Topic: E-commerce

Subject: Information Technology Submitted by: Group # 04

Submitted to: Ma’am Raheela FirdousMBA (B & F)2nd semesterMorning

Alfalah Institute Of Banking and Finance BAHAUDDIN ZAKARIYA UNIVERSITY

MULTAN26/5/2013

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E-COMMERCE

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Presented by :

Aneeka Niaz MBK-M-12-

04 Usama Bin Shafqat MBK-M-12-

54 M. Imran maqbool MBK-M-12-

14 Anam Hassan MBK-M-12-24

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TABLE OF CONTENTS What is e-commerce History of e-commerce Implementation of e-commerce Applications of e-commerce Categories of e-commerce Merits and demerits of e-commerce Security issues with e-commerce Summary

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Aneeka niazMBK-M-12-04

Presenting

E-commerce & history of ecommerce

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What is commerce

Exchange of goods and servicesBetween producers and consumers

ORBetween seller and buyer

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What is E-commerce Exchange of products and services by

electronic means Systems that support electronically executed

business transactions The fundamental purpose of e-commerce is to

execute transactions

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Key Drivers of E-commerce

Technological Political Social Economic

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History of E-commerce EC applications first developed in the

early 1970s - Electronic funds transfer (EFT)

Limited to:- Large corporations.- Financial institutions.- A few other daring businesses.

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History of E-C (cont…)

Electronic data interchange (EDI)—electronic transfer of documents:

- Purchase orders - Invoices - E-payments between firms doing

business

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History of E-C (cont…)

Enlarged pool of participants to include : - Manufacturers - Retailers - Service providers

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History of E-C (cont…) With the introduction of the Web in the early 1990s, EC applications have rapidly

expanded. E-C Failure:

- E-C began to fail in 1999- This does not mean that EC’s days

are numbered- Large EC companies like

Amazon.com are expanding but success or failure is not certain

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Usama Bin Shafqat MBK-M-12-54 presenting

Electronic Commerce Implementation and application

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E-Commerce Implementation

Requires large investment & expertise

Hardware & a variety of software Changes in Infrastructure E-Commerce host

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Infrastructure E-Commerce requires significant

infrastructure changes such as;

- Hire Employees who are technical experts

- Employ one or more server computers

- A high-speed Internet connection

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E-Commerce Applications

Attract Customers via Gathering Information - Target

Customers, Competitors

Target E-Mails

Enable good shopping experience

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Contd… Convert Walk-in Customers into

Accounts

Incentives, Discounts

Free gifts on purchases

E Mails to first time customers

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Contd… Extend and retain the customers

E-Mails on new products

E-Mails on new discounts/Sale

Up Sell and Cross Selle.g. Samsung Galaxy Tab, Galaxy Note, S3

Ability to configure products and see actual prices between multiple vendors

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M. Imran maqboolMBK-M-12-14

Presenting

Categories of E-commerce

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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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Business to Business (B2B)

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refers to e-commerce that can occur between two organizations.

Includes: - purchasing and procurement- supplier management- inventory management, sales

activities.

Example: Free Markets, Dell and General Electric 24/5/2013

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Business-to-consumer e-commerce (B2C)

• Connects individual consumers with sellers , cutting out the middleman• Often connects manufacturers directly with consumers.• Requires shipping individual products directly to consumers• E.g. Amazon.com

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Consumer to Business(C2B)

when consumers band together to present themselves as a buyer in group.

Example: - www.planetfeedback.com

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Consumer to Consumer(C2C)

involve transactions between and among consumers.

- It may include involvement of third party for transections. Example:

- Olx.com., Craiglist, Monster

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E-Commerce from the Buyer’s 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 Seller’s Perspective

Sellers business practices- Market research to identify customer needs- Manufacturing products or supplying

services that meet customer needs- Marketing and advertising- Providing a method for acquiring payments- Making arrangements for delivery of the

product- Providing after-sales support

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Anam HassanMBK-M-12-24

Presenting

Advantages & DisadvantagesOf E-C

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Advantages of E-commerce

To Organizations

To Customers

To Society

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ADVANTAGES OF E-COMMERCE

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To Organization : Provide better material and services. Expands a company’s marketplace. Lower telecommunications costs

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Cont….

No need for supervisors and cashiers Helps small businesses compete against

large companies. No Need for a Physical Store

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Advantages of E-commerce(cont..)

To Customers:

Provides less expensive products and services.

Give consumers more choices. 24 hours a day access to market

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Advantages of E-commerce (cont..)

Delivers relevant and detailed information.

Enables consumers to get customized products, from PCs to cars, at competitive prices.

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Cont… To Society: More individuals can work from home Benefits less affluent people Third world countries gain access Facilitates delivery of public services

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Disadvantages of E-commerce

Technological Limitations: restricted a large number of people from

using e-commerce. Internet has not touched the lives of

every common man. Insufficient telecommunications

bandwidth. Need for special Web servers in addition

to the network servers. Expensive and inconvenient Internet

accessibility.24/5/2013 35

Disadvantages of E-commerce(cont..)

Security: Online businesses are not trusted by the

customers. frauds and faulty payments. Ineffective Customer Relations: customer relations are difficult to

maintain. E-business also requires loyal customers.

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Unsuitable for perishable items: Perishable goods require proper storage

and warehousing. people always prefer conventional mode.

For purchasing perishable goods like food items

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Disadvantages of E-commerce(cont..)

Non-technical limitations:

Unsolved legal issues Lack of Government regulations &

industry standards Customer resistance to changing from a

real to a virtual store.

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Disadvantages of E-commerceCont…..

Perception that EC is expensive and unsecured.

Inability to Experience the Product Before Purchase Need for an Internet Access Device

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E-Commerce Security Issues

There are significant privacy and security concerns

– Public network– No buyer or seller identity

verification– Hacker attacks

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solution• Digital certificate

– A type of electronic business card– Attached to Internet transaction

data– Verifies the sender of the data– Provided by certification

authorities – Encryption

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Summary E-Commerce:

– Systems that support electronically executed transactions Four main types of e-commerce:

– Business-to-consumer (B2C)– Business-to-business (B2B)– Consumer-to-consumer (C2C)_ consumer to business(C2B)

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Cont…. Infrastructure:

- Internet- Ethernet- Extranet- Protocols

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Cont…. Todays role of E-Commerce:

– Playing an increasingly important role in our personal and professional lives

– Allows us to discover new and interesting products

– Allows us to find better deals– Used to monitor bank accounts

and transfer electronic funds

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Cont… The present scenario of e-commerce can

also be changed for good, so that it can easily adapt to the ever changing needs of the customers as well as of the world.

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