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E-commerce model with example

Design ,development ,marketing ,sales, delivery , service support & payment for goods & services by use of electromechanical devices connected to any network called E-commerce. The E-commerce process model can be categorize into 4 major categories 5/26/12

Advantages of E-commerce

Effort & time is saved Larger target customer range via internet Minimize setup inventory cost Common platform for larger & smaller business unit in a common area Flexible payment option


Limitations of Ecommerce

Higher chances f commercial fraud No chances of product bargaining No on-site evaluation of the product

Risk of linkage of 5/26/12 electronic account

1.B2C[business to customer]-in this model , business organizations offers information about products to the customer by use of electronic means 2.B2B- buyer & seller parties are both business org. 3.C2B- the customer initiates actions for E-commerce after login on to the website of the business org.eginternet banking process where each transaction initiated by the customer
5/26/12 4.C2C-customers performs business

Mercantile process model

E-commerce frame work

1. The core framework of e-commerce is based upon three major components.

Electronic market:-virtual market plateform running over a network where bussiness activities can perform without any physical presence of buyer or seller.

-The principle function offer an electronic market is to facilitate the search for required product or booking system. 2.EDI[electronic data interchange]:-it provides efficient transaction of concurrent trade activies between commercial organization and customers. Eg:-EDI is used by retail companies and home appliances companies for trading with their suppliers.

3.INTERNET COMMERCE:-The internet and other

E-commerce applications

Order placement Transaction process On-line receipt generation Insurance claims Travel booking & payments Online marketing and promotion[virtual stores] Content selling[auction of articles,music,images,videos] Online service & support Virtual communities among bussiness & customers Feedback & complains [online]










E-commerce system architecture

Physical network-networks of computing devices running on various technologies composed the physical network for Ecommerce

1.Ethernet technologies 2.ATM[asynchronous transfer mode] 3.Infrared & Bluetooth networks


World wide web

Set of software services running over the hardware infrastructure of internet are collectively called WWW Components of WWW

1.Client components-web browser, chat clients,IP telephone interface [Skype] 2.Server components-web 5/26/12 servers,email,file servers

E-marketing and their uses

Various market platform running over a network where business activities can perform without any physical presence f buyer or seller. The principle function offer an emarket is to facilitates the search for required product or service Eg- airline booking system


Various online pay methods

Credit cards- maximum credit limit & validity time must be available Debit cards- minimum balance must be available Customer loyalty cards- points are rewarded on every purchase Digital tokens-physical/virtual tokens for virtual money 5/26/12 exchange with

Payment system in Ecommerce

1)Payment by cheque- cheque no. is digitally transferred for online completion of the transaction . The hard copy printout of the online submission is posted along with cheque for completion of actual transaction 2)Payment by credit cards- A software application called card payment gateway services acts as 5/26/12

Payment system in Ecommerce

3. E-cash payment/Payment via E-cash It is an online service run by a company e-cash based in USA. this company provides online a/c both to business and customer parties by charging a fix percent of transaction fees during any e-commerce 5/26/12

Risk involved in E-payment system

1.Hardware software failure 2.Chances of forgery 3.Hacking 4.Social engineering 5.Accidental loss of digital money


Electronic Data interchange[EDI] and its components Transfer of structure data over predefined
message standards between two electronic system over a network generally to solve an enterprise purpose is called EDI. EDI is composed of 4 components

1.Structured data[quotes , values & text standards under a Strictly defined business purpose] 2.Predefined message standards-set of protocols commonly agreed between all trading partners upon national/international level. 3.Electronic systems-these systems may be computers, servers or mobile machines that send & receive electronic data 5/26/12

Security of E-commerce:v

Symmetric Encryption:- A single password is required for encoding & decoding a message is also called public key cryptography. Asymmetric encryption:- Different password are required to encode & decode a message. It is also called private key cryptography. Digital signature:- A digital code generate by electronic devices used for certifying the authencity of a digital document called a digital signatures. Digital signatures are used for authenticating the correctness of e-mail messages and ecommerece transactions.


Certification authority:- A trusted third party can act as the supervision of the password key

Direct advantage of EDI

Reduced order processing time Cost cutting Improved accuracy Faster & better response Better invoicing Flexible payment

Indirect advantages of EDI

Smooth cash flow Better business opportunities Customer loyalty Reduced inventory


Value added network

Any data network with set of advantages that add value to its services of communication[value added data services] Eg-1)privacy & security

2)Reliability of data transfer 3)Establishing a community 4)Message validation

5/26/12 5)International connection

Work Flow automation

A quantity or efforts applied in a business processes from manufacturing and distribution process can be minimized by automating each phase of business by use of automated tools Automation can be performed at following stages in a business process 5/26/12

3)Sales- inventory generation and receipt printout 4)EDI techniques for payment over internet & cellular networks

Internal commerce

Intake & distribution of wealth by business or. Among different department to manage various phases of business activity is called internal commerce The management of internal commerce is a part of ERD software which manages the revenue & profits of the org.

Supply chain management

Sequence of stages composed of people & machines involved in servicing the customer to achieve a business goal is called supply chain Major supply chain functions are marketing, manufacturing, suppliers, procurement operations , inventory, warehousing, distribution & sales & support Supply chain is driven by 3 major inputs 1. information 2.funds 3. goods Management of these 3 inputs in a supply chain to maximize its value is called supply 5/26/12

Digital documents

Set of electronic documents that ensure virtual proof or identity in a transaction is called digital document A large collection of digital documents containing multiple files in digital format to facilitate enterprise activities is called diital document library

Types of Digital document

Digital portfolio Websites Electronic cards Business cards SMS/MMS Email & attachments

Corporate data warehouse

Corporate Data Warehouse:Large depositers containing all the bussiness data enterprises in soft/hard copy format can be called corporate data warehouses.They act as achieves for absolute bussiness data. The major function of these warehouse is to generate information for a genuine user at 5/26/12 required time.

Information base Marketing

Information based marketing:marketing of product and services according to previous and current bussinesss trends & market response can be called IBM. Eg:-marketing consultants that work on the basis of analysed trends generally follow IBM strategy. 5/26/12

Advertising on internet

Website & portals Social networking websites Online forums Online communities Web logs [blogs] Online auction

Market Research

Market Research:- collection storage and analysis of corporate data to predict market trends in combination of market responses, called MR. MR is useful for:Forecasting demands Investment estimation Risk management planning strategy making


Information search and retrieval methods

Search engines Data mining algorithm[ wallmart] Customized search machines for enterprise[ Google gadgets] The index of various business resources maintain by an enterprise for future reference is called commerce catalog


The protocols & algorithm for secure storage of digital data in compressed format is called a multimedia format for a specific file type Multimedia formats Joint photographic expert group-.jpeg[images]



Motion pictures expert 5/26/12 group-.mpeg [video]

Processing & transmission of audio/video signals of a life coverage at a point to another site by use of internet protocols and hardware is called desktop video conferencing Uses of DVC

Survey, remote monitoring 5/26/12 ,live telecast, deferred live