Basics of E-Commerce Understand the concept of Digital Transformation with special reference

to Commerce.

3.1 INTRODUCTION
In the last decade, the way of doing business has totally revolutionized, The
reason for drastic change is the emergence of new technologies and the

merging of Internet facilities with these new technologies. The Internet has
produced a number of innovations in the business between commercial
organizations,between individuals and commercial organizations, and
between individuals and individuals. These transactions are usually known as
(B2B), business-to-customer
business-to-business (B2C), and customer-to
custoner (C2C)e-commerce.

The advancement in technologies impacted the e-commerce industry

drastically; it way consumers connect with brands. Now
has transformed the

the customers feel more empowered as they can buy anything just with a

click of a mouse, can shop more cost-effectively, track orders, find the best

deal by comparing different portals and get the convenience of getting

products delivered to their doorstep. All this is possible because of the

emergence of new technologies, as a result now e-commerce companies are

getting nearly global adoption because customers can buy products from
anywhere and at any time as per their ease.

3.2 DESIGN CONSIDERATIONS FOR E

COMMERCE
None of the e-commerce applications would be possible without some basic
design considerations. Attracting visitors and making themn convert into
customersis the real challenge. The basic design considerations, which, when
set up right, will pave the way to a prosperous online business. Five
importantdesign considerations of e-commerce are discussed below:

3.2.1 Design of e-commerceWebsite

The design of the portal is most important,never underestimate it. The
customers who visit the site should be able to find exactly what they're

looking for as soon as they arrive. E-commerce portal should be such that it is
fast and responsive to customers'needs, web pages should load
quickly and
provide smooth, intuitive navigation across all electronic devices (desktops,
tablets, and smartphones).

3.2.2 Easy navigation

Easy-to-use navigation is essential for any website and even more so for
online [Link] prefer e-commerce portals that are spontaneous
to their queries and give quick responses to what they are looking for. If the
productdescriptions are not properly provided on the shopping menu of an e

commerce portal, then there are high chances of losing the customers.

40
 Technology Used in
/.2.3 Simple checkout E-Commerce

should be smooth, if it involves too

Like navigation, the checkout process
the risk is the customer just gets frustrated and
that
many steps and clicks,
for
givesup before completing the purchase. There should be the facility

payment through different payment such as through net banking,

options
The
digital wallets, debit/eredit cards, and COD (Cash on Delivery).
state the shipping charges,
paymentprocess shouldbe transparent and clearly
there should not be any hidden fee at
taxes, and any other fee if applicable;
the time of product delivery.

3.2.4 Logistics

Logistics management is one of the key consideration points for doing

business either locally or around the globe. Proper logistics should be in place
to receive and fulfillorders.

3.2.5 Good Product Pages

Theproduct page is the crucial element of any e-commerce portal,it has
the power to convert a 'visitor' into prospective buyer'.

The pictures uploaded on website pages should be of good quality,

languageused for product description must be simpleand crisp.

Feedback of the customers in form of'product review'should also be
there on e-commerce website, as the product review option increases

the chances of a product purchase, nowadays customers prefer to buy

a product after reading aboutits review.

3.3 ESSENTIAL TECHNOLOGY FEATURES

Essential
REQUIRED
features of technology required while designing e-Commerce
OPLES are

explained

1.
as follows:

Ubiquity: E-commerce is ubiquitous i.e. it can be accessed from

RSITY
everywhere and at [Link] is not restricted to any physical space and
makes it possible to' shop anytime,anywhere using any electronic device

(laptop/desktop/mobile
phone/tablet) having internet connectivity.

2. Globa Ruach: The technology has eliminated the national boundaries.

In e-commerce businesses, potential market size is almostequivalent to

the global population.

3. Universal Standards: Another obvious unusual feature of e-commerce

technologies is there is one set of technical standards of the internet that
is universal standards. The Internet is shared at the global level by all
nations, it enables any computer link with any other
to computer

regardless of the technology platform used by each one of them. Using

the universal standards files can be easily exchanged with any remote
device across globe.

41
 4. Richness: Advertising and branding are an important part of commerce.
sics of E-Commerce
E-commerce can deliver video, audio, animation, billboards, signs and
are rich can
ete like traditional commerce. Information and the contents

without sacrificing the. reach.

bedelivered

5. Interactivity: E-commerce technologiesallow for interactivity, meaning

the merchant and the
they enable two-way communication between
Consumer.

reduces the information

6. Information Density: Ecommerce technology
and processing cost. At the same
collection, storage, communication,
the accuracy of quality information, making
time, it has incrcased
information moreuseful and important than ever.

allowsfor [Link]
7. Personalization: E-commerce technology
behavior products can be
the basis of name, interests, and past purchase
information could be
customized and personalized,further, this collected
to the targeted
used for sending marketing and promotional messages
customers.

3.4 DIFFERENCE BETWEEN APP BASEDAND

WEB-BASED BUSINESS
generate their revenue directly from their website fall into
Businesses that

the web based business category, these types of websites are typically
in nature, they are made to provide the desired information
informational

typically a whereas, a mobile app is a software application

user demands
designed for use on mobile devices, such as smartphones and tablets, rather
than desktop or laptop computers.

Nowadays, every individual has mobile phones, so almost everyone has

switched from website to mobile application as it is convenient touse, can
be carried everywhere and anytime. That is why most retailers are investing
customers to their
ine-Commerce app development to attract maximum
online business (e-commerce).

Table 3.1: Difference between App based and web based business

Parameters App based business Web based business

Devices Used Handheld devices such as Smart Computers, Laptops

phones and tablets

Mandatory
Internet Mandatory
Connectivity
Requirement
messages In web based business reach
Reachability With push
app based is limited.
(notifications),
of
business reach large number
customers, even when they are
on the go

Platform Web store and native Apps Web stores

(Play store in Android and App

store in Apple )
 ayment Gatevay Mobile banking, net banking Net banking, Credit/Debit
Technology Use
Credit/Debit card, Wallets, card, Wallets, COD
COD. E-Comm

Mobility Mobility is high, as customers Mobility is low, as

can buy and make transactions customers can buy and make
from anywhere, anytime as long transactions On their

as internet connectivity is there. computers and laptops

Privacy and There are lot many privacy and Web based business is more
Security security issues related with app secure than App based
based business. Installation of business
malware on mobile is one of the

major concern while shopping

online using mobile app

App-based husiness is the future of shopping as changing time requires

changing sGiaons, and mobile app has proven it by providing customers the
convenience and flexibility of shopping on the go.

3.5 BUILDING, DESIGNING AND LAUNCHING

E-COMMERCE WEBSITE
Building an E-commerce website
will 'strengthen the reputation of the
business; it helps in the expansion of the brand nationally and internationally.
The World Wide Web is all about the technologiesthat change the business
environment and have an impact on the future of electronic commerce. The

wide popularity of the internet n recent years has been fuelled largely by the
prospect [Link] business on-line, i.e. buying and selling of the
product, services, or information via computer networks, mainly by the
Intermet. There are a lot many benefits of doing business through e-commerce
that no company can afford to ignore. It is no longer an alternative but is

chosen as the first choice for the new players in the market. Businesses are of
various types,
companies in
so the e-commerce model
the
alsO

same industry, but different either with the size or customer

changes [Link]
OPLE
base are finding that one same e-commerce models do not work. Therefore,
one e-commerce model does not fit all.
ERSIT
3.6 SDLCCYCLE FOR DESIGNING E

COMMERCE SOLUTIONS
In the Systematic Approach of developing successfule-commerce two most
important management challenges are involved,first challenge is to develop a
clear understanding of the business objectives and the second challenge is to

choose the righttechnologiesto achieve identified business objectives.

Effective plan and knowledge base of the above factors will help in making
sound management decisions that will help to generate consistent, optinmum
results in terms of increasedgrowth of the online business (e-commerce)

For understanding the business objective Systems Development Life Cycle

(SDLC) mhdology used, which helps in designing an appropriate
is
solution. Itincludes the creation of documents that communicate to senior
 management for achieving important milestones and the uses of resources.
of E-Commerce

The five major steps of SDLCinvolved are:

website to be
a. System Analysis/ Planning: In this phase objectives of
developed are identified and defined, system requirements are also

gathered and on the basis of that System Requirement Specifications

(SRS)document is prepared.

designed like
b. Systems Design: In this phase the system model is

user interface and databasc.

graphical
In this phase the design is
c. Building the System (Development):
executed into actual c-commerce website.

e-commerce
d. Testing: In phase a thorough testing is done on actual
this
as speed of website, connectivity
website of various parameters such
(if applicable),.
between various pages, money transactions
e. A hosting company is chosen in this phase.
Publish /Implementation:
Once it is then payment for hosting charges are done, Hosting
finalised
uploading the website on
company provides a password that is used for
the internet server.

Implementation
Systems
Service
Analysis/
Delivery
Planning
Building
Systems
Testing
the
Design
System

com/2018/08/e
blogspot.
Source": https:ldesignsystemexamples.
commerce-systerm-analysis-and-design:html) ITY
for E-Commerce website development
Fig 3.1:SDLC approach

of
Nowadays, becoming anintegral part for the development
Agile method is
as it accounts for unpredictability
E-Commerce websites, apps and software,
implemented. In this method
client
by allowing forchanges to be constantly website. Agile
is provided accesstomultiple
versions after iterations) of the (
in early personalized
last one decade and
methods gained prominence from client's
.website quality by injecting
because agile method improves
era,
feedback into a working websiteversion.
There are following advantages:
Advantages of Agile Methodology:
gives a much higher speed than conventional
a. High Speed: This method streamlining
due to its well-planned
web development programs,
development.
 Better product quality:The website undergoes regular and rigorous Technology Use
E-Comme
quality checks to improve the quality, during the development process.

is difficult to work nowadays using different methodology

C. Flexibility: It

Waterfalletc)because of today's fast-on-the-move environment.

(such as
requirements
Agile methodology works for projects with ever-changing
and goals, and adapts to any environment.

d. Reguler and rigorous testing: Quality checkups aredone regularly till

the finai website is launched.

3.6.1 Hardware

Hardware is the basic technical requirementof an e-commerce website that

can support e-commerce operations. Choosing the right kind of hardware for
an e-commerce site is very important, for this consider the size, purpose,and
traffic on the site to deternmine the use of server [Link] E-commerce
website ismade up of HTML,PHP, Javascript, database, media files. The
entire website is stored on a web server. Hardware for setting up a web server
completelydepends on the e-commerce website requirements. There arelot
many that iecide the hardware for hosting, such as what app you will be

running on the web server. How many visitors you are expecting, what's the
scalability of a site, etc.

3.6.2 Software

All e-commerce sites require basic Web server software to answer requests

from customers for HTML and XML pages. It thus answers HTTP requests

from customers. The choice of Web server software depends on the operating
system. Apache, the leading Web server software; only works with UNIX
operating

major Web
system. Microsoft's
server software.
Internet Information Server (IIS) is the second
OPLE
3.6.3 Ousourcing Vs In-house Development of Application

In-house development of application is the process of developing and

RSIT
building an application on your own. It includes high risk; high skilled set
and pre-built templates in this case.

Whereas, Outsourcing is hiring an outside vendor to provide develop the

application that cannot be developed with in-house personnel.

This is completely from in-house app development in terms of risk.

different
Itlowers down the risk of app failure because in this case,company hire the
top app developers who are experienced and understand the market trends as
well as customers/clients requirements.

Check Your Progress A

1) What is an App based business?
 2) "Advancement of technology has impacted the business."Comment.

3) What are the advantages of agile methodology?

4) What do you understand by in house development of an application?

3.7 ARCHITECTURAL FRAMEWORKAND

NETWORK INFRASTRUCTURE
3.7.1 Architectural Framework of E Commerce
A framework is intended to define and create tools that integrate the
information and allow the development of e-commerce [Link] aim
of the architectural framework is on synthesizing the diverse resources
already in place to facilitate the integration of data and software for better
[Link] e-commerce architectural framework consists of following
six layers of functionality,or services:

1. Applications Layer services: It includes all Customer to business,

business to business and intra organizationalservices

2. Brokerage services, data or transaction management: It includes order

processing, payment process and mail interactions

3. Interface and support layers: Itfacilitates Directory support functions,

Interactive catalogues
 Securemessaging, security. and electronic document Interchange: It deals Technology Used in

withencrypted e-mil, Electronic Data Interchange(EDI) E-Commerce

5. Middle ware and structured document interchange

and basic communications services

6. Netvwork infrastructure

All the above mentioned are connected and, help in integrating

layers
the chosen
information access and exchange within the context of
application. As electronic commerce applications are based on several layers,
when they are integrated, then provide uniquely powerful solutions,

3.7.2 Domain Name System (DNS)

The DNS is a system for mapping alphabetic names to numeric Internet

Protocol (IP) addresses like a phone book maps a person's name to a phone
number.

Lets understandthe concept with an example, say '[Link]' is an URL.

In this '[Link]' is the domain name and www' is the hostname. DNS
resolution (the process of translating IP addresses to domain names) maps
[Link] into an IP address (such as [Link]). When a user needs to
load a webpage, a conversion must occur between what a user types into their
web browser ([Link]. com) into an P address required to locate
the [Link] site

3.7.3 Web Servers Implementation

Theserver and client speak the standardized, basically the computer language
of the World Wide Web. Because of this standard language, The old Mozilla
Netscape browser can a modern Apache or Nginx web server. The
still talk to

basic languege of the Web with from client to

the request and response cycle
the serveraud then back toclient remains the same as it was before. Modern

browsers and web servers have simply developed and extended the language
OPLE
of the Web to incorporte

Web server: A
new standardsand to relate to the new customers.

web serveris
the software,that can satisfy client requests
server software, or hardware dedicated to run

on the World Wide Web.

RST
Client request: A client sends a request
a web server by using a browser
to

such as Internet Explorer, Firefox, or Chrome. A Web server's work is to

process requests from the clients. The result of the web server's processing is
a responsecode and is commonly a contentresponse.

The web sorver can be implemented in various ways. The following web
server implmentations each have changing features, extensions and
configurations.

Apache HTTP Server: It is the most usual deployed web server on the
Internet for more than 20 years.

Nginx: It is the second most commonly used web server, It can also be
used as a reverse ptxy, load balancer.
sics of E-Commerce Caddy: is a new It entry and it focuses on serving the HTTP/2-protocol
with HTTPS.

The file sits on the file system in a location where the web. server is

authorized to access and the web server sends the file to the client with a

status code. If the client had alrcady requested the file and the file has not

changed, the web server will pass back a 304 "Not modified" response
indicating that the client already has the latest version of that file.

3.8 IMPACT OF EMERGING TECHNOLOGIES

ON E-COMMERCE
In thepreceding sections, we saw how Internet the "platformsof platforms"
has tremendouslyreduced the entry costs of new businesses / entrepreneurs in
the market.

Now we would move on understanding the impact of emerging technologies

on businesses.

Emerging technologies are simply new technologies that are currently

developing or will be developed over the next five to ten years, and which
will substantially alter the business and social environment. Broadly,

emerging technologies can be understood as 'science-based innovations with

the potential to create a new industry or transform an existing one', which
will“substantially alter the business and social environment"

There is no established definition of Emerging technology:The term

Emerging technology is interchangeably used with Disruptive Technologies.
These Emerging technologies are broadly divided into three categories viz

'Artificial Intelligence-AI, Transparently Immersive Technologies' and

'Emèrging Digital Platforms'. Emerging technologies such as Internet of
Things (loT), Artificial Intelligence (A), Robotics, have influenced every
sector.

The accelerating pace ofadoption of Emerging technologies in e-commerce

is going to be impresive,because of dramaticreductions in operating costs,

easier access to the consumer as well as because of innovations possible in

the design and delivery of products and services due to these newer forms of
digital technologies.

Emerging technologies are also often referred toas Disruptive' the one
anestablished
that displaces technology and shakesup the industry and could
be termed as a ground-breaking product capable of creating a completely new
industry. In the next few subsections, we shall discover the tremendous
impact of Emerging technologies on businesses and that how these
technologies have revolutionized the existing e-commerce business models.

Presented herewith are discussions on impactof only a select few Emerging

technologies viz Mobile Devices and Mobility, Big Data and Big Data
Analytics, AVML, loT /loE/lloT/ Digital Twins, Cloud/ Edge/ Fog
computing, and convergence of these technologies as ndustrial Revolution
8 4.0,on the realm of e-conmmerce.
 Mobile Devices and Impact on e-Commerce: n
Mobility and its Technology Used in

every consumer wishes to get services

on the go. E-Commerce
present busy lifestyle,
as payment of utility bills to ordering
These services could be asroutine
/ movable
buying and investing in fixed
of food or apparels or even
devices. No one could
assets usg smartphones
and other handheld
of mobility
ignore the significance
of mobile devices and the advantage
these devices present in out daily lives.

of mobile devices has led to

Growing penetration and popular acceptance
evolving mobile based solutions. It has
the increase, and growth of ever
had been conducted earlier.
also revolutionized the way online shopping
E-commerce companies are now striving hard towards
offering

unsurpassed User Interfaces (U) and User Experience (UX) to their

devices. Mobility is indeed,

target consumers on their handheld digital

becoming a highly significant aspect of e-commerce design

considerations.

2) Big Data and Big Data Analyties and its Impact on e-Commerce: E
Commerce is a sectór, inwhich companies handle a large amount of data

on their databases. Data about customers,distributors,retailers, products,

processes, prices, logistics, and several other aspects of businesses is

growing faster than ever before. In such situation use of Big Data and
Big Data analytics become relevant to save, update, use, process and
share this ever-growing business details.

The tem Big Data is largely characterized by the mix of the 4 V's
volume,velocity, variety, and veracity. Big Data technologies not just
process the huge quantity and range of data formats but also lend speed
to its prOcessing. Every second, more and more data is being created
from heterogeneous components of e-commerce which also needs to be
analyzed
of it.
in an integrated manner in order to extract maximum value out
OPLE
of of

ERSIT
Big data analytics is a collection different types tools, including

those based on predictive analytics, data. mining, statistics, artificial

intelligence, etc. . The complex analysis of Big Data is enabled bythe

science of big data analytics coupled with intelligent and predictive

processing enabled by AI/ ML algorithms.

Big data analytics isof examining large and varied data sets
the process

i.e., big data to uncover hidden patterns, unknown correlations, market

that can help
trends; suztomer preferences and other useful information
organizations make more-informed business decisions. Powered by

AVML, big data analytics help organizations to make better business

decisions and forecast future trends.

3) (A), Artificial
Artificial Intelligence General Intelligence (AGI) and

Machine Learning (ML)and its Impact on e-Commerce: Artificial

Intelligence (AI) is an important Emerging technology, that has created

impact on everything that we do today - right from searching the

Internet, to watching series/movies on streaming platforms to what we
order online.
49
s of E-Commerce
Artificial Intelligence is the simulation of human intelligence processes
by machines, especially computer systems. These processes include

learning, reasoning, and self-correction.

General intelligence (AGI) is the representation

More typically, Artificial
with
hunman cognitive abilities in software sothat, faced
of generalized
find a solution. An AGI system
an unfamiliar task, the Al system could
is
human is capable of. Machine learning
perform any task that a
could
systems the
(AI) that provides
an application of artificial intelligence
being
to automatically learn and improve from experiencewithout
ability

explicitly programmed.

Machine learning focuses on the development of computer programs that

and use to learn for themselves. Artificial Intelligence

can access data it

(AI) with its core subset of Machine Learning (ML) is rapidly

transforming life experiences- ranging from routine mundane chores to

critical decision-making. AL ML permit rule-based extractions on

data collected over the entire value

heterogeneous multidisciplinary

chain of businesses.

Artificial Intelligence is helping e-commerce businesses get closer to

as with the help of A e-commerce platforms are able

their customers,

to utilize large datasets regarding customers purchasing behaviour and

intelligence self-learning algorithms
product search patterns. Artificial

can create personalized shoppingexperiences for online buyers.

Typically, businesses are implementing AML to increase retail

standards, customer experience, and profits and fast processing.

Following are some facilities, that AI is providing to e-commerce:

Personalization: The clients are provided with a personalized

experiences and easy to select products/searches based on their

earlier searches (machine learning technique).

Real-time intent targeting: It isthe next step in personalization.

Enabled by Al, it gives the ability to accurately predict ever

changing customer intent.

Voice Assistant: AI is also facilitating voice assistants, by which

customers can interact with and resolve their queries.

Recommendation engines: A recommendation engine is a tool that

filters the data by using algorithms and suggests popular products

Based on the customers past purchasing behaviour,

for customers.

these engines will suggest items which the customer may probably

purchase.

Chat box support: It is a computer program that allows

engaging purchasing more highly by

conversational performances,

text and voice. Nowadays, it is popularly used in mobile phone,

 internet browsers, or internet chat rooms. A basic and simplereal Technology Used in
E-Commerce
time human-likeinteraction using both textoptions can also enhance
user experiences (UX) and thus nurture good engagement between
the customer and the online store.

4) Internet of Things (loT), Industrial Internet of Things IIoT), (

Digital Twins and its Impact on E-Commerce: The Internet of

Things (loT) isa system of interelated computing devices, mechanical

and digital machines, objects, animals or people that are provided with

over a network without

unique identifiers and the ability to transfer data

requiring human-to-human or human-to-computerinterventions

sharing, collating, millions of zetta bytes

loT devices [Link],
made available to planners/decision makers for
(1021 bytes), which is

real-time decision making through state-of-art control centres.

of Things (IloT) is similar interconnected network

Industrial Internet
where all the instruments have sensors
particularly in industrial context,

and are interconnected with each other.

the concept of digital twin'- which

Extending the concept of loT, is

of creating a virtual representation of a

refers to the digital process

product. The application of 'digital twin' can be used in product design,

optimization, and servicing and is
an important
simulation, monitoring,
concept of Industrial Internet of Things(IIoT)

have on e-commerce is
The impact that IoT and its related technologies
Frequency
interesting. For example, IoT sensors and RFID (Radio
the way inventory is organized at
Identification) tags have transformed
the backend of online stores. COPLE
are presently
automation: Most of organizations

RSIT
the
Warehouse
their warehouse operations for decreasing
concentrating on handling
are
and increasing business efficiency. Automated warehouses
costs
well. They
effective, adaptable, quick and trustworthy as
progressively
adapt and handle the distribution of
help online shopping companies to

warehousé products.
sensors on the products, a unique online
Because of interconnected
can
is possible, where both the buyers and sellers
shopping experience in real
'view'and monitor the availability and movement of inventory
in the back-end factories lead
to

time. Such IoT based implementations

models. Tracking the status of the
better 'supply chain management'
before the adventof IoT technology.
product has never been so accurate
customers can easily know
With the help of LoT sensors and RFID tags,
have ordered, where it is, what the
what happensto the product they
arrival time of the product etc is.

Fog Computing and

5) Cloud,Computing, Edge Computing and
its

in storage capabilities and

Impact on e-Commerce: With the increase 51
erce methods of data collection, huge amounts of data must be stored and
managed well in remote data centres, called as 'cloud'.

Cloud assures to deliver on-demand omputing resources and services in

three basic manner viz. Software as a Service (SaaS),Platform as a
Service (PaaS),Infrastructure as a Service(IaaS).

Cloud computing term is often referred to refer to the process of

analysing the data lying in these remotedata centres. A close variation of

theconcept of 'cloud computing' is 'edge computing'.

'Edge Computing' moves computing applications,. data, and services

away from centralized nodes to the logical extremes of a network.
It

enables analytics and data gathering to occur at the sourçe of the data,

instead of remote data centres.

edge-computing
'Fog computing' refers to a collection of co-located
Therefore, fog
devices and computations, connected over
Internet.

in which data,
computing is a decentralized computing
infrastructure

are located somewhere between the

compute, storage, and applications
to process co-located
edge and thecloud. Edge and fog computing help
data closer to where it has been captured
from,rather than waiting for it
to flow' to the remote cloud servers. Fog
computing and Edge
data capture, data
computing, therefore, reduce the time-gap between
processing and data-dissemination.

Allthese varied possibilities of computing offered by Cloud, Edge and

Fog allow business enterprises to launch applications without worrying

help businesses
about the infrastructure. These remote implementations
to have access the information stored in big data storages without delays.

are cost effective, scalable and could

Cloud based e-commerce solutions
to those enterprises who need
be considered as the best option available
of
to access terabytes of e-commerce data, without the botheration

maintaining it on the local premises.

provides security
Another important benefit of cloud computing is that it

to the data by storing it in a virtual space.

Physical servers or on
cannot easily combat the risks of disasters/risks
premises data centres

which could occur anytime.

fog computing and

Cloud computing, along with its emerging trends like
realm to provide
edge computing can be utilised in e-commerce
alternative contact points for the related
business processes and to its
numerous users.

Block Chain Impact on E-Commerce:. A block chain i a digital

6.
which is made to. store list a of transactions
record (distributed ledger),
has a different feature which contains a link
(called 'blocks'), Each block
and data about the transactions it
to the previous block, a timestamp, created. Since
represents. Blocks cannot
be [Link] they are
created, all parties (buyer
and
it's ben
nobody can modify a block after
 seller) can be assured that the data contains
it is still valid long and Technology Usec
remainsunchanged after its creation. E-Comme

Block-chain technology is a [Link] for E-Commerce since it was

designed for storing transactional data. However, this data doesn't need to

be financial; it can be any distinct action that requires a fixed record,

including ctions related to payment and order fulfilment.

There are various advantages (plus points) of block chain technology that
make it an approachable technology for the e-commerce industry (and
other industries) in the coming future. Some of the plus points
are
discussed below:

Transparency: One of the major reasons block-chain is interesting

businesses is that this technology is almost always open source. That
means other users or developerswill have the opportunity to modify it as
they prefer it to be.

Stability: Confirmed blocks are very unlikely to be reversed, meaning

that once data has been registered into the block chain, it is extremely
difficult to remove or change it. This makes block chain a great
technologyfor storing financial records.

Reduced transaction costs: Blockchain lets peer-to-peer as well as

business-to-business them complete without the
transactions to let

requirement of a third partý, which is usually a 'Bank".Because there is

no Inclusion of a middleman which is tied to block
chain transactions,
which basically means that they can actually reduce costs to
the user or
businesses over time.

Decentralization: Another important reason the block-chain is so

exciting isbecause of its lack of a central
massive data centre and verifying transactions through that hub,
chain actually lets the individual transactions
to able tohave their
block
data hub. Instead of running a

own
OPLE
copy
constraints.
of

User-controlled
proof of validity and

networks:
the authorization tobe able to enforce those

RSIT
Finally, crypto currency investors are
inclined tobe really motivated by the control aspect of the block-chain.
Rather than having the third party
performs its tasks, users and developers
should be the ones who getto call
the shots.

From
commerce

a.
the

Better
above

. discussions,,block chain will

in tie future, as indicated herewith:
.,

Supply Chain Tracking

and monitoring
&
Monitoring: Supply chain tracking
is the most crucial aspect
be the driving force for e

of e-commerce. The well

monitored and balanced supplychain
is a distant dream for
businesses. Tracking the products,
e-Commerce
managing the stock is very hard for e
commerce. Blockchain implementation in this area will likely
solve
many problems, this technology
could be extensively
leveraged to solve
supply chain issues like
recordkeeping, tracking ofproducts etc.
s
ofE-Commerce
b. Provenance
Tracking: The record keeping and provenance
tracking
becomes easy a block chain enabled supply chain,
in
as the product
information can be accessed with the help of RFID
tags and embedded
sensors. Tracking could be done from
product's inception stage to it's
present status.

Payments Get an Efficient Makeover: The payment industry js

obtaining ample benefits from block chain technology. Crypto currency

has gained the necessary power and is being used as an alternative to the

traditional currency in e-commerce. Nowadays, customers prefer crypto

currency because it doesn't expose personally identifiable information

such as name,credit/debit card number, etc.

d. Secure Platform for e-Commerce: Security in any form is. a cause of

concern for e-Commerce businesses. The Blockchain-basede-Commerce

levels including data andwallet security.
platform offers security at all

7. Industrial Revolution 4.0 and its Impact on E-Commerce: These

digital technologies including AI, IoT, Cloud computing, Big

'smart
etc. have also led to a paradigm shift in businesses,
Data Analytics
in, what is popularly
particularly the manufacturing sector, ushering
4.0 completely
referred as Industry Revolution4.0' (IR4.0). Industry
enabled by
relies on real time data exchange and digital interconnectivity
In IR 4.0, the
cyber-physical systems (CPS) and emerging technologies.

world of manufacturing relates to digital world using cyber

physical
and industrial internet of
physical systems(CPS), internet of things (IoT),
for,better
(IIOT), cloud computing, and artificial
intelligence
things
partners, vendors, product, and people.
collaboration across departments,

IR 4.0 has now been accepted a more comprehensive,interlinked, and

as
one. The
holistic approach to manufacturing than the prevailing
using emerging
underlying concept of IR 4.0 is "interconnectivity

technologies".

3.9 DIGITAL PLATFORMS AND E-COMMERCE

from the previous section, the impact of Emerging

technologies
As isevident
the last few years. Convergence of
on e-commerce. has been enormous in
cloud-based
Emerging technologies has led to the emergence of newer

*digital platforms', which are

more complex in implementation than online
Even the implementation
stores that we had been talking so far about.
are different than the basic e-commerce
strategies and revenue models
to explore the concept of
Digital
models we had studied. Let us try
business
platforms, also referred as only 'Platforms.
can be understood as digital

What are Digital Platforms :Digital

platforms
that permit
and online digital facilities
frameworks of complex web portals
a range of actiVities,
collaborators – users, peers, providers -- to undertake
ecosystems for value
de facto standards, forming entire
often creating
creation and capture.".
 Digital
platform is
essentially a cloud
to personalise
based
AIML and implementation;it employs
contextualise each
isitor to theplatfom; it relies
activity
undertaken by the Technology Use
on Big Data EComm
imedata
HOw Platforms Work:
ard ases APIs to technologies
converse' with this huge , to store
varied,
heterogenousBig Data.
real

Al the past choices and

the transactions undertaken
customer are stored in enormous
by
databases running in the
algorithms are employed on these huge databasesto
cloud. ML
the future 'data-mine'and 'guess
choices of the customer.
These 'predicted choices' are presented
using customised APls, when he/she
logs in again. Asalready explained in
the last Unit, APls – application
programming interfaces, deliver a
customer'sresponse to the
system and sends the system's
the customer. Therefore, cloud, response back to
huge databases, AVML and
APls work
together in the platforms to
predict future choicesof
the customer that help to
target them in a more personalised
manner. These predictions are not just
about the potential product / service
choices'of the customers but are also
used for displaying targeted
advertisementsand campaigns that the customer
could be potentially ìnterested in.

Though all the e-commerce online stores use nternet itself as the foundation
of designingand launching platforms but
in present times, several
technology
companies (also spoken language as BigTech giants')
referred in
are
emerging as infrastructure companies who provide
Cloud infrastructure and
the related AIML based tools to the
rest of the companies for
constructing
their own company portals and delivering services/ products. For example,
Amazon Web Services(AWS)provides digital infrastructure and tools with
which other platforms are built. Similarly, Google Cloud Platform (GCP)
which is al:n cmerging as one of the fastest and enormouslygrowing cloud
computing platforms in the market. TBM Cloud and Alibabacloud are other
twointeresting “Platform for Platforms".
players in the field

Types of Platforms:Depending on the services

of providing

offered, various
have categorised digital platformsin various types, such as
researchers
OPLE
Sharing Economy Platforms

Development Platforms
RSIT
Crowd-Sourcing /Crowd-Funding platforms

Payment Platforms

Retài Ýlatforms

Booking Aggregators

Content and Review Platforms

Matching and Social Media Platforms

Communication Platforms

Search Platforms.
E-Cammere

Seafch Sharing Economy Platforms

Communication
Platforms
Platforms •Sharing of
capacity-constralined
assets
and resources (e cars and g
ho and Satr
bicycdes)
Peer-topeer sharing (focus of this
Sodal Media article, eg
Airbnb and Uber)
Pattoms Sharing of platform owner-grovided

assets ieg ZoCar)

csboo

Sharing of capacityunconstrained
resources (eg music, and

file,
information sharing mostly peer-to-
peer)

Matching
PRatfoms
Types of

Platform Business Development

Platforms
Models
(eg appstoresand
pigconsoles)
Content &Rview
Natforms

Crowdsourcing &
Crowidfunding

Platforms

feg. Innocercive and

Kckater)
Booking
Retail Payment Platforms
Agregators
Platforms feg PyfalAp. and
leg Bockingaom,
Vis)
Eipeda and hgodal leg Amason,

Etsy.
Bay and Craigirnl

Source*: [Link]
1907029_Platforms_ in thePeer
to-Peer_Sharing Economy/figures?lo=1)

Fig 3.2: Types of Digital Platforms

Impact of Digital Platforms on e-Commerce: Understandably, the

development and application of the platform economy has a deep impact
on the way business transactions could be undertaken in future.

a. Thefirst main advantage of digital platform has been that it has initiated
disintermediation -
i.e. removal of local brokers (middlemen)from the

supply chain. Using advance tools and algorithms,digital platforms, also

referred as third-party marketplace or aggregators, connect sellers (for
example, wholesale companies with buyers (for example, consumers) )
by removing intermediaries (for example retailers) from the supply
chain. For example, Uber directly connects drivers with riders using
basic algorithms,thereby eliminating "Taxi stands'from the supply chain
of automobile services. In the same vein, Kickstarter or Indiegogo for
project funding have replaced traditional intermediaries.

b. Platform economy has also led to the popularising of the word

'uberisation'which refer to the concept of buyers and sellers, consumers
and producers coming together virtually on the digital platform'. For
example, digital platforms (such as Upwork) now help to facilitate HR
(human resource)functions.
C.
Several products / services that had a huge time and cost premium
attached to are noweasily availäble on these platforms. For example, a
it

library of software tools for building other software utilities is available

on Github. Similarly, there is App Store of Apple and Google Play Store
for Android that provide trusted platforms to facilitate the users to
 for
download other apps by providing inbuilt safeguard mechanisms Technology Used in
of content for the users. E-Commerce
privacy, security and trustworthiness

In short, powered by Cloud, AML, Big Data and related Emerging

digital platforms connect all stakeholdersof value chain

technologies,
who are involved in a business transaction and help in convergence of
help local products and
processes, places and people involved. They
therefore, have a very
services to have a global outreach. Platforms,

strong multi-dimensional characteristic that would impact e-commerce

business models of future.

3.10 AND DIGITAL

DIGITILISATION
TRANSFORMATION IN BUSINESSES
Even the e-commerce designers are reimagining how goods and
services

could be delivered more creatively by employing Emerging technologies.

made
These trends towards extensive dependence on Emerging technologies
automation of
possible through mobile devices and apps, have also led to

internal processes of businesses (such as inventory management, HR

automation and so on) as well as of customer-facing processes (such
as

billing. notifications to the customers and so on). This; in return has led to

automation of internal
extensive business process reengineeringand process
and externai business processes using various Emerging
technologies
processes of
including AIML etc. Integrated automation of end-to-end
is also called digitilisation(
business enterprises using Emerging technologies
andnot digitisation) or digital transformation in enterprises.

transforms delivery of services or businesses, by replacing

Digitilisation
with redesigned
technology implementations and manual processes
earlier

digital processes that use Emerging technologies.

in
EOPLE S
Undoubtedly, Emerging technologies have ushered Digital transformation
thearea of trade and commerce. Businesses have become
[Link] have become more agile and.'virtual'
cloud-based

Newer business models have emerged that are more intelligent' and
in nature.
and

RSIT
responsive to the needs of their customers
and customers,have, truly become
the 'kings' and 'queens' getting products/ services whichevr they need -
and wherever they need.

Check Your Progress B

1) State the impact of Industrial Revolution 4.0 on e-Commerce.

57