computers in management 2

7/28/2019 computers in management 2

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What is Commerce

Commerce is a division of trade or productionwhich deals with the exchange of goods andservices from producer to final consumer

It comprises the trading of something ofeconomic value such as goods, services,information, or money between two or more

entities.


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What is E-Commerce Commonly known as Electronic Marketing.

It consist of buying and selling goods andservices over an electronic systems Such as theinternet and other computer networks.

E-commerce is the purchasing, selling andexchanging goods and services over computernetworks (internet) through which transactionor terms of sale are performed Electronically.


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Definition of Commerce

The exchange of goods and services formoney

Consists of:

Buyers - these are people with money whowant to purchase a good or service.

Sellers - these are the people who offergoods and services to buyers.

Producers - these are the people who createthe products and services that sellers offer tobuyers.

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Elements of Commerce

You need a Product or service to sell You need a Place from which to sell theproducts

You need to figure out a way to get people tocome to your place.

You need a way to accept orders. You also need a way to accept money. You need a way to deliver the product or

service, often known as fulfillment.

Sometimes customers do not like what theybuy, so you need a way to accept returns. You need a customer service and technical

support department to assist customers withproducts.

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TRADITIONAL BUSINESS

DIRECT SELLING

MANF. UNIT

20%

DISTRIBUTOR

10%

WHOLESALER

10%

RETAILER

10%

CUSTOMER

100%

ADVERTISEMENT

50%

CUSTOMERCOMPANY


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LOWENTRYCOST REDUCES TRANSACTION COSTS

ACCESSTOTHEGLOBALMARKET

SECUREMARKETSHARE

Why Use E-Commerce


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Facts & Statistics

Began in 1995 and grewat an annual rate of 16 %

Rapid growth led tomarket bubble

While many companiesfailed, many survivedwith soaring revenues

E-commerce is the fastest

growing form of retailtrade in U.S., Europe,Asia


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Electronic Commerce9


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1970s: Electronic Funds Transfer (EFT) Used by the banking industry to exchange accountinformation over secured networks

Late 1970s and early 1980s: Electronic DataInterchange (EDI) for e-commerce withincompanies Used by businesses to transmit data from one business

to another

1990s: the World Wide Web on the Internet

provides easy-to-use technology for informationpublishing and dissemination Cheaper to do business (economies of scale) Enable diverse business activities (economies of scope

Brief History Of E- commerce


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The ProcessOf

E-Commerce


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A consumer uses Web browser to connect to the

home page of a merchant's Web site on theInternet.

The consumer browses the catalog of products

featured on the site and selects items topurchase. The selected items are placed in theelectronic equivalent of a shopping cart.

When the consumer is ready to complete thepurchase of selected items, she provides a bill-toand ship-to address for purchase and delivery


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When the merchant's Web server receives this

information, it computes the total cost of theorder--including tax, shipping, and handlingcharges--and then displays the total to thecustomer.

The customer can now provide paymentinformation, such as a credit card number, andthen submit the order.


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When the credit card number is validated and

the order is completed at the Commerce Serversite, the merchant's site displays a receiptconfirming the customer's purchase.

The Commerce Server site then forwards theorder to a Processing Network for paymentprocessing and fulfillment.


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How a Transaction Takes Place?


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Consumer findssomething she wantsto buy at a shop onthe Net

Consumer sends onenciphered requestfor payment to herbank

The electronicbank sends back asecure packet ofe-cash

Consumersends the

e-cash tothe shop

Verification andremittance of actualfunds

ConsumerPublic Key

The shopsends thepacket ofcash to itsbank

Merchant Bank

MerchantServer

Shop

ConsumersBank

Shop

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Types

Of

E-Commerce


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Business-to-business (B2B) B2B stands for Business to Business. It consists of largest form

of Ecommerce. This model defines that Buyer and seller aretwo different entities. It is similar to manufacturer issuinggoods to the retailer or wholesaler.

E.g.:-Dell deals computers and other associated accessories online but it isdoes not make up all those products. So, in govern to deal those products,

first step is to purchases them from unlike businesses i.e. the producers ofthose products.

commodityindia.com , Indiaconstruction.com ,

clickforsteel.com etc.


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Business-to-consumer (B2C): It is the model taking businesses and consumers

interaction. The basic concept of this model is to sell theproduct online to the consumers.

B2c is the direct trade between the company andconsumers. It provides direct selling through online. For

example: if you want to sell goods and services to customerso that anybody can purchase any products directly fromsuppliers website.

Travelocity.doc, hotels.com, rediff.com, jaldi.com,indiatimes.com


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Business-to-Employee (B2E)

Business-to-employee (B2E) electroniccommerce uses an intrabusiness network

which allows companies to provide

products and/or services to theiremployees. Typically, companies use B2Enetworks to automate employee-relatedcorporate processes.


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Consumer-to-consumer (C2C) There are many sites offering free classifieds, auctions,

and forums where individuals can buy and sell thanks toonline payment systems like PayPal where people cansend and receive money online with ease.

eBay's auction service is a great example of whereperson-to-person transactions take place everyday since1995.

Baazee.com ,ICQ.com , MSN.com , ek.com.au

careeron.com.au , bidorbuy.com

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Four Categories of E-Commerce

B2B

B2C

C2B

C2CConsumers

Business

And selling

to...

Business originating from...

Business Consumers


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Convergence of e-Commerce Categories

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Business originating

fromBusiness Consumers

AndSelling

to

Consumer

s

Business

Publishers orderpaper supplies

from paper

companiesAmazon orders

frompublishers

Consumerssearch out

sellers, offersand initiate

purchases fromAmazon

Consumers resellcopies on eBay

Consumers buythousands ofHarry Potterbooks fromAmazon

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Mobile Commerce (M- Commerce)

A form of e-commerce Takes place over wireless

mobile devices such as

Handheld computers and cell

phones takes place in emerging

technologies such as dashtopcomputers embedded in

automobile dashboards Presents unique opportunities

and challenges

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Types of M-Commerce Applications

Methods for delivering m-commerce services Directly from cell phone service providers

Via mobile Internet or Web applications

Location-based m-commerce applications

Using Short Message Service (SMS) textmessaging or Multimedia Messaging Service(MMS)

Using short-range wireless technology, such asinfrared

Proximity payment system

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E-Commerce from the Buyers Perspective

Process of buying or acquiring goods or services

Realizing a need

Researching a product

Selecting a vendor

Providing payment

Accepting delivery Using product support

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E-Commerce from the Sellers Perspective

Sellers business practices

Providing a method for acquiring payments

Making arrangements for delivery of the product

Providing after-sales support Supply chain management

From the sellers perspective, the process ofproducing and selling goods

Involves three areas of focus: demand planning,supply planning, and demand fulfillment Demand fulfillment: process of getting the product or service to

the customer

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Sellers business practices

Market research to identify customer needs

Manufacturing products or supplying services thatmeet customer needs

Marketing and advertising to make customersaware of available products and services

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Major components of E-COM

An application which helps the shopper to browsethrough the product list and place an order.

Application should be capable of maintaining the state

information about the shopper purchase details and hisID.

It should also be able to maintain the product list.

The components interact with the database fortransaction

Shopping Cart(commerce server)


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Major components of E-COM

Shoppers can make payments through credit cards.

Credit card No. is sent to the server which can be

stored in the database which can be verified against abank manually later.

Another method is to use payment servers whichallows on-line verification of credit card numbers withthe bank.

It also provides mechanisms for checksumverification.

Payment module(Payment server)


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PROS AND CONS

OFE-COMMERCE


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Limitations of E-commerce

To organizations: lack of security, reliability,

standards,

changing technology,

pressure to innovate, competition,

old vs. new technology

To consumers:

equipment costs, access costs,

knowledge,

lack of privacy for personal data,

relationship replacement37


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To society:

less human interaction,

social division,

reliance on technology,

wasted resources, JIT manufacturing


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Advantages

Faster buying/selling procedure, as well as easy to find products.

Buying/selling 24/7.

More reach to customers, there is no theoretical geographic limitations.

Low operational costs and better quality of services.

Customers can easily select products from different providers withoutmoving around physically.

No checkout queues

Reduce prices

You can shop anywhere in the world

Wide selection to cater for all consumers


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Disadvantages

Any one, good or bad, can easily start a business.

And there are many bad sites which eat up customers money.

There is no guarantee of product quality.

Mechanical failures can cause unpredictable effects on the totalprocesses.

Unable to examine products personally

Not everyone is connected to the Internet

There is the possibility of credit card number theft

On average only 1/9th of stock is available on the net


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A Logical Design for a Simple Web Site

Figure 4.3 (a), Page 202

Copyright 2004Pearson Education, Inc.

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A Physical Design for a Simple Web SiteFigure 4.3 (b), Page 202


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IBM WebSphere Commerce Professional

Edition Set of software components that provides

software suitable for midsize to largebusinesses

Includes:

Catalog templates

Setup wizards Advanced catalog tools

Electronic Commerce,Seventh Annual Edition

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Microsoft Commerce Server 2002 Allows businesses to sell products or services on

the Web using the following tools:

User profiling and management Transaction processing

Product and service management

Target audience marketing

Provides many predefined reports for analyzingsite activities and product sales data

Electronic Commerce,Seventh Annual Edition

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Visitor Profile at Typical E-commerce

Sites


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The Eight Most Important Factors in Successful E-

commerce Site Design



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Future of E-commerce in India

According to business world estimate nearabout Sixty thousand new jobs will be createdfor the internet world alone in the next twoyears

e-Commerce transactions are expected to crossthe Rs. 3500 crore milestone in 2010-11, ajump of around 350 percent from the 2008-09figure of Rs. 1000 crore

eBay said that consumers were trading goodsworth almost three crore rupees everyday,across the globe.


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Documents

computers in management 2