E-commerce

Characteristic Features

• Internet technology available everywhere; at work, home or elsewhere via mobile device.

• Provides a universal and easy-to-use set of technologies and technology standards that can be adopted by all organizations

• Direct communication between trading partners: Disintermediation removes intermediate layers, streamlines process

Characteristic Features

• Round-the-clock service: Web sites available to consumers 24 hours a day

• Richness of text, audio and video data.

• Reduced transaction costs: Costs of searching for buyers, sellers, etc.

Benefits of E-commerce

• Easy-to-use, universal Web interface

• Low start-up costs

• Richer, more responsive information environment

• Reduced information distribution costs

Benefits of E-commerce

• Information asymmetry: One party in a transaction has more information than the other

• Increases richness: Depth and detail of information

• Increases reach: Number of people contacted

E-commerce Business Models• Virtual storefront: Sells goods, services online.

• Information broker: Provide info on products, pricing, etc.

• Content provider: Creates revenue through providing client for a fee, and advertising.

– provide information content like news, reports, music, photos, videos etc.

E-commerce Business Models

• Transaction Broker: process transactions for customers. e.g. e-trade.com.– Charge commissions that are

considerably less than traditional brokers.

• Portal: provide powerful web search tools and integrated package of content and services like news, email instant messaging etc.

• Auction: provides digital platform for buyers and sellers to agree on a price and transact.e.g. eBay.com; ebid.com; epier.com

E-commerce Business Models• Online service provider: Provides service, support for hardware, software products.

• Syndicator: aggregates content produced by others from several sources sold to other companies.

– licensed games or videos collected from owners an distributed.

Categories of E-Commerce

• Business-to-customer (B2C): Retailing of products and services directly to individual customers

• Business-to-business (B2B): Sales of goods and services among businesses

• Consumer-to-consumer (C2C): Individuals use Web for private sales or exchange

Business-to-Consumer (B2C) E-Commerce

• Customer-centered retailing: Closer, yet more cost-effective relationship with customers. e.g. Amazon

• Portals: Provide web search tools as well as integrated information on products, services, like news, email, music downloads etc. at one place. E.g. Yahoo!

Business-to-Consumer E- Commerce

• Disintermediation: The removal of organizations or business process layers responsible for certain intermediary steps in a value chain.

• Reintermediation: The shifting of the intermediary role in a value chain to a new source

Business-to-Business (B2B) E- Commerce

• Digital marketplace where suppliers and commercial buyers can do transactions.

•Automation of purchase, sales transactions from business to business.

• Coordination between companies for efficient supply chain management and collaborative activities

• Net marketplaces: Online marketplaces, point-to-point connections, integrated information

Net Market Place

Net Market Place

• Exchanges: Third-party net marketplace

• Primarily transaction oriented

• Connects buyers and suppliers for spot purchasing

Business-to-Business (B2B) Business models

• E-distributor

- Supply products and services directly to individual business organizations.

• B2B service providers– sell business services to other firms. like accounting, financial services, HRM etc.–Application service provider sells access to internet based software applications to other companies.

E-Commerce Information Flows

Categories of E-Commerce

• Consumer-to-Government (C2G)Include tax payment, issuance of certificates and other documents.

• Business to Government (B2G) applications include taxation, materials procurement, custom control of exports or imports.

Electronic Fund Transfer (EFT)

• Paperless payment.

• use IT to capture and process money and credit transfers between banks and businesses and their customers.

• System of transferring funds on request using wide area networks.

Electronic Fund Transfer (EFT)

• Covers a wide range of transaction services like: - Banking services

– Funds transfer between the accounts of same bank or at different banks.– Stockbrokerage services

• Provides advantages like-Reduced need for customers to carry cash or cheque- Immediate transfer of funds from customer’s bank account to service providers’ bank account.

Electronic Data Interchange (EDI)

• Direct computer-to-computer exchange of structured business documents between the computer systems of trading partners.

Electronic Data Interchange EDI

•Paperless mechanism that involves electronic exchange of business documents.

•Covers business data like purchase order, invoices, delivery instructions etc.

• Addresses the problem of traditional system viz. –Exhaustive paper work.– repetitive entry of data– delay

E-Commerce Payment Systems

• Digital credit card Payment – credit card payment process.

• Digital wallet-software stores credit card and other information

• Stored value payment system – enables the customers to make instant payments based on value stored in digital account. e.g. smart cards

E-Commerce Payment Systems

• Peer to peer payment system- sends money via web to persons or vendors. e.g.Paypal

• Digital accounting balance payment system-– allows users to make micro payments– pay for the entire purchase at the end of month.– e.g. qpass

M-Commerce Defined

• Buying and selling of goods and services through wireless handheld devices.

M-commerce and m-business is any e-commerce or e-business activities performed in a wireless environment.

M-Commerce

• Wireless devices used to conduct both business-to-consumer and business-to-business e-commerce transactions over the Internet

• Extend personalization by delivering new VAS directly to customers at any time and place.

•With the launch of 3G technologies, bandwidth constraints will be overcome.

M-Commerce and E-Commerce

M-commerce Business Applications

Transactions• Banking• Broking• Shopping• Auctions• Betting• Booking &

reservations• Mobile wallet

M- commerce

Communications• Short Messaging• Multimedia Messaging• Unified Messaging• e-mail• Chatrooms• Video - conferencing

Information• News• City guides• Directory Services• Maps• Traffic and weather• Corporate information• Market data

Entertainment• Music• Games• Graphics• Video

Astrology; News, Finance; Travel, Cricket match scores; Games; Ring tones, Songs, TV guide etc

Summary

• E-commerce encompasses the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services.

• The basic categories of e-commerce include B2C, B2B and C2C.

Summary• Many e-business enterprises are moving toward offering full service B2C and B2B models supported by integrated customer-focused processes and internet worked supply chains.

• Evaluate a variety of e-commerce integration and other alternatives; benefits, trade-offs when choosing a clicks and bricks strategy and e-commerce channel.

Summary• For selling products and services at e-commerce websites

–attractive Web pages, multimedia catalogs

– interactive order processing,

– secure electronic payment systems,

– online customer support