“E-commerce and E-business” Academic Year 2015. What is E-commerce? Commerce is the whole system of an economy that constitutes an environment for business.

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Presentation transcript:

“E-commerce and E-business” Academic Year 2015

What is E-commerce? Commerce is the whole system of an economy that constitutes an environment for business / the activity of buying and selling E-commerce: concept that describes the process of buying and selling or exchanging of products, services and information via computer network.

E-commerce in a nutshell Any sort of transaction made on the internet Engagement: E.g. you bought anything online physical or electronic – Buying directly or buying through affiliates or agents E.g. you sold anything – Selling on your website – Selling through social networking sites – Selling through an auction site

E-commerce from various perspective Communications: Delivery of goods, services, information or payment over electronic means Business: Application of the technology toward the automation of business transaction Commercial: Provider of the capability of buying and selling products, services and information on the net Learning: Enabler of online training and education in schools, universities and other organization Community: Gathering place for community members to learn transact and collaborate

Framework of E-commerce EC application are supported by infrastructure Dependent on 4 major areas EC management coordinates the applications, infrastructure and pillars

Working of E-commerce STEPS Online customer through net moves to Merchant website Once purchase is fixed, he is moved to OTS where all of the given info is encrypted Once order is placed, the info moves through a private network to Private Network Merchant Web Site Online Consumer Internet Online Transaction Server Processing Network

Is E-commerce and E-business the same? Yes and No Yes – they both involve business processes conducted electronically No – Ecommerce is a narrower discipline: Ecommerce is restricted to buying and selling while the e-business includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources..

What is E-business? E.g. marketing to existing customers about new prospects is an e-business activity (it electronically conducts a business process – marketing) E.g. An online system that tracks inventory and triggers alert. Inventory management is a business process and when facilitated electronically, it becomes a part of e- business. An online induction program for new employees automates part of its offline counterpart.

What is E-business? (Contd.) So is e-business a business that is conducted online? – Answer: Rather a business that exists online – E.g. If you are a interior design firm that helps people buy furniture, you are a business but if you run a website where people can compare furniture options, then you are an e-business.

Examples of E-commerce & E-business Ebay (bidding site) Amazon (purchaser site) CNET (media website: reviews, blogs on tech) Mashable (News site: social media, technology)