Case Study on E-Commerce

Lesson: 1Executive Summary The Internet has opened up a new horizon for trade and commerce, namely electronic commerce (e-commerce). E-commerce entails the use of the Internet in the marketing, identification, payment and delivery of goods and services. This paper highlights the status, statutes, potential and constraints to e-commerce development in Bangladesh. Both the statutory laws as well as the challenges in implementing them are discussed. Major legal, regulatory and institutional constraints to e commerce are identified. The paper also lists specific policy changes aimed at bringing improvements to the legal and regulatory environment affecting e-commerce. Dimensions of E-Commerce- The three dimensions of e-commerce are Businessto-Consumers (B2C), Business-to -Business (B2B) and Business-to-Government (B2G). B2C e-commerce is unlikely to be of much use in the near future in Bangladesh because of low per capita income, a weak infrastructural and legal environment, lack of trust between business and consumers. B2C for cross border trade is also limited by the factors suggested for the domestic front. In addition, non-availability of international credit cards, foreign currency remittance restrictions, delays and informal payments at customs clearance even for small value and quantity items will discourage B2C.The B2B application already exists in the export sector of Bangladesh, especially in the Ready Made Garments (RMG) industry. RMG has the lions share of the export earnings in Bangladesh. The RMG sector has begun to use the Internet, and its dependence on ecommerce is likely to grow in the coming years. The Internet would enable them to seek information about potential buyer as well as raw material suppliers. Similarly the practice of posting a website by individual producers has begun. However, if Bangladeshi producers are unable to accommodate electronic transfer of payment and other facets of e-commerce, the business opportunity will move on to countries that have developed such systems.

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Lesson : 2 History of Ecommerce

The most popular activities on the Web is shopping. It has much allure in it you can shop at your leisure, anytime, and in your pajamas. Literally anyone can have their pages built to display their specific goods and services. History of ecommerce dates back to the invention of the very old notion of sell and buy, electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites. At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically. In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began to define the term ecommerce as the process of purchasing of2

available goods and services over the Internet using secure connections and electronic payment services. Although the dot-com collapse in 2000 led to unfortunate results and many of ecommerce companies disappeared, the brick and mortar retailers recognized the advantages of electronic commerce and began to add such capabilities to their web sites (e.g., after the online grocery store Web van came to ruin, two supermarket chains, Albertsons and Safeway, began to use ecommerce to enable their customers to buy groceries online). By the end of 2001, the largest form of ecommerce, Business-to-Business (B2B) model, had around $700 billion in transactions.

Lesson: 3 E-Commerce InfrastructureThe diagram below shows an example of an e-commerce infrastructure. It shows clients, customers, partners and suppliers to the left and how they may connect to an Internet company to the right through the Internet. Clients and partners, using computers, telephones, etc., can connect to the Internet through dial-up lines to the public switched telephone network (PSTN). Through the PSTN Internet Service Providers (ISPs) can be reached. The ISPs can also be reached through dedicated lines that generally offer higher bit-rates, such as digital subscriber lines (DSLs), as well as T1, T4 and other links. Connections can also be established from LANs, routers, hubs and PBX and other switches on the Customer Premises, i.e. the premises of the clients, partners, etc. In addition to the plain old telephone system (POTS) other operators offer connections to the Internet. These include cable television operators, electric power companies, etc. Most are integrated with other networks, including packet switched public data networks (PSPDNs) that use routers and similar switching/directing devices. On the other side of these networks you will find the host computers of the product/service provider or seller. These people may have co-located or outsourced storage facilities. The latter are data warehouses containing information on products, services, clients, partners, suppliers, billing, payments, etc. Security is of a major concern. This includes concerns about the following, among many other security problems: Credit card numbers, expiration dates, and owner information getting in the wrong hands. Orders being accepted from the wrong clients. Payments being made to the wrong sources or goods and service being delivered to the wrong people. Viruses being allowed to pass through the system. To prevent some of these security problems firewalls are installed at critical interfaces. The firewalls are supposed to filter the3

traffic, inhibit transmission of unwanted information (including viruses), and prevent malicious or criminal actions by outside persons. However, a firewall cannot by itself prevent misuse of credit card numbers or identity fraud. Encryption is a way of improving security. You as a user can encrypt your messages in an end-to-end fashion and having your correspondent at the other end convert the message back into the original clear-text. Encryption can also be used on individual links in the transmission chain.

home countries make all encryption illegal, and others, like the U.S. Government, put restrictions on the complexity of the encryption permitted. Severe problems in the conflict between users and government arise when the users are conducting businesses in the multimillion dollar range with governments. Examples of such users are manufacturers of telecommunications networks, airplanes, as well as4

construction companies, etc. You hear all of them talking about cases where their messages with their local agents regarding terms and prices end up in clear-text on the desks of their (government) customers even before their agents receive the messages.

Lesson: 4 Introduction to e-commerceThe Internet has opened up a new horizon for trade and commerce, namely electronic commerce (e-commerce). E-commerce entails the use of the Internet in the marketing, identification, payment and delivery of goods and services. This paper highlights the status, statutes, potential and constraints to e-commerce development in Bangladesh. Both the statutory laws as well as the challenges in implementing them are discussed. Major legal, regulatory and institutional constraints to e-commerce are identified. The Internet, through advanced mechanisms of data transfer networks, establishes global linkages between customers and suppliers regardless of geographic location. E-commerce entails the use of the Internet in the marketing, identification, payment and delivery of goods and services. It involves order processing at company Websites and securing Electronic Fund Transfer (EFT) payment systems.

Lesson: 5 Definition of E-CommerceAn e-market is a facilitated online environment that connects multiple buyers and suppliers in a single, Web-based hub to more effectively match supply and demand while reducing transaction cycles and costs. The e-marketplace works for companies engaging in collaborative business. This is an Internet site where goods and services suppliers publish catalogues of their wares and service offerings, which can be accessed by a large number of buyers. Value-added services an emarket can offer include the provision of automated documents to speed up the negotiation process, decision-support information, and other e-commerce services5

such as company profiles and financial services for credit checks, online transaction processing, and access to efficient means of fulfillment. The e-commerce resource center defines that E-Commerce is a broad term describing business activities associated with technical data that conducted electrically E-Commerce is a dynamic set of technologies, applications and business process that link enterprise, consumers and communities through electronics exchange of goods, services and information. (David Brum, Oracle magazine, Page 38) Globalization has brought in many changes in the business scenario with the whole world inching towards on the big market place. Communication between the buyers and sellers has become critical as can option to explore a greater number of alternatives then ever before.

Lesson : 6 Recent statement about e-commerce in financial expressIT can be very inconvenient for a consumer not getting a product in his locality when it is available in other places. It happens in Khulna and other areas. For example, Khulna residents need to come to Dhaka to buy rare medicines. Students of Rajshahi University need to come to Dhaka to get their reference books at Milked. It would be convenient for them if they could order online. It would save their time as well as money as consumers. For the country, it would increase employment. Online transaction would boost the gross domestic product (GDP) growth and thus help Bangladesh achieve the Millennium Development Goals (MDGs). In the era of globalization, the Internet makes the world smaller and ecommerce facilitates marketing and shopping from home. E-commerce facilitates business with customers over the internet. In e-commerce, customers can buy goods and services over the internet. What needs to be done to start e-commerce? Bangladesh already has trained IT professionals. Its graduates are working with ISPs only for Tk. 4000 (60 dollar!) per month. This shows that Bangladesh already has an abundance of trained IT professionals. Introduction of e-commerce would open new employment opportunities in the country. The member of IT users in Bangladesh is increasing rapidly. According to International Telecommunication Union (ITU) report, Bangladesh had 450,000 internet users in 2007. In October 20,6

2008, number of mobile phone users in Bangladesh stood at 45.09 million. More than 10,000 people are connected in Face book through Bangladesh channels. All the districts headquarters have cyber cafes. Youth accounting for more than 35 per cent of the total population gives Bangladesh an edge to opt for e-commerce. The country needs intermediary institutions to complete transactions.

Lesson: 7The Dimensions of E-commerce The dimensions of e-commerce are Business-to-Consumers (B2C), Business-to -Business (B2B), Business-to-Government (B2G), C2C - Consumer to Consumer, B2E - Business to Employee, C2B - Consumer to Business, B2E (Business to Employee), G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government)

Some important dimensions are describes bellows:Business-to-Consumer (B2C) Business-to-Consumer (B2C) e-commerce is unlikely to be of much use in the foreseeable future in Bangladesh. At the domestic level, low per capita income, limited infrastructural facilities (e.g. low teledensity), weak legal environment (inadequate contract laws, poor implementation and enforcement), and lack of trust and confidence between business and consumers are going to hinder B2C. In the backdrop of such limitations, the low wage economy, with high levels of unemployment and underemployment, will continue to rely on the physical presence of buyers and sellers during a transaction in most cases. B2C for cross border trade is inhibited by the factors suggested for the domestic front. In addition, non-availability of international credit cards, foreign currency remittance restrictions, delays E-Commerce in Bangladesh. Business to Business (B2B): B2B is the selling between companies, wholesale rather than retail. But it means more than that. Efficient use of capital demands small inventories, which entails7

anticipating demand, and so maintaining detailed information flows between all parties involved in today's complex manufacturing processes. B2B involves widening the circle of suppliers (for safety and competition), and of centralizing control (for records and discounts). B2B ecommerce is an important part of any online business. Leaving aside the simple transfer of funds covered here many businesses need some combination of:

Creditworthiness assessment. Guarantee of quality and delivery of goods (escrow services). Safeguards against fraud. Fast collection of funds, with ability to vary the collection period. Reporting: approval of sale, invoicing, delivery, payment. Procedures to handle disputes. Information of all types corporate, technical, identity-building has to be interchanged across the scattered divisions of large companies, and new ideas fostered, assessed and disseminated. Speed is vital, as are improved communication, collaboration, and customer understanding.

Hence many problems with surveys. B2B has reportedly done better than B2C steadier growth, higher profits but is it software sales or savings in companies with B2B-enhanced management that have been measured? Even within the B2B market, there are marked differences between types of software and their successes. Business to Government (B2G) B2G e-commerce is possible in Bangladesh, but on a limited scale at this stage. The government is a major buyer of goods and services from the private sector. Typically, the government procures goods and services by inviting tenders. The availability of the RFP and other relevant documents on-line provides an alternate choice. Transactions involving information collection, obtaining various governmental forms, registering activities can also be conducted on-line. Consumer-to-Business (C2B) A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers8

consumers around the world by providing the meeting ground and platform for such transactions. Business to Employee (B2E) B2E (Business to Employee) E-Commerce generally refers to the requisitioning of supplies by employees for use in their jobs, but this really has grown to encompass much more. For example, B2E makes it very easy for an employee to requisition a new toner cartridge and printer paper - the order is entirely electronic, and supervisors are asked to approve the requisition in the event that the total order exceeds preset limits for that particular employee. Consumer to Consumer (C2C): The introduction of the new economy has helped to create a very individualistic and independent society. Consumers are no longer totally reliant on corporations and are increasingly looking to conduct their own business transactions. This is evident in Western Australia where the number of small businesses has doubled from 1983 to 1999 (Australian Bureau of Statistics, 2001). At the forefront of this movement are Consumer-to-Consumer (C2C) applications within e-Business. G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of e-commerce that involve transactions with the government--from procurement to filing taxes to business registrations to renewing licenses. There are other categories of ecommerce out there, but they tend to be superfluous.

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Lesson: 8Traditional Commerce vs E-CommerceItems Sales Channel e-Commerce Enterprise Internet Consumer Entire world 24x7 Traditional Commerce Manufacturer Wholesaler Retailer Consumer Restricted area Restricted sales hour Market space (store) Sale based on display Market survey and salesman Require information reentry

Sales Hour /Region

Sales place/method

Customer information acquisition

Marketing activity

Market space (Network) Sale based on information Any time acquisition through internet Digital Data without no reentry 1:1 Marketing via bidirectional communication Real time support for customer Dissatisfaction Real time acquisition of customer needs small

One way marketing to consumer Delayed support for customer Dissatisfaction Time different for catching customer needs large

Customer support

capital

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Conventional payment mechanismsValue has been conventionally transferred using a variety of techniques, including: Cash Notes which were until this century issued in many cases by banks, but during this century largely by national governments; Coins; and unofficial tokens accepted as having value, e.g. sweets for small change in Italy in the 1960s and 1970s,when the intrinsic value of the metals in the coins exceeded their face value; Documents Bills of exchange;

Cheques drawn on a bank ; Money orders written by an accepted authority such as a national post office; Letters of credit;

Payment card vouchers. Those mechanisms have various characteristics, such as the extent to which the parties are identified, the traceability of the taxability of the transaction. The reason that so many mechanisms exist is that there are many different circumstances in which value is exchanged, and each of the mechanisms has niche-markets in which it is perceived by at least some parties to have advantages.

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Lesson: 10

Electronic payment mechanismsInformation technology has created, and continues to create, many new possibilities for value-exchange. Some of the new techniques represent automation of existing methods, whereas others are novel or revolutionary. The following mechanisms exist, are in pilot, or are being designed;

Electronic funds transfer at point of sale (EFT/POS) EFT/POS involves the use of plastic cards in terminals on merchants premises. It actually comprises two distinct mechanisms;

Debit-card transactions: These were a new form of value-transaction data, and the keying of keying of a pin, uses a terminal and network to authorize the transfer of value from their account to that of a merchant; Credit-card transaction: These represent the automated capture of data about purchases against a revolving credit account. Financial electronic data interchange(F-EDI)

F-EDI involves the transmission of payment transaction data, and associated remittance advice data, from a payee to their bank, for on forwarding (via banks and/or value-added network operators) to the payees bank and the payee;

Home bankingThis term is used for a variety of related methods where by a payer uses an electronic device in the home or workplaces initiate payment to a payee. In12

addition to computer technology, it can be performed using the telephone and interactive voice response (IVR)

Smart CardSAVINGS The Ready Cash card provides a safe and convenient place to save your money. Like a bank account carried in your pocket, you can use your ReadyCash card as frequently as you wish, and still get interest on the balance in your card. When you want access to your cash, you can go to any participating bank branch to withdraw cash from your card. SECURITY The micro-processor chip (a mini computer) on the card makes the card highly resistant to unauthorized use. A PIN (Personal Identification Number) is needed to authorize each transaction. A photograph of the cardholder also provides security and also acts as a proof of identity. Lost or stolen cards can be replaced with the previous balance intact. SHOPPING Ready Cash merchants can provide you with virtually every shopping need. Our network is large and growing rapidly. With Ready Cash technology, making the payment is easy too. The merchant doesnt have to call a bank for authorization. Transactions are made between the card and the electronic terminal (whether or not the phone is working). After each transaction, you keep a voucher recording the purchase. SERVICES Pay for services as well. Health, medical, courier, internet and many other services are covered by our network. Utility bill payments are also an important feature of the Ready Cash card. Ready Cash one-stop utility bill payments will allow you to make prompt payments of your telephone, water, gas and electricity bills - all at the same counter. Just use your Ready Cash card. It takes less than a minute for13

each bill. No more standing in queues for utility bills will be required. Ready Cash saves you time and effort.

AND MORE... With an ever expanding network, continued product development and great customer service, you will soon notice an important change for the better in your life. Additionally, we offer special prize give-always for new cardholders and existing cardholders who use their card.

'Credit Card'

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The 'credit card', though a new phenomenon in business and transaction arena which had already won the hearts of millions across the globe, has set its foot in this part of the world with its magical power and becoming a way of life here by offering its handy feature and usefulness. The forward march of 'plastic money', the other name of the credit card, is so rapid that the whole concept of monetary system needs immediate review as it has put a question mark in the very existence of paper money. Physical Feature The credit card is rectangular and looks like a phone card. It is a layered piece of hard plastic with holograms and security features. It also carries a strip of magnetic tape on the back which is loaded with electronic data including the cardholders details. The strip is read electronically by specialized machines called Point of Sale (POS) Terminals at merchants or Automatic Teller Machines (ATM). Kinds of Cards There are mainly two kinds of cards-credit card and debit card. By credit card one can purchase from stores called merchants, the price of which is payable at the end of the month through the affiliated banks as per notification. On the other hand, debit card is based on immediate payment system whereby one has to insert card into the ATM (Automatic Teller Machine) located at the key spots in the city. Why it's important? A credit card is a great financial tool. It can be more convenient to use and carry than cash, and they offer valuable consumer protections. Paper money and coin are risky and burdensome for carrying. One can avoid the toll of finger-counting changes in this system. The cardholder is given a code number called PIN (Personal Identification Number) without which the card cannot be used at sales or

Electronic cashThis is another form of automation of cash into electronic form. It addresses circumstances in which the payer is not present at the point of sale or service, but15

has electronic communications facilities available, e.g. is connected to the internet, or to some other manifestation of the emergent global information infrastructure, such as a cable-TV installation with enhanced capabilities. A classification of the kinds of schemes for electronic cash is as follows: Pre-registered credit/ debit card numbers Electronic cash-pool Value-token creation and passing Stored-value card payment ELECTRONIC CHEQUE This system is still evolving. The electronic check emulates the real world check issuance and the transactions take place on the Internet. The consumer issues a digital cheque to the merchant, which is deposited with the merchant's bank. The bank gets the cheque cleared and credits the amount to the account of the merchant. The transaction is shown in figure 7.5. One could see that in the electronic cheque system a number of organizations such as the banks of the consumer and the merchant, the clearing house and the certificate authority are involved besides the consumer and the merchant. The web browsers will have to support the cheque formats. The consumer's cheque is authenticated through a digital signature of the consumer's bank. This will assure the merchant that the account is a genuine one. Certificate Authority might certify the user and the merchant. This will prove the identity of the customer and the merchant. No repudiation is achieved by encoding using the private key or the digital signature of the consumer. The public keys of the banks are to be made available to the customers of both the banks.

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E-Commerce through E-Cheque Establish mutual credentials through X 509 certification, and browse & select goods. Invoice, shopping information & payment instructions Send E-Cheque Deposit (E-Cheque) Validate Cheque Confirm Validity of cheque Dispatch goods Acknowledge receipt of goods Transmit acknowledgement of receipt of goods Clear Cheque Inform crediting money through monthly statement Debit money to customers account & send debit information through monthly statement

Electronic Data Interchange (EDI)

The conventional transactional consisted of lots of paper work and at the same time there is repetition of the work also. We can be carried out with the means of EDI (Electronic Data Interchange):

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All conventional businesses depend upon paper-based transactions for conducting their business. These transactions include events such as preparing, communication and recording invoices, purchase orders, market inquires, statements, reports etc. When these papers reach the organizations or the customers for whom the are intended, or when they are transmitted to other departments or sections in turn generate more paper documents. Thus there is an explosion of documents at every point the transaction passes through. What is EDI? EDI deals with doing business and carrying out transactions with the trading partners electronically using a paperless trading system. Advantage of EDI We saw that EDI is used as a medium for carrying out electronic transactions. Big companies carry out such electronic transactions. Opportunity Benefits:

The most significant advantage of DI will emerge in strategies areas, better customer service and improved marketing competitiveness. As a result of improved efficiency and effectiveness, the companys image gets enhanced. The company acquires a competitive edge over other companies that may not have implemented EDI. With streamlined procedures, trading relationships improve. Operational Benefits

When business adopt EDI, the need to re-enter data from paper documents gets eliminated and thus prevented clerical errors.18

It has been estimated that almost 70% of the data that is input into a computer have previously been output from another computer. Whenever data is re-entered, it becomes a potential source of error. Strategic Benefits Historical data that is b=obtained through trading information built-up from EDI transactions is an valuable source of information that is very useful for market research and strategic planning. The motivation for the implementation of EDI comes from indirect benefits Application Areas for EDI Now that you are aware of EDI and its advantages, below you will see some application areas where it is used.

Banking Finance National Trade Industry Manufacturing Transport Travel Tourism Warehousing Government Customer and excise Statistical

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Lesson : 12 Electronic Catalog of E-Commerce Unlimited number of products

Up-sell products by displaying product accessories in product page Create an unlimited number of online catalogs20

Add different product numbers to the same product:supplier(VPC),customer, Bar code, ISBN, third party Import categories and product records with quantity and prices if not integrated Categorizes and Brands Use brand recognition by adding the brand logo to the product record Add a picture to a category Add descriptions to brands and categories (top page, bottom page, in left menu) Assign products to an unlimited number of sub-categories Product, Category and Brand Descriptions

Detailed multimedia, multilingual description

Include formatted text, videos, pictures, file downloads and more No HTML, Graphic desing or programming knowledge required Standard product image sizes : thumbnail, small, medium, and large Batch import product pictures Separate product information in different tabs in the product record Online Store Display

Customize product display order in a parent category

Display or hide products not in stock or without a price

Prices and Quantities

Enter minimum sales quantities Multi-currency product prices21

Automatically display product price in customers currency by detecting customers country IP (GeoIP)

Volume prices, discount or cost plus prices Lesson : 13

Scope of e-commerce:The scope of e-commerce is as wide as an ocean & there by the implementation hurdles. When one thinks of the electronic commerce even through final goal remains the same as that of the traditional commerce, but the way in which they function in order to improve the performance is different. As information sharing is the major part of the commerce industries, networking has given boost to ecommerce. This change in view-point has opened door for new opportunities. Outsourcing Human Resources Management Offshore Staffing Website Design Software Development Web Marketing Consulting Freelancing IT Jobs Search Engine Optimization.1.

Create the Ecommerce and Tele work (EAT) Center Storefront Goal: To create a centrally located storefront for the EAT Center to attract a wide variety of patrons who wish to learn new skills to help them raise their income levels and maintain their preferred lifestyles. Strategy: Using the first incentive of ready-cash from online auction sales from items brought to the center as the initial attraction, additional incentives22

for participation will be the friendly offer of free training, Internet and computer access, and specialized training workshop events to create for-profit services. Outcomes: The number of participants and participant hours utilizing the center, the number of items sold, the total resulting new income, the number of media exposure events, and the number of Embay-Day fundraisers will be graphically displayed at the Center and updated regularly. 2 Hold a Major Presentation Event to Announce the Purpose and Goals of the Center and Project Goal: To introduce the services, staff, volunteers, and community opportunities presented by the center with emphasis on the opportunity for additional funding if the community rallies to demonstrate widespread active use of the center. This presentation will be videotaped to allow for maximum dissemination. Strategy: Create a multimedia presentation showcasing successes of other communities and individuals specifically related to the intended outcomes of the project in the context of learning whats working for others like you. Articulate the community mission for the project as related to the goals of the Ten First Steps for generating new skills, relationships, collaboration, content, Businesses, and visions for the future uses of communications technology. Outcomes: The presentation will be videotaped so everyone interested will have a chance to see it, including other communities. The ideal outcomes are unbridled enthusiasm for what a community can do for itself as well as widespread participation in the center and the many following activities to be specifically recorded as measurable outcomes. An online public calendar will serve as the basis for local organizations planning their own awareness-raising events. 3. Launch an Email as the Local Web Community Content Resource for Businesses and Collaboration

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Goal: To demonstrate the benefits of posting local content on the web to draw business to the Email as well as to better share information and new learning services throughout the community. strategy: A public graphical display on the Email and at the Center will celebrate all sponsoring organizations and businesses to make it explicit that participation will be rewarded with recognition. All local businesses will be invited to co-sponsor these content and collaboration creation events in return for technical assistance creating Ecommerce web pages and/or other content contributions to the community Email. Specific events will be held for business and community leadership with information packets containing an executive overview on their advantages for direct participation. Outcomes: Records will be kept for the number of events held, the number of participants, the number of sponsoring organizations and businesses, and feedback from participants. 4. Hold a Skills Drive to Create a Mentorship Roster Goal: Conduct a skills assessment to create an online Mentorship Roster to list local talent alphabetically by topic and by name to meet the need for coordination of matching local expertise, with local learning needs i.e. the haves with the have-nots. (Example Mentorship Roster; Ask+ Locator Appendix J.) Strategy: A survey will collect resident skills, recording who is willing to share them, as well as skill needs and who needs mentoring assistance. In rural communities, those with technical skills are often shunned instead of celebrated. A social recognition strategy is needed to provide external recognition for the social value of their skills. Local social recognition will grow as people learn to appreciate that learning new technology skills is easier in a social setting. This project provides a structure to assess and record collaborative successes gathering and sharing information and encouraging new learning through peer mentorship.

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Outcomes: Records will be kept for the number of new mentors and new skills generated by all project participants and multiple ongoing training initiatives.

5.

Hold a Multimedia Fair for Local Champions to Demonstrate New Technologies and Applications and to Create a Series of Locally Driven Workshops. Goal: To demonstrate the benefits of new technology and advanced telecommunications applications as a model process. Whereby, the citizens can conduct training workshops, advertise their expertise, and related services and whereby communities can continually stay current on continually advancing applications. Strategy: Drawing heavily on local volunteer talent, as well as established experts, demonstrations of new technologies and applications will be conducted covering the full range of things that can be done with a computer and Internet given friendly and knowledgeable assistance. This will create new relationships between those with skills and those with learning needs. Outcomes: Records will be kept on the number of persons participating in the presentations, the number of new relationships resulting and the number of new technologies and specific advanced telecommunications applications demonstrated. Records will be kept for the number of advanced workshops held using local talent and the number of participants. Link lists will point to examples of advanced community applications and will provide a summary of ongoing means for seeing the latest advanced applications.

6. Create a Local Online Newsletter as an Incentive for Collaboration Goal: As a conduit for citizen engagement, online collaboration, and storytelling of whats working - each step of the way a collaborative online newsletter will be created and regularly updated throughout the project.25

Strategy: Collaborative incentives will be created for all citizens willing to regularly share their expertise. Effective use of free collaborative tools such as liters with web-based archives will be accessible via the newsletter and Email, including use of bogs a new form of self-publishing allowing anyone interested the equivalent of an online newspaper column with a link included in the newsletter as their means of ongoing contribution. Outcomes: The newsletter serves as an ongoing evaluation mechanism for the community to self-assess its own progress throughout the projects timeline as well as allowing the external evaluator, and the whole world, the ability to monitor the projects progress. 7. Create an E-business Incubator at the EAT Center Goal: Establish an Ecommerce-marketing workgroup Learning Circle to make explicit the need for ongoing learning as essential to sustained Ecommerce success. Strategy: Create an initial Ecommerce-marketing Learning Circle group to establish a functional model for ongoing group learning, both online (using listservs with web-based archives) and face-to-face. This creates online collaboration skills essential to Ecommerce and community learning. Outcomes: The number of participants in the E-marketing group will be recorded as well as the specific level of online and offline interaction. The number of additional learning circles created and their length of duration will be recorded along with their listserv usage levels and number of participants.

Lesson :14

Opportunities of E-commerce

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The growth of the Internet has resulted in a critical mass of consumers and firms that are engaged in commercial activity, as part of the global on-line market place. E-commerce presents a number of opportunities for all parties involved. These are briefly discussed below:

For consumers: The opportunities of E-commerce for consumers are multi-fold. Increased availability of information about products and services. Reduced costs from increased competition, which in turn results in improved quality, quantity and variety of goods and services, through an expanded market. For Business : The opportunities of E-commerce for business include The enormous potential of the Web as a distribution channel. A global medium for marketing communications. Lower distribution costs, as the use of middlemen no longer essential. Lower marketing costs, as buyers and sellers are able to communicate directly with each other. For Governments : The opportunities of E-commerce for government are: Show case the countrys products and investments potential on the world scene. Support a new form of commerce that benefits all classes of society. Increase foreign export earning, and increase tax revenue.

Lesson : 1527

The Presence Condition of E-commerce in BangladeshE-commerce can be very inconvenient for a consumer not getting a product in his locality when it is available in other places. It happens in Khulna and other areas. For example, Khulna residents need to come to Dhaka to buy rare medicines. Students of Rajshahi University need to come to Dhaka to get their reference books at Nilkhet. It would be convenient for them if they could order online. It would save their time as well as money as consumers. For the country, it would increase employment. 1.Intro: Online transaction would boost the gross domestic product (GDP) growth and thus help Bangladesh achieve the Millennium Development Goals (MDGs). In the era of globalization, the Internet makes the world smaller and e-commerce facilitates marketing and shopping from home. E-commerce facilitate business with customers over the internet. In e-commerce, customers can buy goods and services over the internet. 2.What needs to be done to start e-commerce: Bangladesh already has trained IT professionals. Its graduates are working with ISPs only for Tk. 4000 (60 dollar!) per month. This shows that Bangladesh already has an abundance of trained IT professionals. Introduction of e-commerce would open new employment opportunities in the country. 3.Number of using it media: The member of IT users in Bangladesh is increasing rapidly. According to International Telecommunication Union (ITU) report, Bangladesh had 450,000 internet users in 2007. In October 20, 2008, number of mobile phone users in Bangladesh stood at 45.09 million. More than 10,000 people are connected in Face book through Bangladesh channels. All the districts headquarters have cyber cafes. Youth accounting for more than 35 per cent of the total population gives Bangladesh an edge to opt for e-commerce. 4.Online payment system: E-commerce facilitates payment of utility bills, fees etc. Now in Bangladesh, there are thirty sites involved with e-commerce. In these site some sells special products such as, dhakasharee.com sells only saree and woman wears. A good website and online transaction process is needed for ecommerce sites. For online payment we can use credit card, e-check etc. It is a matter of sorrow that we cant buy with credit cards of Bangladesh. Although these sites have limitation, they try their best. One man can easily buy a product from e28

commerce site and pay his bill by credit card. The credit cards are issued by third party, such as, paypal.com, 2co.com etc. In these PayPal is one of the most popular site in Bangladesh. But from Bangladesh we cant be a member of PayPal. For open a PayPal account we must need the help of other countries. 5. Present situation of e-commerce: In Bangladesh e-commerce market is too small. If it is spread all over the world, this will bring good to us. In this time, ecommerce is only used by the emigrant Bangladeshis who want to present their friends in Bangladesh. From overseas one can easily present gift, although its cost is too high. Mainly Bangladesh e-commerce sites are too costly. Emigrants Bangladeshis mainly use these e-commerce sites. If the sells become higher the cost of e-commerce product will decrease. E-commerce sites are not spread all over the country. Most of the sites serve in Dhaka. 6. E-commerce in banking sector: Online transaction is necessary for ecommerce sites. Our banks are also back dated from other banks of the world. If local banks are jointly starting a consortium for online transaction, we can easily start ecommerce. We must enrich our internet infrastructure In Bangladesh, data networks are so weak. In E-commerce total process is in automation. But we are not totally automated. In technology we are in backward direction. Our net speed is not good so we are not habituated with e-commerce. 7. When should need to use e-commerce: We must remember e-commerce is needed when we havent enough time to go to market. Main advantage of the ecommerce sites is they need not show-room, store room. For these cost will become low. To run a e-commerce sit is so easy. If you pay 300-400 dollar, you can easily get a good e-commerce site. A computer, printer, Internet, Digital camera, scanner, to buy products and give it to the customer, it can manage only by two or three people. In Bangladesh to start e-commerce site is so easy. For this in average every month at least one site is added here.

Lesson : 16E-Commerce in Bangladesh: Status, Potential and Constraints

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Introducing on-line payment or allowing electronic fund transfer for selling the RFP would be a significant leap towards B2G in Bangladesh. There are numerous instances of deliberate unavailability of the RFP, namely while the bids for civil infrastructure projects are invited. Syndicated vested groups forbid the other bidders participation by forming a cartel. B2G inherently brings transparency in such cases and ensures a level playing field for all the bidders. Electronic submission of the RFP followed by presenting the hardcopies could also be used to promote transparency, accountability and the threat or coercion that is often evidenced during the bid submission period. In addition, transactions involving information collection, obtaining various governmental forms, registering activities can be conducted on-line. This will reduce time costs, corruption and the necessity of going through lengthy bureaucratic procedures as well as increasing transparency. Lesson: 17 E-COMMERCE IN DIFFERENT SECTORS OF BANGLADESH E-Commerce in the RMG Sector The RMG sector emerged during the early 1980s in Bangladesh and information has been the strategic partner in its phenomenal growth. Telex was the only tool of cross border data communication in those days. International courier services were the means of receiving the approved designs from the buyers. The Facsimile machine, in the mid 80s, radically replaced both of these orthodox communicating media (i.e. telex and courier). This "Office Automation Equipment" contributed towards accelerating RMG exports. Faster and cheaper data communications coupled with real-time design-pattern development enabled the buyer and manufacturer expediting business negotiations. E-Commerce in the Oil and Gas Sector International Oil Companies (lOCs) are the dominant players in the exploration and production of the oil and gas industry. lOCs use the vendors' web pages30

extensively in order to obtain product information. This exercise is also limited to the international vendors as the Bangladeshi business community has yet to become sufficiently cyber-centric. The lOCs make all the payments to the international vendors through Telegraphic Transfer.

E-Finance in Chittagong The foreign banks are the pioneers in adopting electronic finance in Chittagong. Most of the foreign banks are using the computerized transaction system and taking advantage of the superior technology by attracting customers and providing interbranch and interbank linkage. Foreign banks through successful use of a global network have increased the timeliness and accuracy of information, benefiting its customers, its employees and also its management. A broad spectrum of electronic baking services, a subset of e-fmance, is available in Chittagong with various degree of penetration. Credit card and POS services are provided by 23 percent of banks [PCBs and FCBs].

Banking on the Web Though there are 28 banks in Bangladesh, mostly head quartered in Dhaka. Only a select few have web pages. Listed below are the names of the few that do have sites. However, most of these banks do not offer online or electronic service such as Direct Deposit. There are some ATM machines, though not nearly as concentrated as in the United States. The main bank which is involved in Online Banking in Bangladesh are:

HSBC Bank31

Standard Chartered Bank Prime Bank One Bank

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Lesson : 18Benefits of E-commerce The benefits of e-Commerce are many and many. Some of them include:(1) Global

reach: The net being inherently global, reaching global customers is relatively easy on the net compared to the world of bricks (2) Cost of acquiring serving and retaining customers: It is relatively cheaper to acquire new customers over the net. Thanks to 24 X 7 operation and its goal reach. Through innovative tools of push technology to retain customers, loyalty with minimal investments. (3) An extended enterprise is easy to build: In todays world every enterprise is a part of the connected economy; as such you need to extend your enterprise all the way to your suppliers and business partners like distributers, retailers and ultimately you end customers. Internet provides an effective (often less expensive) way to extend your enterprise beyond the narrow confines of your own organization. (4) Dis-intermediation: Using the net one can directly approach the customers and suppliers, cutting down the number of level sand in the process, cutting down the costs. (5) Improved customer service to your clients: It results in higher satisfaction and more sales (6) Power to provide the best of both the worlds: It enhances traditional along with internet tools. 1.E-Commerce in business : E-commerce can transform the way products and services are created, sold and delivered to the customers. It can also change the way in which the company works with its partners. The followings are well established benefits of e-commerce:

Improved productivity :Using e-commerce, the time required to create, transfer and process a business transaction between trading partners is significantly reduced. This improvement in speed and accuracy plus the acess to document and information, will result in increase in productivity.33

Cost savings: The cost savings stem from efficient communication, quicker turnaround and closer access to market. Streamlined business process: Use of internet and with automation of business process can make business more efficient Better Customer service: Customer can enjoy the convenience of shopping at any our and anywhere in the world. Opportunities for new business: Business over the internet have global customer reach. There are endless possibilities for business to exploit and expand their customer base.]

2. Benefits of e-Commerce to Organization Expands the Marketplace to national and international market Decrease the cost of creating, processing, distributing, storing and retrieving paper based information Allows reduced inventories and overhead by facilitating pull-type supply chain management The pull-type processing allows for customization of products and services which provides competitive advantage to its implementers Reduces the time between the outlay of capital and the receipt of product and services Supports Business process re-engineering (BPR) efforts Lowers telecommunication cost- the internet is much cheaper than value added networks (VANs) 3. Benefits of e-Commerce to Consumers Enables consumers to shop or do other transaction 24 hours a day, all year round from almost any location Provides consumers with more choices Provides consumers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons Allows consumers to interact with other consumers n electronic communities and exchange ideas as well as experiences Facilitates competition which results in substantial discounts Allows quick delivery of products and services (in some cases) especially with digitized products34

Consumers can receive relevant and detail information in seconds rather than in days or weeks Makes it possible to participate in virtual auction 4 Benefits of e-Commerce to Society Enables more individuals to work at home, and to do less traveling for shopping, resulting in less traffic on the roads and lower air pollution Allows some merchandise to be sold at lower prices benefiting less affluent people Enable people in third world countries and rural areas to enjoy product and services which otherwise are not available to them Facilitates delivery of public services at reduced cost, increases effectiveness and or improve qualiy

Lesson :19

Disadvantages of e-commerce:Some disadvantages because of newness of e-Commerce. If e-commerce matured they will perhaps remove. a. Inadequate inspection facility b. Security c. legal issues1.

Technical Limitations to e-commerce d. Lack of sufficient system security, reliability, standards and communication protocols e. Insufficient telecommunication bandwidth f. The software development tools are still evolving and changing rapidly g. Difficulties in integrating the internet and e-commerce software with some existing application and data base h. The need for special web servers and other infrastructures, in addition to the network servers (additional cost) i. Possible problems of inter operability, meaning that some EC softwares does not fit with some hardware, or is incompatible with some operating systems or other components35

2 Non- Technical Limitations to e-commerce Cost and Justification -The cost of developing an EC in a house can be very high . Security and privacy Lack of trust and user resistance Channel conflict Other limitations factors are: -Lack of touch and feel online etc

Lesson: 20CONCLUSION The overview of the legal and regulatory statutes suggests that Bangladesh has made significant progress in facing the challenge of globalization and concurrently, embracing e-commerce in due course. Technological and infrastructural constraints to e-commerce can be overcome if existing laws and regulations are implemented. A better understanding of the potential benefits df e-commerce by the policy makers and bureaucrats is essential for speedy implementation and further reforms. Commerce on Internet is already a reality. The communication facilitates which are an offer are rapidly become integrated as core business tools. There are currently more than 25000 companies, which are using Internet to conduct business. The volume of US electronic "home shopping" retail business already reached US $ 2.6 million in 1995. Business transactions carried over the Internet are presently estimated to reach US$ 500 million in 1995 rising to between US $ 2.5 billion in the year 2000.

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New trading opportunities are being established as a result of the growth of the Internet & other on-line networks. At the same time, there is increasing pressure to move from existing paper based payment system to EFT (Electronic Fund Transfer). Microsoft chairman, Bill Gates, is not alone in believing that the convergence of money, commerce and personal computers represents one of the great new markets of modern time. New and unfrozen opportunities can be expected to arise once a secure and cost effective 'mass' market electronic system for making low volume payments is successfully established.

Lesson:21

Some important website market in Bangladesh

www.dhakasharee.com www.number1shop.com www.bdbazar.com www.banglacommerce.com www.sonarmarketplace.com www.dinrat.com www.upharbd.com www.bdgift.com www.hvbebazaar.com37

www.ancbooks.com www.cellbazar.com www.desigreetings.com www.faisalfood.com www.bivob.com www.mayerbazar.com www.flowersgiftsdhaka.com www.duurbin.com www.sonalihalalfood.com www.panjeree.com www.giftmela.com

Future of EcommerceExperts predict a promising and glorious future of ecommerce in the 21st century. In the foreseeable future ecommerce will further confirm itself a major tool of sale. Successful ecommerce will become a notion absolutely inseparable from the web, because e-shopping is becoming more and more popular and natural. At the same time severe rivalry in the sphere of ecommerce services will intensify their development. Thus prevailing future trends of ecommerce will be the growth of Internet sales and evolution. Each year number of ecommerce deals grows enormously. Sales volumes of on-line stores are more than comparable with those of brick-and-mortar ones. And the tendency will continue, because a lot of people are imprisoned by work and household duties, while Internet saves a lot of time and gives opportunity to choose goods at the best prices. Present-day Internet sales boom is the foundation for magnificent ecommerce future. The quantity to quality tendency of ecommerce is also becoming more and more obvious, as the Internet has excluded geographical factor from the sale. So it doesnt matter any more whether your store is situated in New York or London or in a small town. To survive, merchants will have to adapt rapidly to the new conditions. To attract more customers e-store-owners will have not only to increase the number of available services, but to pay more attention to such elements like attractive design, user-friendliness, appealing goods presentation, they will have to opportunely employ modern technologies for their businesses to become parts of ecommerce future. Of course, those, who acquire e-stores earlier, get better chance for future success and prosperity, though an ecommerce site itself doesnt guarantee you anything. Only an appropriate ecommerce solution in combination with thorough emarketing and advertising can buy you business insurance

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ecommerce glorious foreseeable ecommerce ecommerce notion inseparable , eshopping ecommerce ecommerce ecommerce enormously on-line brick-and-mortar comparable , imprisoned , Present-day magnificent ecommerce ecommerce quality quantity , doesnt , e-store-owners , , user-friendliness, appealing , ecommerce opportunely , , e-stores , , ecommerce doesnt thorough emarketing ecommerce - Up-sell : supplier(VPC), , , ISBN, integrate Categorizes Brands ( , , ) sub-categories , , multilingual , , , , desing : , , , 39

Quantities customers .. customers Multi-currency (GeoIP) , plus insurance

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