MIS Report

E-Commerce

Introduction:
Like any other basic sphere of modern socio- industrial activities, MIS too, is a potent and purposeful monetary based media that nurses and nourishes the socio- economic growth of a developing country as such, the role it plays in present day commerce, trade and industry and undoubtedly constitutes an integral organ of overall development. There’s no doubt that the world has changed, and continues to change. The dynamic nature of today’s organization means both rewards and challenges for those individuals who will be managing those organizations. MIS sector is undergoing drastic changes all over the world. Pakistan is no exception. This is the report of our course Management Information Systems on which we have completely focused on the topic E-commerce.

What is e-commerce?
E-commerce (electronic commerce or EC) is the buying and selling of goods and services on the Internet, especially the World Wide Web. In practice, this term and a newer term, e-business, are often used interchangeably. For online retail selling, the term e-tailing is Sometimes used. E-commerce can be defined from the following perspectives:

Communications:

From a communication perspective, e-commerce is the delivery of goods, services, information, or payments over computer networks or by any other electronic means.

Commercial (trading):

From a commercial perspective, e-commerce provides the capability of buying and selling products, services and information on the Internet and via other online services.

Business process:

From a business process perspective, e-commerce is doing business electronically by completing business processes over electronic networks.

Service:

From a service perspective, e-commerce is a tool that addresses the desire of governments, firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery.

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MIS Report

E-Commerce

Learning:

From a learning perspective, e-commerce is an enabler of online training and education in schools, universities, and other organizations.

Collaborative:

From a collaborative perspective, e-commerce is the framework of inter- and intraorganizational collaboration.

Community:

From a community perspective, e-commerce provides a gathering place for community members to learn transact and collaborate.

History of e-commerce:
The origin of commerce by exchanging goods occurred before recorded history, now commerce is a basic activity of goods trading and buying in everyday life. Entering into the electronic era, the way individuals and organizations do business and undertake commercial transactions have been changed. This indicates the movement towards electronic commerce. This means there is no paper work and physical interaction is limited, if at all. The emergence of electronic commerce started in the early 1970s with the earliest example electronic funds transfer (EFT), which allows organizations to transfer funds between one another electronically. Then another technology electronic interchange (EDI) was introduced. It helps to extend interbusiness transactions from financial institutions to other types of business and also provides transactions and information exchanges from suppliers to the end customers. However, the early system development was limited to special networks such as large corporations and financial institutions, which are costly and complex to administer for small business. So EDI was not widely accepted as expected. With the progress of Internet technology and a highly developed global Internet community, a strong foundation of prosperous electronic commerce continues to be built. During the 1990s, the Internet was opened for commercial use; it was also the period that users started to participate in World Wide Web (WWW), and the phenomenon of rapid personal computer (PCs) usage growth. Due to the rapid expansion of the WWW network; e-commerce software; and the peer business competitions, large number of dotcoms and Internet starts-ups appeared. Integrated with the commercialization of the Internet, Web invention, and PC networks these three important factors made electronic commerce possible and successful.

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MIS Report

E-Commerce

Current scenario of electronic commerce:
E-commerce is a technology-mediated exchange between parties (individuals or organizations) as well as the electronically based intra-or inter-organizational activities that facilitate such exchanges. E-commerce consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions. It can involve electronic funds transfer, supply chain management, e-marketing, online marketing, online transaction processing, electronic data interchange, automated inventory management systems, and automated data-collection systems. It typically uses electronic communications technology such as the Internet, extranets, e-mail, Ebooks, databases, and mobile phones. E-commerce brings the universal access of the Internet to the core business processes of buying and selling goods and services. It helps generate demand for products and services and improves order management, payment, and other support functions. The overall goal is to cut expenses by reducing transaction costs and streamlining all kinds of processes. 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

E-Tailing or virtual storefront and the virtual mall:
As a place for direct retail shopping, with its 24-hour availability, a global reach, the ability to interact and provide custom information and ordering, and multimedia prospects, the Web is rapidly becoming a multibillion dollar source of revenue for the world's businesses. A number of businesses already report considerable success. As early as the middle of 1997, Dell Computers reported orders of a million dollars a day. By early 1999, projected e-commerce revenues for business were in the billions of dollars and the stocks of companies deemed most adept at e-commerce were skyrocketing. Although many so-called dotcom retailers disappeared in the economic shakeout of 2000, Web retailing at sites such as Amazon.com, CDNow.com, and CompudataOnline.com continues to grow.

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facsimile or fax. with some companies attempting to use e-mail and fax for unsolicited ads (usually viewed as online junk mail or spam) to consumers and other business prospects. EDI involves data exchange among parties that know each other well and make arrangements for one-to-one (or point-to-point) connection. in general. such as ebXML. (Microsoft referred to its policy of data collection as "profiling" and a proposed standard has been developed that allows Internet users to decide who can have what personal information. and as part of taking orders. which is built into both of the leading Web browsers. Email.MIS Report E-Commerce Market research: In early 1999. controlling access to resources such as Web pages for registered or selected users. questionnaires. usually dial-up. The issue of whether data was being collected with the knowledge and permission of market subjects had been raised. and. and the emerging use of telephone calls over the Internet. A new trend is opt-in e-mail in which Web users voluntarily sign up to receive e-mail. Most of this is business-to-business.) Electronic data interchange (EDI): EDI is the exchange of business data using an understood data format. companies could gather data about prospects and customers in unprecedented amounts -through site registration. An increasing number of business Web sites offer e-mail newsletters for subscribers. ensuring the privacy and effectiveness of transactions. it was widely recognized that because of the interactive nature of the Internet. The security of business transactions: Security includes authenticating business transactors. encrypting communications. Among the most widelyused security technologies is the Secure Sockets Layer (SSL). usually sponsored or containing ads. 4 . and internet telephony: E-commerce is also conducted through the more limited electronic forms of communication called e-mail. EDI is expected to be replaced by one or more standard XML formats. It predates today's Internet. fax. Business to business buying and selling: Thousands of companies that sell products to other companies have discovered that the Web provides not only a 24-hour-a-day showcase for their products but a quick way to reach the right people in a company for more information. about product categories or other subjects they are interested in.

and information with consumers and business partners. You will be delighted to know that there are actually many only affiliate marketing networks that offer their services. The logic behind this concept is quite simple. competitors who have already established a Web presence may make a successful market entry more difficult. with a higher advertising budget. you can not be successful in your internet business. • • • 5 . inexpensive sites that are successful in their markets. You will only rely on affiliate marketers to sell your products on their websites in order for you to minimize marketing costs. Today. most internet businesses rely on affiliate marketing in order to attract customers to their site. with a relatively small investment. You might have a nice website. If you are also curious why internet-based businesses are considered to be the future of businesses.MIS Report E-Commerce Why Use E-Commerce? Because the Internet provides a flexible and dynamic marketplace to exchange goods. great products and several payment methods but suffering from poor traffic. For many business-savvy individuals. For example. whether to process orders or to attend to customer support. If a business enters the e-commerce market too late. here are some of the most common reasons. Dell Computer Corporation estimates that it saves eight dollars each time a customer checks the status of an order at the Dell Web site. is cheaper than traditional marketing methods. Without consumers checking your products. All these features show how an internet business is much more lucrative. the target market may be the local community or. There are many reasons why people today choose to engage in online businesses instead of opening a real shop or store. Reduces Transaction Costs: Dealing with customers over the Web. The Web extends the reach of even the smallest businesses by allowing them to market products globally. Thousands of companies operate simple. and open for business. it is becoming increasingly important for businesses to use the Internet to reach new markets. the internet has been very useful in ensuring the success of their business. services. instead of calling the company. it may extend to neighboring communities. The key to becoming successful is by knowing how to effectively market your product. • • Low Entry Cost: A company can establish itself on the Internet. Access to the global market: With a traditional business. You just need to discern which among them will give you the best deals. Online distribution: The Web enables businesses to distribute data and software online Secure market share: Getting a business online protects its current offline market share from being eroded by an online entrepreneur.

The consumer browses the catalog of products featured on the site and selects items to purchase. such as a credit card number. When the consumer is ready to complete the purchase of selected items. The selected items are placed in the electronic equivalent of a shopping cart. such as business and individual consumers (B2C) or business and government (B2G).MIS Report E-Commerce How Does E-Commerce Work? The following illustrations show how the e-commerce process works. When the merchant's Web server receives this information. it computes the total cost of the order--including tax. and then submit the order. The customer can now provide payment information. shipping. 6 . When the credit card number is validated and the order is completed at the Commerce Server site. she provides a billto and ship-to address for purchase and delivery. The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfillment. . • • • Types of e-commerce: • • • • • • (Business to business) B2B (Business to consumer) B2C (Business to government) B2G (Business to employee) B2E (Consumer to consumer) C2C (Consumer to business) C2B Business-to-business (B2B): Business-to-business is a term commonly used to describe electronic commerce transactions between businesses. as opposed to those between businesses and other groups. The e-commerce process works as follows: • • • • A consumer uses Web browser to connect to the home page of a merchant's Web site on the Internet. and handling charges--and then displays the total to the customer. the merchant's site displays a receipt confirming the customer's purchase.

marcom. just there to match consumers. Government through Integrated Marketing Communications techniques such as strategic public relations. companies use B2E networks to automate employee-related corporate processes. advertising. web-based communications to Uncle Sam. Business-to-Government (B2G): Business to Government is a derivative of B2B marketing and referred to as a market definition of "Public Sector Marketing" which encompasses marketing products and services to the U. The sites are only intermediaries.MIS Report E-Commerce Business-to-consumer (B2C): Business-to-consumer describes activities of E-businesses serving end consumers with products and/or services. A common example is the online auction.S. Consumer-to-Business (C2B) : 7 . Typically. It is often associated with electronic commerce but also encompasses financial institutions and other types of businesses. the third party generally charges a flat fee or commission. in which a consumer posts an item for sale and other consumers bid to purchase it. They do not have to check quality of the products being offered. B2C relationships are often established and cultivated through some form of Internet marketing. Business-to-Employee (B2E): Business-to-employee (B2E) electronic commerce uses an intrabusiness network which allows companies to provide products and/or services to their employees. Examples of B2E applications include: • • • • • Online insurance policy management Corporate announcement dissemination Online supply requests Special employee offers Employee benefits reporting Consumer-to-consumer (C2C): Consumer-to-consumer (or C2C) electronic commerce involves the electronically-facilitated transactions between consumers through some third party. branding.

In order to implement the above mentioned functions (such as electronic funds transfer and automated inventory management systems) required by running E-Commerce and to systemically deal with the data involves in performing E-Commerce. This business model is a complete reversal of traditional business model where companies offer goods and services to consumers (business-to-consumer = B2C). 8 . This means typically offering high quality of service. It is creating a new market place and opportunities for the reorganization of economic processes. The information technology industry might see it as an electronic business application aimed at commercial transactions. An Enterprise Information System would typically be operated by professional system administrators and be deployed on dedicated servers . in a more efficient way.It would typically offer network connectivity and provide services that supported the operations carried out by the enterprise. electronic data interchange. Impact of e-commerce: The introduction of E-Commerce has impacted on the traditional means of online exchanges. it can involve electronic funds transfer. supply chain management. buying. Enterprise System is “more or less any kind of computing system that is of “enterprise class‿. e-marketing. Moreover. dealing with large volumes of data – capable of supporting some large organization (“an enterprise‿). with these products increasingly customized. online marketing.MIS Report E-Commerce Consumer-to-business (C2B) is an electronic commerce business model in which consumers (individuals) offer products and services to companies and the companies pay them. selling. Enterprise system: According to Wikipedia 2005. automated inventory management systems. online transaction processing. permits the interconnection of new and existing information and communication technologies. The open structure of the Internet and the low cost of using it. and servicing of products or services over electronic systems such as the Internet and other computer networks. E-Commerce consists of distributing. an Enterprise Information System is necessary for managing E-Commerce and provides an overall control structure to organize and manage all the transaction data within the organization or across all other organizations such as suppliers and customers. distributed and exchanged differently. marketing. This changes the way they search and consume products. Management of e-commerce: Referring back to E-Commerce overview. and automated data-collection systems. It offers businesses and consumers an innovative and powerful information system and another form of communication.

with extensive complex of databases and support multi-online transactions. Enterprise System was known as Enterprise Resource Planning (ERP). ERP is now known as Enterprise System. providing customer service. An enterprise wide system is an off-the-shelf package that provides an integrated suit of applications which provide transaction processing and management information systems for the common core of business processes found in accounting. parts purchasing. PeopleSoft and Baan. interacting with suppliers. human resource management.MIS Report E-Commerce “Enterprise Systems can be defined as customizable. which extends beyond resource planning. manufacturing and sales and distribution. which includes integrated business solutions for the core processes and the main administrative functions of an enterprise. which supports broad set of activities by multi-module application software that helps a manufacturer manage the important parts of its business. (Hernandez 1999) Originally. There are numbers of suppliers that provide Enterprise Systems for business and the examples of major well-known suppliers are SAP. maintaining inventories. Oracle. and tracking orders. These include product planning. 9 .‿ (Rosemann 1999). standard application software.

Your physical storefront does not need to be open in order for customers and suppliers to be doing business with you electronically. There is no need to wait weeks for a catalogue to arrive by post: that communications delay is not a part of the Internet / e-commerce world. and it is possible to do business with any business or person who is connected to the Internet.MIS Report E-Commerce E-commerce Advantages: E-commerce provides many new ways for businesses and consumers to communicate and conduct business. • Opportunity to reduce costs: The Internet makes it very easy to 'shop around' for products and services that may be cheaper or more effective than we might otherwise settle for. • Speed: Electronic communications allow messages to traverse the world almost instantaneously. It is sometimes possible to. There are a number of advantages and disadvantages of conducting business in this manner. It may not be evident to them. • Access the global marketplace: The Internet spans the world. This global opportunity is assisted by the fact that. identify original manufacturers for some goods . • Computer platform-independent: 10 . but many businesses are already facing international competition from web-enabled businesses. users are not charged according to the distance over which they are communicating. unlike traditional communications methods. through some online research. Simple local businesses such as specialist record stores are able to market and sell their offerings internationally using e-commerce.thereby bypassing wholesalers and achieving a cheaper price. • Being able to conduct business 24x7x365: E-commerce systems can operate all day every day. • Market space: The market in which web-based businesses operate is the global market.

However a number of major Australian banks have tended to be unhelpful laggards on this front. And yes these circumstances do have implications for Australia's national competitiveness and the competitiveness of our industries and businesses. it can be easier and cheaper to set up arrangements which bypass this aspect of the Australian banking system. global online customers can find the concept of peculiar and unfamiliar currencies disconcerting. • Efficient Applications development environment: In many respects. Application updates do not have to be manually installed on computers. This means that some of the work and costs are effectively shifted to customers. In this context.MIS Report E-Commerce Many. • Stepping beyond borders to a global view: Using aspects of e-commerce technology can mean your business can source and use products and services provided by other businesses in other countries. but people do not always consider the implications of ecommerce. This seems obvious enough to say. many businesses find it easier to buy and sell in U. 11 . Rather. charging a lot of money and making it difficult to establish these arrangements . In some cases. As a further thought. Some businesses find they can achieve higher prices online and in US dollars than they would achieve selling locally or nationally. this can create some grey areas for legal and taxation purposes. many businesses in Australia need to make arrangements for accepting online payments. if not most. Internet-related technologies provide this capability inherently through automatic deployment of software updates. Customers are not limited by existing hardware systems. the customers also provide a lot of the data for the transaction that may otherwise need to be entered by business staff. therefore. in many ways it can be easier and cheaper to host and operate some e-commerce activities outside Australia. because many e-commerce transactions involve credit cards. this is referred to as 'customer outsourcing'. Further. applications can be more efficiently developed and distributed because the can be built without regard to the customer's or the business partner's technology platform.particularly for smaller businesses and/or businesses that don't fit into a traditional-economy understanding of business. but these can be dealt with.S. and because these interactions are initiated by customers. For example. dollars: it is effectively the major currency of the Internet. Admittedly. computers have the ability to communicate via the Internet independent of operating systems and hardware. Given that banks often charge fees for converting currencies. • Allowing customer outsourcing: self service & customer People can interact with businesses at any hour of the day that it is convenient to them.

E-commerce disadvantages: Some disadvantages and constraints of e-commerce include the following: • Time for delivery of physical products: It is possible to visit a local music store and walk out with a compact disc or a bookstore and leave with a book. even if the item is sent. it is easy to start wondering whether or not it will ever arrive. Secondly. E-commerce is often used to buy goods that are not available locally from businesses all over the world. it's yours. but then these are not physical goods.MIS Report E-Commerce this is another reason to investigate all of your (national and international) options for accepting and making online payments. In some respects e-commerce purchases are made on trust. a purchase is made on an expectation of what that product is and its condition. • Perishable Goods: Forget about ordering a single gelato ice cream from a shop in Rome! Though specialized or refrigerated transport can be used. In some cases there are ways around this. firstly. In some cases this leads to disintermediation in which intermediary people and businesses are bypassed by consumers and by other businesses that are seeking to purchase more directly from manufacturers. • Limited and selected sensory information: 12 . durable goods can be traded from almost anyone to almost anyone else. with electronic files of the music or books being accessed across the Internet. or towards relatively more local e-commerce-based purchases. • Physical product. not having had physical access to the product. for example. This shifts the bias for perishable and/or non-durable goods back towards traditional supply chain arrangements. where it is and how it looks. which takes time and costs money. You have it. sales and distribution. In contrast. This is because. goods bought and sold via the Internet tend to be durable and non-perishable: they need to survive the trip from the supplier to the purchasing business or consumer. because supplying businesses can be conducted across the world. it can be uncertain whether or not they are legitimate businesses and are not just going to take your money. you know what it is. sparking competition for lower prices. supplier & delivery uncertainty: When you walk out of a shop with an item. meaning that physical goods need to be delivered. It's pretty hard to knock on their door to complain or seek legal recourse! Thirdly.

ecommerce methods provide the equivalent of an information-rich counter attendant rather than a salesperson. whether or not payment details (e. identity. hearing sounds and reading text.MIS Report E-Commerce The Internet is an effective conduit for visual and auditory information: seeing pictures. and. This lack of sensory information means that people are often much more comfortable buying via the Internet generic goods . we choose what we look at and how we look at it.privacy of information. This also means that feedback about how people react to product and 13 . The uncertainties surrounding the initial payment and delivery of goods can be exacerbated in this process. However it does not allow full scope for our senses: we can see pictures of the flowers. security. Further. e-commerce can not provide the richness of interaction provided by personal service. but not smell their fragrance. For example. If we were looking at buying a car on the Internet. And. • Returning Goods: Returning goods online can be an area of difficulty. that is. There are many ways in which the Internet does not convey the richness of experiences of the world. contract: Many issues arise . This is not the case on the Internet. identity theft. rather than unique or complex things. we can see pictures of a hammer. • Personal Service: Although some human interaction can be facilitated via the web. credit card details) will be misused. contract. Will the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be left with nothing? How long will it take? Contrast this with the offline experience of returning goods to a shop. we would see the pictures the seller had chosen for us to see but not the things we might look for if we were able to see it in person. when we pick up and inspect something. taking into account our other senses. • Defined services & the unexpected: E-commerce is an effective means for managing the transaction of known and established services. things that are everyday. security of that information and payment details. a transport company used to dealing with simple packages being asked if it can transport a hippopotamus. • Privacy. what laws and legal jurisdiction apply. Such requests need human intervention to investigate and resolve. we can't test the car to hear the sound of the engine as it changes gears or sense the smell and feel of the leather seats. For most businesses. payment. but not feel its weight or balance.g. It is not suitable for dealing with the new or unexpected. or a customer asking for a book order to be wrapped in blue and white polka dot paper with a bow.things that they have seen or experienced before and about which there is little ambiguity. whether we have one or not.

The delivery costs also mean that buying individual items from a range of different overseas businesses is significantly more expensive than buying all of the goods from one overseas business because the goods can be packaged and shipped together. The size of transactions is also impacted by the economics of transporting physical goods. this is inadequate for evaluating how to change or improve your ecommerce strategies and/or product and service offerings. This helps businesses to understand.MIS Report E-Commerce service offerings also tends to be more granular or perhaps lost using e-commerce approaches. which is critical because of the comparatively rapid rate of ongoing Internetbased change. If your only feedback is that people are (or are not) buying your products or services online. anticipate and meet changing online customer needs and preferences. and as a result very small and very large transactions tend not to be conducted online. For example. • Size & number of transactions: E-commerce is most often conducted using credit card facilities for payments. 14 . Successful business use of ecommerce typically involves strategies for gaining and applying customer feedback. any benefits or conveniences of buying a box of pens online from a US-based business tend to be eclipsed by the cost of having to pay for them to be delivered to you in Australia.

339 cities and towns by June 2006. create jobs and reduce poverty. where customers can pay utility bills using their mobile phones During August 2006 various e-commerce projects and initiatives were underway in the public and private sectors. including 90% of the branches in urban areas. ATM facility and also the online payment of the utility bills. such as for workers remittances. A recent international conference in Islamabad on e-commerce and development. A few of banks offer mobile-phone banking. Foreign investors are allowed to invest up to 100% in software companies.1m Internet subscribers and about 10m Internet users in June 2005 (latest figures available). Websites doing e-commerce business in Pakistan: Recognizing the power of information and communications technology (ICT). Pakistan is promoting e-commerce as a way of helping Businesses improve efficiency. mobile banking. and Internet access had expanded from 29 cities in August 2000 to 2. Many banks and exchange companies offer online funds transfers from overseas. Local entrepreneurs have set up around 100 call centers in recent years in Pakistan. With the growth of e-commerce business in Pakistan. According to the government’s economic survey for 2005/06. organized by the Ministry of 15 . including electronic-government projects worth US$300m at the federal and provincial level. there were an estimated 2.000 commercial-bank branches. Optical-fiber networks were available in 500 cities in June 2006. Growth of e-commerce in Pakistan: The number of Internet users in Pakistan is growing fast. Almost all banks in Pakistan have converted into online banking and helping their clients by giving modern e-commerce banking facilities such as online banking. one of the first was a call-center that Align Technologies (US) set up in 2000. compared with 53 cities in August 2000. had been computerized by August 2006. credit card. and foreign interest in Pakistan’s technology sector has been increasing. it has created more e-commerce jobs in Pakistan such as Pakistan ecommerce banking jobs.MIS Report E-Commerce “Overview of E-commerce In Pakistan” In Pakistan banking is helping E-commerce to grow in Pakistan. Pakistan had 170 Internet service providers in June 2006 Half of the country’s 7.

in line with the UNDP global strategy of Promoting public-private partnerships to bridge the digital divide. dependable online services. Beliscity. MallBazar has recently introduced new cool features including 100% secure transaction through specially designed RupiaPay Escrow Services. UNDP and the UN Conference on Trade and Development. Some big companies are still doing a successful business in e-commerce. government and academia to work More closely together. MallBazar is able to offer competitive pricing that is easily able to undercut competing merchandise services in Pakistan. inexpensive. Dr. Live Chat. Attaur-Rehman. The customers are privileged 16 . Banks in Pakistan have made great progress in e-commerce in the past three years. • Beliscity. announcing that the Government will carry out e-commerce readiness surveys of banks and publish reports and ratings regularly. Through consumer-satisfaction-driven sound practices such as using the Internet to allow perspective sellers and buyers to do trading online without having to hassle anywhere else. Some of them include: • • MallBazar Private Limited Beliscity. Mobile-enabled real-time experience. and the Ministry of Science and Technology has asked UNDP to mobilize e-commerce expertise to help develop appropriate policies and identify areas where it can benefit the country's development. MallBazar offers the most convenient. Minister of Science and Technology. he said. The private sector will be the driving force behind e-commerce.MIS Report E-Commerce Science and Technology. and much more. E-commerce will encourage business. CashOn-Delivery Services. extended services through wide network support and coverage. secure legal environment. 8-steps to successfully complete MallBazar auction. brought together experts to review Pakistan's progress and recommend new strategies. with the Government providing a simple. but need to do more.com: Founded in 2001. Pakistan has recognized ICT as a major source of economic revitalization. As E-commerce is not widely adopted by the people of Pakistan.com • Mallbazar private (ltd): MallBazar is a Karachi-based business which concentrates in auction. he said. told the conference that the Government plans to put an e-commerce policy framework in place within three months.com is the leading online shopping mall in Pakistan with an office in Dubai. SMS and Email Marketing Services. enhanced forum to share user experience. including bringing poor communities into the economic mainstream. mobileOsearch Services. trading and classified-services online for Pakistan. UAE offering a huge range of products from the world's leading manufacturers to thousands of retail and corporate customers across the globe. top bazars.

Kitchen Appliances.com are the examples which are promoting ecommerce in Pakistan But if we take an overall view we will find various websites that are widely doing successful e-commerce business globally.000 products including Perfumes. This year eBay even insured transactions so that customers would no longer have to worry about fraud. EBay figure d out that trust means everything to e-commerce.6 million registered users hooked.that keeps its 5.J.com was simple. and its AskJeeves. but Amazon is the anchor store for all online shopping. at the most competitive prices. To mention a few it includes: • Amazon. • EBay It isn’t just the never-ending cavalcade of inventory -.. It started of with a list of about 300 products most of which were IT related and currently Beliscity. Watches and a whole lot more. N.000 new items are put up for auction every day here -. • Dell The pioneer of direct computer sales online is selling $30 million worth of gear a day from its website.com-like "Ask Dudley" feature amply handles the inevitable technical questions that first-time customers are bound to have. That percentage would be respectable if you were talking about the customers for an anchor department store at some local mall in Paramus. to provide customers with a quick and easy way of buying the products they want.MIS Report E-Commerce with a quick. To that end. Customers are also facilitated to order by phone or buy the good old way from the retail outlet at Clifton. expanding their online collections in order to achieve their vision that people can find and discover anything they want to buy online. Karachi . Dell’s ability to customize orders set the standard for online computer retailing. so it’s obviously doing something right.Pakistan. They are always in a process of adding new brands and products.com & beliscity. easy and reliable way of buying the products they want. • Dash. delivered direct to their door.com 17 . it was among the first sites to encourage its buyers to publicly rate sellers. World wide e-commerce websites: Websites like mallbazar. at the most competitive prices with direct delivery to their door FREE of cost in Pakistan and UAE.250. How Beliscity started: The idea behind Beliscity.com No surprise.com retail website now has an assortment of over 7.

com's ease of use. • Preview Travel While Expedia and Travelocity are actually the most popular online travel agents. it’s known for pleasing shoppers. But this site appears to have the greatest inventory not just of movies but also of fun paraphernalia such as movie posters and gear with movie-studio logos. By seeing examples of these various websites of e-commerce its for sure that e-commerce is the future of any business. • Petopia Is there anything worse than people prattling on about their pets? This site.com Its car-buying process allows you to bypass the dealer entirely. Dash would be your vice president in charge of discounts. When you sign up for Dash. and as you add options like a CD player or side air bags. As soon as you begin the process.MIS Report E-Commerce If you were a corporation. you get rebates from its participating merchants. You pick out the car you want. in addition to carrying a full line of pet products. but you can c all live customer service around the clock and view guides that feature maps and videos of more than 200 destinations. It really makes it simple to plan a trip. Plus. I prefer previewtravel. You also get a downloadable tool bar that follows you wherever you shop. Means ecommerce is a successful business to start which is convenient for people too. • Carsdirect. Travelocity must like the site-it plans to complete a merger with Preview early next year These were only few websites that are being used globally to do online shopping. has extensive community features that give pet owners a place to get it all out of their system: A sample discussion topic is "tell us some of the silly names you have for your pet. • DVD express Most stores carry the same stock of DVDs. telling you when you could be buying the same item for less at a Dash-affiliated store. you also get a delivery date. 18 . The interface is easy to use. you see the price go up instantly." Let’s keep that kind of talk online where it belongs. Not only can you book tickets and make hotel and car reservations.

MIS Report E-Commerce 19 .

In the past 2-3 years Banks have also launched Internet Banking and the internet banking is now improving with more sophistication and services for corporate banking customers. producing assets of over Rs. However. Financial sector has increased the budget over 200% during last 5 years. safe banking online involves making good choices – decisions that will help you avoid costly surprises or even scams. convenient new ways to shop for financial services and conduct banking business. E-Banking is the delivery of banking services through the use of electronic communication. security and applications for various components of e-Payments. 300 billion. there is increase in usage of internet banking. The term "electronic banking" or "e-banking" covers both computer and telephone banking. It offers its services through a wide network of over 1000domestic branches all over Pakistan and 15 overseas branches as part of its global network. You may also see or hear E-Banking called Internet banking. Electronic banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. E-banking now becoming more sophisticated and customer friendly. E-commerce task force has been formulated and the UBL has expanded their online branch networks. any time. But in recent years there has been greater understanding and development towards various services being offered by banks through internet banking. Vision: The vision of UBL is “A World . Ubl e-banking: With the changing in bank technology more and more banks are likely to consider moving away from paper based banking methods. With the satisfaction of legal issues of security assurance and easy access. Generous funds were allocated to improve e-Banking infrastructure. It is this “You First” culture we are creating at UBL to truly become a world-class bank which takes care of its customers and provides them with world-class services & products. E-Banking may include ATMs. with total spending over US$300/million/year. on-line banking or PC banking.MIS Report E-Commerce United Bank Limited is one of the largest commercial banks in the country. any day. it has stood the test of time. In Pakistan initially internet banking was launched to provide a limited number of services. 20 . How e-commerce started in Ubl: In Pakistan e-Banking has started taking of in recent years. telephone banking. wire transfers. With almost forty six years of good standing to its valued clients. electronic funds transfers and debit cards. The Internet offers the potential for safe.Class Bank Where You Come First” which means that we believe that our customers’ needs come first. primarily the Internet. HR.

This approach can typically provide a small company with "bank standard" services. In order to ensure that UBL provides "bank standard" services to its e-commerce operations. Addressing these areas with optimal performance levels is often referred to as "bank standard" e-commerce services. and intrusion detection Powerful servers. such as Cisco routers. such as Oracle Security measures.. infrastructure and services associated with this approach is to contract with an application service provider (ASP). The ASP will provide the robust infrastructure and critical 7x24x365 coverage and is able to leverage its expenses across multiple clients. With the deregulation of telecommunication sector in Pakistan. such as Sun E4500 mirrored servers Data redundancy using mirrored disk arrays Redundant Internet connections Automatically managed daily hot and cold / offsite backups Constant remote and local monitoring Encrypted data storage Encrypted URLs 128-bit secured socket layers (SSL) with bank standard digital certificates To address the functionality listed above independently can be costly and time consuming. it considers the following: • • • • • • • • • • An enterprise database. an enterprise infrastructure and technical support at a fraction of the costs. Transaction costs will become lower and customer service will improve.UBL is expanding ATMs more aggressively while maintaining them in good stead. An alternative to purchasing and managing the hardware. Bank Standard E-Commerce Services: Many small companies evaluating the implementation of e-commerce operations find it difficult to allocate the monetary and technical resources to address issues such as security. A variety of new services can then be offered. the opportunities for further value added services to underpin banking transactions have multiplied manifold. A recent addition in electronic transactions of UBL has been allowing clients to access their accounts to do fund transfers and remittances from any ATM from the participating bank.MIS Report E-Commerce Atm machines: E-banking infrastructure in Pakistan is growing at a considerable pace and the totals of online network branches are more then 2500. 21 . firewalls. data integrity and system availability.

Domestic and international fund transfers 2. Access to loan statements 5. Mobile Banking Services: Mobile banking can offer services such as the following: • Account Information: 1. Access to card statements 6. “ORION” Mobile banking (also known as M-Banking. Status on cheque. Bill payment processing 6. Micro-payment handling 3. Peer to Peer payments 22 . Mutual funds / equity statements 7. Insurance policy management 8. account transactions.e. payments etc. SMS Banking etc. mbanking. via a mobile device such as a mobile phone.MIS Report E-Commerce Mobile Banking: One of the newly introduced packages of UBL in its e-commerce is mobile banking i. Mobile recharging 4. Alerts on account activity or passing of set thresholds 3. Commercial payment processing 5. Pension plan management 9. Mini-statements and checking of account history 2. stop payment on cheque • Payments & Transfers: 1.) is a term used for performing balance checks. Mobile banking today (2007) is most often performed via SMS or the Mobile Internet but can also use special programs downloaded to the mobile device. Monitoring of term deposits 4.

Status of requests for credit. Exchange of data messages and email. General information such as weather updates. Check (cheque) book and card requests 3. Real-time stock quotes 3. Loyalty-related offers 3. Location-based services 23 . Portfolio management services 2. news 2. including mortgage approval. ATM Location • Content Services: 1. including complaint submission and tracking 4.MIS Report E-Commerce • Investments: 1. Personalized alerts and notifications on security prices • Support: 1. and insurance coverage 2.

their expectations from the solution will increase. It would require either the application to support multiple protocols or use of a common and widely acceptable set of protocols for data exchange. If the bank is offering smart-card based security. Scalability & Reliability: Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking infrastructure to handle exponential growth of the customer base. With mobile banking. are the most complicated challenges that need to be addressed jointly by mobile application developers. Security of the thick-client application running on the device. User ID / Password authentication of bank’s customer. SOAP. 24 . Authentication of the device with service provider before initiating a transaction. anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. Security: Security of financial transaction. the customer may be sitting in any part of the world (a true anytime. Banks unable to meet the performance and reliability expectations may lose customer confidence.MIS Report E-Commerce Challenges UBL faced in developing a Mobile Banking Solution: Key challenges in developing a sophisticated mobile banking application are: 1. It would be a wise idea for the vendor to develop a mobile banking application that can connect multiple banks. XML to name a few. This would ensure that unauthorized devices are not connected to perform financial transactions. the hacker should require ID/Password to access the application. being executed from some remote location and transmission of financial information over the air. the physical security of the device is more important. As customers will find mobile banking more and more useful. • 3. The following aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network: • • • Physical security of the hand-held device. WAP. Many protocols are being used for mobile banking – HTML. 2. Interoperability: There is a lack of common technology standards for mobile banking. wireless network service providers and the bank’s IT department. In case the device is stolen.

Application distribution: Due to the nature of the connectivity between bank and its customers. there could be many issues to implement this approach such as upgrade / synchronization of other dependent components. it would be impractical to expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches.MIS Report E-Commerce 4. However. 25 .

4 Million applications to jobs posted by 8. database Accounting and finance systems Orders and shipment information Enterprise and client information reporting Domestic and international payment systems 26 .PK is used by some of Pakistan’s most sought after employers to recruit human capital. within which business is conducted smoothly in a secure and transparent manner. development of a regulatory framework.MIS Report E-Commerce Challenges faced: • • • Despite all of the opportunities and convenience created by e-banking and ecommerce.PK is Pakistan’s largest and fastest growing job portal. procedures. With the global financial sector becoming heavily dependent on technology. for e banking is a formidable challenge. governments are framing policies. GlaxoSmithKlein. online recruitment workflow management tools and white-labeled corporate job portals Business applications: Some common applications related to electronic commerce are: • • • • • • E-mail and messaging Documents. spreadsheets. and legal framework. Job opportunities through e-commerce in ubl: ROZEE. Mentor Graphics. Nestle. including Mobilink. where e banking flourishes and technology brings substantial improvement to the business. This is provided the legal systems and policies regarding electronic transactions are appropriately framed. United Bank Limited. Oracle. McDonalds. Teradata. Proctor & Gamble and others. Electronic transactions cannot remain free of regulations. E banking has the immense potential to expand the outreach of microfinance services to large segments of the population. ROZEE. Engro Foods. The site has delivered over 1. Microsoft.PK offers employers recruiting solutions including placement of online job ads. ROZEE. access to powerful CV search engine technology.800 employers.

this would allowed to plan for any unforeseen issues and adjust services accordingly.000 homes in the area and he just knew at least 10% of those would visit my site.000.com) and it does not hurt to use your credit card. This is why a business blog is so valuable. there is not a great deal to say. Alaskan Salmon sounds good in theory but gaining the consumers trust is a completely different step. The publication hits 30. Needless to say I feel like a big. The owner of site read that offline marketing generally does not convert to online sales but I am the type that has to touch the iron to know it’s really hot. For some bonehead reason the owner of the site needed a custom system from scratch which ended up costing him around $12. and ask tons of questions. search engines love content and what better way to present it? It also allows better communication between the business and customer.E-commerce: 7 mistakes Not Testing the REAL Market It was observed by taking surveys on price and interest in each product. Use an intermediary like eLance (www. Between these two alone he lost $5. There are CMS (Content Management Systems) out there that will do all of the dirty work for you.elance.750 and ended up with nothing. BIG dummy. 27 . If it was to start all over I would put my products on EBay just to gauge the response to the product. Content is King! For an eCommerce site content is tough. Check References! Another mistake he overlooked was to find my first two web designers on car forums. just another one of those hard lessons. Now he is implementing a more functional and user friendly system that is FREE! Yes FREE! The cost has only been $800 to implement and the addition of this blog on site is a part of that. talk to the people that have hired the company you are considering. other than product descriptions and store policies. That would be the equivalent of looking for a home builder at a car dealership. Offline Marketing for an Online Business There is a local publication here in Douglas County Georgia that caters to the community. if you get messed over by a vendor and dispute with the credit card company they will investigate and most likely get your money back. He ended up with 10 visitors and no sales. Extremely High Overhead The sad thing was starting this business with low overhead in mind. It was nothing but excellent feedback only to sell two products in the first 4 months. A portfolio does not tell the full story.

there are a ton of tips but that is a totally different blog. 28 . Build links.Patience He still struggle with this one but he has learned that while they would like to have an overnight success it does not always happen that way. You can plan every aspect of the business but over time things will change and you have to embrace that. He had no intentions on carrying Cheesecakes or Gift Baskets but saw an opportunity to give my customers options have not regretted that decision since then. 1 Extra Tip Be flexible. and the owner is sure this holds true with any business out there. Discounting the Importance of Search Engine Optimization SEO (Search Engine Optimization) goes so much further than just URL's. others it may take years but he has learned that you work just as hard today as you did yesterday. minimize flash. Some eCommerce sites take off immediately.

Trends: E-commerce is an information technology trend developing fast in the business world. ecommerce is not a technology. aptly supported by the IT industry. As we start warming up to global e-commerce in Pakistan.Commerce is a broad term used to quantify the trading taking place on the internet. However. however. The website 29 . it is a matter of providing infrastructure for transactions on internet. The corporate and the business world. already stands transferred. obviously driven by the use of internet in that country. E-commerce is not for all but for those who understand it. The very first step is. in general. fax or any other such instruments. It also allows our entrepreneur to test their web business and marketing skills before taking on the international markets. Most studies. Nevertheless. suggest that e-commerce runs through four steps. Domestic activity: Offer for improving and productivity to bring it to the excellent level. we are supposed to be applying electronic business techniques. As the January 2000. It is estimated that in near future. After the revolution of Internet. At the government level.Ecommerce & its future in Pakistan: E-commerce is a very hot issue these days. However. Doing business on internet is not a very costly investment. Pakistan can make good use of this opportunity with proper planning and execution. if we use any type of electronic devices in getting orders and sending catalogues. E-commerce or business through internet is becoming very popular mode of trading around the world particularly in the developed world. more and more countries are getting involved in it. like telephone. where all transactions are done on line. to build a website to let the world know about your existence. over 110 million people have internet access there compared to 279 million the world over. the real sense of e-commerce is the business on the internet of which there are different modes. Yet. let us focus on the domestic front before going all out for the global market. The issue at the individual level. it is purely a business matter. like opening a retail store on internet. almost 25 per cent of the traditional business will be converted into internet business. To begin with. which by recent estimate will exceed $400 billion this year. E. from selection of product to payment of bills. we must understand that almost 78 per cent of the e-commerce activity takes place in the USA. The over-all volume of e-commerce is more than $4 billion annually.

distribute. which can help visitors to learn more about the hosts. The notable barriers are: unavailability of proper infrastructure [telephone line of stem lines of steam age.commerce means being able to make and receive payments through internet and any other activity through internet is not considered as ecommerce. All enterprises. The second step involves asking customers to loose their pockets and buy on line. However. the most difficult and complex part of e-commerce. including the small and medium sized can reach customers throughout the world instantly and comparatively inexpensively. Business-to-government (B2G) and government-tocitizens (G2C) are other forms. The most common and popular forms of e-commerce are business-to-consumers (B2C) and business-to-business (B2B). the use of former two still dominates the internet. Prospects: Those who create. high bandwidth rates. But there is still a long way to go and requires government to continue to grease the wheels of e-commerce to speed up the process. In Pakistan. distributors. This low level of understanding has led many Pakistani firms to give low priority to e-commerce due to unavailability of proper framework for the internet in the country. product/services and other related information. One to one marketing becomes possible on massive and global scale. and last but not least the rigid and monopoly role of the PTCL. frequent failures of power] limited user of internet hardly one per cent of the entire population have access to the internet]. the issue of security of transactions on the internet. running on the internet but with low steam. sales offices. However. This step requires adopting advance level of software capable of handling orders. Greater sales and inventory efficiency may be possible through the increased interaction with prospective customers that electronic commerce can afford. In the third stage inventory. Entrepreneurs in Pakistan are of the opinion that e. e-commerce is still in its infancy and faces many barriers to grow. providing provisions of payments through online banking partnership between buyers and sellers. Many vendors can sell globally without the costly infrastructure of worldwide retail stores. and sell goods and services to consumers also have reason to look forward to this new mechanism. Pakistan is still far behind in chasing the west in this regard. However. the SBP has recently put a crack on the barriers when it approved the merchant ID accounts to facilitate online transactions.contains information about the company. management adds to the system and lastly. Active and alert supplier will also benefit from the new structure of product and service distribution likely to results from electronic 30 . or warehouses.

With conventional distribution. and wholesale representatives may diminish or end. but at present due to absence of any policy framework and limited internet market. as the role of conventional intermediaries-such as retail store clerks. E-commerce's automated customer’s selfservice capabilities can eliminate the need for these intermediaries . and most companies are eager to going to the digital world. The consumer gets product information directly from the ultimate source.commerce in Pakistan. bank tellers. physical location becomes irrelevant to product delivery as well. The manufacturer can get customer preferences and needs directly from the ultimate source.commerce. Each consumer's physical location no longer determines whom the consumer’s contacts to purchase a product. 31 . With this.The manufacturer no longer has to share profit with others. It can be concluded that there is a lot of scope of e. new intermediaries have started to appear. In addition. the manufacturer gains direct contact with consumers that can facilitate future sales. With the purchase of intangibles that can be delivered electronically. The internet makes the connection between a French consumer and an Egyptian supplier virtually indistinguishable from the connection between a Persian consumer and a Parisian consumer and Persia manufacture. companies are holding their plans to start e-business until clouds of barriers as discussed are disappeared. a manufacturer must reply to wholesalers and retailers to serve customers in large volumes. Electronic commerce connects manufacturers directly to consumers. travel agents.

html  http://wiki.com/sDefinition/0.com.aspx?id=16536  http://www.marcbowles.media-culture.ubl.htm  http://www.html  http://www.beliscity.REFERENCES:  http://searchcio.html  http://e-commerce.com/sample_courses/amc/ec1/ec1_3.pk/articles.com/  https://www.mallbazar..asp  http://www.apnic.au/index.com/aboutus.net/mailing-lists/s-asia-it/archive/2002/10/msg00023.accountancy.time.asp?id=69  http://www.org.com/Article.00.pk/ 32 .sid182_gci212029.com/time/digital/reports/ecommerce/25best.php/E-Commerce  http://www.com.techtarget.bestmanagementarticles.

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