E - Commerce E-Commerce is an integration of communication, data management and security capabilities that allows organizations to exchange information about sale of goods and services.

Electronic v/s Traditional Commerce Information exchange network computers / person – person Processing Electronic / Paper Cost Reduced / More Advertisement throughout the world / limited area

Expansion Easier & cheaper / Difficult & Expensive Identifications required Digital signature / Driver’s license, passport Processing Time Less / More Market Analysis Easier / Difficult Banking Net Banking / Traditional Banking (e Cash, e Check, EFT etc.) / (Cash, Check, Credit cards etc.)

Electronic Commerce Electronic Document Interchange Electronic Publishing Electronic Messaging Corporate Digital Library Electronic Fund Transfer(EFT) Marketing, Advertising Electronic Data Interchange (EDI) Sales, Customer Support E- Mail, Video ConferencingFax, Mobile Services Information Sharing Collaborative Work E – Commerce Major Spread Areas

Corporate Digital Library Information Sharing Technical Data Interchange Collaborative Work Virtual & Team Based Enterprise Outsourcing Demand driven Manufacturing Net Banking

Advantages of E- Commerce Instant World wide availability Reduce paperwork More affordable Lower Sales & Marketing costs Reduced processing costs Reduced inventory cost Reduced cycle time

Improved product analysis Easier entry into new markets Improved market analysis Better customer service Faster access of information Easy access to geographically remote areas Net Banking

E-Commerce Categories B to C (Business to Consumer) Virtual storefront E-Banking B to B (Business to Business) Supplier Management Inventory Management Distribution Management Payment Management C to C (Consumer to Consumer) Auction using Sites (eBay, Baazi)

B2B / B2C Inter corporate sales Corporate to customer sales More investigative Less investigative Lesser Media attention Greater media attention Sites more informative & Sites to attract traffic, convert to buyers Technical Direct or Shared channelShared channel 90% of E-commerce revenue 10% of total E-commerce revenue Requires negotiationsRequires discounts, attractive offers

B2B Business Models Marketplace / Exchange (B2B hubs) eg. OracleExchange.com DirectAg.com, e-Steel.com (Bring buyers & sellers together to reduce procurement costs) E-Distributor eg. Grainger.com ( Connects businesses directly with others reducing sales cycle) Service Providers eg. Employeematters.com (Supports companies through online business services) Matchmaker eg. iShip.com ( Helps businesses find what they want and need on the net) Informediary eg. Doubleclick.net ( Gathers information about customers and use it to help advertisers find appropriate audiences )

B2C Business Models Portal eg. Yahoo.com, AOL.com, MSN.com, Rediff.com etc. (integrated package of services as search, news, chat, music downloads, calculators etc.) E-tailer eg. Amazon.com,Wallmart.com etc. (On line version of retail, distribution store) Content Provider eg. WSI, sportsline.com, CNN.com etc. (Information & news provider) Transaction Broker eg. E-Trade.com etc. (online transactions brokers, travel agents etc.) Service Provider eg. xDrive.com, myCFO.com etc. (sells services) Community Providers eg. About.com, iVallage.com etc. (Individuals with common interests & hobbies share notes)

Virtual Enterprise It is an organization composed of geographically dispersed membership, intersecting several traditional organizations, communicating using electronic means. within large corporations part of business alliances Among individuals working independently

Communication channel Leased linesInternet Software Internet servers Reporting software Database software Accounting software Hardware ServerPhone connection LAN CableMODEM Setup

Successful Storefront Ingredients Generating Demands Ordering Fulfillment Processing Payments Service & Support Security Community

Generating Demands Traffic attracted Lookers converted to buyers Online Advertisement Banner Ads. Targeted Reference Bouncers Partnership Contest Promotions

Ordering Consistent Attributes not overstated Pages to have consistent look & feel Maintain navigation bars Eliminate redundant information Ease ordering Calculate total costs use shopping carts Accept different payment substitutes Include bail out mechanism

Fulfillment Create orders Sent confirmation / tracking number Timely undamaged delivery

Processing Payments e-Cash (Digicash.com) Check Model (Checkfree.com) Credit Model (Credit Cards)

Service & Support Automatic call back Click to dial Co-browsing

Security Data confidentiality (encryption,decryption) Authentication (Digital Signature) Access Control (Firewalls) Data Integrity (encryption, Digital Signature)

Community Build Loyalty Encourage repeat business special offers Cross sell related items Crediting frequent business

EDI (Electronic Data Interchange) Computer to computer exchange of standardized information. ANSI (American National Standard Institute) EDI is the transmission in the standard syntax of unambiguous information of business or strategic significance between computers of independent organizations.

Customer Vendor PO generated by purchasing system Sales order entry system Examples of EDI

Customer Vendor Invoice generated by billing system Accounts payable system Examples of EDI

Features of EDI Primary tool a Software which transforms data to & from ANSI ASC X12 standard format. Begins & End with exit & entry points of business applications. Uses point to point connectivity Data transmitted by Dedicated mode Dial up mode

Direct communication using Net VAN provider engaged EDI on NET Wall-Mart : Links with suppliers (Seminole Manufacturing Co. Ltd.) to reduce delivery time. General motors : Fund transfer, shipping receipts are sent from GM plant to the computer center where they are matched against electronic invoices and purchase orders. US Customs : Accepts electronic custom documentation in advance of goods shipment which reduces port delay.

Buyer benefits: 1. Lower inventory level 2. Quick Order Acknowledgement 3. Efficient invoice progressing 4.Productivity enhancing tool Supplier Benefits 1. Elimination of problems and delays caused by order entry errors 2. Personal reduction 3. Inventory reduction 4. Improved Cash flow 5. Improved Customer Service 6. Improved Sales tracking Cost Savings. Benefits of EDI

VAN ’s “Electronic Mailbox” used to deposit EDI transactions & retrieve messages when convenient. VAN (Value Added Network)

VAN Trading Company Transport Company Financial Institution Manufacturing Company Translate incoming document Route to Mailbox ID Releases data at user’s request

Improved quality Focus on core competencies Better record keeping Reduce process time Reduced Inventory Better information for management decision Enjoy low total cost of ownership Expand trading partner community Ability to support multiple data formats and standards Advantages of VAN

FEDI (Financial Electronic Data Interchange) Electronic transfer of payments between a payer, a payee & their respective banks. EFT (Electronic Fund Transfer) ACH ( Automated Clearing House)

EFT Instantaneous payment using online transactions Payers BankPayees Bank Funds Transfer

ACH Payers BankPayees Bank X Y VAN Clearing House Remittance Information Payment Authorization Payment Settlement Notice Transfer of Funds