ELECTRONIC

BUSINESS
 Course Objectives
 The Course highlights the basic aspect of E-business & E-
commerce.
 The students will become familiar with different business
models, strategies, legal issues related to E-commerce
 Familiarizes students with the Electronic payment system,
integrity and reliability of transactions
 Most important the encryption and digital signature
techniques needed to support electronic cash, and the
technologies available to support secure transactions on
the Internet.
 Also make the students to understand the theoretical &
practical experience of web development.
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 Lecture-1 & 2
 Introduction to E-Business & E-Commerce
 Electronic commerce Vs Traditional Commerce
 Advantages of E-Business & E-Commerce
 Disadvantages of E-Business & E-Commerce
 The Ocean of “E-”
 M-Commerce
 Brief History of E-Business
 Internet
 History of Internet

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 What is Business?

 “A company or other commercial organization that buys

and sells goods, makes products, or provides services.”

 “A commercial activity involving the exchange of money

for goods or services.”

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 What is Commerce?

 Commerce is all about buying and selling between two

or more entities.

 Commerce deals with the exchange of goods, services,

information or money from producer to final consumer.

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 Electronic Commerce
 Electronic Commerce has different definition:
 Communication perspective,
 “Electronic Commerce is the delivery of information,
goods/services, or payments via telephone lines, computer
networks, or any other media.”
 Business process perspective,
 “Electronic Commerce is the application of information
technology towards the automation of transaction and
workflow.”
 Online perspective,
 “Electronic Commerce provides the capability of buying
and selling products and information on the Internet and
other online services.”
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 E-Business & E-Commerce
 E-Business is defined as the process of using electronic
technology to do business.

 E-Commerce can be defined as a subset of E-Business that

focuses on commerce.

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 So, what is our definition of
E-Business?
 “Any form of business or transaction or information exchange
that is executed using any information and communications
technology”

The
The Internet
Internet

B2C, B2B, C2C

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 Traditional Commerce
Vs
Electronic commerce
 Traditional E-Commerce
 Face to Face * No personal contact
 Printed & written documents * Documents on the web
 Telephone communication * Web pages personalized
for a particular customer
 Postal mail * E-mail or web mail
communication
 Payment by Cash, or check * Payment: credit card,
direct withdrawal, EFT
 Ads: print, radio, tv * Ads on web,
radio, tv
 Merchandize deliver * Merchandise
deliver home 2-5 immediately days

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 Traditional Commerce
Vs
Electronic commerce (Cont’d)
 The ability of internet to handle various business process in
an organized way has led to its popularity.
 For example, if a popular fast food chain wants to renovate
its outlet all over the country, in a traditional business
model:

 Advertise in the newspaper and invite tenders from all the

designer and architects
 Issue forms or a prescribed format for tenders
 Architect and designing firms would fill and send the
prescribe format
 Desk clerk would analyze and prepare comparative reports
 These report would be studied by the management
 A closed door management meeting would be held
 The tender would finally announced
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 Traditional Commerce
Vs
Electronic commerce (Cont’d)
 The problem in the traditional model is that a lot of time is
wasted in preparing the required format, and analyzing the
tender received.
 To overcome this problem by an e-commerce-based model
in the following manner:
 The daily newspaper announces the plane and reveals the
link to the Web site where the format is available
 Interested firms access the Web site, and fill the form online
 The company’s server is secure, and all the tenders are kept
confidential
 The management can quickly generate comparative reports
using software options
 These reports help the management in taking quick decision.

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 Advantages of E-Business & E-
Commerce
 Reduces processing/paperwork
 Allows consumer to comparison shop
 Provide goods & services on a 24 by 7 basis
 Reaches customer quickly
 Global Market
 Shorten business cycles
 easy to use
 Reduce business costs
 Provides feedback easily and swiftly
 Replacing “brick and mortar” stores

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 Disadvantages of E-Business & E-
Commerce
 Customer authentication
 Web-site navigation
 Grouping of hypertext links for getting around the particular
Web site.
 Security
 Biggest problem of e-commerce, is security.
 When cash is exchanged on the web across borders and
continents, many individuals target this activity to perform
illegal means to earn money.
 Identity theft and hacking of personal information have
become one of the serious problem in the Internet.
 Tax to the government
 Seller in USA, buyer from Canada and transaction is done in
Pakistan
Who will pay the tax, to which country?
 Integration of Internet with other customer service channels
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 The Ocean of “E-”
 “E-” or “e-” has been added to the almost everything
 E-mail
 A system for transmitting messages and data from one
computer to another, using a telephone connection and
modems or other communication technology .
 E-form
 An online document that contains blank spaces for a user to
fill in with requested information and that can be submitted
through a network to the organization requesting the
information. On the Web, e-forms are often coded in CGI and
secured via encryption.
 E-money
 A generic name for the exchange of money through the
Internet. Also called cybercash, digicash, digital cash, e-cash.

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 The Ocean of “E-” (Cont’d)
 E-procurement
 the purchasing of something, especially for a company,
government, or other organization.
 E-learning
 education for students working at home, with little or no face-
to-face with teachers and with material provided remotely, for
example, by e-mail, television
 E-bombing
 Short for e-mail bombing. A technique used by some
attackers in which a target is put on a large number of
mailing lists so that network traffic and storage are tied up by
e-mail sent by other mailing list subscribers to the lists'
recipients.

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 The Ocean of “E-” (Cont’d)
 E-tailing
 Electronic tailing refer to the web sites selling goods to
consumers.
 The concept is similar to the to that of retail shop that stock
useful products. A customer can log in, survey the products,
and place in order.
 E-Government
 The use of Internet Technology in general and e-commerce in
particular to deliver information about public services to
citizens (called Government-to-citizen [G2C]), business
partners and suppliers (called government-to-business [G2B])
 others … Recently have
started
to see the same with
“M-” or “m-”. 16
 M-Commerce
 M-commerce refers to e-commerce that is conducted in a
wireless environment. or
 M-Commerce is E-Commerce over wireless communications
and typically to smaller handheld devices.
 Ufone (Ufone Menu) –Payment via Credit Card, UTrack TCS,
UBANK@MCB, U Book & Shaheen etc
 Mobilink, Jazz Karobar

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 Origin and Growth of E-Commerce
 1970s: Electronic Funds Transfer (EFT)
 A computer-based system that facilitates the transfer of
money between two financial institutions

 The process by which money is transferred electronically from

one financial institution to another is termed EFT

 Used by the banking industry to exchange account

information over secured networks

 No physical appearance of an individual account holder or any

physical paper work involved in EFT, but computers and their
network used for this purpose

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 Origin and Growth of E-Commerce (Cont’d)

 Late 1970s and early 1980s: Electronic Data Interchange

(EDI) for e-commerce within companies
 EDI refers to the business communication between
business partners and clients.
 Used by Businesses to transmit data from one business to
another
 electronic messaging technologies:
 E-mails, faxes and newsletters is a part of EDI
 1990s: the World Wide Web on the Internet
 Provides easy-to-use technology for information publishing
and dissemination
 Cheaper to do business
 Enable diverse business activities

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 Origin and Growth of E-Commerce (Cont’d)

 Internet
 A network of networks in which user of any computer can
get information from other computer, if they have
permission.
 An internet (note the lowercase letter i) is two or more
networks that can communicate with each other.
 It is a generic term used to mean an interconnection of
networks.
 The second is the name of a specific world wide network.
 The most notable internet is called Internet (uppercase
letter I), in which connect more than hundreds of thousands
interconnected networks.
 Every computer on the Internet has a unique Internet address
(similar to telephone address), which can be accessed any
other computer by dialing to the other IP address.
 The existing version now-e-days IP VER-4.
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 Origin and Growth of E-Commerce (Cont’d)

 The extraordinary communication system “Internet” came

into being in 1969.
 In mid-1960, mainframe computers in research organization
were stand-alone devices. Computers from different
manufacturers were unable to communicate with one
another.
 The ARPA in the DoD was interesting in in finding a way to
connect computers, so
 In 1967, at an Association for Computing Machinery (ACM)
meeting, ARPA presented its ideas for ARPANET, a small
network connected computes.
 The basic purpose to create a network that allows the
researchers of one university to able, to talk or share their
research to Researchers computers.
 The network was designed to work without centralized control.
 This means if one portion of network fails or destroy in disaster or
in military attack, the remaining portion will be able to route
packets from sender to receiver through alternate path.
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E-COMMERCE TECHNOLOGIES

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 Software
 Computer Instructions or data, anything that can be stored
electronically is called Software.

 The programs that control the operation of the computer system

is called System Software.
 In short, system software is the collection of those computer
programs which runs the computer and also helps the computer to
run another programs. e.g. Operating Systems (WINDOWS, UNIX)

 Application Software includes programs that do real work for

user.
 Example:
 Payroll systems, Inventory Control, Manage student database,
Word Processor, Spreadsheet and Database Management System
etc. 23