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CHAPTER
ELECTRONIC COMMERCE

1 ENVIRONMENT AN D
OPPORTU NITIES
.1 Intro ductio n :
LElc'Ctr(im~ commerc~ is a way of doing business where buyer and seller communicate through
e-mail etc~Money is the core aspect around which all
el~tronic mc'din'lmch as telephone..-. fax,
f)-pes of business 'Jcti,ltie s revolve. Traditionally Human Beings were exchanging goods to
mc't'f their needs Gold. Sih·er and other metal coins are being used for business transactions
during the past se,·eraJ centuries . Recently paper money (currency notes) came into use, as
the trans3ction of large amounts of coins became inconvenient. Since early 1990s plastic
mone~· (credit c..1rds. debit cards etc.) is very popular as it enhances the buyers convenience.
l't1 uz.ing the technologies for promoting the products is very essential for businesses to make
more profits at the lesser operational costs. Currently, Internet facilitates business organizations
re, reach more and more consumers across the globe. Also the consumers have quicker
acce-ss ro detailed product informati on. The business entities make use of integrated services
(dat.:1. ,·oice and video) communication netv.rork for transactions (eg. a cash transfer, bookings
and resen·ations. or do\\nloading games, songs, movies etc.) Though the business finns are
as usual set up closer t harbours, rivers, railroads , highways or airports; the access to internet
is crucial. Internet. has changed the way of doing businesses, nowadays with several
adrnntages and fewer disadvantages that are seen apparently.
\\ eb-based commerce, a type of e-commerce World Wide Web (one of the applications
of Internet) has set new trends in business scenario. In today's business transactions, the
money kept in back is transferred electronically from one account to another is called EFT
(Electronic Fund Traiisfer), E-pa)ment etc., the electronic market place helps sellers to reduce
the printing and advertising cost by storing the product information in the database . The same
infonnation is e.asih· accessible for potential buyers through web pages . This eliminates the
paperwork and other tedious process.
To do the e-bus iness successfull y. there are three essential services that must go hand-in-
hand promptly. They are
* Communications
* Data management and
Security capabilities.
* J~
The communications senicc prm·i des the channel for flow of infom1ation from St)u ri.:\.' h
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destinat10n The data management services defines the st:rndard formJ l of data rcprcs~ntofi l n
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that 1s agreed ar.d accepted by all. The securit} service must ensur~ the E~f1..~ com1rtdl!H.\'·t ,tH .
1 e. Th~ bU\~rs \\1ll have to get the infonnatmn frem ngk ~.Jur~c .
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