E- Business

E – commerce can be broadly defined as “any form of business transaction in which the parties interact electronically rather than by physical exchange of documents “

“Doing business online”E-commerce relies heavily on

innovation and people.

Commercial activity conducted via the Internet

Electronic commerce, commonly E-Commerce, or E-business consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks

Technical components of ecommerce are Client (workstation) Transaction server Database server DB transaction Router Internet connection

Communication function :aimed at delivery of information or documents to facilitate business transactions

Process management: covers the automation and improvement of business process: e.g. networking two computer

Service management :application of technology to improve quality of service e.g. blue dart

Transaction capabilities :buy/sell on internet e.g. amazon.com

Business

Consumer

Business

B2B B2C

Consumer

C2B C2C

Inability to touch and feel products as selling is online .This is a Psychological barrier when customer become familiar with online shopping this barrier is removed

Computer system never be safe .Hackers intercept transaction and cause problem for both customer and companies that operate on the internet

Some of the major threats to Ecommerce are Errors in handling, entering,

processing ,transferring or programming data Equipment malfunctions Accidental or malicious damage to computer

resources Destruction from virus Loss, Theft or changes of data Fire or any other natural calamity

Enterprise content management Online shopping and order tracking Online banking Domestic and international payment

systems Electronic ticketsElectronic Data Interchange

Enterprise Content Management (ECM) is a formalized means of organizing and storing an organization's documents, and other content, that relate to the organization's processes

ECM is an umbrella term covering document management, web content management, search , collaboration, records management, digital asset management (DAM), work-flow management, capture and scanning.

For example, many banks have converted to storing copies of old cheques within ECM systems versus the older method of keeping physical cheques in massive paper warehouses. Under the old system a customer request for a copy of a cheques might take weeks, as the bank employees had to contact the warehouse to have someone locate the right box, file and cheques, pull the cheques, make a copy and then mail it to the bank who would eventually mail it to the customer.

With an ECM system in place, the bank employee simply searches the system for the customer’s account number and the number of the requested cheques. When the image of the cheques appears on screen, they are able to immediately mail it to the customer—usually while the customer is still on the phone.

Online shopping is the process whereby consumers directly buy goods or services from a seller in real-time, without an intermediary service, over the Internet.

If an intermediary service is present the process is called electronic commerce.

The process is called Business-to-Consumer (B2C) online shopping.

When a business buys from another business it is called Business-to-Business (B2B) online shopping.

Both B2C and B2B online shopping are forms of e-commerce

Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.

Online banking solutions have many features and capabilities in common, but traditionally also have some that are application specific.

The common features fall broadly into several categories

Transactional (e.g., performing a financial transaction such as an account to account transfer, paying a bill, wire transfer... and applications... apply for a loan, new account, etc.) Electronic bill presentment and payment - EBPP Funds transfer between a customer's own

savings accounts, or to another customer's account

Investment purchase or sale Loan applications and transactions, such as

repayments of enrollments

Non-transactional Bank statements

Financial Institution AdministrationSupport of multiple users having

varying levels of authority Transaction approval process Wire transfer

A payment system is a system for the transfer of money. What makes it a "system" is that it employs cash-substitutes; traditional payment systems are negotiable instruments such as drafts (e.g., cheques), credit cards and other charge cards, documentary credit (such as L/C) and electronic funds transfers.

Some payment systems include credit mechanisms, but that is essentially a different aspect of payment.

Payment systems are used in lieu of tendering cash in domestic and international transactions and consist of a major service provided by banks and other financial institutions.

An electronic ticket or e-ticket is used to represent the purchase of a seat on a passenger airline, usually through a website or by telephone, or sometimes through airline ticket offices or travel agencies.

Once a reservation is made, an e-ticket exists only as a digital record in the airline computers. Customers usually print out a copy of their receipt which contains the record locator or reservation number and the e-ticket number.

E-tickets are very popular because they allow extra services like: online access to a passenger's reservation

which makes amendments to flight plans (such as change of flight date and refunds) possible (subject to ticket restrictions)

online/telephone/self-service kiosk checks-in (if the airline makes this option available)

printing boarding passes at airport kiosks and at locations other than an airport

It is also possible to have many copies of an e-ticket reducing the possibility of losing a ticket.

Conversion to e-commerce supply chain management provides businesses an opportunity to (1) increase revenues or decrease costs by

eliminating time consuming and labor intensive steps throughout the order or delivery process,

(2) improve customer satisfaction by enabling customers to view detailed information about delivery dates and order status and

(3) reduce inventory including raw materials, safety stocks, and finished goods. Achieving these goals requires integrating all sub processes that exchange information and move goods between suppliers and customers, including manufacturers, distributors, retailers and any other enterprise within the extended supply chain.

Automated office systems – Mgt and Admin services

Employee skills database - HRM

Computer aided design – Technology Development

Electronic data interchange suppliers – Procurement of Resources

Automatic warehouse

CAM Online data entry

Market Analysis

Diagnostic Services

Electronic data interchange Components of E- data interchange E- data interchange communication

process Internet

WWW, Internet applications Intranet

Composition of intranet ,Business applications on intranet

Extranets

EDI is the direct computer to computer exchange between two organizations of standard business transaction documents, such as invoices, bill of lading, purchase orders.

EDI is the controlled transfer of data between business and organisations via established security standards.

EDI allows businesses to send information over public or private communications links.

The result is that delivery of business documents can take seconds instead of days, and documents are far less likely to be lost or damaged.

Improved customer service Decreased Operating costs as paper

work and clerical tasks are reduced EDI speeds up the delivery of goods and

services More accurate and timely information

allows for better control over inventory Faster account reconciliation lowers

delay Improved cash flow

High Costs Limited accessibilityRigid requirements Automate only a portion of

transactions

It is by definition a meta-network, a constantly changing collection of thousands of individual networks intercommunicating with a common protocol. (TCP/IP)

Every organisation on the internet has a unique domain name and an extension.

The DNS uses a system of multi-level strings separated by dots ('.') to organize domain names

Abc.yahoo.in Abc : represents one specific Web site

or sub-domain Yahoo :represents a organizational

domain that points to a Web site but also contains numerous other sub-sites

In :represents a top level domain (TLD) that encompasses numerous organizations worldwide.

.edu .gov .int .mil .net .org

General Information collection Collaboration Research Communicate Provide customer service Publish information Purchase and sell – ecommerce

Organizations Inventory management systems Interactive marketing Ecommerce Collaboration with customers, prospects

and business partners. Customers

View information Purchase Service and support

Business partners E-mail File transfer Discussion forums Extranet access for internet resources.

Suppliers Access inventory Replenish stock Send documents via EDI

The World Wide Web began as a networked information project at CERN ( European organisation for nuclear research ), where Tim Berners-Lee, now Director of the World Wide Web Consortium [W3C], developed a vision of the project.

The Web has a body of software, and a set of protocols and conventions.

Through the use hypertext ( HTML) and multimedia techniques, the web is easy for anyone to roam, browse, and contribute to.

Assignment: History of Internet and www.

Networks are used on the bases of their scale and scope, historical reasons, preferences for networking industries, and their design and implementation issues.

LAN and WAN are mostly known and used widely. LAN, local area network was first invented for communication between two computers

LAN connects networking devices with in short spam of area, i.e. small offices, home, internet cafes etc.

LAN uses TCP/IP network protocol for communication between computers.

Since LAN is operated in short area it can be controlled and administrated by single person or organization.

As “word” Wide implies, WAN, wide area network cover large distance for communication between computers.

The Internet itself is the biggest example of Wide area network, WAN, which is covering the entire earth.

WAN is distributed collection of geographically LANs. A network connecting device router connects LANs to WANs

A LAN, local area network based on wireless network technology mostly referred as Wi-Fi.

Unlike LAN, in   WLAN no wires are used, but radio signals are the medium for communication.

Wireless network cards are required to be installed in the systems for accessing any wireless network around.

This kind of network is not mostly used but it has its own importance for some government bodies and organizations on larger scale.

MAN, metropolitan area network falls in middle of LAN and WAN, It covers large span of physical area than LAN but smaller than WAN, such as a city.

SAN, system area networks are also known as cluster area network and it connects high performance computers with high speed connections in cluster configuration.

A virtual private network (VPN) is a network that uses primarily public telecommunication infrastructure, such as the Internet, to provide remote offices or travelling users access to a central organizational network.

VPNs typically require remote users of the network to be authenticated, and often secure data with encryption technologies to prevent disclosure of private information to unauthorized parties.

Internet based computing networks that are private and secure are called intranets.

Internet which is located inside the organization and not accessible by the general public.

Intranets are not only for posting documents but also for linking software database and hardware into a universal network.

These are fenced by defensive barriers called firewalls.

Internet

Intranet

Firewall

Resources are accessible everyoneEnables complex data applications Sharing of software and dataScalabilityDynamic and customizable Secures information Knowledge base Policies and support information

Infrastructure TCP/IP network

Hypermedia DB

Servers Browsers

Management

Security Content and

data Software tools

Fire

wal

ls

&

pass

wor

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cryp

tion

Policies and standards Network management software

Intranets can also be extended to form a community internet network (COIN) that allows other organizations to connect shared resources like directories and files.

Extranets facilitate sharing of information by individuals in multiple organizations and are a result of business partners connecting portions of their intranets to meet common business goals.

These are private wide area networks that run on public protocols with the goal of fostering collaboration and information sharing between organizations.

Foundation of any B2B system is extranet.

Extranet gives controlled access

A network that links selected resources of the intranet of a company with its customers, suppliers and other business partners ,using the internet or private networks to link the organizations intranets.

B 2 B communications Sales and customer support Knowledge managementReview and response Shared software applications Secure and faster processing