E-Commerce Data: Topic-1: Introduction

E-COMMERCE DATA
TOPIC- 1: INTRODUCTION
DINESH MOHAN
mohandineshnew@gmail.com
mohandineshnew@gmail.com ECD 01 1
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E-COMMERCE
• E-commerce
• Is defined as
• The exchange of goods or services between organizations and/or persons
• Supported by
• a comprehensive usage of powerful ICT systems, and
• a globally standardized network infrastructure
• That requires
• coupling of their business processes and ICT systems
KEY ATTRIBUTES
• For the purpose:
• The business partners have to couple their

• Business Processes, and
• ICT systems
• The systems have to

• Work together temporarily and seamlessly
• Share, exchange and process data during the entire business process
• Work across the boundaries of the cooperating organizations
• The systems have to guarantee

• Data security and privacy
• Compliance with laws and policies
REQUIREMENTS
• Digitalization of business
• Comprehensive usage of ICT in all facets of business
• Seamless linking and cooperation of information
• Compliance with global ICT standards
• Focus on business processes

• Seamless processes running across cooperating entities
• Automation of processes within and outside
• Higher effectiveness of processes thru’ higher speed and efficiency
• Use of global network

• Internet
• Free of time and geographic distances
• New potentials and opportunities for value creation

• New business models
• New products/services
FEATURES
• Non-Cash Payment
Enables the use of credit cards, debit cards, smart cards, electronic fund transfer via bank's website,
and other modes of electronics payment.
• 24x7 Service availability

Automates the business of enterprises and the way they provide services to their customers. It is
available anytime, anywhere.
• Advertising/Marketing
Increases the reach of advertising of products and services of businesses. It helps in better
marketing management of products/services.
• Improved Sales
Using e-commerce, orders for the products can be generated anytime, anywhere without any
human intervention. It gives a big boost to existing sales volumes.
• Support
Provides various ways to provide pre-sales and post-sales assistance to provide better services to
customers.
• Inventory Management
Automates inventory management. Reports get generated instantly when required. Product
inventory management becomes very efficient and easy to maintain.
• Communication improvement
Provides ways for faster, efficient, reliable communication with customers and partners.
E-COMMERCE: PAPERLESS EXCHANGE
• Electronic Data Exchange (EDI)

• Electronic Mail (e-mail)
• Electronic Bulletin Boards
• Electronic Fund Transfer (EFT)
• Other Network-based technologies
COMMERCE vs. E-COMMERCE
Traditional Commerce E-Commerce

Heavy dependency on information Information sharing is made easy via
exchange from person to person. electronic communication channels.
Communication/transactions are done Communication or transactions can be done in
in synchronous way. Manual intervention is asynchronous way. The whole process is
required for each communication or transaction. completely automated.
Unavailability of a uniform platform for E-commerce websites provide the user a
commerce, as traditional commerce depends platform where all the information is
heavily on personal communication. available at one place.
It is difficult to establish and maintain A uniform strategy can be easily established and
standard practices in traditional maintained in e-commerce.
commerce.
Conduct of commercial transactions depends In e-commerce, there is no human
upon individual skills. Intervention in commercial transaction.
E-COMMERCE: ADVANTAGES
• Advantages to Organizations
• Advantages to Consumers
• Advantages to Society
ADVANTAGES TO ORGANIZATIONS
• Helps expand their market to national and international markets with minimum capital
investment
• Can easily locate more customers, best suppliers, and suitable business partners across the
globe.
• Helps organizations to reduce the cost to create process, distribute, retrieve and
manage the paper based information by digitizing the information.
• Improves the brand image.
• Helps to provide better customer service.
• Simplifies the business processes and makes them faster and efficient.
• Reduces the paper work.
• Increases the productivity of organizations.
• Supports "pull" type supply management.
• In "pull" type supply management, a business process starts when a request comes from a
customer. Can use just-in-time manufacturing.
ADVANTAGES TO CUSTOMERS
• Provides 24x7 support. Customers can enquire about a product or service and place
orders anytime, anywhere from any location.
• Provides users with more options to select cheaper and better products and quicker
delivery of products.
• A customer can put review comments and can see what others are buying, or see the
review comments of other customers before making a final purchase.
• Provides options of virtual auctions.
• Provides readily available information. A customer can see the relevant detailed
information within seconds, rather than waiting for days or weeks.
• Increases the competition among organizations and as a result, organizations provides
substantial discounts to customers.
ADVANTAGES TO SOCIETY
• Customers need not travel to shop a product, thus less traffic on road and low air
pollution.
• Reduces the cost of products, so less affluent people can also afford the products.
• Has enabled rural areas to access services and products, which are otherwise not
available to them.
• Helps the government to deliver public services such as healthcare, education, social
services at a reduced cost and in an improved manner.
DISADVANTAGES OF E-COMMERCE
• Non-technical disadvantages
• Technical disadvantages
NON-TECHNICAL DISADVANTAGES
• Initial cost
The cost of creating/building an e-commerce application in-house may be very high.
There could be delays in launching an e-Commerce application due to mistakes, and
lack of experience.
• Lack of touch or feel
Lack of touch or feel of products during online shopping is a drawback.
• User resistance
Users may not trust the site being an unknown faceless seller. Such mistrust makes it
difficult to convince traditional users to switch from physical stores to online/virtual
stores.
• Security/ Privacy
It is difficult to ensure the security or privacy on online transactions.
• Lack of maturity
E-commerce applications are still evolving and changing rapidly.
• Access
Internet access is still not cheaper and is inconvenient to use for many potential
customers, for example, those living in remote villages.
TECHNICAL DISADVANTAGES
• In many countries, network bandwidth might cause an issue.
• There can be lack of system security, reliability or standards owing to poor
implementation of e-commerce.
• The software development industry is still evolving and keeps changing rapidly.
• Sometimes, it becomes difficult to integrate an e-commerce software or website with
legacy applications or databases.
E-COMMERCE: BUSINESS MODELS
• Business - to - Business (B2B)
• Business - to - Consumer (B2C)
• Consumer - to - Consumer (C2C)
• Consumer - to - Business (C2B)
• Business - to - Government (B2G)
• Government - to - Business (G2B)
• Government - to - Citizen (G2C)
BUSINESS-TO-BUSINESS (B2B)
BUSINESS-TO-BUSINESS (B2B)
BUSINESS-TO-CONSUMER (B2C)
BUSINESS-TO-CONSUMER (B2C)
CONSUMER-TO-CONSUMER (C2C)
CONSUMER-TO-CONSUMER (C2C)
CONSUMER-TO-BUSINESS (C2B)
CONSUMER-TO-BUSINESS (C2B)
BUSINESS-TO-GOVERNMENT (B2G)
BUSINESS-TO-GOVERNMENT (B2G)
GOVERNMENT-TO-BUSINESS (G2B)
GOVERNMENT-TO-BUSINESS (G2B)
GOVERNMENT-TO-CITIZEN (G2C)
GOVERNMENT-TO-CITIZEN (G2C)
E-COMMERCE: PAYMENT SYSTEMS
• Credit Card
• Debit Card
• Smart Card
• E-Money
• Electronic Fund Transfer (EFT)
CREDIT CARD
ACTORS
• Card holder – Customer

• Merchant - seller of product
who can accept credit card
payments,
• Card issuer bank - card
holder's bank,
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• Acquirer bank - the
merchant's bank,
• Card brand - for example,
Visa or MasterCard
DEBIT CARD
• The major difference between a debit card and a credit card is

that in case of payment through debit card, the amount gets
deducted from the card's bank account immediately and there
should be sufficient balance in the bank account for the
transaction to get completed
SMART CARD
• Smart cards are also used to store money and the amount gets
deducted after every transaction
• Smart cards are secure, as they store information in encrypted

format and are less expensive/provides faster processing
E-MONEY
• E-Money transactions refer to situation where payment is done

over the network and the amount gets transferred from one
financial body to another financial body without any involvement
of a middleman
• E-money transactions are faster, convenient, and saves a lot of

time
ELECTRONIC FUNDS TRANSFER
• It is a very popular electronic payment method to transfer money

from one bank account to another bank account. Accounts can be
in the same bank or different banks
• Fund transfer can be done using ATM (Automated Teller Machine)

or using a computer
• End of session.

E-Commerce Data: Topic-1: Introduction

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E-COMMERCE DATA

• The business partners have to couple their

• The systems have to

• The systems have to guarantee

• Focus on business processes

• Use of global network

• New potentials and opportunities for value creation

• 24x7 Service availability

• Electronic Data Exchange (EDI)

Traditional Commerce E-Commerce

• Card holder – Customer

• The major difference between a debit card and a credit card is

• Smart cards are secure, as they store information in encrypted

• E-Money transactions refer to situation where payment is done

• E-money transactions are faster, convenient, and saves a lot of

• It is a very popular electronic payment method to transfer money

• Fund transfer can be done using ATM (Automated Teller Machine)

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