E-COMMERCE FOUNDATIONS OF ELECTRONIC COMMERCE

Electronic Commerce Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via computer networks including the internet.

Electronic Commerce Perspective: Communication Perspective: E.C provides full information about the product and services to customer and update the customer about new amendments and new services and properly respond to the questions of customers online. Business process perspective: EC is the cheapest mean for conducting the business online. India is growing in EC business, Specially the students of India they have become entrepreneur due to this E. Commerce.

Electronic Commerce Perspective: Service Perspective: EC aim is to speed up the services that they are providing to customers so that they can get the attention of lot of customer towards their business.

Classifications of EC Applications Applications of EC are divided into 3 categories 1- Buying and selling goods and services. These are usually referred to as electronic markets 2- Facilitating inter and intra organization flow of information, communication and collaboration. These are some times referred as inter organizational system. 3-Providing customer’s Services

Classifications of EC Applications Electronic Markets: A market is a network of interactions and relationships where information, products services and payments are exchanged. When the market place is electronic, the business center is not a physical building but rather a network based location where business interactions occurs.

Classifications of EC Applications Electronic Markets: in electronic markets, the principal participants transaction handlers, buyers, selles are not only at different locations but seldom even know one an other.

Classifications of EC Applications INTER ORGANIZATIONAL INFORMATION SYSTEMS An IOS involves information flow among two or more organizations. Its major objectives is efficient transaction processing such as transmitting orders, bills and payments using EDI, or extranet.

Classifications of EC Applications INTER ORGANIZATIONAL INFORMATION SYSTEMS All relationships are predetermined. there is no negotiation, just execution in contrast, in electronic markets, sellers and buyers negotiate, submit bids, agree on an order and finish the execution on – offline.

Types of inter organizational systems 1. Electronic Data Interchange (EDI), which provides secured B2B connection over value added network 2. Electronic funds transfer 3. Electronic Forms 4. Integrated messaging 5. Shared data bases

E- Commerce VS E- Business E-Commerce and E-Business are two completely different terms but unfortunately they are always used interchangeably by many of us. The reason behind this lies in the meanings of "business" and "commerce" in English language. But there is a difference between e-commerce and e-business.

E- Commerce VS E- Business E-Commerce is the subset of E-Business Those activities which essentially involve monetary transactions are termed as “E- Commerce". However, E-Business is a much broader term. There are many other things besides selling including but not limited to marketing, procurement of raw materials or goods, customer education, looking for suppliers etc.

E- Commerce VS E- Business To sell online is e-commerce but to bring and retain customers and educate them online about the product or service is e-business. Having a website to do it is not sufficient. But, having a professionally built website loaded with latest technologies to capture the attention of the visitor and win his/her appreciation is required.

E- Commerce VS E- Business Dell provides services to their customer in computers, laptops, monitors, printers, accessories etc online then it is not engaged in E-commerce but E- business. WHY ?

E- Commerce VS E- Business Let me tell you how. When a visitor comes on the website, the first thing he see is website design and navigation as well as those things which are going to help him find what he is looking for and if he directly lands on the page he was looking for, he looks for the information related to it..

Unique Features of E-Commerce 1. Ubiquity 2. Global Reach 3. Universel Standards 4. Interactivité 5. Information Density and Richness 6. Personnalisation

Unique Features of E-Commerce Ubiquity In traditional commerce, a marketplace is a physical place we visit in order to transact. For example, television and radio are typically directed to motivating the customer to go someplace to make a purchase. E-commerce is ubiquitous, meaning that it is available just about everywhere at all times. It liberates the market from being restricted to a physical space and makes it possible to shop from your desktop.

Unique Features of E-Commerce Global Reach Global Reach - E-commerce technology permits commercial transactions to cross cultural and national boundaries far more conveniently and effectively as compared to traditional commerce. As a result, the potential market size for e-commerce merchants is roughly equal to the size of world's online population.

Unique Features of E-Commerce Universel standard One strikingly unusual feature of e-commerce technologies is that the technical standards of the Internet and therefore the technical standards for conducting e-commerce are universal standards i.e. they are shared by all the nations around the world.

Unique Features of E-Commerce Interactivity: Unlike any of the commercial technologies of the twentieth century, with the possible exception of the telephone, e-commerce technologies are interactive, meaning they allow for two-way communication between merchants and consumer

Unique Features of E-Commerce Information density and richness The Internet vastly increase information density. It is the total amount and quality of information available to all market participants, consumers and merchants. E-commerce technologies reduce information collection, storage, communication and processing costs. At the same time, these technologies increase greatly the accuracy and timeliness of information, making information more useful and important than ever. As a result, information becomes plentiful, cheaper and of higher quality. Information richness refers to the complexity and content of a message.

Unique Features of E-Commerce Personalization: E-commerce technologies permit personalization. Merchants can target their marketing messages to specific individuals by adjusting the message to a person's name, interests and past purchases. The technology also permits customization. Merchants can change the product or service based on user's preferences or prior behavior.

B2B B2C C2C C2B Intra organization E Commerce Non Profit Ecommerce. Classifications of Ecommerce

B2B: stands for Business to Business. here both the parties are business seller is organization buyer is also an organization e.g. RANA and KARDAN… Classification of E Commerce continue…

B2C: Stands for Business to customer here seller is the organization buyer is the customer. it is mostly used e.g. buying from the cellular company online. Classification of E Commerce continue…

C2C: stands for customer to customer here both the parties are customer seller is an organization buyer is also an organization e.g. site for auctions…. Classification of E Commerce continue…

C2B: stands for customer to customer here seller is the customer buyer is an organization. e.g. when individual provides services to the business firm online. Classification of E Commerce continue…

Intra organizational E Commerce: here employee with in the organization starts online business and providing services to other employees. here concept of discounts come….. Classification of E Commerce continue…

Non Profit Organizational E Commerce: ? Classification of E Commerce continue…

Basic Client Web server Browser Intranet Extranet Internet WWW. Protocol HTTP Some Basics for E Commerce:

Basic Client: machine that initiate internet request Web server: machine that services the internet request Browser: software at client side to interact with web data with the help of browser we make request for web pages Some Basics for E Commerce:

Intranet: an internal network of computers confined to a single place it is also called LAN. LAN is Local Area Network

Extranet: when two or more intranets are connected with each other, they form an extranet. e.g. Virtual Private Network Internet: global network of networks it is purely hardware routers are connected to each other and form a network. Some Basics for E Commerce:

WWW it stands for world wide web Protocol: the set of rules and standards through which computer can communicate with each other. it is a language through which two computers can talk to each other. HTTP: it stands for Hyper Text Transfer Protocol here we send web page request to the web server Some Basics for E Commerce:

QUIZ NO 1 Take out ur pages and write down ur names in the top of the page. Time: 25 – 30 mints Q- Discuss different characteristics of E- Commerce. Q- Discuss the different classifications of E- Commerce w.r.t transaction.