Rubco E Business

KERALA STATE RUBBER CO-OPERATIVE LTD.

CHAPTER I

INTRODUCTION

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CHAPTER 1

INTRODUCTION

A good information system is essential for the smooth functioning of the Organisation in

the today’s competitive environment. The evolution of Information Technology made

drastic changes in the field. In this competitive world the companies who produce the

highest quality information only can compete with others. The evolution of e-commerce

had reduced the barriers of distance. Now any one can buy and sell products and services

from any part of the world at any time.

The main object of the study is to familiarize with overall organization structure and major

concept regarding an organization and to implement e-business system to the organization.

In RUBCO e-business system is not operating for all products. Only for Virgin Coconut Oil

e- business is operating. They are doing manual ways of doing business. So my objective is

to propose the e-business project for Rubco which help the organization to maintain to the

competitive edge in today’s business.

OBJECTIVES OF THE STUDY

To get clear picture about E-business in a practical way.

To study the application of E-business in Rubco.

To understand if it is feasible to replace present mode of transaction with the new

technology.

To identify the features that is advantageous to the organization.

SCOPE OF THE STUDY

The scope of the study is to study about the organisation, its oranisational structure, its

marketing activities, pricing, promotional aspects and then designing of e- business system

to the company. It is very necessary to know about e-business and its applications.

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METHODOLOGY

The methodology used for this study is through collection of primary and secondary data.

The primary data are collected through informal interviews.

Secondary data are collected from various secondary sources such as product brouchers and

websites.

LIMITATION OF THE STUDY

The time allowed for the study is not enough to cover all the areas.

The main source of data is secondary which is not reliable.

CHAPTERISATION

CHAPTER 1: INTRODUCTION- Deals with introduction, objective and scope of the

study, data sources, limitation of the study and chapterisation.

CHAPTER 2: COMPANY PROFILE- Deals, company profile, product profile, and

organization structure.

CHAPTER 3 : LITERATURE REVIEW- Deals with the e-business, models, e-

commerce, advent of e-commerce, advantages and disadvantages of e-commerce,

beneficiaries of e-commerce, ERP, EDI, M-Commerce, open issues in e-commerce, e-

commerce strategy formulation, network agents, limitations of e-commerce, e-business

categories, and e-marketing.

CHAPTER 4: SYSTEM ANALYSIS- Depicts the present system of marketing system in

the Organisation, limitations of existing system, and advantage of proposed system

CHAPTER 5: SYSTEM DESIGN - This chapter depicts how to design an e-business

system, system testing, and system implementation.

CHAPTER 6: WEBSITE COMPARISON OF RUBCO AND PARAGON

CHAPTER 7: FINDINGS, CONCLUSION AND SUGGESTIONS - It deals with

findings, conclusion and suggestions made after the study.

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CHAPTER 2

COMPANY PROFILE

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CHAPTER 2

COMPANY PROFILE

RUBCO GENERAL INTRODUCTION

Kerala State Rubber Co-operative Limited (RUBCO), is situated in Kannur, Kerala State,

India, is promoted by the provisional Government of Kerala to promote Rubber based

industries in this part of the country.

Today India enjoys 4th position in the production of Natural Rubber (NR) in the world.

Among the total production, small state of Kerala contributes 83%. So rubber has become

the backbone of our economy .Due to the bad impact of globalization the overall market of

rubber fell down in Kerala that time instability in price of rubber, was one of the major

problem that farmers facing in the market .The farmers were not getting fair price for their

effort, But this problem has came to a end since 1997,because The Kerala State Rubber Co-

operative limited (RUBCO) came into existence in this year on the purpose exploring the

infinite possibilities of rubber. Since its inception in 1997, RUBCO has traveled long. It has

entered into various Rubber and Rubber wood based industries like Hawai Chappal with

reputed Malaysian Technology, Cycle Tyres and Tubes, Rubberized coir mattress,

conventional and procured Tread Rubber, Block Rubber (SMR), Pale Latex Crepe (PLC),

casual shoes etc.

For last half decade with a vision to become a global leader in the production of Natural

Rubber and innovative product development, RUBCO adopts the best and latest process in

the production.

In their slogan itself they had mention that:

"RUBCO means RUBBER and RUBBER means RUBCO"

Today, from a single unit company, Rubco has grown into a Rs 280 Crore Conglomerate

with well diversified operations. Divisions operating under Rubco Group are involved in a

wide range of Business such as Footwear, Furniture, Cycle Tyre and Tube, Rubberized Coir

Mattress and Natural Rubber.Rubco is the largest Exporter of Natural Rubber in the

Country today. Even in domestic market Rubco is a major supplier of Natural rubber to all

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leading Rubber based companies in India, led by a professional management team and

supported by a committed workforce. Rubco is now poised to enter a high growth phase

with several initiatives that will take the Group on a path of expansion and diversification.

The Head Office of RUBCO Ltd. is situated at ‘RUBCOHOUSE’, Kannur. The Chairman

and MD share the topmost authority at the H.O followed by concerned GM. A trading

division is functioning with it office at H.O exclusively for the procurement of and sale of

natural rubber.

OBJECTIVE-SOCIAL

To ensure a steady market with remunerative price to rubber growers for their natural

rubber.

Welfare of rubber growers particularly of small and marginal segment

OBJECTIVE- COMMERCIAL

To promote , establish, maintain and manage the business related to manufacture and

sales of tyres, both radial and bias for Heavy Vehicles, LCV, Passenger Cars and

other four wheelers

Tyres for three wheelers and two wheelers

Purchase and Sale of rubber in any form such as Latex, Sheets, Crumbs and Laces

Manufacturing of Rubber and Rubber Wood Based Products

GROWTH AND DEVELOPMENT OF ORGANISATION

Kerala State Rubber Co-Operative Ltd, (Rubco) has in a short span, redefined the way the

cooperative sector functions and set the pace for the co-operative Movement in Kerala

today. Rubco was set up in the year 1997 with the objective of effectively utilizing the

abundantly available rubber resources of Kerala .Today, from a Single _unit company,

Rubco has grown in top an Rs.280 crore conglomerate with well Diversified operations and

market presence extending beyond the boundaries of Kerala. Rubco manufactures and

markets variety of products from footwear to furniture, from Cycle tyre tube and tyres to

mattress.

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Rubco has also entered into technological alliances with world leader in the respective

field; sourcing from them state-of-art technology .Substantial investments in modern

manufacturing facilities, coupled with well-Organized marketing activities, have seen

Rubco's products earn a reputation for quality and significant market shares.

Rubco is the largest exporter of natural rubber in the country today. Even in the domestic

market, Rubco is a major supplier of natural rubber to all leading Tyre companies in

India .Rubco is also a government intervention agency towards Market stabilization and has

been serving the farming community directly and Indirectly to get reasonable price,

arresting drastic fall in price during peak production Periods; natural rubber trading has

being a blend of Social obligation and commercial practicability led by a professional

management team and ably supported by a committed Workforce, Rubco is now poised to

enter a high growth phase, with several new Initiatives that will take the group on a path of

expansion and diversification rubber Holds immense potential for a wide variety of

commercial uses which is yet to be fully Tapped into .By realizing this potential, Rubco

hopes to create opportunities and bring Industrial progress to a land that accounts for 92%

of the country's natural rubber Production .

ADMINISTRATION AND MANAGEMENT

The Administration and Management of RUBCO vests in the Board of Directors consisting

of fifteen members as follows:

Nine Directors elected by ‘A’ Class Shareholders from among themselves.

Two Directors elected by ‘B’ class Shareholders from among themselves.

Four Ex-officio Directors viz.

Registrar of Co-operative societies , Kerala

Chairman, The Indian Rubber Board.

President, Kerala State Co-operative Bank Ltd.

Managing Director, RUBCO.

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CHAIRMAN: Mr. E NarayananHe is a veteran Co-operator and is holding various

positions as Chairman in Central and State Level Co-operative organizations.

MANAGING DIRECTOR: Mr. Jacob D Mathew

He has more than 25 years of experience as CEO in Corporate Sector.

OTHER DIRECTORS

Sri. Krishnan

Sri. C K Chandu

Sri. Grorge Mathew

Sri. V N Vasavan

Sri. U Azeez

Sri. Paneeri Mukundan

Sri. Shyamala Devi

Sri. Kannan A

Sri. Jacob D Mathew

The chairman – Rubber Board, Kottayam

The registrar of Co-operative societies, Trivandrum

The president, Kerala state Co-operative bank, Trivandrum

PROMOTERS:

Government of Kerala (GOK) along with Indian Rubber Board and some District &

Primary Co- operative Banks in Kerala are the promoters of RUBCO, GOK holds the

majority of the shares. The top Ten share holders are GOK, Rubber Board, Kottayam

District Co-operative Bank, Palakkad District Co-Operative Bank, Erankulam District Co-

Operative Bank, Kozhikode District Co-Operative Bank, Kannur District Co-operative

Bank, Trissur Co-operative Bank, Thiruvanthapuram District Co-operative Bank and

Kollam District Co-operative Bank.

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MILESTONES OF RUBCO

9th June

1997

Registered RUBCO, Commenced operations

in October in the same year

15th

October

1997

Commenced procurement of rubber

17th

February

1998

Commenced procurement of Rubber from

farmers through depots

28th May

1998

Foundation stone laid for foot wear

manufacturing factory and Tread rubber

manufacturing unit at Koothuparamba,

Valiuavelicham Industrial Centre.

June

December

1998

Exported rubber to Singapore & Nepal

July 1998 RUBCO takes over the reins of

Sreekandapuram Latex (Pvt.) Ltd.

11th

February

1999

Entered in to an important agreement on

technological collaboration for manufactures

of ultra light weight footwear with Hi-Tech

setters.

2nd March

1999

Foundation stone laid for P.L.C factory in

Sreekandapuram

26th May

1999

Inauguration of foot wear manufacturing unit

and foundation stone laid of cycle tyre

manufacturing unit.

15th June Floated Rubco sales international ltd. to

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1999 professionally market the products of Rubco.

23rd June

1999

Signed a significant technical collaboration

agreement with long Huat Berhad of Malaysia

for the processing of Rubber Wood and

furniture that.

13th

August

1999

Rubco Footwear hit the market.

19th

October

1999

Foundation stone laid for the rubber wood

processing and furniture unit

30th

October

1999

Foundation stone laid for Rubberized coir

foam Factory at Pampady, Kottayam

9th

December

1999

Entered into an agreement with M/s Tog

Teik(pvt) Ltd of Singapore to Export 15000

Metric tons of rubber first time from India .

8th March

2000

Entered into a technical collaboration with

Pancarwarna Management & Consulting

service, Malaysia for Manufacture of casual

shoes.

6th May

2000

Foundation stone laid for casual shoe project.

1st

January

2001

Rubco huat wood furniture factory

commenced commercial production.

16th June

2001

Incorporation of RUBCO Tyre India Pvt. Ltd.

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20th April

2002

Started activities of coconut complex for the

production of virgin coconut oil and ancillary

products.

6th

December

2002

Started RUBCO RUFAS Scheme (collection

of Natural Rubber Latex from farmers.)

20th

December

2002

Expression of interest submitted to the

government of Kerala for setting unit for the

production of rubber components for

automobiles and with a capital. Outlay of 20

million USD

23rd

January

2003

Signed MOU with coconut pacific Pvt. Ltd. of

Australia for the production of Coconut Virgin

oil.

MILESTONES (TABLE 2.1)

PRESENT STATUS OF THE ORGANISATION

Rubco is a well -diversified industrial conglomerate with a strong presence in the rubber

based industrial segment .Rubco was formed with the prime objective of utilizing

abundantly available rubber resource of Kerala .In a short span of time Rubco has

successfully introduced a wide range of fast moving rubber based products. Today Rubco

group of companies has established new factories of Rubber Footwear, Cycle Tyres &Tube

Rubberized coir mattress, processed rubber and rubber molded coir mats.

RUBCO FOOTWEAR DIVISION -Making Impressive Strides

Rubco's footwear division manufactures a range of quality casual rubber Footwear .The

plant employs sophisticated machinery and has production capacity of 3.6 million Pairs per

annum.The product range includes sturdy regulars and comfy Ultra-lites (manufactured

under the renowned Malaysian technology), perfect blend , quality raw material and

superior manufacturing methods make the Rubco range Second to none .In the short span,

Rubco has made its presence felt in fiercely Competitive markets on account of the

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excellent quality of its products .This division also manufactures honey comb rubber mats

in fascinating colors.

Rubco's footwear range presently comprises of three leading brands -Rubco Hawai, Rubco

Rainbow and Rubco Classic. Rubco Hawai has durable flexi strap, soft Insoles and power

Grip technology, offering true value for money. Rubco rainbow is Colorful range of ultra

light casual footwear with cushioned insoles and extra soft straps. Rubco classic is a top

quality Hawai that provides excellent wearing comfort and Durability

RUBCO CYCLE TYRE & TUBE DIVISION -On the Fast Track

Rubco Cycle Tyres & Tube division has already gone on stream Manufacturing a range of

sturdy, technologically superior cycle tyres and tubes suitable For rough terrains and

track .The production facility, spread over 25000sq.ft is Equipped with modern imported

machinery including Taiwan made CNC mould which imparts better finish to the tyre .The

plant has an annual installed capacity of 3 Million tyre and tube. Rubco's range of cycle

tyres & tubes has advanced features such and as high on skid depth improved wet-skid

resistance and traction property and more mileage and puncture resistance .High tensile

copper coated steel bead wires add durability and rim holding capacity .The entire range of

cycle tyres is being exported to the UK

RUBCO HUAT WOODS PVT.LTD- Design on the Future

A joint venture with Long Haut Group Berhad of Malaysia, a world leader in rubber Wood

furniture, this division manufactures a range of elegant furniture and quality edge-glued

panels using the eco-friendly rubber wood .Rubber wood properly treated and processed, is

emerging as the deal substitute to rain forest wood, as it offers the same strength, durability

and finish as the latter, and also help preserve the environment. The furniture

manufacturing plant has a processing capacity of 40000 metric tons per year .The products

are being exported to UK, USA, Japan and many other countries across the globe.

Rub wood, the furniture range, comprises of dining tables and chairs, designer wardrobes,

futons, kitchen cabinets, computer tables and office furniture and is available in the choice

of designs and finish .The edge -glued panels manufactured using sophisticated finger

jointing technology, are easy to saw, drill, bore on stain and have excellent nail-holding

capacity.

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RUBCO SREEKANDAPURAM LATEX PVT .LTD -Tapping new Opportunities

Rubco sreekandapuram Latex Pvt.Ltd became a part of the Rubco group When a loss -

making unit was taken over by Rubco by acquiring 65% of its shares .In a short span of

time, by sound backroom operations unit was turned around and is Today posting

profits .The Company manufactures Block rubber (ISNR) and pale Latex Crepe

(PLC) .Rubco is in the process of expanding the scope of operations of this unit in line with

market trends.

RUBCO SALES INTERNATIONAL (P) LTD – Crafting Winning strategies

Rubco Sales International (RSIPL) is a private limited company promoted by Rubco to

spearhead the sales and the marketing activities for Rubco's entire range of product in the

domestic and international markets .Within a short span of its inception, RSIPL could

effectively develop a deft, competent network domestically as well as Globally and

undertake the successful launch of Rubco's product. Apart from gathering Market

information and monitoring the supply chain system, this division is also responsible for

nurturing and sustaining excellent customer relations.

VIRGIN COCONUT OIL

The project envisages establishment of 100 co-operative coconuts processing units in

Kerala, To start with, which will be increased to 200 units subsequently for the production

of coconut oil directly from green coconuts without going through conventional copra or

milk route. The process methodology is commonly known as Direct Micro Expelling

(DME) Technology. The centralized packing unit is at Kollanchery in Ernakulam District.

The place is accessible by road and rail from all other parts of the country. The place is

blessed with all infrastructure facilities for setting of such a project.

Coconut oil extracted from fresh coconut kernel by Direct Micro Expelling Technology is

of very high quality and commands a premium price because of its use as a health product.

This is a highly sought after item as a health product and is used as massage oil and also as

baby oil for massaging small kids. Coconut oil is a much sought after product for edible use

in the households and non-edible use as hair oil and as cosmetic and industrial oil.

The project also proposed to set up a centralized packing cum marketing unit for Virgin

coconut oil manufacturing the cooperative processing units.

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RUBCO MATTRESS DIVISION

Rubco's rubberized coir mattress division, at Poothakuzhy near Pampady, Kottayam which

started its operation in 2001, is an ambitious project realized with an investment of 260

million. The manufacturing plants among the very few in the country to employ advanced

Austrian machinery, sourced from DOA-Austria a technology leader in rubberized mattress.

Rubco rubberized coir mattresses are scientifically designed to provide proper back support

without compromising on comfort. By virtue of their ingenious design and construction and

the unique 3-D technology, Rubco mattresses are firm without being hard and extremely

durable. As they do not sag, they are very comfortable and ensure a healthy and restful

sleep. Rubco rubberized coir mattresses are crafted from the finest materials and finished to

perfection in one of India's most modern manufacturing plants.

The furnishing section is equipped with most modern computer controlled machines

imported from U.K. and U.S.A. Strict quality control is observed at every stage of

production to ensure that Rubco rubberized coir mattress always measure to the highest

quality.

A unique Feature of the main sheeting plant is that it facilitates Vertical fiber Orientation, a

Proceed that result in a deeper penetration of latex in to the sheet, making it very

elastic .This provides the mattress with uniform density throughout and an extra Cushioning

effect.

FUTURE OF THE ORGANISATION:

The main future plans and the progressing proposals of Rubco group are

RUBCO TYRES INDIA (PVT) LIMITED

Rubco is in the process of setting up a project for the manufacture of tyres and tubes for

two/three wheelers, passenger cars, Heavy Duty Trucks and Light Commercial Vehicles.

The groundwork is underway and the division will be launched in the near future. It will

have a production capacity of 6 million tyres and tubes annually.

Location:

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The project will be located in the proposed industrial Growth Centre being developed at

Valiyavelicham, about 35 kms from Kannur city.

Capacity and Product Mix:

The plant will have a 2.33 million nos. of radial and bias tyres per annum which. 75 million

would be utilized for the truck drivers, 1.5 million for light type passenger’s tyre and

balance would be for two or three wheelers.

RUBCO CASUAL SHOE PROJECT

Investment: 96 Million

Employment: 600 Persons

Location: Thalassery, Kannur district, Kerala

Capacity: 1.5 Million pair per annum. 75% of the production is earmarked for export.

The plant has an annual installed capacity of 4.8 million units, consisting of mattress and

other robberies coir products.

PRODUCT PROFILE

I. Rubco Huat Furniture Pvt Ltd.

1. Dining table with chairs

2. TV stand

3. Computer table

4. Rubco timber panel

5. Door and window frames

6. Office furniture

7. Kitchen cabinets

8. Dining table

9. Sofa sets, divan cots and rocker chairs

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10. Rubco home series

II.Rubberised Coir Mattress

1. Heaven plus mattress

2. Heaven mattress

3. Heal mattress

4. Hi-tech pillow mattress

5. Relief orthopedic mattress

6. Safal mattrss

7. Hi- tech mattress

8. Yaturi mattrss

9. Dosth mattrss

III. Cycle tyres and tubes.

IV. Footwear

A. Casual wear

1. Rubco Rainbow

2. Rubco hawai

3. Rubco plus

4. Rubco super

B. Class wear

1. Sara Laura

2. Alias- lothario

3. Miranda- Carol

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4. Imelda- Orazio

V. Virgin Coconut Oil

1. Nutria-ko-virgine coconut oil

2. Lush baby oil

3. Lush massage oil

4. Lush hair tonic

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CHAPTER 3

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LITERATURE REVIEW

CHAPTER 3

LITERATURE REVIEW

3.1 E-BUSINESS

E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is

the conduct of business on the Internet, not only buying and selling but also servicing

customers and collaborating with business partners. One of the first to use the term was

IBM, when, in October, 1997, it launched a thematic campaign built around the term.

Today, major corporations are rethinking their businesses in terms of the Internet and its

new culture and capabilities. Companies are using the Web to buy parts and supplies from

other companies, to collaborate on sales promotions, and to do joint research. Exploiting the

convenience, availability, and world-wide reach of the Internet, many companies, such as

Amazon.com, the book sellers, has already discovered how to use the Internet successfully.

EVOLUTION

The origin of commerce by exchanging goods occurred before recorded history. Now

commerce is a basic activity of goods trading and buying in everyday life. Entering into the

electronic era, the way individuals and organizations do business and undertake commercial

transactions have been changed. This indicates the movement towards electronic

commerce. This means there is no paper work and physical interaction is limited.

The proliferation of e-business is changing markets and modeling a new modern consumer.

If the company is not preparing itself to be e-business ready, be assured that the required

timing of the entry might come sooner than later as the trend continues towards customer

becoming more demanding of what companies should offer. The customer of the new

millennium is more than ever choosing when, how, where, and through what medium to do

business. The planning of how companies choose to hear and alter their mode of operations

to serve their customers and vendors is of utmost strategic importance as a new era of

competition begins.

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The emergence of electronic commerce started in the early 1970s with the Electronic Funds

Transfer (EFT), which allows organizations to transfer funds between one another

electronically. Then another technology Electronic Data Interchange (EDI) was introduced.

It helps to extend inter-business transactions from financial institutions to other typesof

business also provides transactions and information exchanges from suppliers to the end

customers. However, the early system development was limited to special networks such as

large corporations and financial institutions, which are costly and complex to administer for

small business. So EDI was not widely accepted as expected.

With the progress of Internet Technology and a highly developed global Internet

community, a strong foundation of prosperous electronic commerce continues to be built.

During the 1990s, the Internet was opened for commercial use; it was also the period that

users started to participate in World Wide Web (www), and the phenomenon of rapid

Personal Computer (PCs) usage growth. Due to the rapid expansion of the www network;

E-business software; and the peer business competitions, large number of dot-coms and

Internet starts-ups appeared. Integrated with the commercialization of the Internet, Web

invention and PC networks, these three important factors made electronic commerce

possible and successful.

E-business is definitely a start in the right direction for most companies of any size. Any

company can benefit by getting e-business ready. This hold true because in preparation, a

company must become customer-centric and take steps to correct any fundamental business

areas that require attention.

Impact of E-business

The introduction of E-business has impacted on the traditional means of online exchanges.

It is creating a new market place and opportunities for the re-organization of economic

processes in a more efficient way. The open structure of the Internet and low cost of using it

permits the interconnection of new and existing information and communication

technologies. It offers business and consumers an innovative and powerful information

system and another form of communication. This changes the way they search and

consumer products. With these, products increasingly customized, distributed and

exchanged differently.

Six key components of E-business

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1. Placement

This component is vital to any E-business business. It focuses on the business being highly

visible and easy to access.

2. Merchandise and audience size

This component focuses on ensuring that product lines are kept in stock and delivery is on

time. The audience size of the E-business market place spans across all geographical

boundaries. It is important to create capabilities that facilitate global commerce.

3. Presentation

This focuses on two key context dimensions: function and aesthetics

Businesses can employ presentation that is predominantly focused on one or the other in its

presentation. At times, the two contexts are combined.

4. Payment

The market place capability integrates with other applications for financial and payment

processing. Applications include the ability to purchase using a credit card and require

integration to provide supplier invoice information to the buyer and to indicate invoice

payments status.

5. Security

This component must be given particular attention by E-business, as it is an ongoing

concern for consumers. E-business must instill trust in its users by ensuring the security of

all transactions and this can be achieved through many methods such as encryption and

authentication.

6. Fulfillment

Once the online purchase order has been generated, the market place can allow buyers and

sellers to manage the fulfillment process. The fulfillment process must enable to ensure

delivery.

E-BUSINESS MODELS

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When organizations go online, they have to decide which e-business models best suit their

goals. A business model is defined as the organization of product, service and information

flows, and the source of revenues and benefits for suppliers and customers. The concept of

e-business model is the same but used in the online presence.

The following is a list of the currently most adopted e-business models:

E-shops

E-procurement

E-malls

E-auctions

Virtual Communities

Collaboration Platforms

Third-party Marketplaces

Value-chain Integrators

Value-chain Service Providers

Information Brokerage

Classification by provider and consumer

Providers/producers and consumers/clients can classify e-businesses into the following

categories:

Business-to-Business (B2B)

Business-to-Consumer (B2C)

Business-to-Employee (B2E)

Business-to-Government (B2G)

Government-to-Business (G2B)

Government-to-Government (G2G)

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Government-to-Citizen (G2C)

Consumer-to-Consumer (C2C)

Consumer-to-Business (C2B)

The basic e-business models are:

1. B2B

B2B is a most popular e-business model dealing with business to business transaction. B2B

websites help streamline operations between organizations and their business partners. B2B

offers several benefits:

Efficient management of inventory

Quick response to customer demand

Reduction in the cost of paperwork

Efficient and fast product launch

Control over fraudulent purchase

B2B websites focus on providing solutions to various industries such as banking,

hospitality, and automotive industries. These are meant only for business organization.

Individuals are not allowed to carry out transactions over such sites

2. B2C

Business to Consumer e-business is focused on the use of a virtual storefront on the www

that allows an internet user to browse and order goods or services from the storefront’s

catalogue this category largely equates to electronic retailing. And other online purchases

such as airline tickets, entertainment venue tickets, hotel rooms and shares of stocks.

Here the sellers are organizations and the buyers are individuals. This based on real

shopping experience with ‘carts’ order times to drop your goods in to and checkouts

(payment processing) to settle your bill with a credit card. Companies are rushing take

advantage of this market availability of secure web transactions is enabling companies to

allow consumers to purchase products directly over the web. Consumers are increasingly

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going online to shop for and purchase of products, arranging financing, arranging shipment

or take delivery of digital products such as software and get service after the sale.

3. C2C

C2C websites enable the sale and purchase of products and services between individual

customers. The best example of C2C business model is an online auction site. eBay.com

pioneered C2C auction.

3.2 TYPES OF ELECTRONIC BUSINESS

There are four fundamental types of E-business:

1. Person-to-person

It includes telephone, fax and e-mail. The key issue for this type of communication is that

the data is unstructured and provides flexibility. However, if data has to

be processed, then it is necessary to re-key it into a computer, which takes an operator time,

introduces delays and the possibility of entry error.

2. Computer-to-Computer

It includes Electronic Data Interchange (EDI) transmissions as well as smart cards and bar-

coded data. For this form of communication to be successful the data transfer format must

be to an agreed standard.

3. Person-to-Computer

It includes electronic forms and the Internet and also Interactive Voice Response (IVR) to

telephone services. Examples of this form of communication might be people paying their

accounts using IVR or ordering a product on the Internet using an electronic form. This

form of communication is only suitable where there are small amounts of data to be input

and there are only a small number of options to choose from.

4. Computer-to-Person

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It includes computer-generated faxes, e-mail and paper mail. Although the data in these

messages is sourced from a computer database and is sent automatically, the end result is

that it must be in a form, which is understandable to a person who will read and act upon it.

BASIC STEPS TO EXPAND E-BUSINESS CAPACITY

It is good to implement E-business so that the business and its employees learn to handle

the changing way of doing business.

Use e-mail to replace fax: E-mail is faster and more responsive than fax. It is

possible to transmit whole documents by e-mail which can then be edited elsewhere.

Use the Internet to locate useful business information: We may access more

information on Information Technology and Electronic Commerce and also access

the Web link Guide here.

Provide access to company information on a website: Customers can obtain up-to

date information and the need to print brochures is reduced.

Set up a company Intranet: Provides access to important company information to all

employees.

Carry out business transaction over the Internet: There is the potential to improve

access to a larger market and improve business efficiency.

Use business-to-business EDI: More accurate, timely and efficient transfer of

information.

ADVANTAGES AND DISADVANTAGES OF E-BUSINESS

Advantages

The advantages of E-business are basically increased sales and decreased costs through the

use of electronic media, especially Web. The advantages of E-business can be divided into

the benefits it provides to organizations, consumers and society.

Advantages to Organizations

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Due to the global reach of the Internet, business organizations are able to send messages

worldwide, exploring new markets and opportunities. This breaks down geographic

limitations and reaches narrow markets that traditional businesses have difficulties in

accessing. Through the Internet, business now offers a wide range of choices and higher

level of customer information and details for individuals to search and compare. Some build

to order companies as Dell Computer Corporation can even provide a competitive

advantage by inexpensive customization of products and services.

Advantages to Consumers

For customers, the advantages occur in the buying process, product research, evaluation

and execution. E-business provides customers with a platform to search product

information through global markets with a wider range of choices, which makes

comparison and evaluation easier and more efficient. With the ubiquity in accessing the

Internet, consumers are able to search for shops or perform other transactions anytime in

almost location. Cheaper goods and services is one of the benefits for consumers who

purchase online. Furthermore, buyers can save delivery time and costs when they purchase

digital goods and services. Examples are books, music and audio clips, software, games and

distance education delivered via Internet.

Advantages to Society

By communicating, individuals can now a days’ work and do their purchasing at home

rather than by traveling around. This will result in less traffic and air pollution. For people

in less developed countries, many services and products are now available which were

unavailable the past; opportunities and higher education services are more achievable for

students.

Disadvantages

The limitations of E-business can be classified as technological and non-technological.

Overall

The main disadvantage of E-business is the lack of a business model, lack of trust and key

public infrastructure, slow navigation on the Internet, the high risk of buying

unsatisfactory products, and above all lack of security.

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Technological

For the E-business system itself, there is no universally accepted standard for quality,

security and reliability. The software of E-business development tools are always

evolving and have difficulties in integrating the Internet and E-business software with parts

of the existing applications and databases.

Non-technologies

The lack of trust is one of the main reasons why customers are unwilling to accept E-

business due to privacy and security concerns.

According to 2000 Economist article, 95 percent Americans showed reluctance to release

their credit card number via Internet. Some C2C organizations are under an unencrypted

payment environment, in which a customer’s number might be stolen in the payment

process.

TRADITIONAL BUSINESS VS E-BUSINESS

Traditional businesses were product- centric with companies competing on the basis

of product differentiation and innovation. But in the E-business era, companies focus

on customers and adopt a customer-centric approach.

In the traditional business, companies manufactured products and customers

purchased them. But now customers are a part of product design and they dictate

terms to manufacturers with regard to the features of products.

Before the Internet age, organizations could not analyze and cleanse the data to get

meaningful information. But now modern technology has made real time information

processing possible. This has improved the productivity and efficiency of

organizations and enabled them to offer high quality customer service.

Traditional business operations are confined to limited geographic locations, but in

the case of E-business, operations can take place across the globe due to the

ubiquitous nature of the Internet.

Automation has made E-business processes and operations more efficient than those

of traditional businesses. Transactions that were earlier time consuming are now

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performed within minutes because customers can interact with the organization

through fax, telephone, e-mail or web.

E-COMMERCE

E-commerce is more specific than E-business. It means that in addition to providing

information to visitors about the company or site offers to transact or facilitate the selling of

products and services online. An e-business relationship with a partner implies tighter

coupling and building virtual enterprises. Electronic commerce or e-commerce is where

business transactions take place via electronic communication networks, especially the

Internet. E-commerce defines interaction between organizations and their customers,

clients, or constituents.

E-commerce allows people to carry out businesses without the barriers of time or distance.

It is ideal for niche products. Customer for such products is usually few. It is the cheapest

means of doing business. From the buyer’s perspective e-commerce offers a lot of tangible

advantages.

Reduction in buyers sorting out time.

o Better buyer decisions

o Less time is spent in resolving invoice and order discrepancies.

o Increased opportunity for buying alternative products.

SCOPE OF E-COMMERCE

E- Commerce encompasses a broad range of activities. The core component includes

electronic trading of physical goods and services and of information based e-trading of

physical goods and services and information based e-material (digital products). The

conventional activities include.

Searching for product information.

Ordering products.

Paying for goods and services.

Customer service.

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distribute internal memos and announcements to their employees, and knowledge exchange

and scheduling communications flow worldwide in a timely fashion.

E-commerce process also includes the following business activities…

Pre-sales and post-sales support.

Internal E-mail and messaging.

Online publishing of corporate documents and forms.

Managing corporate finance and personal system.

Manufacturing and logistics management.

Supply chain management for inventory, distribution and warehousing.

Facilitation of contact between traders.

Tracking orders and shipments.

Advertising and Promotion of products and services.

There is a great deal of difference between electronic trading of physical goods and services

and electronic trading of digital products that can be delivered directly through a network.

The e-trading of physical goods and services is an evolution of present systems of trading.

This form of electronic commerce is expected to have a great impact on competitiveness

and a limited impact on employment. The trading of digital products (music, video,

software, images etc…) represents a revolutionary new way of trading, for which the full

commercial transaction cycle, including delivery can be conducted simultaneously via, the

same network. This highly innovative form of e-commerce is expected to have an important

impact on competitiveness and create employment.

M-COMMERCE

M-Commerce or Mobile commerce refers to access the internet via a mobile service such as

a cell phone or a PDA. Once M-Commerce becomes ubiquitous, it will change the utility of

the web from a business standpoint. The modes of M-commerce include hybrid mode,

switch to hybrid mode etc.

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M-Commerce defined as the exchange or buying and selling of commodities, services or

information on the internet through the use of mobile hand held devices.

It has advantages in security and payment methods for mobile commerce. Recently, the

emergence of wireless and mobile networks has made possible the admission of electronic

commerce defined to a new application and research subject.

FUTURE M-COMMERCE

In just a few years, M-Commerce has emerged from nowhere to become the hottest new

trend in business transaction. However, the prosperity and popularity of mobile commerce

will be brought to a higher level only if information is securely and safely exchanged

among and systems (ie. Mobile users and constant providers). It covers R&D result of

lasting significance in the theory, design, implementation, analysis and application of

mobile commerce securely and payment.

Constrains of M-Commerce

User interface constrains in application development

Header fields are fixed which sometimes constrains.

SMS capabilities and limitation capabilities such as

Simultaneous transmission with GSM voice, data and fax service.

Message storage and forward

Delivery confirmation to the sender.

The burden of delivery is on the SMS center, not the end user.

Enable push application.

ADVANTAGES OF M-COMMERCE

Increased Research

The presence of a wireless link between the customer and the service provider eliminates

the need for a fixed interface such as a computer for communication.

Convenience

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The small size and ease of use of mobile receivers, coupled with freedom from problems

caused by infrastructure, makes for a higher degree of user convenience.

Customization

The service provider has access to data about the user’s preferences and status which

facilitates better, personalized service.

Quick access

Connecting through a mobile is faster than dial-up connections using wire line modems.

Limitations of M-Commerce

SMS is very successful, easy to use and offers good performance. Architects should

remember to consider SMS as an alternative to WAP applications for specific business

requirements. But it has some limitations like,

Message length limited to 160 characters.

Inflexible data structure.

Proprietary protocols used by the SMSC

OTHER AREAS OF E-BUSINESS

E-Auctioning

The internet makers auctions more democratic allowing everyone with an internet

connection to bid for a good offered. Everyone is able to get an auction website with a click

in which the server is located physically.

E-Banking

It allows customers to access and execute orders through a simple to use website. It makes

banking activities simple.

E-Directories

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It helps to finding a particular service or product. Telephone directories both white pages

private telephone numbers & yellow pages commercial pages.

E-Franchising

It becomes much easier on the internet and moving digital products or processes &

branches. The advantage of the system is that there is no distribution cost involved.

E-Learning

It sometimes called Internet Base Trading (IBT) offers a new dimension in digital learning

instead of receiving and executing file. It is used explains and a test a subject, the material

is presented on line.

E-mailing

It is used for the computer exchange of messages and is an important tool for

communication collaboration work.

E-Marketing

The internet allows companies to react to individual customer demand. One to One

marketing has become the standard way to dealing with customers over the internet.

E-Supply

The internet reduce significantly the cost for starting up the digital business to business

communication through the open standards such that XML and JAVA. Supply chain

partners are able to share & exchange information more easily and with lower costs.

E-Trading

It is also called e-brokering offers the real times stock prices to every desk throughout the

world. People are able to react in real term to change in the stock market. Everyone with an

internet bank account is able to buy and sell stock. This enables everyone to participate in

stock market and earn money by investigation.

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E-Gambling

The companies who operate the gambling website are able to operate the full programmed

of game without any restriction.

E-Purchase

The most of the companies purchases goods and services by electronically. They used

internet is used as a main sources of e-purchases.

ELECTRONIC DATA INTERCHANGE

The electronic data interchange process is the computer-to-computer exchange of business

documents between companies. EDI replaces the faxing and mailing of paper documents.

EDI documents use specific computer record formats that are based on widely accepted

standards. However, each company may use the flexibility allowed by the standards in a

unique way that fits their business needs. The electronic data interchange process works, a

buyer prepares an order in his purchasing system and has it approved. Next, the EDI order

is translated into an EDI document format called an 850 purchase order.

The EDI 850 purchase order is then securely transmitted to the supplier either via the

internet or through a VAN (Value Added Network). The buyer’s VAN is a like an

electronic post office that interconnects with the supplier’s VAN. The VANs make sure that

EDI transactions are sent and received. The supplier’s VAN ensures that the supplier

receives the order. The supplier’s computer system then processes the order.

Data security and control are maintained throughout the transmission process using

passwords, user identification and encryption. Both the buyer’s and the supplier’s EDI

applications edit and check the documents for accuracy.

EDI Benefits

Computer-to-computer exchange of information is much less expensive than handling

paper documents.

Much less labour time is required

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EDI transactions between companies flow faster and more reliably than paper

documents.

Using EDI is much more efficient than using paper

EDI capability involves either buying or outsourcing the following components:

Software for communications

VAN service for EDI transmission

Mail boxing of EDI transactions

Mapping

Translation

ADVANTAGES

Save Money

The cost of paper and paper processing is incredibly high compared to a properly

implemented EDI program. Processing an EDI purchase order reduces the cost to a mere 93

cents.

End Repetition

If the trading partner wants a copy of the document , instead of calling they simply check

their mailbox. This results in a great time savings from not having to copy and fax/mail

copies of business documents.

Save Time

EDI also saves time over paper processing since the transfer of information from computer

to computer is automatic. There is no need to rekey information with EDI.

Improve Customer Service

The quick transfer of business documents and marked decrease in errors allow doing

business faster and more efficient. KMart is an example of a retailer that implements a

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Vendor Stock Replenishment (VSR) program. With VSR, the Kmart warehouse sends stock

as their EDI system reports it and automatically bills the client.

Expand Customer Base

With improved customer service, we can ultimately expand the customer base. Many large

manufacturers and retailers are ordering their suppliers to institute an EDI program.

DISADVANTAGES

Too many standards

There are too many standard bodies developing standard document formats for EDI.

Changing Standards

Each year, most standard bodies publish revisions to the standards. This poses a problem to

EDI users. They may be using one version of the standard while the trading partners are

still using older versions.

Limit the trading partners

Some large companies tend to stop doing business with companies who don’t comply with

EDI. For example, Wal Mart is only doing business with other companies that use EDI. The

result of this is a limited group of people can do business with.

INTERNET

Internet is the vast international network, ie. It is the most preferred WAN of the world. It is

large worldwide network of computers. Also it is a large network with the ability to send

and receive files from one computer to another. The biggest advantage is that it is a tool

providing access to worldwide quantities of information. A common far of internet is a

collection of LAN connected by a WAN.

SECURITY ISSUES

Internet security is the practice of protecting and preserving private resources and

information on the internet. Some of the security issues can be handled using

1. Firewall

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2. Cookies

Firewall is tools that are used to enhance the security of computers connected to a network,

such as a Local Area Network or the Internet. Firewalls deny or accept all messages and

sites based on a list that is stored in the system. This is usually decided by a system

administrator.

The two kinds of firewall mechanisms are namely packet filtering and stateful packet

inspection. The former does not check the content of a message where as the later checks

the content, thereby providing more security.

Cookies are small text files that are created when we visit a web site that uses them. The

web site uses the cookies to remember who you are what you have visited or purchased

from their site. A security hole has been discovered that allows websites to road cookies set

by other websites. A better option is to go for additional software to block cookies and

delete our cookie file after we finish browsing.

3.3 ENTERPRISE RESOURCE PLANNING

Enterprise Resource Planning (ERP) is an organisation wide management system that

helps companies automate their processes, integrate various functions, enable optimum

planning and utilization of resources and improve process efficiency.

One of the most successful tools for managing supply chain is enterprise resource planning.

ERP systems are in use in thousands of large and medium companies worldwide.

Enterprise Resource Planning systems integrate all data and processes of an organisation

into a single unified system. A typical ERP system will use multiple components of

computer software and hardware to achieve the integration. A key ingredient of most ERP

systems is the use of a single, unified database to store data for the various system modules.

The term ERP originally implied systems designed to plan the utilization of enterprise-wide

resources. Although the acronym ERP originated in the manufacturing environment,

today’s use of the term ERP systems has much broader scope. ERP systems typically

attempt to cover all basic functions of an organisation, regardless of the organisation’s

business or charter. Business, not-for-profit organizations, governments, and other large

entities utilize ERP systems.

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Technically, a software package that provides both payroll and accounting functions would

be considered an ERP software package. However, the term is typically reserved for larger,

more broadly based applications. The introduction of an ERP system to replace two or more

independent applications eliminates the need for external interfaces previously required

between systems, and provides additional benefits that range from standardization and

lower maintenance (one system instead of two or more) to easier and/or greater reporting

capabilities (as all data is typically kept in one database).Examples of modules in an ERP

which formerly would have been stand-alone applications include: Manufacturing, Supply

Chain, Financials, customer relationship management(CRM),Human Resources, warehouse

management and Decision number.

Some organizations - typically those with sufficient in-house IT skills to integrate multiple

software products - choose to implement only portions of an ERP system and develop an

external interface to other ERP or stand-alone systems for their other application needs. For

instance, the People Soft HRMS and Financials systems may be perceived to be better than

SAP’s HRMS solution. And likewise, some may perceive SAP’s manufacturing and CRM

systems as better than People Soft ‘equivalents. In this case these organizations may justify

the purchase of an ERP system, but choose to purchase the PeopleSoft HRMS and

Financials modules from Oracle, and their remaining applications from SAP. This is very

common in the retail sector, where even a mid-sized retailer will have a discrete Point-Of-

Sales (POS) product and financials application, then a series of specialized applications to

handle business requirements such as warehouse management, staff roistering,

merchandising and logistics.

Ideally, ERP delivers a single database that contains all data for the software modules,

which would include:

Manufacturing

Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality

Control, Cost Management, Manufacturing Process, Manufacturing Projects,

Manufacturing Flow.

Supply Chain Management.

Inventory, Order Entry, Purchasing, Product Configuration, Supply Chain Planning,

Supplier Scheduling, Inspection of goods, Claim Processing, Omission Calculation.

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Financials

General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets

Projects

Costing, Billing, Time and Expense, Activity Management

Human Resources

Human Resources, Payroll, Training, Time & Attendance.

Customer Relationship Management.

Sales and Marketing, Commissions, Service, Customer Contact and Call Center support

Data Ware houses.

There are various Self-Service interfaces for Customers, Suppliers, and Employees

Enterprise Resource Planning is a term originally derived from manufacturing resource

planning (MRPII) that followed Materials Requirement Planning (MRP). MRP evolved into

ERP when "routings" became major part of the software architecture and a company's

capacity planning activity also became a part of the standard software activity.

Implementation

Because of their wide scope of application within a business, ERP software systems are

typically complex and usually impose significant changes on staff work practices.

Implementing ERP software is typically not an "in-house" skill, so even smaller projects are

more cost effective if specialist ERP implementation consultants are employed. The length

of time to implement an ERP system depends on the size of the business, the scope of the

change and willingness of the customer to take ownership for the project. A small project

(e.g., a company of less than 100 staff) may be planned and delivered within 3 months;

however, a large,

multi-site or multi-country implementation may take years. The most important aspect of

any

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ERP implementation is that the company who has purchased the ERP product takes

ownership of the project. To implement ERP systems, companies often seek the help of an

ERP vendor or of third-party consulting companies. These firms typically provide three

areas of professional services: Consulting, Customization and Support.

Advantages of ERP

In the absence of an ERP system, a large manufacturer may find itself with many software

applications that do not talk to each other and do not effectively interface. Tasks that need

to interface with one another may involve:

Design engineering (how to best make the product)

Order tracking from acceptance through fulfillment

The revenue cycle from invoice through cash receipt

Managing interdependencies of complex Bill of Materials.

Tracking the 3-way match between Purchase Orders (what was ordered), Inventory

receipts (what arrived), and Costing (what the vendor invoiced)

Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular

level.

Limitations of ERP

Success depends on the skill and experience of the workforce, including training about how

to make the system work correctly. Many companies cut costs by cutting training budgets.

Privately owned small enterprises are often undercapitalized, meaning their ERP system is

often operated by personnel with inadequate education in ERP in general, such as APICS

Foundations, and in the particular ERP vendor package being used.

Personnel turnover; companies can employ new managers lacking education in the

company's ERP system, proposing changes in business practices that are out of

synchronization with the best utilization of the company's selected ERP.

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Customization of the ERP software is limited. Some customization may involve

changing of the ERP software structure which is usually not allowed.

Re-engineering of business processes to fit the "industry standard" prescribed by the

ERP system may lead to a loss of competitive advantage

ERP systems can be very expensive to install often ranging from 30,000 to

500,000,000 for multinational companies.

ERP vendors can charge sums of money for annual license renewal that is unrelated

to the size of the company using the ERP or its profitability.

Systems are too restrictive and do not allow much flexibility in implementation and

usage.

The blurring of company boundaries can cause problems in accountability, lines of

responsibility, and employee morale

Resistance in sharing sensitive internal information between departments can reduce

the effectiveness of the software.

Customization in ERP

Customization is the job of fitting the ERP software to meet the demands of a particular

organisation. This would mean the mapping of the organizational structures, process and

environment of the organisation into the corresponding model of the organisation, that is

embedded in the ERP software. In other words, it is a mapping of the real world in to the

model world of the particular ERP software.

TOPIC OF THE STUDY

E- MARKETING

The internet is changing the design and implementation of marketing strategies. The

dynamic technology provides marketers with efficient and powerful methods of designing,

promoting and distributing products, conducting research and gathering market

information. E-marketing can include any internet based promotion including websites,

targeted e-mail, internet bulletin boards, etc…

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In the era of IT every company should think about the possibility of e-marketing. As the

new technologies give you new types of strategies and opportunities to the company. By

implementing e-marketing company can make more sales in competitive market. In the

rapidly changing competitive environment companies are fighting each other for a higher

market share and margins; e-marketing is the front line of any corporate strategy.

E-marketing means to connect people and process through internet and web and it is a cost

effective strategy. It means to connect people and process through internet. E-marketing is

an integrated approach in delighting customers by meeting their expectations towards

understanding customer needs and satisfying their needs.

Definition of E-Marketing.

“Achieving marketing objectives through use of electronic communications technology”

This electronic communications technology includes: Internet, e-mail, e-books, data base,

and mobile phones.

The definition of marketing by the Chartered Institute of Marketing is: “marketing is the

management process responsible for identifying, anticipating and satisfying customer

requirements profitably.”

The simplest definition of E-Marketing is suggested by Mark Sceats. According to him “E-

Marketing is that uses internet as manifestation channel”.

E-Marketing is the sum of activities a company makes with the purpose of finding,

attracting, winning and retaining customers.

The internet has drastically changes the rules of sales and marketing .customers are

demanding more attention and personalized services. No company is excluded from

meeting these customer demands.

ONLINE MARKETING

Online marketing is a relatively new concept, has developed rapidly in recent years. It is a

form of marketing that combines the traditional marketing principles with the interactive

capabilities of the internet .In online marketing ,companies devise plans to attract online

visitors to a website and encourage them to register their names or purchase products .

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In online marketing direct communication takes place in real time. Due to the improved

telecom infrastructure the consumers can now be offered the facility to compare products

and make payments online.

By marketing through online the company can expand market research, it will strengthen

the business relationship by using EDI, it reduces the cost, and it also helps to offer new

services to the customers.

MAIL MARKETING

Customer service is the key for the success of any business today. E-mail has emerged as

the largest source of information on changing customer behavior in recent years. The

foremost advantage of using the internet is the speed of information exchange .This

information exchange can result in either gain or loss of customers .The information

exchanged may range from gossip to confidential business information. The speed of the

internet is fascinating for many business owners and customers, drawing them to use it.

E-mail is a supplement rather than a complete replacement for traditional communication

devices like telephones and fax. E-mails save paper and postal charges and also facilitate

quick response. It is easy to use and supports for two way communication anywhere and at

anytime .this makes customer interaction very simple.

The benefits that the company can enjoy through the use of emails are –

Faster response, quicker problem solving and shift change incorporation.

Provision of product update to customers.

Display of new products and their features to elicit suggestions and opinion.

Sending product literature and press releases.

Communicating price changes.

E-MAILS offer customers a convenient and flexible shopping experience. Customer loyalty

can be built through good customer service, and good customer service entails prompt reply

to queries and quick problem solving.

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ONLINE ORDERING

Establishing an online ordering process requires some thought and planning before

development. The considerations for online ordering are similar to a traditional catalogue,

but the potential for added functionality and depth of information is much higher on the

Web. The following should be considered when planning an online ordering presence:

Define the business goals — what purpose will the catalogue serve? Will it be a

source for better information than its print counterpart or will it provide additional

services?

Costs and maintenance — how much will it cost to implement the infrastructure and

how often and at what cost will it be updated?

Phased approach — Similar to the phased approach for a Web presence, ordering

capabilities should be developed slowly. Adding features that do not function

properly may cause users not to return to your site.

Data organization — Information on the site should be organized in an easy-to-find

fashion. Additionally, a search engine that performs a full-text search of the catalogue

may help users find the information they new product.

1. ORDERING INFRASTRUCTURE

Another major element that leads to the success or failure of a web storefront is the ordering

infrastructure. The biggest challenge to ordering is making the process easy to use. When

developing the ordering infrastructure, the web designer needs to do the following in order

to make the storefront desirable and usable:

Be consistent in the presentation and retrieval of information

Eliminate entering redundant information

Make ordering easy to understand

Allow users to bailout of ordering process at any time.

These payment models outline methods of facilitating transactions electronically to provide

an easy method of purchasing items. The credit cards, digital check, and digital cash, enable

the purchase of goods and services online using electronic commerce technology. All of

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these capitalize on the opportunity that is introduced by the Web, enabling customers to

purchase goods and services without having any physical interaction with the vendor.

A. Credit card model

This is very similar to the traditional use of a credit card. Customers enter their credit card

numbers, which are delivered to an authorized server via the Internet. After the credit card

number is verified and the transaction is approved, the funds are exchanged from the

creditor to the seller or business. This model can be experienced on most online merchant

sites. You can purchase books, music CDs, clothes, toys, and household items all by credit

card on the Internet. For example you can purchase books, music media, software,

magazines, ecards, posters and prints from Barnes and Noble at their web site,

www.barnesandnoble.com, using any of the many credit cards they accept which are

American Express, MasterCard, Discover, Visa, Diners Club, JCB, and corporate

purchasing cards.

B. Digital check model

The digital check is similar to a paper check; it is verified by or drawn from a customer’s

bank account. When the customer wishes to make a purchase, the digital check is encrypted

for security purposes and the Web storefront verifies the digital check through both the

customers' and business’ financial institution.

The Information Sciences Institute of the University of California developed the Netcheque,

which is an example of a digital check. Netcheque allows registered users to issue checks to

other Netcheque registered users. Upon deposit of the check, the transfer of funds from one

user to the other takes place. These transactions are conducted via email or other network

protocols.

C. Digital cash model

The customer (buyer) establishes a digital wallet by depositing the equivalent of money

from an established bank or by backing funds with a credit card. The digital wallet is then

stored on the customer’s PC. When the customer wishes to make a purchase from a web

site, the amount is automatically deducted from the customer’s digital wallet by the

ordering software on the site.

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These payment methods will become more common with the development of technology.

Also, as more consumers migrate to the web for goods and services, we may see increased

utilization of each method. Credit card purchases are the most common type of transaction

today, but it may not be too long before the others catch up.

D. Push technology

In this new age of e-business and electronic commerce, developing the technology to enable

information sharing via the Internet is a necessary strategy. One hurdle that businesses may

face is generating demand for their products and services. The ability to attract or deliver

information to customers or users and draw them to your site is key to generating demand

for products and services. Web marketing is unlike traditional marketing because web

information changes at a very rapid pace. The many types of web marketing

communications include web casting, banner ads, contest promotions, referrer bonuses and

partnerships. Recently, many companies have begun to see the specific value of contest

promotions, referrer bonuses, and partnerships in reaching their customers.

Directly targeting information to specific user groups can also encourage users to visit a

web site and become a frequent visitor. Implementing push technologies enables complex

end user profiling and various avenues of delivering targeted information. There are three

general types of push technologies that can assist business in delivering specifically

targeted information:

News casting:

Positioning your organization as the primary source of information for the types of goods

and services you provide.

One-to-One Marketing:

Establishing individual relationships with clients and customers.

Narrowcasting:

Targeting an exclusive group of end users with company email.

Targeted email lists can be compiled when customers voluntarily subscribe to services or

fill out online registration forms.

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From these profiles, demographic information can be obtained, organized, analyzed and

categorized into several email lists specific to a group of potential customers.

2. ORDER TRACKING

Customers expect timely delivery of their orders. These expectations can be met by

informing the customer about progress during the fulfillment process. Order tracking is the

process of keeping the customer informed on the status of his or her order by emailing a

tracking number that alerts the customer that his/her shipment is in the process of being

delivered. Another way to inform the customers of order status is to provide a phone

number for them to call to obtain updates, ask questions or pose problems.

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CHAPTER 4

SYSTEM ANALYSIS

CHAPTER 4

SYSTEM ANALYSIS

Kerala State Rubber Co-operative Ltd. has its own website with the name

www.rubcogroup.com. Having a website is an added advantage to enter into e-business.

But the present website didn’t have the provision of e-business. The present website of

Rubco consists of pages that include company profile, product profile, divisions and latest

news relating to the organisation.

The study is designed for creating an e-business website for RUBCO. The present system

of business in the organisation is without using electronic transactions but the RUBCO has

to add some new web pages to implement the e-business. It is better to the organization to

add some more pages to the present website to allow the dealers to make order of goods.

The design of the study is that the new technology makes the company to go online and do

business thereby increasing sales and minimizing cost. In this project the design of the

study is to make a good e-business website and thereby influence the customers and to

make RUBCO a competitive firm in the global market.

System Concept.

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http://www.rubcogroup.com/


A system is a collection of resources working together to convert input into useful output.

Generally a system is a group of related parts that work together as a unit.

A business information system is a system that uses resources to convert data into

information needed to accomplish the purpose of business. The system development life

cycle involves following phases.

System analysis

System design

System development

System implementation

SYSTEM ANALYSIS

System analysis is an orderly and systematic process of identifying and solving problems.

It is a formal enquiring into the problems of the system. It identifies objectives, constraints,

alternative solution to problems. System analysis includes analysis of organisational

environment, present system, problems of present system and analysis of system

requirement. We call the system analysis process the life cycle methodology since it relates

to four important phases in the life cycle of all business information system.

Study

Design

Development

Operation

the definition of system analysis includes not only the process of analysis but also of

synthesis which is the process of putting part together to form a new whole.

System analyst

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System analyst is an individual who perform system analysis during any or all of the cycle

phase of the business information system. The duty of the system analyst is to study about

the present system and its weaknesses.

Existing system

Existing system of RUBCO is manual one. It will cause problems to the dealers from

placing the order to purchase of product everything is done manually. When an order is

placed of it must be recorded in the book and it is a very tedious process in each purchase

and at the same in the case of correction of data. Since the company has a good market in

Indian states and from abroad it is very difficult to follow the manual mechanism.

Today all companies are going to e-business such as e-banking, e-payment, e-marketing, e-

recruitment, e-selection, e-purchase etc. this will help the companies to get a good image in

the competitive business world. Moreover, e-business has a great role in the business world

to achieve their objectives more efficiently and effectively.

Limitations of the Existing System.

Time consuming process.

Facing delay from dealers

All products are reached in different area so marketing is very difficult.

Delay in supplying finished products.

Inefficiency of services of busy time.

PROPOSED SYSTEM.

The objectives of proposed system are to make some addition to the present website of the

organization to enable electronic ordering. The proposed system reduces human

intervention and it increases the user satisfaction. It avoids data redundancy to an extent.

The proposed computer based system is very speedily on comparing with the existing

manual system that can provides the facility of

Customer service.

Customer Relationship Management.

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Advantages of proposed system.

Increase sales.

Customer purchase goods online.

Good decision can make.

Better communication.

Better Return On investment.

Reduction in manpower cost.

Enhance the customer satisfaction by timely delivery of RUBCO products.

Reduced float through the use of real-time electronic transactional processing.

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CHAPTER 5

SYSTEM DESIGN

CHAPTER 5

SYSTEM DESIGN

SYSTEM DESIGN

System design is the stage after system study. System design is the process of planning a

new business system or one to replace an existing system. System design involves selection

of those function to be performed either by the people in the system, the equipment or

computer programmes. In this stage of system development the process are designed that

are leaded to convert the input that achieve the system goal. Major step in the design is the

preparation of input and the output reports in a form acceptable to the user.

Outline of proposed system

Creating a website for the firm

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Creation of shopping cart in the site

Creating a data base.

On-line ordering and payment processing

Automated customer account inquiries

On-line bill presentation

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Rubco client

Website of the Company

Order Form,Details

Administrator

Production

MarketingPlanningStores Delivery Payment Finance

Department


System design (Chart 5.1)

ORDERING PROCESS

The process through which E-marketing comes alive is as follows

SIGN UP

The RUBCO’s e-marketing should be focused on the dealers. There must be a provision for

signing up. The dealer must be provided with a pass word and a user name. This ensures

security to the system. All the dealers have separate username and password.

LOG IN

Once the sign up is finished the dealer can log in to the website using their own user ID and

pass word to place the order. In this stage, the system checks the username and password

and verifies that with the user name and password in the database. If both of them match,

the dealer is allowed to proceed. And after logging on, the dealer can place order according

to his requirement. And the system automatically accepts and forwards it to the marketing

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Other departments

Finance

Materials

Organizational DBMS


department. After receiving the orders the concerned department send an e-mail to the

party, regarding the terms and conditions of delivery and payment.


SOUTH BAZAR, KANNUR, KERALA E-Mail:[email protected]

Fill in your order details and click the Send Order button

You may fill in a valid E-mail address for reply regarding the receipt of your order

* entries are mandatory

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Order Form (Fig : 5.1)

CATALOGUE DISPLAY

The website of the company should display the goods they offered through the site. The

photos of items and descriptions will make the site effective. It will make easy ordering of

goods.

I.How to build E-business

A. Configuring a shopping cart:

It is an alphabet that allows your customer to order online. Specify parameters such as

shopping cart, dimensions and back ground image. A shopping cart keeps track of the items

selected to purchase and allows viewing what is in the cart, adding new items to it, or

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removing items from it. To order an item in the list you have to click on that item. All the

details about the item, including its price, product number and other information are stored

automatically. The price of the commodity can be paid through the cart. Quick Buy is a

company that makes shopping cart software.

B. Choosing Language Currency.

You will probably to able to accept more than one kind of currency.

C. Establishing shipping cost.

You have to choose an e-commerce system to calculate shipping cost.

D. Designing store front and catalogue page.

Your store front should welcome people to your store, contained company logo, have

professional appearance and to organize so potential customers and business partners can

easily navigate the company safe.

II. Contents of Website

Website must contain following pages.

Home page

Profile of the company

Product line and stock price

Products and its code number

Order submission forms

Contact information

The home page should contain the structure of the website and the contents of the site. And

the site must contain the details of the RUBCO products, its code number, product name, its

features and stock price. And it should have an order submission form and in which there

should be place for entering customer details, and order details such as order number,

product code, rate, quantity ordered and payment details such as payment date and name of

the bank.

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III. System testing

Testing is a process of executing programmes with the explicit intention offending errors

with this purpose test case are devised. That is system testing aims to ensure that all parts of

the system are correct. The main objective of system testing is to see whether it produces

correct output. And it aims to identify and correct errors. For testing the system the

company can use two tools such as program testing and user acceptance testing. Program

testing aims to check the syntax and logical errors in the program. And the user acceptance

test aims at checking the validity and reliability of the system in the minds of users.

Testing objectives.

Testing is a process of executing program with the intention of finding errors.

A good test is one that has a high probability of finding and as yet undiscovered items

A successful test is that which uncovers and as yet undiscovered errors

IV. System implementation and evaluation

One has to consider the factors that influence the success and failure of the business and

rules and regulations of the government while implementing e-business in his company.

Factors for the success of any business are pre selection, advertising, customer

convenience, customer satisfaction and total cost of business. The steps to be followed by

the company to implement a new system are, hiring and training of personnel, program

development, web page creation, acquisition and installation of hardware, software

acquisition, system conversion etc…

The following questionnaire can be used as guidance for implementing a successful online

system

List and define features of your site.

Profile of your customer or audience.

Who are your competitors

Define geographic area.

How will you communicate with your customer?

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List industry trends, determine growth potential of market.

List your financial strength and weakness.

Describe your business process.

V. System implementation

The strategy once devised then needs to be implemented and the use of e-commerce will be

more effective. System implementation is the process of carrying out the operational plans

developed as part of information system planning. The implementation process can be

classified under two heads.

Business implementation

To build e-business the firm need to

a) Put in business infrastructure to support the new e-business facility.

b) market the new e-business facility to the intended users.

Technical implementation.

The approach to technical implementation of an e-business system depends on the business

objectives, business requirements and the technologies that have been selected it is noted

that e-business system is to build together rather than designed and that is often apparent.

Education and training

In order to achieve the objective and the expected financial benefit from the new system

developed the people involved must be confined for their role in the system. The system has

been developed in highly interactive and user friendly manner. Necessary education and

training must be given to the staffs regarding the new system.

Ways to implement e-commerce include:

Develop an interactive database-driven online catalogue

Add secure on-line ordering capabilities with electronic payment, real-time

shipping quotes and electronic receipts

Web-enable billing statements for real-time presentation

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System Maintenance and Review

Once the system has been implemented periodic review and maintenance is required. The

system should be maintained and upgraded according to the technological advancement. It

ensures data integrity, data control and data security.

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CHAPTER 6

WEBSITE COMPARISON OF RUBCO

&PARAGON

CHAPTER 6

WEBSITE COMPARISON OF PARAGON AND RUBCO

RUBCO WEBSITE: www.rubcogroup.com

Rubco has a website created in the year 2000. But comparing tyo its competitors , it is not

up to the mark.

CONTENTS OF RUBCO WEBSITE:

RUBCO website has following links.

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Company Profile: It gives information regarding the history and management of the

company.

Products : It provides details of products offered by the company.

Divisions : It provides detailed information of the different divisions of Rubco.

Natural rubber trading: it provides information regarding the natural rubber trading of the

company, contact details etc.

Rubco Sales International: it provides information regarding marketing wing of Rubco.

Trade enquiry : it deals with trade enquiry.

Projects in Pipe line: it deals with information regarding the future projects of Rubco.

Contact us : it gives contact details.

COMPARATIVE STUDY OF WEBSITES OF RUBCO AND PARAGON:

A comparative study of websites of Rubco and Paragon reveals that paragon’s website have

several advantages than Rubco’s website.

ADVANTAGES OF PAROGON’S WEBSITE OVER RUBCO’S

Paragon’s website is more attractive in appearance. It give a pleasant feeling to eyes.

But Rubco’s site is not much attractive.

Paragon’s site is frequently updated. But for Rubco’s it is not.

In Paragon’s website there is a facility of e – ordering. Dealers can order through this

website. But for Rubco it is not.

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In Paragon’s website there is a facility of dealing customer complaints & suggestions.

There is a filling form and we can submit it. But for Rubco it is not.

Paragon’s website has a pictorial representation of their dealer’s positions all over

India. But in rubco it is only a word format.

Paragon’s website gives the size chart of all their chapels. It is very usefull for the

customers. But for Rubco these are all lacking.

Paragon’s website possesses a FAQ link which gives answers to valid questions.

In Paragon’s site there is a link which shows job opportunities and we can submit our

résumé through online. Rubco does not have this facility

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RUBCO HOME PAGE (Fig. 6.1)

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PARAGON HOME PAGE (Fig 6.2)

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RUBCO’S RUBBER SLIPPER’S LINK (Fig 6.3)

PARAGON’S SIZE CHART LINK (Fig 6.4)

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PARAGON’S DROPE A NOTE LINK (Fig 6.5)

PARGON’S CAREER LINK (Fig 6.6)

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CHAPTER 7

FINDINGS, SUGGESTIONS

& CONCLUSION

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7.1 FINDINGS

The present website of rubco consists of pages that include company profile, product

profile, divisions, and projects in pipeline, natural rubber trading and trade enquiry.

Rubco mainly concentrated on customer satisfaction with high quality products.

Existing system of Rubco is manual one. It will cause problems to the dealers from

placing the order to purchase of product everything is done manually.

Facing customer delay. Because all products are reached in different area so they

cannot deliver goods at correct time.

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CONCLUSION

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7.2 CONCLUSION

This study aims to implement the new business technique provided by the internet to the

organisation. In Rubco e-business system is not operating they are doing manual ways of

doing business. It helps to study the scope of e-business in Rubco. I proposed an e-business

project for Rubco which will help in the company to maintain competitive edge in today’s

business and to avoid delay from dealer and customer’s. This new technology can be used

to redesign and reshape organization in the today’s competitive market. And by

implementing e-marketing the organisation will surely grow.

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SUGGESTION

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7.3 SUGGESTIONS

Build a new attractive website which shows the picture, description of the products,

their stock price and code number to allow the dealers to make order of goods.

The design of the study is that the new technology makes the company to go online

and do business thereby increasing sales and minimizing cost.

This will help the companies to get a good image in the competitive business world.

It will helps to increase better communication and it leads to good decision making

Enhance the customer satisfaction by timely delivery of RUBCO products. It helps to

easily ordering and delivery of products.

The dealer must be provided with a pass word and a user name. This ensures security

to the system. All the dealers have separate username and password to place the

order.

E-marketing helps to dealer for easily ordering the products and avoids delay from

dealers.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Books

1. Judy Struass / Raymond Frost, E-Marketing, 5th Edition, PHI Pvt. Ltd.,

New Delhi, 2009.

2. Kothari C.R, Research methodology, 2nd edition, New Age

International(P) Ltd., New Delhi, 2005

3. Micheal P. Papazoglov and Peter M.A Ribbers, E- Business, 3rd Edition,

Wiley India, New Delhi, 2006

WEBSITES

1. www.rubcogroup.com

2. www.paragongroup.com

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Rubco E Business

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