E-COMMERCE
Organization Applications
The buying and selling of products and services by businesses
and consumers through an electronic medium, without using
any paper documents.
E-commerce is widely considered the buying and selling of
products over the internet, but any transaction that is
completed solely through electronic measures is considered
E-commerce.
Features:
• Scalable
• Reliable
• Secure
• Cost-effective
E-Commerce Applications
• E-Finance - E-finance refers to
the use of
Information and Communicati
on Technologies
(ICT), such as the internet and
electronic tools, to deliver
financial services, conduct
transactions, and manage
financial products.
• Automated Teller E-Banking
Machines (ATM)
• Credit Cards
• Debit Cards
• Smart Cards
• Electronic Funds Transfer
(EFT) System
• Cheques Truncation
Payment System
• Mobile Banking
• Telephone Banking
• Internet Banking
E- Marketing
• Internet Users in India — 69.6
Crs
• Social Media Users — 37.6 Cr
• Users spend — 2.4 hrs on Social
Media
• Almost 33 Cr users access social
media through mobile
• 86% users engage in some form
of activity
• 96% users watch videos online
• Facebook is most popular social
media network — 34.6 Cr Users
(highest in world)
• Instagram — 10 Cr Users (second
largest in the world)
• Linked In — 6.2 Cr Users (second
largest in the world)
• Twitter —1.7 Cr users
E-Tailing
E-Tourism
• E-Real Estate
• E-Recruitment
• E-Entertainment
• E-Stock Market
• E-Publishing
• E-Storefronts
• E-mails
• Inter-organizational (business-to-business)
- Supplier management
- Inventory management
- Distribution management
- Channel management
• Intra-organizational (within business)
- Workgroup management
- Collaborative publishing
- Sales force productivity
• Customer-to-business
- Social portals
- Transactional portals
Elements of Internet, Extranet and Intranet E-
Commerce
ELEMENT INTERNET EXTRANET INTRANET
E-Commerce B2C (e.g. Mail order via the web) B2B (Procurement and Internal procurement
type fulfillment) and processing.
Access Unrestricted (anyone can access Restricted to company Restricted to company
a URL address) employees, staff, and customers, employees
business partners) and staff
Security Generally minimal, except for Firewalls and restricted Firewalls to eliminate
verifying credit cards and access to data and non-company
financial transaction integrity. applications. employees.
Payment Credit card or electronic cash Predefined credit Within-business
method agreement between charges
businesses
Trading with Untrusted customer Trusted trading Trusted employees
partners
What sorts of E-Businesses are there?
• Selling advertising space
• Selling an on-line service
• Selling a retail service
RETAIL and On-Line Retail
• Retail is the sale of goods and services from individuals or
businesses to the end-user.
• Online retailing, a type of electronic commerce used for
business-to-consumer (B2C) transactions and mail order, are
forms of non-shop retailing.
• E-Commerce allows small and large businesses to compete
on a more level playing field, enabling to have customers all
over the world.
Evolution Of On-Line Retail
Predicted Scenario: On-Line retail today:
Analyzing viability of On-Line firms
Strategic analysis: Financial Analysis:
General Factors: General Factors:
Barriers to entry
Power of suppliers Sales
Power of customers Cost of sales
Existence of substitutes Gross Profit ratio
Competition Operating expenses
Industry value chain Net Profit
Balance Sheet
Firm-specific Factors:
Firm Value Chain
Core competencies
Synergies
Technology
Social and legal challenges
E-Retailing
Business models
Single channel web firms creating revenues from
ua l M erchants
on-line sale. Virt
Operate both On-Line and Physical space Clicks and
m ortar
First establish brand name, the use the strength g
of image, to sell or mail printed catalogs. Orders Catalo ts
an
merch
are received by mail or toll –free telephone
Generate revenues from rents and services paid On-line m
all s
for by retailers who sell on their site
a n u fa cturer
M
Sell directly to customers On-Line without Direct
intervention of retailers
On-Line Service Sector
Service companies are those companies that provide services or perform
tasks for its customers; which may include consumers, businesses,
governments and other organizations.
Largest and most rapidly
The major service industry
expanding part of the
economies in advanced groups include:
industrial nations Finance, insurance, real
In the US, the service sector estate
Travel
(broadly defined) employs
about four out of every five Legal and accounting
workers and accounts for about Business services –
75% of all economic activity consulting, advertising
E-commerce in the service and marketing, and
sector offers extraordinary information processing
opportunities to deliver Banking services
information, knowledge, and Educational services
transaction efficiencies
On-Line Banking sector
Cyber banking/ electronic banking/ home banking
Advantages:
• Easy to check balance
• Easy payment of dues
• Easy Transferability
• Easy handling of finances Limitations:
• Wider reach • Brand name plays an
• Feasibility of Capital unavoidable role.
• Management • Low switching cost
• International Banking and increases rivalry
multiple currency handling • Threat of substitutes
• Threat of negative
information.
On-Line Travel Services
Online travel is one of the most successful B2C e-commerce
segments
Travel is an information intensive product requiring significant
consumer research
Travel market segments include airline tickets, hotel reservations,
car rentals, and cruises/tours
Benefits : Limitations:
Easy Fare Comparison Internet
Easy Fare Tracking inaccessibility
Free Information Difficulty of usage
Prospects of potential Complex trips
savings require
One-Stop Shopping specialized
Paperless Environment knowledge.
Personalized Service.
ON LINE CAREER SERVICE INDUSTRY
The online career services are utilized by:
Job seekers
1) Job offers
2) Recruiting firms
3) Government agencies and Institutions
Applications of online career service
industry
Writing and posting
inding a job
resumes
reer planning newsgroups
Advantages & Disadvantages of online
career services industry
• Provides the ability to • Many people do not use
advertise to a large no of job the internet.
seekers.
• Security and privacy
issues.
• Provides the ability to save on
advertisement costs. • online career services are
not very suitable for non
• Provides the ability to reduce technology oriented jobs.
the cost of processing the
applications by using
electronic application form.
• Provides the ability search
highly skilled employees.
Online Real Estate services industry
Real estate transaction are an ideal area for e-commerce due to
the following reasons :
• Potential buyer can view many properties on the screen which results
in saving time for not only the buyer but also for the broker
• Potential buyer can make mortgage or rental comparisons or
calculations
• Potential customers can view information such as neighborhood ,
crime reports , etc. before taking a final decision
Online insurance industry
• Online insurance industry has significantly improved to include more
plans than ever before and entirely online application process
• Online insurance has enabled customers to receive quotes apply for
coverage signed electronically and pay by credit card. All within
approximately within ten minutes.
• The websites of online insurance companies operate as market places
that enable customers to make comparisons online for a variety of
insurance products, including automobile and life insurance.