e-commerce and internet banking

this ppt gives you detailed information about e-commerce, m-commerce , internet banking and electronic payment systems.

1. INFORMATION TECHNOLOGY FOR MANAGERS MODULE III- ELECTRONIC COMMERCE SYSTEMS PRESENTED BY : ARUSHI GROVER DIVYA ARORA NAITIKA GULATI AANCHAL SHARMA

2. E-COMMERCE

3. WHAT IS E-COMMERCE ? Commonly known as Electronic Marketing. “It consist of buying and selling goods and services over an electronic systems Such as the internet and other computer networks.” “E-commerce is the purchasing, selling and exchanging goods and services over computer networks (internet) through which transaction or terms of sale are performed Electronically.

4. PROCESS OF E-COMMERCE A consumer uses Web browser to connect to the home page of a merchant's Web site on the Internet. The consumer browses the catalog of products featured on the site and selects items to purchase. The selected items are placed in the electronic equivalent of a shopping cart. When the consumer is ready to complete the purchase of selected items, she provides a bill-to and ship-to address for purchase and delivery.

5. When the credit card number is validated and the order is completed at the Commerce Server site, the merchant's site displays a receipt confirming the customer's purchase. The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfillment.

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 theoretical 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 Unable to examine products personally. Not everyone is connected to the Internet. There is the possibility of credit card number theft. Mechanical failures can cause unpredictable effects on the total processes.

8. E-COMMERCE BUSINESS MODELS E-Commerce or Electronics Commerce business models can generally categorized in following categories. Business - to - Business (B2B) Business - to - Consumer (B2C) Consumer - to - Consumer (C2C) Consumer - to - Business (C2B) Business - to - Government (B2G) Government - to - Business (G2B) Government - to - Citizen (G2C)

9. Business - to - Business (B2B) Website following B2B business model sells its product to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end product to final customer who comes to buy the product at wholesaler's retail outlet.

10. Business - to - Consumer(B2C) Website following B2C business model sells its product directly to a customer. A customer can view products shown on the website of business organization. The customer can choose a product and order the same. Website will send a notification to the business organization via email and organization will dispatch the product/goods to the customer.

11. Consumer - to - Consumer (C2C) Website following C2C business model helps consumer to sell their assets like residential property, cars, motorcycles etc. or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.

12. Consumer - to - Business (C2B) In this model, a consumer approaches website showing multiple business organizations for a particular service. Consumer places an estimate of amount he/she wants to spend for a particular service. For example, comparison of interest rates of personal loan/ car loan provided by various banks via website. Business organization who fulfills the consumer's requirement within specified budget approaches the customer and provides its services.

13. Business - to - Government (B2G) B2G model is a variant of B2B model. Such websites are used by government to trade and exchange information with various business organizations. Such websites are accredited by the government and provide a medium to businesses to submit application forms to the government .

14. Government - to - Business (G2B) Government uses B2G model website to approach business organizations. Such websites support auctions, tenders and application submission functionalities .

15. Government - to - Citizen (G2C) Government uses G2C model website to approach citizen in general. Such websites support auctions of vehicles, machinery or any other material. Such website also provides services like registration for birth, marriage or death certificates. Main objectives of G2C website are to reduce average time for fulfilling people requests for various government services.

16. M-COMMERCE

17. INTRODUCTION M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices or mobile devices. M-commerce enables users to access the Internet without needing to find a place to plug in. In this case, mobile devices refer to devices that connect to a wireless network and are capable of accessing, interacting and displaying information like : smart phones, tablets. It includes activities such as buying and selling of goods, online transactions etc. The main idea behind M-commerce is to enable various applications & services available on the internet to portable devices to overcome the constraints of a desktop computer.

18. APPLICATION OF M-COMMERCE

19. ADVANTAGES OF M-COMMERCE Convenient, secure and easy to use communication and distribution network . Provides wider reach as everyone in today’s world use cell phones. Consumers need not go far to the store physically and at the end it saves user’s time and money. As more users use M-Commerce, there are lots of companies use the M-Commerce site to reach them by giving different and better deals in comparison to their competitor. DISADVANTAGES OF M-COMMERCE Security issue is one of the major disadvantage of M-Commerce . Chances of hacking the personal information are more. Mobile commerce needs high-speed connectivity of 3G . Otherwise, it is become hectic for the user to go through entire product purchase process.

20. BASIS OF DIFFERENCE E-COMMERCE M-COMMERCE Definition Electronic Commerce refers to the activities of buying and selling products and services with the use of electronic systems such as the internet. Mobile Commerce refers to the process of buying and selling products and services with the use of internet/cellular data via wireless handheld devices. Technology Web technologies like PHP, HTML.. Mobile applications developed on Android, IOS, Windows. Mobility Limited Less limited because of lighter weight and smaller size leading to easier to carry Reach Only at the places where the electricity and the internet are available Broader due to its portability Cost Less costly for the creation a web store and the use of internet More costly for the creation of a mobile app and the use of cellular data KEY DIFFERENCES BETWEEN E-COMMERCE & M-COMMERCE

21. INTERNET BANKING It is the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash. Internet Banking allows you to conduct bank transactions online, instead of finding a bank and interacting with a teller.

22. SERVICES Balance enquiry. Transfer of funds. Online payment of bills. Accrued interest, fees and taxes. Transaction details of each account. Shopping Ticket Booking Prepaid Mobile Recharge Market Watch Investment Services Online Applications Personal updates Accounts, credit card & home loan balances. Transfer funds to third party accounts you nominate. Open a deposit right from the terminal you are sitting at.

23. How to access Internet Banking? Before you can access your account online, you’ll need to register with your bank for Internet banking. Your bank will give you a registration number or login ID. You’ll also need a password (IPIN).Your Internet password is different from the PIN you use with your debit card. Once your bank has approved your registration, you’re able to access your accounts online. Some banks have a two stage authentication process ― an additional security measure to protect customers’ accounts and personal data. If a two-stage process, you’ll then have to enter another code.The code may be generated by a security token the bank gives you when you register for Internet banking, or it could be contained in an SMS message the bank sends to your mobile phone.

24. Merits of Internet Banking Convenience: Unlike your corner bank, online banking sites never close; they're available 24 hours a day, seven days a week, and they're only a mouse click away. Ubiquity : If you're out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business, 24/7. Transaction speed : Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds . Efficiency : You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site. Effectiveness : Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as Quicken and Microsoft Money.

25. Demerits  Start-up may take time : In order to register for your bank's online program, you will probably have to provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage your assets together online, one of you may have to sign a durable power of attorney before the bank will display all of your holdings together.  Learning curve : Banking sites can be difficult to navigate at first. Plan to invest some time and/or read the tutorials in order to become comfortable in your virtual lobby.  Bank site changes : Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places. In some cases, you may have to re-enter account information.  The trust thing : For many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through? Did I push the transfer button once or twice? Best bet: always print the transaction receipt and keep it with your bank records until it shows up on your personal site and/or your bank statement.

26. ONLINE SHOPPING A form of electronic commerce whereby consumers directly buy goods or services from a seller over the Internet without an intermediary service .

27. Online stores typically enable shoppers to use "search" features to find specific models, brands or items. Online customers must have access to the Internet and a valid method of payment in order to complete a transaction, such as a credit card, an Interac -enabled debit card, or a service such as PayPal. For physical products (e.g., paperback books or clothes), the e- tailer ships the products to the customer; for digital products, such as digital audio files of songs or software, the e- tailer typically sends the file to the customer over the Internet. The largest of these online retailing corporations are Alibaba, Amazon.com, and eBay

28. PROS  Shop 24/7  Comfort of own home  A lot of stores within a click away  Comparison Shopping easier  Discount coupons available online  No Lines  Privacy  Lot of options  Save on Gas/diesel /petrol CONS  Can only see items one page at a time  Takes forever if you have a slow connection  Cant buy with cash  Errors in Billing  Not able to touch or try on  Returns more difficult  Shipping and Handling Cost  Credit Card Insecurity  Lacks the personal touch

29. PAYMENT Billing to mobile phones and landlines Cash on delivery (C.O.D.) Cheque/ Check Debit card Direct debit in some countries Electronic money of various types Gift cards Postal money order Wire transfer/delivery on payment Invoice, especially popular in some markets/countries, such as Switzerland

30. TIPS FOR PROTECTING YOUR SELF  Shop from a secure pc  Shop smart using only sites you know and trust  Shop with your credit card  Consider alternative payment methods  Avoid spam  Keep passwords private  Never give out Social Security Number  Read privacy and security policy

31. ELECTRONIC PAYMENT SYSTEMS

32. INTRODUCTION E-payment system is a way of making transactions or paying for goods and services through an electronic medium without the use of check or cash. It’s also called an electronic payment system or online payment system. The electronic payment system has grown increasingly over the last decades due to the widely spread of internet-based banking and shopping. As the world advance more on technology development, a lot of electronic payment systems and payment processing devices have been developed to increase, improve and provide secure e-payment transactions while decreasing the percentage of check and cash transaction.

33. ELECTRONIC PAYMENT METHODS E-payment methods could be classified into two areas, which are: CASH PAYEMENT SYSTEM CREDIT PAYEMENT SYSTEM

34. CASH PAYMENT SYSTEM Electronic Funds Transfer (EFT): this is an electronic system used to transfer money from one bank account to another without any cash exchange by hand. EFT comprises many other concepts of payment system include: Direct debit: that is a financial transaction in which the account holder instructs the bank to collect a specific amount of money from his account electronically for payment of goods or services. E-Check: a digital version of an old paper check. It’s an electronic transfer of money from a bank account, usually checking account without the use of the paper check. Electronic billing : this is another form of electronic funds transfer used by companies or businesses to collect payments from customers over electronic method.

35. Electronic cash (e-Cash): it is a form of an electronic payment system of which certain amount of money is stored on a client device and made accessible for internet transaction. Electronic cash is also referred to as digital cash and it make use of e-cash software installed on the user PC or electronic devices. Example: PayPal. Stored value card: this is another form of EFT used by stores. Stored value card is a card variety that has a certain amount of money value stored and can be used to perform the transaction in the issuer store. A typical example of stored value cards are gift cards .

36. CREDIT PAYMENT SYSTEM Credit Card: this is another form of the e-payment system which required the use of the card issued by a financial institute to the cardholder for making payments online or through an electronic device without the use of cash. E-Wallet: it is a form of prepaid account that stored user’s financial data like debit and credit card information to make an online transaction easier. Smart card: this use a plastic card embedded with the microprocessor that can be loaded with funds to make transactions and instant payment of bills. It is also known as a chip card.

37. BENEFITS OF USING AN E-PAYMENT SYSTEM E-Commerce websites use an e-payment system to make it easier and more convenient to pay for their customers. It comes with many benefits, which are: More sales by reaching a new audience . More effective and efficient transactions. It’s because these are made just in minutes (even with one-click), without wasting customer’s time. Convenience . Customers can pay for items on e-commerce website at anytime and anywhere. They just need an internet connected device. As simple as that! It also lowers the whole transaction cost . Today it’s easy to add payments to the website, so even a non-technical person may implement it in minutes and start processing online payments. Payment gateways and payment providers offer highly effective security and anti-fraud tools to make transactions reliable.

38. CASE STUDY : AMAZON

39. CASE STUDY ON AMAZON Hidden meaning in the logo - The smile that goes from A to Z tells that the company is willing to deliver any product, anywhere in the world. AMAZON is an American e-commerce company started in 1994 by Jeffrey P. Bezos . It is one of the largest online retailer that managed to survive in its 90s and now is at great heights. It is the 11 th most searched site in the world. How AMAZON managed its online success while many other companies failed? Amazon has always been focusing on making additions to its product list. It started its business by selling books only and now today it deals with nearly 21 product categories . The main reason for such a strong customer base is – wide range of each product is available . Apart from buying from this website , it is easy to sell the product through AMAZON too ; which became the reason for attraction of number of suppliers. Will AMAZON KINDLE revolutionize the book industry? With the development of the technology. We humans are getting updated with the technology. Amazon Kindle  is a series of e-readers designed and marketed by  Amazon .com.  Amazon Kindle  devices enable users to browse, buy, download, and read e-books, newspapers, magazines and other digital media. In future kindle users will definitely increase.

40. What made the customers attracted to AMAZON and grow the website rapidly? Amazon has started its yearly membership program in which members on paying $79 per month get the benefit that their purchased products will be delivered within two days on discounted prices. Some other membership benefits are instant videos streaming and TV shows without additional cost. Amazon has focused to start a separate website for each country : amazon.in for India amazon.fr for France amazon.de for Germany amazon.it for Italy.

41. THANK YOU