E-Commerce and EBusiness

Prepared by: Group - 6 Pallavi Pritam Vimalan Pooja Vikas

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Learning Objectives

Describe electronic commerce, its scope, benefits, limitations, and types. Describe the major applications of business-toconsumer commerce, including service industries, and major issues faced by e-tailers. Describe business-to-business applications. Describe emerging EC applications such as intrabusiness and B2E commerce

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E-Commerce & E-Business

E-commerce describes the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the Internet. E-business refers to a broader definition of ecommerce, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting elearning, and processing electronic transactions.

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Continued

Electronic commerce can take several forms depending on the degree of digitization (the transformation from physical to digital). The degree of digitization relates to: the product (service) sold the process the delivery agent (or intermediary).

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E-Business Transaction Medium

Most e-commerce is done over the Internet. But EC can also be conducted on private networks, such as value-added networks (VANs, networks that add communication services to existing common carriers), on local area networks (LANs) or wide area networks (WANs)

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E-Business Transaction Types

Business-to-business (B2B) Collaborative commerce (c-commerce) Business-to-consumers (B2C) Consumers-to-businesses (C2B) Consumer-to-consumer (C2C) Intra-business (intra-organizational) commerce Government-to-citizens (G2C) Mobile commerce (m-commerce)

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Benefits to organizations

It allows the business to expand globally with minimum capital. It enables companies to procure products or services from other countries. The cost of promotion of product or services is decreased. Allows lower inventories by facilitating pull- type supply chain management. It has potential to increases profits by, increase in overall sales and reducing some cost.

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Benefits to customers

Faster buying/selling procedure, as well as easy to find products. Buying/selling 24 hours a day from any location. More reach to customers, there is no theoretical geographic limitations. Customers can easily select products from different providers without moving around physically. It enables the customers to compare and customize the products or services.
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Benefits to society

It enables more individuals to work offsite and do less travelling which results the less road traffic and less air pollution. It enables less affluent people to buy more, thereby increasing peoples standard of living. It allows some merchandise to be sold at lower prices. Facilitates delivery of public services and increases the quality of social services.
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Limitations of e-commerce

Companies are not able to communicate with the customers face to face. Customers cant touch and check the quality of the product before buying it. Credit Card security is a serious issue. People who are carrying out a transaction over the Internet are worried about their credit card security. Customers are still worried and fear about their online Credit Card orders. Insufficient telecommunication bandwidth is an another limitation. lack of bandwidth usually slows down the process.
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There is always an element of risk that customer

information can be misused. There are too many websites which give out personal details of e-mail records and other contact information.

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Scope of e-commerce

The scope of e-commerce is as wide as an ocean. As information sharing is the major part of the commerce industries, networking has given boost to e-commerce. This change in view-point has opened door for new opportunities. Customers are also eager to transact online, as it is much hasslefree. As business means keeping your customers happy and doing things the way they like, businessmen are choosing e-commerce to traditional business.

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Business-to-Consumer applications

E-Tailing (Electronic Retailing)

Electronic storefronts Electronic malls

Cyberbanking Online Securities Trading The online job market Travel Services Real estate Customer service Customization and personalization

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Business-to-Business applications

Sell-side corporate marketplace Buy-side corporate marketplace

E-procurement 2 mechanisms

Group purchasing Desktop purchasing

Public exchanges
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Ethical issues in E-Commerce

Privacy Web tracking Loss of jobs Disintermediation and Reintermediation

Legal issues in E-Commerce

Buyer protection Seller protection

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Tips for safe E-Shopping

Look for reliable brand names Look for seals of authenticitysuch as TRUSTe Investigate about security Examine the money-back guarantees, warranties and service agreements Compare prices Find out what your rights are in case of a dispute Check consumerworld.org Check cfenet.com and isaca.org

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