Ecommerce

INTRODUCTION TO ECOMMERCE

Brief History

1970s: Electronic Funds Transfer (EFT) Used by the banking industry to exchange account

information over secured networks Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies Used by businesses to transmit data from one business to another 1990s: the World Wide Web on the Internet provides easy- to-use technology for information publishing and dissemination Cheaper to do business (economies of scale) Enable diverse business activities (economies of scope)

E- Commerce

VS

E - Business

E - Commerce

buying and selling of products or services over electronic systems such as the Internet and other computer networks

E - Business

E-business involves business processes spanning the entire value chain:

electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners

Advantages and Disadvantages

Ware housing Inventory Handling costs Soft products

• Trust and Reliability• No Physical presence• Network security

issues• Payment Frauds

Sample E – Commerce Applications Supply chain management Procurement and purchase Video on demand Home shopping – ebay, Future

bazaar. Remote banking – SBI, HDFC Online marketing – google, yahoo Interactive games – zapaak Information on demand – send space Ticket booking – bus, movie, train -

IRCTC

Types of e-commerce business-to-business (B2B) business-to-consumer (B2C) business-to-employee (B2E) business-to-government (B2G) government-to-business (G2B) government-to-government (G2G) government-to-citizen (G2C) consumer-to-consumer (C2C) consumer-to-business (C2B)

Business-to-Business (B2B) is a term commonly used to describe commerce transactions between businesses like the one between a manufacturer and a wholesaler or a wholesaler and a retailer i.e both the buyer and the seller are business entity

Business-to-consumer (B2C) describes activities of businesses serving end consumers with products and/or services.

Consumer-to-consumer (or C2C) electronic commerce involves the electronically-facilitated transactions between consumers through some third party. A common example is the online auction.

Business-to-employee (B2E) electronic commerce uses an intrabusiness network which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes.

- Online insurance policy management

Government-to-Business (abbreviated G2B) is the online non-commercial interaction between local and central government and the commercial business sector. For example govt auctions.

Government-to-Citizen (abbreviated G2C) is the online non-commercial interaction between local and central Government and private individuals, rather than the commercial business – paying tax etc

Government-to-Government (abbreviated G2G) is the online non-commercial interaction between Government organisations, departments, and authorities and other Government organisations, departments, and authorities.

Internal facing - joining up a single Governments departments, agencies, organisations and authorities

External facing - joining up multiple Governments IS systems

Consumer-to-business (C2B) is an electronic commerce business model in which consumers (individuals) offer products and services to companies and the companies pay them. This business model is a complete reversal of traditional business model where companies offer goods and services to consumers

Internet Usage and Population Statistics

Building a e-business

Learn what it means to join e-business revolution Find your unique place in the e-business market Shape your e-business idea Investigate your e-business competition Formalize and conceptually test business idea Build a fast and functional website Market your e-business Find a trading community support syour e-

business Continuous improvement

Learn what it means to join e-business revolution

What is the reach of internet audience of your target group?

What is the amount spend by your target group on web

What is the share of advertisement in your target group

What is the primary way of advertisement SEO, Internet Marketing, Advertisements.

Learn what it means to join e-business revolution Reasons

Offers a huge potential audience for your service/product

Barriers to entry are remarkably low The future of internet business are much

higher Hard thinking and carefull planning in

internet can pay off big

Find your unique place in the e-business market Offer wide range of products and

services Offer better quality products and

services Offer better prices and better terms Offer easier ordering processes Offer quicker shopping Offer desirable bonus ( airlines ) Offer personal attention and service

Find your unique place in the e-business market Offer reliable warranty's Offer greater expertise than

competitors Maintain testimonials Maintain customer satisfaction

records and improve.

Shape your e-business idea Small E-Business Project Medium Sized E-Business Project The Large Scale E-Business Project

Investigate your Competitors Use search engines to search Select likely competitors and save

their contact info Seek out associations that list

companies in your business area Prioritize your investigate based their

success Do intensive investigation on top ten

competitive websites

Take notes based on three criteria Best practices, common practices, bad

practices Judge the success of primary

competitors Summarize your data. Understand.

Investigate your Competitors

Formalize and Conceptually test your idea Basic business idea Description of products and services Plan to conduct your business Plan to market your business Plan the revenue generation model Formalize the management Attract seed capital.

Protect Your Business Concept Evaluate your need for patent and

copyrights Copyright gives the creator of the work

ownership of it for 28 years A trade secret is a form of intellectual

property developed by its own resources not from publicly available information

A patent gives the holder the right to determine the use and financial royalties for a period of 17 years

Insure yourself against disaster and fraud (insuretrust.com)

Build a fast and functional website Getting your domain name Qualities of a great domain name

Easy to remember Should not be easily misspelled or

confused Should fit your business

Build a fast and functional website Focusing on your customer needs

( Likes ) Fast loading Clear picture Professional, Creative flair Easy navigation Contact information Useful links Balance between graphics and content

Build a fast and functional website Focusing on your customer needs

(dislikes ) Slow loading Graphics Browser incompatibility No Proper Roadmap

Build a fast and functional website Do it yourself

You don’t have to be an html guru Publisher/frontpage

Outsource Choose an experienced webdesigner Choose a webdesigner you can visit in person Don’t rush to get a firm price Take suggestions Let him know your budget Have good interpersonal skills Find the right host

Market Your E-Business

Banner ads Beyond Banner ads

Barter and exchange of advertisement links Involve in link exchange Email messages E news letter List your business with search engines Join a mall Give something away Brand your website everywhere you can

Build your business team

How to spot management pitfalls and disaster How to hire effectively and legally How to meld a diversity of talents in single

team How to competitive salary info Find, evaluate and hire a consultant When to consider to increase staff How to motivate yourself and employees How to maintain employee integrity How to manage knowledge and change in

your business

Manage your E business team Four components of the involvement

factor The needs component

Need for achievement Need for power Need for affiliation

The expectancy component The equity component The attitude component

Protecting your business from theft and fraud Establish policies Educate employees about policies Install video surviellance

Enhance the business model and design Evaluate your people Setting ambiguous but attainable

targets Track your customer satisfaction

Myth1 – I can tell when my customers are satisfied

Myth2 – My cust will me when there is prob

Myth3- my employees will inform me. Keep your site fresh

Online Education / Education on demand

Five important reasons for online education Modern education lacks age homogeneity, you will find

youth, middle aged or retired seniors Continuous business education is necessary as

companies educate their employees on news, events, latest technology, what gives better environment than 24 hour online edu.

Education and entertainment are converging ( Edutainment) with visual elements.

Delivery of educational instruction changed, here student will dictate when and where he or she want

Electronic access to online database and library catalogs, eliminating the need of much book references.

Two types of instructions

Synchronous(face to face interaction, either class room or through teleconferencing)

Asynchronous (between faculty and students via email, bulletin boards, electronic publishing)

Online Education Terminology online learning E- Learning distance education distance learning technology-based training web-based training computer-based training (generally

thought of as learning from a CD-ROM)