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E-COMMERCE
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Page 1: E commerce

E-COMMERCE

Page 2: E commerce

Electronic-business e-business can be defined as

the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society’s needs through the facilities available on the Internet.

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E-commerce

is a part of e-business and is the term used to refer only to the buying and selling activities online including when a firm uses the Internet to identify suppliers, select products or services, make purchase commitments, complete financial transactions, and obtain service.

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MEANING &DEFINATION Refers to the use of the internet and

the web to transact business. Formally,ecomm is about digitally

enabled commercial transactions between and among organisations and individuals.

Comm transactions involve the exchange of value (eg.money)across organisational or individual boundraies in return of products and services.

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Features of E-Comm

Ubiquity Global reach Universal standards Richness Interactivity Information density Personalisation/customization

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Key concepts

Digital markets Digital goods(goods deleivered over

digital network.newspapers,magzines,video,software etc)

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Types of E-Comm Business to consumer(B2C)-involves retailing

products and services to individual shoppers. Business to Business(B2B)-involves sales of

goods and services among businesses.eg.chemconnects website for buying and selling natural gas,chemicals and plastics etc

Consumer to Consumer(C2C)-involves consumer selling directly to consumer.eg.e-bay

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The Internet and Electronic Commerce

Internet Business Models The last thing you want to do is throw up a Web site or a

Web page, include an email address, and call it done! Regardless of the type of business, you have to determine what you're going to do behind the scenes and how your electronic commerce efforts will fit in with your regular business processes.

There is no simple step-by-step list of things you need to do to establish an E-commerce process, no "one size fits all" method. But remember these facts:

• It's not cheap. • It's not easy. • It's not fast.

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Internet Business Models

Category Example Virtual Storefront : Amazon.com Marketplace Concentrator : ShopNow.com Information Broker : Travelocity.com Transaction Broker : Ameritrade.com Auction Clearinghouse : eBay.com Digital Product Delivery : Bluemountain.com Content Provider : WSJ.com On-line Service Provider : Tuneup.com

The above egs. shows some ways companies use the Internet to conduct business.

The real lesson you should learn is that no business can afford to rest on its laurels and assume its business or industry is safe from changes caused by the Internet

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Customer-Centered Retailing Some of the most successful consumer E-commerce

companies have found that it isn't enough to set up a Web site to sell products: consumers want information about the products themselves and how to integrate the products into their lives.

Amazon.com, probably the most talked-about consumer retail Web site, doesn't just sell books and CDs. It also offers book reviews from other customers, links to other books related to the one they're purchasing and the opportunity to purchase gifts for friends and relatives which are then gift-wrapped and sent out. Amazon.com is moving into other markets such as online auctions and now owns part of an online grocery shopping service.

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Disintermediation

reintermediation, the process of creating new middlemen,removing the middleman, helps to improve profits while reducing prices. Many people are concerned about selling products online because of the possibility of fraud.

Let's say you want to sell an antique car through your Web site. A stranger in delhi emails you with an offer of rs.100,000. You hesitate to seal the deal because you don't know anything about this individual. You can use an electronic escrow service that will hold the buyer's funds to ensure he receives the merchandise while you make sure you get paid.

eg . eBay.com Online auction services offer a form of reintermediation through their Web sites to get buyers and sellers connected.

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Business-to-Business E-Commerce When you think of Internet-based business, you

probably think of businesses selling to individual customers. It may surprise you to learn that business-to-business is fastest growing area of E-commerce and outpaces consumer retailing by millions of dollars.

The Internet allows many smaller companies to participate in government and private bids they otherwise would be locked out of by bigger competitors. Governments and companies that let out the bids are finding that they get lower bids through the Internet because of the increased number of bidders.

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Extra costs Let's say you've always gotten your office supplies

from the store down the street. Suddenly you discover a Web site that offers lower prices. So you fill up your shopping cart and purchase your supplies from the Web site. But then you add in the shipping and handling costs. Did you really come out ahead?

If you're the one selling the product, you should make sure your prices and extra costs are in line with your competitor's. You also must make sure your company can handle the possible increase in sales. All parts of your organization should be involved in supporting the E-commerce effort, not just one or two departments.

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Intranets and Electronic Business How Intranets Support Electronic Business • Connectivity: Accessible from most computing

platforms • Can be tied to legacy systems and core

transaction databases • Can create interactivity applications with text,

audio, and video • Scalable to larger or smaller computing

platforms as requirements change • Easy to use, universal Web browser interface • Low start-up costs • Richer, more responsive information

environment • Reduced information distribution costs

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Intranet Applications for Electronic Business

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Coordination and Supply Chain Management

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An Intranet can drastically reduce an organization's supply chain costs and management through improved coordination between various departments. It's possible that the production and shipping departments are located in one building, and the engineering department is located across town. The engineers can waste a lot of time traveling back and forth across town or simply fail to coordinate with production altogether. An Intranet offers much improved coordination between these departments.

Outside suppliers have an advantage if they have access to the company's Intranet because they stay up-to-date on the latest design changes. They can also process deliveries easier and faster by having access to information that communicates the company's needs.

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Organizing e-Business Resources 1. Human resources, in the form of people who can

design, create, and maintain web sites, are only a fraction of the specialized talents required by businesses considering an Internet presence.

2. Material resources must also include specialized computers, equipment, software, and high-speed Internet connection lines.

3. Informational resources, generally in the form of reporting software that focuses on tracking the efficiency of the web site operations and offers insight into how satisfied customers are interacting with the firm’s web site, are needed.

4. Financial resources, the money required to start, maintain, and allow the firm to grow, usually reflect greater participation by individual entrepreneurs and venture capitalists, instead of conventional financial sources such as banks

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Creating e-Business Profit Firms can increase their profits by either

increasing sales revenue or reducing expenses through a variety of e-business activities.

• Revenue Growth. A fundamental concern for online firms is how to select, develop, and nurture sources of revenues. Each source of revenue flowing into the firm is referred to metaphorically as a revenue stream.

• Expense Reduction. Expense reduction is the other major way in which e-business can help increase profitability. Providing online access to information customers can reduce the cost of dealing with customers.

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The Future of E-Business: Growth, Opportunities, and Challenges Measurements of Growth. Measurements of e-business growth not only

illustrate the magnitude and scope of how much has happened in just a few short years but also indicate trends for the future.

� More than 61 percent of U.S. home Internet users go online every day–often several times

a day–compared with 57 percent in 1998 and 46 percent in 1997. � Home users spent an average of 7.2 hours a week online,

about the same as 1998, indicating home users have found a stable amount of time to allocate to Internet activities.

� Men still outnumber women slightly, but the growth in the number of women users has risen steadily. In 1997 only 16.5 percent of women were online and, by late 1999, that figure was up to 49 percent.

� The average Internet user’s age has risen steadily as well, to 40 years, up from 38.6 years

in 1997. � The number of Internet users making purchases online nearly

doubled between 1998 and 1999, going from 27 million to 52 million. � According to a Neilsen / NetRatings survey, 130 million people can

access the Internet from home, and some 80 million did in April 2000.

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In comparison to the home market, 35 million users had access to the Internet at their places of work, and nearly 31 million of them actively used the Internet. Both groups of users spent about thirty minutes per session and viewed an average of thirty-five pages. The primary difference between these groups was in the number of sessions per month, where those at work connected an average of thirty-eight times per month, twice the

number of those at home. • Global Internet users spent an average of 7.6 hours

online in March 2000, up from 7.17 average hours per month in January 2000. The most time was spent by Internet users from the United States and Canada with a combined average of nearly thirteen hours per visitor per month, while users in Europe spent on average just over five hours on the Internet in March.

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Convergence of Technologies. The phenomenon of overlapping capabilities and the merging of products and services into one fully integrated interactive system is referred to as the convergence of technologies. We can expect to see this tendency to help develop interactive television programs, which will allow viewers to pause, or even select, a preferred direction for a program.

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Online Communities. Online communities, which are made up of groups of individuals as well as

firms who in some way wish to exchange information, products, or services over the Internet are likely to grow.

Partnering Online. Although opportunities will continue to exist for independent e-business effort, much success will continue to come from firms that can cooperate and partner with others. By playing

a partial role within a larger entity, smaller firms can enjoy competitive advantage, access to marketable items, and thereby increase their rate of market penetration.

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You are a part of the most revolutionary time in business. Many companies are struggling with all the changes and trying desperately to comprehend their role in the new world. You can help yourself and your organization tremendously by understanding the issues involved and developing innovative strategies to resolve the problems.

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THANKYOU

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E-Commerce - Economic Drivers

Economic drivers of e-commerce some broad themes have emerged as “important” for understanding the economic and social impact of electronic commerce

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Electronic Commerce Transforms the MarketPlace

Electronic Commerce has a Catalytic Effect

Electronic Commerce Growth Jobs and Skills