services available in remote areas. and commerce Advantage of the E-commerce: 1. which reduces costs on both sides of transactions.

The legal environment in which e-commerce is conducted is full of unclear and conflicting laws.  Items suited to E-commerce: v Sales/purchase of books & CDs. Perishable grocery products are harder to sell online because customers want to examine and select specific items that are still fresh and appealing. v Online delivery of software.Disadvantages of E-commerce: 1. In many cases. 4. v Sales/purchase of travel services. v Online shipment tracking. v Sale/purchase of high-value jewelry & antiques. government regulators have kept up with technologies. To calculate return-on-investment numbers before committing to any new technology has been difficult to do for investments in electronic commerce. Items suitable & not suitable for E-commerce. . design. Many firms have had trouble recruiting & retaining employees with the technological. 2. v Sale/purchase of investment & insurance products. Most common disadvantage of E-commerce is that stem from the newness & rapidly developing pace of the underlying technologies. v Sales/purchase of perishable food products. 5. 7. 6. & business process skills needed to create an effective e-commerce presence. v Small-denomination purchases & sales.  Items not suitable to E-commerce: v Sale/purchase of impulse items for immediate use. 3. Many business face cultural and legal obstacles to conducting electronic commerce.

cable TV wire  Radio-based wireless-cellular & satellite          Movies=video + audio Digital games=music + video + software Electronic books=text + data + graphics + music + photographs + video In the electronic ‗highway system‘ multimedia content is stores in the form of electronic documents These are often digitized On the I-way messaging software fulfills the role.the very foundation-for providing the high way system along which all e-commerce must travel The two pillars supporting all e-commerce applications & infrastructure Any successful e-commerce will require the I-way infrastructure in the same way that regular commerce needs I-way will be a mesh of interconnected data highways of many forms  Telephone. or point-to-point file transfers Encryption & authentication methods to ensure security Electronic payment schemes developed to handle complex transactions These logistics issues are difficult in long-established transportation . for creating a product & a means to communicate about it The information superhighway.wires. of forms: e-mail.Electronic Commerce Framework  E-Commerce application will be built on the existing technology infrastructure  A myriad of computers  Communication networks  Communication software        Common business services for facilitating the buying and selling process Messaging & information distribution as a means of sending and retrieving information Multimedia content & network publishing. in any no. EDI.

Information Delivery/Transport & E-Commerce Applications 4. and animations in a computer file/document. images. The Accessing of multimedia content depends on the hardware capabilities of the customer. These Multimedia storage servers are large information warehouses capable of handling various content. must handle large-scale distribution.  These servers. Client-Server Architecture in Electronic Commerce ii. Internal Processes of Multimedia Servers iii. audio. Multimedia Content for E-Commerce Applications 2. & complete reliability . such as the combination of text. newspapers. Consumer Access Devices 1. movies. 2. Multimedia Storage Servers & E-Commerce Applications i. games. advertisement catalogs. & X-ray images. Video Servers & E-Commerce 3. The technical definition of multimedia is the use of digital data in more than one format. holograms. guarantee security. graphics. numerical data. Multimedia Storage Servers & E-Commerce Applications:   E-Commerce requires robust servers to store and distribute large amounts of digital content to consumers. deriving their name because they serve information upon request. Multimedia Content for E-Commerce Applications   Multimedia content can be considered both fuel and traffic for electronic commerceapplications.   Multimedia is associated with Hardware components in different networks. ranging from books.Anatomy of E-Commerce applications E-Commerce applications are: 1. video.

iii. & delivers text. allows client to interact with server through request-reply sequence governed by a paradigm known as message passing. It must do to handle thousands of simultaneous users. ii. Include high-end symmetric multiprocessors. Client-Server Architecture in Electronic Commerce      All e-commerce applications follow the client-server model Clients are devices plus software that request information from servers or interact known as message passing Mainframe computing . Telecommunicating and video conferencing 2. clustered architecture. Shopping kiosks. Geographical information systems that require storage & navigation over maps 3. processes. audio & video. It captures. Internal Processes of Multimedia Servers      The internal processes involved in the storage. and massive parallel systems. images. Postproduction studios 5. . Corporate multimedia servers 4.i. The server manages application tasks. A multimedia server is a hardware & software combination that converts raw data into usable information & then dishes out. Video Servers & E-Commerce The electronic commerce applications related to digital video will include 1. retrieval & management of multimedia data objects are integral to e-commerce applications. storage & security & provides scalabilityability to add more clients and client devices (like Personal digital assistants to Pc‘s. manages. which meant for ―dump‖ The client server model.

Information Delivery/Transport & E-Commerce Applications  Transport providers are principally telecommunications.3. When an organization receives a message it has to be sure from whom it came and whether the message is authentic and not changed by an unauthorised person. local telephone lines Cable TV coaxial. Internet is widely accessible and insecure as eavesdropping is possible. We also need to protect a company's network from unauthorised entry. & wireless industries. paging systems 4. voice-driven computing Access Devices Personal/desktop computing capabilities Mobile Security of E-Commerce Transactions between organizations take place in many e-commerce applications using the Internet. there is need to protect company confidential information from snoopers. Consumer Access Devices Information Consumers     Computers with audio & video computing Telephonic devices Consumer electronics Personal digital assistants (PDAs) Videophone Television + set-top box Game systems Pen-based computing. . Transport Routers Information Transport Providers     Telecommunication companies Cable television companies Computer-based on-line servers Wireless communications Information Delivery Methods long-distance telephone lines. Hence. commercial on-line service providers Cellular & radio networks. We thus need a digital signature which can be used in a court of law. fiber optic & satellite lines Internet. cable.

Proxy application program may also be allowed to run on some user's machine who have authorization for internet use. Proxy firewall is now server to the requestor's desktop PC and also a client to some other requested service acting on requestor's behalf. Firewall needs proxy agent for each service requested such as FTP. Now proxy firewall is the initiator of all sessions and thus knows every activity . ftp. thus providing security.Network Security Using Firewall Firewall is a security device deployed at the boundary of an organization' s network to protect it from unauthorised external access. HTTP. password. TELNET etc. limits use of certain browsers and disallows use of some protocols with known security holes. service required to the firewall machine which acts as one's proxy (ie.all other IP addresses of organization are hidden . It links an organization's intranet to the internet and restricts the type of traffic that it will pass.thus ensuring security. Hardened Firewalls With Proxy Application Gateway Any one from inside or outside an organization give their user id. Firewall with a proxy function replaces the source address of transaction requestor with its own IP address -this ensures that others on internet see only firewall's IP address .does ones work on his behalf). they pass only some packets based on simple specified criteria such as -Type of access (such as email. This program monitors all requests allows access to only designated addresses outside. telnet as determined by TCP port number) -Direction of traffic -Source or destination IP address -Time of day Proxy Application Gateway Proxy application program running on a firewall machine is the one which acts on behalf of all members of an organization wanting to use the internet. Simple firewalls may be implemented in some routers. called packet filtering firewalls.

Plain Text And Ciphertext •Plain text is data in its natural form •Encryption is taking data in any form(Text. Audio. Four types of payments may be made in e-commerce they are     Credit card payments Electronic cheque payments Micro or small payments for internet based services such as music download. .) and transforming it to another form which cannot be understood •Transformed data is known as cryptogram or cipher text Payment in E-Commerce In any commercial transaction payment is an integral part for goods supplied. Thus it is necessary to scramble it so that even if one accesses it. Electronic-cash payments Each of these requires a different system of payment. Method of scrambling is known as encryption.Method of unscrambling is known as decryption. Similarly data stored in data bases accessible via internet should be scrambled.Data Encryption With Secret Keys Data sent via a public network may be accessed and used by unauthorized persons. it cannot be understood.Video etc.

2. 5. BENEFITS TO SOCIETY: The following are the benefits of E-Commerce to society: 1. E-Commerce allows consumers to interact with other customers and exchange ideas as well as compare experiences. Benefits to consumers The following are the benefits of E-commerce to consumer 1. which results in substantial discounts 6. E-commerce reduces the time between the outlay of capital and the receipt of products and services. 2. processing.Benefits to organization:Following are the benefits of Ecommerce to organizations 1. E-commerce provides customers with more choices they can select from many vendors and from many products. 4. Ability for creation highly specialized business. E-commerce enables customer to shop or do \other transactions 24hrs a day. . E-Commerce enables more individuals to work at home and to do less travelling for shopping resulting in less traffic on the roads and lower air pollution. distributing. Customer can retrieve relevant and detailed information in seconds. 5. 3. 4. E-commerce expands the market place to national and international level. E-commerce initiates business processes reengineering projects. rather than days or weeks. and retrieving paper based information. E-commerce decreases the cost of creating. especially with digitized products E-commerce allows quick delivery. E-Commerce facilitates competition. all year round from almost any location. storing. 3. In some cases.

paperless transactions and electronic money. E-Commerce facilitates delivery of public services such as health care education and distribution of Government social services at a reduced cost and or improved quality. Non-Technical Limitations are: 1.The cost of developing E-Commerce in house is very costly and made mistakes due to lack of experience may result in delays. . There is insufficient telecommunication band width. Some electronic commerce soft ware might not be fit without some networks are may be incompatible with some operating systems or other components. 4.Customers do not trust on unknown faceless sellers. 2. standards and some communication protocols. E-Commerce enables people in rural areas to enjoy products and services that are not available to them. 3. Soft ware development tools are changing rapidly. This includes opportunities to learn professions and earn college 3. . COST AND JUSTIFICATION: . Lack of trust and user resistance: . It is difficult to integrate the internet and soft ware with some existing application data basis. reliability. 2. SECURITY AND PRIVACY: .these issues are especially important in the B2C area. especially security issues which are privacy measures are constantly improved. What are the limitations of E-Commerce The limitations of E-Commerce can be grouped into 1) Technical 2) Non-Technical Categories.EC Industry has a very long and difficult task of convincing customers that online transactions are secure and they will keep.2. 5. 3. There is a lack of system security. Technical limitations of E-Commerce are 1.

tell all of your friends about your page   Investigate the web sites that are possible rivals and formulate a strategy for competing against them If you anticipate a lot of growth in the amount of orders coming through your site. Remember that you can ask for further advice from the ecommerce company that you decide to employ. consider ManageMore eCommerce Manager for your back end office control of web orders) Now that you know the basics. There is a lot of information to absorb. but it should not be undertaken lightly. you should be able to make some informed decisions about how to proceed. . Here are some useful tips:  Submit your site to as many search engines as possible  Try finding web sites with similar themes and make deals to create reciprocal links  Put your URL in the signature file of your email and the header of all business correspondence  Word of mouth is very powerful on the Net. it is probably a good idea to hire a designer Marketing your site is very important on the web. Here are some additional tips on creating a successful Online Store:   If you know nothing about web design. figure out how you are going to cope with the increased load before you get swamped (In other words.Conclusion Commerce can be a very rewarding venture.

Reference  Website:http://www.wikipedia.scribd.com/history_ecommerce.html en.org/wiki/Electronic_commerce http://www.com/doc/18637925/Lesson-1-Introduction-to-Ecommerce  Magazines Business Outlook Business week  NewsPapers The Economic Times Business Standard .ecommerce-land.

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->