E-Commerce: Definition, Types and Trends

1. E-Commerce: Definition, Types and Trends

2. Introduction Your name Where did u do your internship Your goals Your interests and hobbies

3. My introduction B.E, MBA(systems),CCNA,PMP with 15 years IT industry experience Skills: Portfolio and Program management, project management, IT infrastructure management, IT Service delivery Worked with various organizations, Symantec, JPMorgan, Kotak, Satyam, NCR, Zenith Vice President PMI Mumbai chapter Visiting faculty for various institutions across country

4. Traditional business process • Conduct market research to identify customer needs. • Create product or service that will meet customer's needs. • Advertise and promote product or service • Negotiate a sale transaction, including: * Delivery logistics* Inspection, testing and acceptance • Ship goods and Invoice customer • Receive and process customer payments • Provide after-sales support, maintenance and warranty service.

5. E-Business One of the first to use the term was IBM, when, in October, 1997, it launched a thematic campaign built around the term e-business can be said to include e-service, the provision of services and tasks over the Internet by application service providers One of the first to report sales in the millions of dollars directly from the Web was Dell Computer Exploiting the convenience, availability, and world-wide reach of the Internet, many companies, such as Amazon.com, the book sellers, have already discovered how to use the Internet successfully .

6. E-commerce: Definition Started in 1983 at Boston Computer Exchange by Alax Randall http://www.youtube.com/watch?v=wan896ZO4aY • Actually started with EDI(1960s) • Too many docs( invoice, Pos,bill of landing…all have same set of info) and lots of time and money • Process: Entering data into computers, printing paper forms and reentering at other side, each with their unique format • Set of standards created for exchanging data electronically

7. E-commerce: Definition Traditional business process: • Conduct market research to identify customer needs. • Create product or service that will meet customer's needs. • Advertise and promote product or service • Negotiate a sale transaction, including: * Delivery logistics* Inspection, testing and acceptance • Ship goods and Invoice customer • Receive and process customer payments • Provide after-sales support, maintenance and warranty service.

8. E-commerce: Definition No widely accepted definition. In loose sense it means doing business over the internet, selling products [goods and services] which are delivered offline as well as products which can be “digitalized” and delivered on line. “e-commerce is the online transaction of business, featuring linked computer systems of the vendor, host and buyer. Electronic transactions involve the transfer of ownership or rights to use a good or service” [US Department of Commerce]

9. E-commerce: Scope E-commerce is a sub-set of e-business E-business: application of ICT to all aspects of companies operations: i.e. customer relations management (CRM); enterprise resource planning (ERP); sales force management (SFM); electronic procurement (EP) E-commerce: Functions • Communication [on-line catalogue] • Transaction [shopping carts: browse and select items and make buying decision] • Payment [electronic payment methods]

10. E-commerce Characteristics • Operates on a bona fide basis [no prior arrangement between customer and seller] • Operates over the Internet; using all or any combination of technologies designed to exchange data[email, mobile phone,EDI];toaccess data[share databases or electronic bulleting boards]; and tocapture data[bar coding and magnetic or optical character readers • Requires buyer adhering to a contract [I AGREE, I DON’T AGREE

11. E-commerce Market Structure • Portal (POR):Engages in building a community of consumers of information about products. Focal points for influencing the channel traffic into web sites managed by providers.(e.gebay.in as a portal) • Market Maker (MMK): Facilitates business transactions that take place between supplier and buyer, and provides value through a system of implicit or explicit guarantee of security and trust.(e.gebay as a company) • Product/service Provider (PSP):Conduct directly business over the internet, customized informationsystems and business processes.(e.g Apple, Sony etc)

12. E-commerce: Elements • A good or service to be offered • Customer needs to know how to find the product [marketing, portals] • Exchange of money [electronic or conventional financial transactions] • Delivery mechanism [on-line, off-line] • Customer service and communication

13. E-commerce and Broader Internet Applications Government Business Consumer Government Business Consumer Source OECD (2000)

14. E-commerce Market Segments • B2B:Transactions between companies. The biggest and more successful [70-75% of total e-commerce sales] Linked with supply chain management, going beyond simple buying and selling transactions increasingly involving supply chain technologies. • B2C: Business selling to households. Growing segment of the market. More complex due to information gaps; has not done as good as B2B. • C2C: Facilitates transactions between two individuals. Requires a platform (MMK). E-Bay • B2G:Government procurement through internet. Seeks more transparency and greater competition • C2B: Reverse auction [new trend]

15. E-Commerce: Advantages • Being able to conduct business 24 x 7 x 365 • Access the global marketplace • Speed • Opportunity to reduce costs • Computer platform-independent • Efficient applications development environment • Allowing customer self service and 'customer outsourcing‘ • Stepping beyond borders to a global view

16. E-Commerce: disadvantages • Time for delivery of physical products • Physical product, supplier & delivery uncertainty • Perishable goods • Limited and selected sensory information • Returning goods • Privacy, security, payment, identity, contract. • Defined services & the unexpected • Personal service • Size and number of transactions

17. E-Commerce: Key Success factors • Selection and value • Performance and service • Look and feel • Advertising and Incentive • Personal attention • Community Relationships • Security and Reliability

18. E-Commerce: Impact • Widening global digital divide • Changes in the business regulations • 90% of the internet users are in industrialized countries as US and Canada(57%) • Internet users in Middle east and Africa only 1% • Technical, legal and governance issues

19. E-Commerce: Strategy • Online vs offline strategy • Speed of transactions • Appropriate amount of resources for advertising • Integration of ecommerce components with the overall site design • Multiple ways to communicate for customers • Search capability that really works • Home or an index page on website

20. E-Commerce: Examples

21. E-Commerce: Examples

22. E-Commerce: Examples

23. E-Commerce: Examples

24. E-Commerce: Videos • http://www.youtube.com/watch?v=wan896ZO4aY • http://www.youtube.com/watch?v=IZp_X5IQgIU • http://www.youtube.com/watch?v=LW4X3b_j0eE