ASSIGNMENT 01

01. THE CHANGING PATTERN OF E-COMMERCE

02. CHANGIMG PATTERN OF FACE NEW CHALLENGES IN ECOMMERCE

E-COMMERCE

Electronic commerce, commonly known as e-comm, e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in 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 some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail, mobile devices and telephones as well. A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com. Online shopping is a form of electronic commerce where the buyer is directly online to the seller's computer usually via the internet. There is no intermediary service. The sale and purchase transaction is completed electronically and interactively in real-time such as Amazon.com for new books. If an intermediary is present, then the sale and purchase transaction is called electronic commerce such as eBay.com. E-commerce types E-commerce types represent a range of various schemas of transactions which are distinguished according to their participants.
y y

Business-to-Business (B2B) Business-to-Consumer (B2C)

y y y y y y y y y y y y y

Business-to-Employee (B2E) Business-to-Government (B2G) (also known as Business to Administration or B2A) Business-to-Machines (B2M) Business-to-Manager (B2M) Consumer-to-Business (C2B) Consumer-to-Consumer ( 2C) Citizen (Consumer)-to-Government (C2G) (also known as Consumer-toAdministration or C2A) Government-to-Business (G2B) Government-to-Citizen (G2C) Government-to-Employee (G2E) Government-to-Government (G2G) Manager-to-Consumer (M2C) Peer-to-Peer (P2P)

Payment in ecommerce began with a rather stable flow of payment using credit cards. As online payments grew so did options; debit cards and services like PayPal began to consume larger chunks of online transactions. Immediate payments could be made on a worldwide basis and ecommerce flourished in this prosperous online environment. As competition has grown for credit management and transaction options so too has the thinking of credit companies. More than ever credit cards companies see credit as a means to capture a global currency. In fact, statistics indicate that credit or debit cards are now used to make payments (on and offline) more frequently than cash. Credit card companies are seeking innovations that will make their credit options more interesting for their customers. For instance MasterCard is working with Cingular Wireless to test their PayPass method of payment by cell phone. The New York subway was among the first to try the new payment method

Real Economic Change strong forces are driving real economic change. Minuscule transaction costs, obliteration of distance, and easy sharing of information all enable new ways of doing business. The explosive speed lets us be sloppy about detailsif you dont like a forecast, change the date by a few months; if you want to use a different currency (Canadian dollars, Australian dollars, Euros), just shift the time base a little. An interesting fine structure underlies this smooth curve. Much of consumer buying is seasonalthink of back-to-school textbooks, Christmas toys, St. Valentines Day flowers. Every so often a special event occurs (such as the Super Bowl with its dotcom ads) that leads to a sudden jump in e-commerce activity. Business-tobusiness (B2B) commerce has grown in a different way: When a large organization decides to use the Internet for procurement and marketing (supply chain and customer relations), billions of dollars are quickly added to the Internet economy. To provide satisfactory service despite these cycles, ramps, and spikes, we need new system, application, and network management approaches.

2.Investors and the media have focused on several areas in quick succession, each with its own computing requirements. At first, people saw e-commerce as synonymous with online consumer shopping (business-to-consumer, or B2C). Success in that area required search capabilities, graphic portrayal of products, payment processing functions, personalization, and fulfillment, as well as concern for privacy and security. New user interfaces have been honed in the B2C space, as have online functions like auctions. Public interest then shifted to consumer portals, which aim to create stickiness and encourage return visits through engaging content (including audio, video, and 3D images), social interactions like chat, easy navigation tools, and preferential access to

selected business participants. As it became clear that an order of magnitude of more money would move in B2B channels than in B2C, attention moved to interbusiness commerce. B2B transactions are dominated by high business value, long-term relationships, complex business processes, intercomputer communications (first EDI, then XML-based messaging), security, and a multitude of transaction models. In a remarkably short time, B2B portals morphed into exchanges and more recently into complex marketplaces that combine aspects of negotiation, information, business processes, and social interaction. Marketplaces will provide basic support for auction, search, payment, insurance, and security, enabling participants to construct highly profitable but more complicated deals. In general, interest has expanded from the limited functions of e-commerce (consummating purchase transactions on the Web) to much more general e-business (executing the many processes within and between organizations through networked computing systems). The next phases are likely to include mobile or pervasive e-business (m-commerce) and interorganizational business (virtual enterprises). Challenges and Changes This litany of evolutionary phases masks a number of growing technical challenges, including E-BUSINESS

The Changing Face of E-Commerce: Extending the Boundaries of the Possible Stuart Feldman IBM Institute for Advanced Commerce sif@us.ibm.com 82 MAY