1.
1 Electronic Commerce:
Electronic commerce, commonly known as E-commerce is trading in products or services
using computer networks, such as the Internet.
Electronic commerce draws on technologies such as mobile commerce, electronic funds
transfer, supply chain management, Internet marketing, online transaction processing,
electronic data interchange (EDI), inventory management systems, and automated data
collection systems.
Modern electronic commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle, although it may also use other technologies such as e-mail.
Definition of E-commerce:
Sharing business information, maintaining business relationships and conducting business
transactions using computers connected to telecommunication network is called E-Commerce.
1.2 E-Commerce Categories:
1. Electronic Markets
Present a range of offerings available in a market segment so that the purchaser can
compare the prices of the offerings and make a purchase decision.
Example: Airline Booking System
2. Electronic Data Interchange (EDI)
• It provides a standardized system
• Coding trade transactions
• Communicated from one computer to another without the need for printed orders and
invoices & delays & errors in paper handling
• It is used by organizations that a make a large no. of regular transactions
Example: EDI is used in the large market chains for transactions with their suppliers
3. Internet Commerce
• It is use to advertise & make sales of wide range of goods & services.
• This application is for both business to business & business to consumer transactions.
Example: The purchase of goods that are then delivered by post or the booking of tickets
that can be picked up by the clients when they arrive at the event.
1.3 Advantages Of E-commerce:
Buying/selling a variety of goods and services from one's home or business
Anywhere, anytime transaction
Can look for lowest cost for specific goods or service
Businesses can reach out to worldwide clients - can establish business partnerships
Order processing cost reduced
Electronic funds transfer faster
Supply chain management is simpler, faster, and cheaper using ecommerce
- Can order from several vendors and monitor supplies.
- Production schedule and inventory of an organization can be inspected by
cooperating supplier who can in-turn schedule their work
1.4 Disadvantages Of E-commerce:
Electronic data interchange using EDI is expensive for small businesses
Security of internet is not very good - viruses, hacker attacks can paralise
e-commerce
Privacy of e-transactions is not guaranteed
E-commerce de-personalises shopping
1.5 Threats of E-commerce:
Hackers attempting to steal customer information or disrupt the site
A server containing customer information is stolen.
Imposters can mirror your ecommerce site to steal customer money
Authorised administrators/users of an ecommerce website downloading hidden active
content that attacks the ecommerce system.
A disaffected employee disrupting the ecommerce system.
It is also worth considering where potential threats to your ecommerce site might come from,
as identifying potential threats will help you to protect your site. Consider:
Who may want to access your ecommerce site to cause disruption or steal data; for example
competitors, ex-employees, etc.
What level of expertise a potential hacker may possess; if you are a small company that
would not be likely to be considered a target for hackers then expensive, complex security
may not be needed.
1.6 Features of E-Commerce:
Ubiquity
Internet/Web technology is The marketplace is extended beyond traditional available
everywhere: at work, at home, and boundaries and is removed from a temporal and elsewhere
via mobile devices, anytime. geographic location. ―Marketspace‖ is created; shopping
can take place anywhere. Customer convenience is enhanced, and shopping costs are
reduced.
Global reach
The technology reaches Commerce is enabled across cultural and across national
boundaries, around the earth. national boundaries seamlessly and without modification.
―Marketspace‖ includes potentially billions of consumers and millions of businesses
worldwide.
Universal standards
There is one set of There is one set of technical media standards technology standards,
namely Internet across the globe.
Richness
Video, audio, and text messages Video, audio, and text marketing messages are are possible.
integrated into a single marketing message and consuming experience.
Interactivity
The technology works Consumers are engaged in a dialog that through interaction with the
user. dynamically adjusts the experience to the individual, and makes the consumer a co-
participant in the process of delivering goods to the market.
Information density
The technology Information processing, storage, and reduces information costs and raises
quality. communication costs drop dramatically, while currency, accuracy, and timeliness
improve greatly. Information becomes plentiful, cheap, and accurate.
Personalization/Customization
The Personalization of marketing messages and technology allows personalized messages to
customization of products and services are be delivered to individuals as well as groups.
based on individual characteristics.
1.7 Business models of e-commerce:
There are mainly 4 types of business models based on transaction party.
Business-to-Consumer (B2C)
In a Business-to-Consumer E-commerce environment, companies sell their online goods to
consumers who are the end users of their products or services. Usually, B2C E-commerce web
shops have an open access for any visitor, meaning that there is no need for a person to login in
order to make any product related inquiry.
Business-to-Business (B2B)
In a Business-to-Business E-commerce environment, companies sell their online goods to other
companies without being engaged in sales to consumers. In most B2B E-commerce environments
entering the web shop will require a log in. B2B web shop usually contains customer-specific
pricing, customer-specific assortments and customer-specific discounts.
Consumer-to-Business (C2B)
In a Consumer-to-Business E-commerce environment, consumers usually post their products or
services online on which companies can post their bids. A consumer reviews the bids and selects
the company that meets his price expectations.
Consumer-to-Consumer (C2C)
In a Consumer-to-Consumer E-commerce environment consumers sell their online goods to
other consumers. A well-known example is eBay.
1.8 E-Governance:
E-governance is the application of information and communication technology (ICT) for
delivering government services, exchange of information communication transactions, integration
of various stand-alone systems and services between government-to-customer (G2C),
government-to-business (G2B), government-to-government (G2G) as well as back office
processes and interactions within the entire government framework.
Through e-governance, government services will be made available to citizens in a convenient,
efficient and transparent manner. The three main target groups that can be distinguished in
governance concepts are government, citizens and businesses/interest groups. In e-governance
there are no distinct boundaries.
Business - to - Government (B2G)
B2G model is a variant of B2B model. Such websites are used by government to trade and
exchange information with various business organizations. Such websites are accredited by the
government and provide a medium to businesses to submit application forms to the government.
Government - to - Business (G2B)
Government uses B2G model website to approach business organizations. Such websites support
auctions, tenders and application submission functionalities.
Government - to - Citizen (G2C)
Government uses G2C model website to approach citizen in general. Such websites support
auctions of vehicles, machinery or any other material. Such website also provides services like
registration for birth, marriage or death certificates. Main objectives of G2C website are to
reduce average time for fulfilling people requests for various government services.
