Dr.R.BASKARAN,DCSE1 E-Commerce Dr.R.BASKARAN Senior Lecturer Department of Computer Science and Engineering, Anna University, Chennai –

Dr.R.BASKARAN,DCSE2 UNIT I INTRODUCTION

Dr.R.BASKARAN,DCSE3 What is E-Commerce ? Electronic commerce (EC) is an emerging concept that describes the buying and selling of products, services and information via computer networks, including the Internet.

Dr.R.BASKARAN,DCSE4 What is E-Commerce ? E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network.

Dr.R.BASKARAN,DCSE5 Figure: E-commerce on the rise. Source: 1999 SG Cowen/Datamation Networked Computing Survey Figure: E-commerce apps are a big driver for storage. Average installed online storage in gigabytes. Source: 1999 SG Cowen/Datamation Networked Computing Survey No plans Start in 99/00 Expand in 99/00 Largely done

Dr.R.BASKARAN,DCSE6 Table: E-commerce’s most promising potential benefits

Dr.R.BASKARAN,DCSE7 Is e-commerce the same as e- business? In e-commerce, information and communications technology (ICT) is used in inter-business or inter- organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals). In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non- profit entity) conducts over a computer-mediated network.

Dr.R.BASKARAN,DCSE8 eBusiness Processes WHY Customer Relationship Redesign Business Processes (Outside-In) Applying Technology WHATHOW

Dr.R.BASKARAN,DCSE9 eBusiness Key Concepts eBusiness –The strategy of how to automate old business models with the aid of technology to maximize customer value eCommerce –The process of buying and selling over digital media eCRM (eCustomer Relationship Management) –The process of building, sustaining, and improving eBusiness relationships with existing and potential customers through digital media

Dr.R.BASKARAN,DCSE10 Types of E-commerce Business-to-business Business-to-government Business-to-consumer “Consumer Electronic Commerce” or “Retail Electronic Commerce” Government-to-consumer Consumer-to-consumer

Dr.R.BASKARAN,DCSE11 C B C B Traditional versus E-Business Models? C: Individual Consumer B: Business

Dr.R.BASKARAN,DCSE12 What is Consumer E-commerce? It is the online selling and buying of products and services: companies publish their catalogs online, and consumers order from the catalogs, make payments, and track the status of their orders online. In the typical scenario a customer uses a Web browser to access a Web-based virtual store through the Internet.

Dr.R.BASKARAN,DCSE13 What is B2B? “ B2B ” is business-to- business commerce conducted over the Internet (called B2B e-commerce space, or e-marketplaces) N

Dr.R.BASKARAN,DCSE14 E-Market is … Web-based marketplace e-market is Web sites where buyers and sellers come together to communicate, exchange ideas, advertise, bid in auctions, conduct transactions, and coordinate inventory and fulfillment BuyersSellersMarketSite

Dr.R.BASKARAN,DCSE15 Figure : A B2B Model (Source: Goldman Sachs Investment Research Report) Banks, Financial Institutions eCredit.com Suppliers  Production materials  Operating goods, services Enterprise Customers Logistics Celarix, NTE

Dr.R.BASKARAN,DCSE16 What is B2C? B2C (or Extranets) is just web-enabled relationships between existing partners; they tend to be run by a single company seeking to lower the cost of doing business with its current suppliers or individual customers. Examples? - Univercell.in –Amazon.com –Egghead.com

Dr.R.BASKARAN,DCSE17 Enterprise User Profiles Workflow Business rules Payment Analytics Internet Intranet Figure: A B2C e-business Model

Dr.R.BASKARAN,DCSE18 B2C Applications Electronic storefront Electronic malls Advertising online Service online –selling books, toys, computers –e-banking (cyberbanking) –online stock trading –online job market, travel, real estate

Dr.R.BASKARAN,DCSE19 Figure : B2C and B2B Internet Commerce in the U.S. (Source: Forrester Research) Billion

Dr.R.BASKARAN,DCSE20 What is B2G e-commerce? B2G is generally defined as commerce between companies and the public sector. It refers to the use of the Internet for public procurement, licensing procedures, and other government-related operations. Ex : E Tender

Dr.R.BASKARAN,DCSE21 Customer-to-Customer E-Commerce Customer-to-customer (C2C): e-commerce in which both the buyer and the seller are individuals (not businesses); involves activities such as auctions and classified ads

Dr.R.BASKARAN,DCSE22 What is m-commerce? M-commerce (mobile commerce) is the buying and selling of goods and services through wireless technology-i.e., handheld devices such as cellular telephones and personal digital assistants (PDAs).

Dr.R.BASKARAN,DCSE23 Industries affected by m-commerce Financial services Telecommunications Service/retail Information services

Dr.R.BASKARAN,DCSE24 Forrester’s M-Commerce Sales Predictions,

Dr.R.BASKARAN,DCSE25 Components of a typical successful e-commerce transaction loop The Seller Transaction partners Consumers (in a business-to-consumer transaction) Government The Internet

Dr.R.BASKARAN,DCSE26 How is the Internet relevant to e- commerce? The Internet allows people from all over the world to get connected inexpensively and reliably. As a technical infrastructure, it is a global collection of networks, connected to share information using a common set of protocols. A vast network of people and information, the Internet is an enabler for e-commerce as it allows businesses to showcase and sell their products and services online and gives potential customers, prospects, and business partners access to information about these businesses and their products and services that would lead to purchase.

Dr.R.BASKARAN,DCSE27 How important is an intranet for a business engaging in e-commerce? An intranet aids in the management of internal corporate information that may be interconnected with a company’s e-commerce transactions. It allows for the instantaneous flow of internal information, vital information is simultaneously processed and matched with data flowing from external e-commerce transactions, allowing for the efficient and effective integration of the corporation’s organizational processes.

Dr.R.BASKARAN,DCSE28 E-COMMERCE SERVICES

Dr.R.BASKARAN,DCSE29 I S ONLINE SHOPPING SAFE? Yes, Make sure you have a secure connection at the time of checkout. Online stores have "https" in the URL for the checkout-secure internet connection. These sites will encrypt your credit card number, making it impossible for someone to have and use your credit card number even if it is intercepted

Dr.R.BASKARAN,DCSE30 ADVANTAGES Lower transaction costs Promote product internationally People can shop in different ways. Improved customer relations Increased Sales

Dr.R.BASKARAN,DCSE31 DRAWBACKS Loss of ability to inspect products from remote locations Rapid developing pace of underlying technologies Difficult to calculate return on investment Cultural and legal impediments