Electronic Business

Introduction of E-Commerce and E-

Business
E-Commerce – Definition:

the conduct of commerce in goods and services, with

the assistance of telecommunications and
telecommunications-based tools.

E-commerce describes the process of buying,

selling, transferring, or exchanging products,
services, and/or information via computer
networks, including the Internet.
E-Business – Definition:

the conduct of business with the assistance of

telecommunications and telecommunications-
based tools

E-business refers to a broader definition of e-

commerce, not just the buying and selling of
goods and services, but also servicing
customers, collaborating with business
partners, conducting e-learning, and
processing electronic transactions.
E-Business
e-Business refers to any form of transaction
(exchange) that uses an electronic medium to
facilitate the transaction.
 E-Business
Explanation:
All transactions are performed electronically,
between vendor and customer. Some companies
like Ford Motor Co., check supplier
inventory/price/shipping options and order parts
all “computer to computer”
E-Business – Transaction Medium
Most e-commerce is
done over the
Internet. But EC can
also be conducted on
private networks,
such as value-added
networks (VANs,
networks that add
communication
services to existing
common carriers), on
local area networks
(LANs) or wide area
networks (WANs)
E-Business includes followings:
I. Internet-based companies that operate
wholly through the Internet to conduct their
business. Examples are eBay and Amazon.
II. Companies that combine traditional business
formats with information on the business
provided via the Internet
III. Companies that combine traditional business
formats with the opportunity of buying online.
Examples include Marks & Spencer
E-Business includes followings:(cont’d)

I. Any device used to facilitate exchange, such as

'Chip and Pin' technology, automatic ticketing,
electronic ticketing, credit card transactions and
so on.
II. Business to business (B2B) activity.
III. Using the opportunities that IT presents to
improve the flexibility of working patterns
E-shopping
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.
 E-Shopping
 Electronic retailing (e-tailing) is the direct sale of products
through electronic storefronts or electronic malls, usually
designed around an electronic catalog format and/or auctions.
 Electronic Storefronts. Hundreds of thousands of solo
storefronts can be found on the Internet, each with its own
Internet name and EC portal, such as Home Depot, The Sharper
Image, or Wal-Mart.
Web Storefront is a the online website where, your customer
would visit and buy your products. It offers product listing,
shopping cart and payment processing functionality.
E-Shopping
 General Storefronts
The general storefronts sell many products (e.g.,
Amazon.com).
 Special Storefronts
The specialized store sells one or few products (e.g.,
chocolates, flowers

Electronic mall, also known as a cybermall or e-mall,

is a collection of individual shops under one Internet
address
Difference b/w E-Commerce & E-
Shopping
In E-Shopping, 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.
Internet marketing

Definition:-
Internet marketing, also known as digital marketing,
web marketing, online marketing, or e-marketing, is
the marketing of products or services over the
Internet.
Internet marketing is sometimes considered to be
broad in scope because it not only refers to marketing
on the Internet, but also includes marketing done via
e-mail and wireless media.
Management of digital customer data and electronic
customer relationship management (ECRM) systems
are also often grouped together under internet
marketing.
Internet marketing ties together creative and technical
aspects of the Internet, including design, development,
advertising, and sales.
Advantages of Internet marketing
Inexpensive:-
Internet marketing is inexpensive when compared to
the ratio of cost against the reach of the target
audience.
Quick results:-
The nature of the medium allows consumers to
research and to purchase products and services at their
own convenience. Therefore, businesses have the
advantage of appealing to consumers in a medium that
can bring results quickly.
statistical ease:-
Internet marketers also have the advantage of
measuring statistics easily and inexpensively. Almost
all aspects of an Internet marketing campaign can be
traced, measured, and tested.
accountability for advertisers:-
Because exposure, response, and overall efficiency of
Internet media are easier to track than traditional off-
line media—through the use of web analytics for
instance—Internet marketing can offer a greater sense
of accountability for advertisers.
Payment methods
The Infancy Stages of E-Commerce:-
Payment methods in the infancy stages of e-
commerce were not much, and were limited to online
wire transfers or direct deposit.
Present Stages of E-Commerce:-
Within the past decade, e-commerce has matured and
grown exponentially. The result: now there are many
types of e commerce payment methods available
online.
Popular Online E Commerce Payment
Pethods
PayPal MeThod:-
One of the most popular online e commerce payment
methods is to pay via PayPal. Paypal allows anyone to
send and receive payments for both online and offline
goods. The best thing about Paypal is its ease of use
and no verification bounding of credit rating. All that
one needs to do is verify their address and personal
information.
Google checkout:-
Another e commerce website payment method is
Google checkout. This service is run by Google, owner
of the famous search engine. Google checkout is fast
becoming a popular and favorite payment method for
many e commerce website owners. The reasons, for
starters are that the service is user friendly, easy to use
and extremely reliable. When you think from the
business owner's end, Google Checkout typically
charges less merchant fees than Paypal.
Newer payment methods:-
Newer payment methods are also making their
presence felt. One of such an innovative payment
method available online is iKobo.
The way iKobo works is that any customer can
choose a payment source, which can be a bank
account or a credit card, and tie up that payment
source with an iKobo account.
E-Business – Transaction Types
• Business-to-business (B2B)

• Business-to-consumers (B2C)

• Consumers-to-businesses (C2B)

• Consumer-to-consumer (C2C)

• Intra-business (intra-organizational)
commerce
• Government-to-citizens (G2C)
Service Industries – B2C
Delivery of services (buying an airline ticket or
stocks) can be done 100 percent electronically,
with considerable cost reduction potential.
Therefore, online services is growing very rapidly.
Electronic banking
International and Multiple-Currency Banking
Online Securities Trading
Online Job Market
Travel Services
Real Estate
E-Business
Issue: Traditional E-Business

Advertising/Ex Usually a local Can reach a

posure event. large portion of
Reaching the world
small no. of population
people
E-Business
Issue: Traditional E-Business
Sales Each person Website can
“counter” can handle process
only hundred millions of
of people per orders per day
day
E-Business
Issue: Traditional E-Business

Fund transfer Mail or in Instant

person. Can
take up to 7
business days
E-Business
Issue: Traditional E-Business

Delivery Pickup in Can be via

person, Mail, traditional
truck means, or
delivery(Courio instantly via
r Service). email or
download
E-Business
Issue: Traditional E-Business

Cost If you hire Can be very

people to sell, low, just a
very high couple of
thousand per
year
Electronic Business Security (issues)
Privacy and confidentiality:-
Confidentiality is the extent to which businesses
makes personal information available to other
businesses and individuals. With any business,
confidential information must remain secure and only
be accessible to the intended recipient.
Authenticity:-
E-business transactions pose greater challenges for
establishing authenticity due to the ease with which
electronic information may be altered and copies.
Data integrity:-
Data integrity answers the question “Can the
information be changed or corrupted in any way?”
This leads to the assurance that the message received
is identical to the message sent.
Non-repudiation:-
This concern deals with the existence of proof in a
transaction. A business must have assurance that the
receiving party or purchaser cannot deny that a
transaction has occurred, and this means having
sufficient evidence to prove the transaction. One way
to address non-repudiation is using digital signatures.
Access control:-
When certain electronic resources and information is
limited to only a few authorized individuals, a
business and its customers must have the assurance
that no one else can access the systems or
information.
Availability:-
This concern is specifically pertinent to a business’
customers as certain information must be available
when customers need it. Messages must be delivered
in a reliable and timely fashion, and information must
be stored and retrieved as required. Steps must be
taken to prevent disruption of service by events such
as power outages and damage to physical
infrastructure.
Electronic Business Security(solutions)
Privacy and confidentiality:-

Tools such as encryption and firewalls manage this

specific concern within e-business.
Authenticity:-

One common way to ensure this is the

establishment of authenticity where a combination
of techniques are used, and such techniques involve
checking “something you know” (i.e. password or
PIN), “something you have” (i.e. credit card), or
“something you are” (i.e. digital signatures or voice
recognition methods).
Data integrity:-

A business needs to be confident that data is not

changed in transit, whether deliberately or by
accident. To help with data integrity, firewalls protect
stored data against unauthorized access, while simply
backing up data allows recovery should the data or
equipment be damaged.
Non-repudiation:-

A digital signature not only ensures that a message

or document has been electronically signed by the
person, but since a digital signature can only be
created by one person, it also ensures that this
person cannot later deny that they provided their
signature.
Access control:-

Fortunately, there are a variety of techniques to

address this concern including firewalls, access
privileges, user identification and authentication
techniques (such as passwords and digital
certificates), and much more
Availability:-

Examples to address this include data backup, fire-

suppression systems, Uninterrupted Power Supply (UPS)
systems, virus protection, as well as making sure that there is
sufficient capacity to handle the demands posed by heavy
network traffic.
Advantages of E-Business
Worldwide Presence:-
This is the biggest advantage of conducting
business online. A firm engaging in e-business can
have a nationwide or a worldwide presence.
Cost Effective Marketing and Promotions:-
Using the web to market products guarantees
worldwide reach at a nominal price.
•Developing a Competitive Strategy:-
Firms need to have a competitive strategy in order to ensure a
competitive advantage. Without an effective strategy, they will find
it impossible to maintain the advantage and earn profits. The
strategy, that the firms can pursue, can be a be a cost strategy or a
differentiation strategy.
•Better Customer Service:-
E-Business has resulted in improved customer service. Many a times,
on visiting a website, the customer is greeted by a pop-up chat
window.
Advantages of E-Business
The opportunity to reduce costs of production by
reducing overheads - for example, not having a
retail outlet in a busy high street location with high
rents, reducing stock costs etc
The opportunity to increase sales
The opportunity to access new markets across
the globe
Advantages of E-Business(cont’d)
The chance to target market segments more
effectively
Provide more accurate information and improve
customer service experience
Improves the efficiency of the supply chain
Advantages of E-Business(cont’d)
Improve employee motivation through more
flexible working methods
Allowing 24/7 access to the firm's products and
services
Provides convenience and comfort for customers
 Disadvantages of E-Business
Sectoral Limitations:-
The main disadvantage of e-business is the lack of
growth in some sectors on account of product or sector
limitations.
Costly E-Business Solutions for Optimization:-
Substantial resources are required for redefining
product lines in order to sell online.
Security:-
there are still some people who don't think it is save to
buy on-line therefore as their isn't a high-street shop will
loss their custom.
Disadvantages of E-Business(cont’d)
Internet Technology
A new set of disadvantages come with an e-business.
Most notably, these businesses must ensure that their
website stays up and functional; this is the equivalent
to a physical store staying open. If an Internet business
goes offline due to technical issues, it can cost them
profit; therefore, it's essential to either have the
technical skills or have someone in your company that
possesses the technical skills to keep the company
functional at all times.
Disadvantages of E-Business(cont’d)
Trust
In many people's minds, purchasing products over the
Internet is still not as safe as purchasing products in stores.
Since people cannot see the person on the other end of the
computer, they might have issues purchasing products---
depending upon your product and sector. Lacking
consumer's trust can significantly impact your sales and
overall success.

· You may not receive what you believe you have

purchased.