1. An Introduction to Electronic Commerce.pptx

E Commerce an Introduction

1. An introduction to E -Commerce

2. Definition E - Commerce, which is short for electronic commerce, is the process used to distribute, buy, sell or market goods and services, and the transfer of funds online, through electronic communications or networks. Electronic commerce is commonly referred to as online commerce, Web commerce, e-Business, e-Retail, e Tailing etc. It is a subset of e – business.

3. History of E Commerce E Commerce became possible in 1991 when the Internet was opened to commercial use. At first, the term e commerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. E Commerce started with Amazon and E bay which were among the first Internet companies to allow electronic transactions. Amazon.com, Inc. is one of the most famous e commerce companies and is located in Seattle, Washington (USA). It was founded in 1994 by Jeff Bezos and was one of the first American e commerce companies to sell products over the Internet.

4. Factors Responsible for growth of E Commerce in India Increasing broadband Internet and 4G penetration. Growing Living standards Availability of much wider product range Busy lifestyles and lack of time for offline shopping Evolution of the online marketplace model with websites like Amazon, Flipkart, Snapdeal , etc.

5. Traditional vs. Electronic Commerce Traditional Commerce Process involved are: Buyer’s Perspective Seller’s Perspective Electronic Commerce Processes involved are Information exchange elements Contract and order stage Negotiation of final payment Delivery and services option Exchange of values Physical or electronic shipment Payments for the transaction Customer services & marketing

6. ADVANTAGES OF E- COMMERCE Faster buying/selling procedure, as well as easy to find products. Buying/selling 24/7. More reach to customers, there is no geographic limitations. Low operational costs and better quality of services. No need of physical company set-ups. Easy to start and manage a business. Customers can easily select products from different providers without moving around physically.

7. DISADVANTAGES OF E COMMERCE Mechanical failures can cause unpredictable effects on the total processes. As there is minimum chance of direct customer to company interactions, customer loyalty is always on a check. There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack.

8. Impacts of E Commerce on Business Impacts on Marketing Product Promotion New Sales Channel Reduced Cycle time Customization – Dell Computers, advertisement Impact on Organsiations Technology and organisational learning Changing nature of work New product capabilities

9. Impact on manufacturing E-Commerce is changing manufacturing systems from mass production to demand-driven and possibly customized, just-in-time manufacturing. Furthermore, the production systems are integrated with finance, marketing, and other functional systems, as well as with business partners and customers. Using Web-based ERP systems, orders that are taken from customers can be directed to sellers/designers and to the production floor, within seconds. Production cycle time is cut by 50 percent or more in many cases, especially when production is done in a different country from where the designers and engineers are located.

10. Impact on Finance The use of new payment systems ; cryptocurrency, block chain technology. E- cash Mobile banking Internet banking

11. Classification of Electronic Commerce Business to Business (B2B) : Cisco, IBM, Business to Consumers (B2C) : Amazon.com, homeshop18.com Business to Government (B2G) : GeM ( Government e Marketplace | Government Online Procurement Portal, Government of India (gem.gov.in ) Consumer to Business ( C2B) : priceline.com Consumer to Consumer (C2C) : bazee.com, ebay , olx , quicker

12. Difference between e commerce and e business E Commerce covers the outward facing process Touch customers, suppliers and external partners, including sales, marketing, order taking, delivery, customer service, purchasing of raw materials and supplies for production.   It involves only three types of integration : Vertical integration of front-end Web site applications Cross-business integration of a company with Web sites of customers. Integration of technology with modestly redesigned processes  Whereas E business also covers the internal processes such as Production, inventory management, product development, risk management, finance, knowledge management and human resources .

13. Continued E-business strategy is more complex, more focused on internal processes, and aimed at cost savings and improvements in efficiency & productivity. It involves four levels of integration Vertically, between Web front- and back-end systems Laterally, between a company and its customers Business partners, suppliers or intermediaries Horizontally, among e-commerce : ERP, CRM, KM and SCM Downward through the enterprise, for integration of new technologies

14. Similarity E-commerce and e-business both address Technology infrastructure of databases, application servers, Security tools, Systems management and legacy systems. Both involve the creation of new value chains between a company and its customers and suppliers, as well as within the company itself.