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Acknowledgement................................. ..................................................................1

Introduction.............................................................................................................2

1. Question 1............................................................................................................3

1.1 Electronic Data Interchange (EDI)................................................................

1.2 E-Mail, Fax, and Internet Telephony............................................................

1.3
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2. Question 2

    

   
 

         

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I am heartily thankful to my lecturer, Mr. Ilyas Yahya whose encouragement, guidance and
support from the initial to the final level enable me to develop an understanding of the subject
of Electronic Commerce. He inspired me greatly to work in this assignment. His willingness
to motivate me contributed tremendously to my project.

¦esides that, I owe my deepest gratitude to my colleagues at Angkasa Training Centre for all
I have learned from them about my seven¶th module, Electronic Commerce. In addition, I
would also like to thank Asia E University (AeU) which provides me valuable information
through the module of Executive ¦achelor Programs the guidance of my project. Also, it
gave me an opportunity to thank my coordinator, Mr. Subramanian who have taught me great
deal and motivated me even more.

Finally, an honorable mention goes to my mother for her encouragement and support for her
presence during every endeavor in my life. Moreover, I even thank whom I love with all my
heart for his understanding and be helping hand in completing this assignment.

Without helps of particular that mentioned above, I would face many difficulties while doing
this assignment. I would like to pay my appreciation to everybody that walk as a shadow
beyond me along this assignment.

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Electronic commerce is an emerging concept that describe of buying and selling of products
and services by businesses and consumers through an electronic medium, without using any
paper documents. Electronic commerce is widely considered the buying and selling of
products over the internet, but any transaction that is completed solely through electronic
measures can be considered electronic commerce. Electric commerce is subdivided into three
categories as business to business or ¦2¦ (Cisco), business to consumer or ¦2C (Amazon),
and consumer to consumer or C2C (e¦ay).

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Assuming the client wishes to expand the business and conjoin with other businesses of the
same kind through a network of suppliers, how would u advise the client? Having said that,
what recommendation can you give to the client in term of e-commerce application if orders
come from customers that live outside of the region or state?

My advice to expand the business and conjoin with other business of the same kind through a
network of suppliers you have to change your business style and expand your business but it's
not necessarily open store or shop but running your business on internet. One way your
business can expand locally and overseas is through the use of information and
communication technologies (ICT). Doing business online can also help improve your
internal processes, making you more efficient. It's not hard to set up online business, you
don't need to spend much money to buy any software or hired expert to set up your business,
build up your own website and web store.The number of people browsing online is usually
more than the number of people out in the street. So grab this opportunity to build your own
website, web store or online shop as the extension of your cupcake business. This way,
people can access your business and get information about your cupcake and services without
having to go to your store. ¦ecause your website should represent your business well, it
should be well thought-out and properly executed. An online business or simply selling your
cupcake or services online can help you reach a much wider customer base.

Create your website full of content, especially the page that directly concerned with soliciting
a call to action. Once you've convinced the visitor that your cupcake or service is for them
through the skillful creation of content as described, you must bring this all together,
narrowing that sales funnel and prompting a purchase decision. If you create a great visitor
experience, then the first time visitor will be tempted to return. Offer them two way
communications, which your customers feel that you really care about them even after buying
or selling cupcake. Try and add new content on a daily basis because people really turn to
your competitors if you didn't update your website.

if you are not familiar with selling online, gives an opportunity to do online shopping
activities. As online shopping Malaysia is not just a place to sell and buy product through
online, but you can open your own web store. The hardest part is getting started, but once you
find your "niche". You will make an incredible amount of money with a repeat base of
customers. Even if you see a lot of competition, you still have a very good chance of selling
the product you are interested in, even if you are just a one person operation.

The world of business has introduced advanced methods to promote the business. Electronic
business is one of the means through which you can generate maximum business to promote
the enterprise. In this way, you will be able to conduct business over the Internet. This is an
effective means through which you can generate maximum profits from the potential
customers. It also establishes the online presence of a company. In today's modern world, the
online presence contributes in building the credibility of an organization.

An e-commerce brings maximum number of business opportunities to an organization. A

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marketer can extract potential from the means of Internet. There are two types of online
business conducted by the entrepreneurs. One is called business-to-business and the other is
called business-to-consumer. The business-to-business involves transaction between two or
more organizations. Entrepreneurs aim to build a healthy relationship with each other with an
aim to promote the business of the organization.

For instance, an entrepreneur can promote the business over the Internet with an aim to invite
the suppliers. In case of business-to-consumer operations, an entrepreneur has a site with an
aim to draw maximum web visitors towards the organization. You can promote the
organization by highlighting the benefits of using the products and services. This convinces
the customers to purchase the product. Nowadays, a person can make the payment and
purchase the product or service from a particular company over the Internet. It is easier for
the customers to search for the product and then make a purchase.

The online business-to-business as well as business-to-consumer methods enables an

entrepreneur to generate maximum revenue for an organization. You can find an opportunity
to build the image of your organization in an effective and constructive manner with custom
e-commerce solutions among the potential customers. It facilitates the global marketing as a
result of which you can smoothly expand your market share.

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EDI is the exchange of business data using a data format that is understood. This preceded
the Internet today. EDI involves data exchange between the parties know each other well and
make arrangements for one-to-one (or point-to-point) connection, usually dial-up. EDI is
expected to be replaced by one or more standard XML format, such as ebXML.

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E-commerce is done electronically through a more limited form of communication called e-

mail, facsimile, or fax, and phone calls through the use of the emergence of the Internet. Most
of these are business-to-business, with some companies try to use e-mail and fax for
unsolicited ads (usually viewed as online junk mail or spam) to customers and other business
prospects. Increasing the number of business websites offering e-mail newsletter to
customers. A new trend in opt-in e-mail in which Web users voluntarily register to receive e-
mail, usually advertising, sponsored or contain the product categories or other subjects they
are interested in.


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Security includes authentication perpetrators business transactions, control access to

resources such as web site to registered users, or selected, communication difficulties, and, in
general, ensure privacy and efficiency of transactions. Among the security technology is the
most widely used Secure Sockets Layer (SSL), which was built on the two leading web
browsers.

   

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If observed, has become a signature product Wattie cupcake consists of a combination of
seed-cup cakes. Hence, no wonder why Wattie cupcake so popular among the customers of
fixed or a new customer. ¦efore each product is produced, the design is drawn sketches on a
piece of paper. The idea of an appropriate combination of color and layout patterns should
determined first mini.

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Apart from selling the client's core product, discuss and explain how the client can provide
added value customers by taking advantages of e-commerce application. How can e=-
commerce application promote knowledge sharing between the client, its customers and
suppliers?

   

On its site, a company needs to be able to leverage all relevant information in order to:

‘ Cross-sell products and services.

‘ Make personalized, effective recommendations on products and services.
‘ Plan promotions and marketing campaigns.
‘ Provide targeted information based on customer profiles

Realizing the preceding four goals lets business take full advantage of one-to-one
personalization. Customer loyalty depends on the quality of the buying experience. So,
anything you can do to enhance that experience will translate into better business value. The
goal is to maximize the value from each customer contact and to deliver highly personalized
interactions to all customers through real-time, as well as offline, channels. The value of
personalized interaction was underlined by a survey conducted by Jupiter Research, which
found that the personalized service offered by 36 surveyed e-commerce sites boosted new
customers by 48% in the first year and increased revenues by 51%.

Leading-edge solutions enable you to capture detailed information about individual

customers, then analyze the information to make better business decisions, customize
responses, and maximize the effectiveness of your communications by tailoring your
interactions with specific users. ¦y gaining in-depth knowledge of your customers, you can
personalize communications to better serve their needs, develop trust, and build profitable
long-term relationships.

   
 

Organizations significantly increase their Web-based server site¶s business value by

automating order processing and fulfillment. Reducing paper-based transactions and
improving organizational efficiency and effectiveness can lower costs. In addition,
organizations can leverage the Web and wireless infrastructure to provide automated service
(and reduce phone calls to employees) throughout the transaction process.

To facilitate automation, you can easily integrate e-business solutions with existing
applications and systems, and access information contained in legacy systems. Multiple
Enterprise Application Integration (EAI) solutions are available from leading commerce
portal providers to integrate popular applications from such vendors as SAP and Siebel

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Systems. Such integration enables you to streamline processes, exchange information, and
conduct business more efficiently.

For sites that offer a multitude of products, targeting is essential. With information from
customers, you can narrow down the most appropriate suggestions. The ability to deliver a
simple, relevant, and consistent user experience is key to enhancing Web-based servers and
the online experience and maximizing selling opportunities.

         

Early analysis of the value of e-business focused largely on transaction savings as a means to
justify Web-based server site investments. Personalized service delivered via the Web is
highly effective in improving customer satisfaction and retention rates, thereby increasing the
lifetime value of a customer.

In addition, providing customer self-service via a Web-based server site enhances business
value by reducing staffing costs for service and support employees. Many companies set a
goal of handling 80% to 90% of customer care interactions via personalized self-service.
Enabling customer self-service with access to real-time product availability, order status, and
customer account information will improve customer satisfaction while lowering operational
costs.

An additional step to improving a site¶s business value is to combine site data with other
business data such as call center information. Doing so enables you to identify, for example,
customers who have the following profile²heavy-volume call center user, large-volume
offline purchaser, and online user. The goal is then to move such customers more online,
thereby reducing their dependency on high-cost call center operations and lowering
transaction costs.

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Analyzing customers¶ online behavior, trends, and patterns, and building a comprehensive
customer database can lead to a clearer understanding of how to attract new customers and
retain existing ones. This knowledge can improve a site¶s business value when used to design
marketing campaigns, more precisely target offerings, and increase customer loyalty and
lifetime customer value. Leading e-commerce solutions enable comprehensive profiling of
site visitors, based on observed (click stream), stated (registration), and implicit (purchase)
behavior. These solutions help you acquire and analyze customer information, so you can
take advantage of mass personalization capabilities to communicate and market your
products more effectively. This can help increase your Web-based server site revenues by
enhancing your ability to close sales through targeted, real-time promotions. It also allows
you to merchandise your products more effectively, and reduce the time and effort required to
market on the Web.

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In most developing countries, the payment schemes available for online transactions
are the following:

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Ɣ  #44 Many online transactions only involve submitting purchase

orders online. Payment is by cash upon the delivery of the physical goods.

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%  After ordering goods online, payment is made by depositing
cash into the bank account of the company from which the goods were ordered.
Delivery is likewise done the conventional way.

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Ɣ    , include credit and debit cards, automated
teller machines (ATMs), stored value cards, and e-banking.

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  are e-cash, e-checks, smart cards,

and encrypted credit cards. These payment methods are not too popular in
developing countries. They are employed by a few large companies in specific
secured channels on a transaction basis.

Ɣ       pertain to payment mechanisms that banks

provide their clients, including inter-bank transfers through automated clearing
houses allowing payment by direct deposit.

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As more and more business are advertising in the internet, busineses can utelize the internet
for suppliers' evaluation. This would add value to the organizations, procuments decision as
the internet provides another source of suppliers for evaluation.

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If the customer cannot get answer from the organization's home page, they can use fill in
forms to lodge complains or enquiries. The support team can then communicate with the
customers to solve the problems. More and more business are discovering the internet as a
fusdamental communication tool used to conduct daily business. This is because e-mail is
readily available and the service is fast at relatively low cost.

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Usually after enquiries are made, orders would be placed. The organization would then check
their inventory and then coordinate the delivery. All the functions could be done on-line. The
management of inbound and outbound operations of the value chain can also be transferred to
the internet. Already forwarders such as FedEX or UPS are offering customers provisions to
track their goods, thrpugh the internet.

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Online consumer behaviour is important for develop electronic commerce application as the
main interface between the buyer and store owner. Online Consumer can be categories to
three types:

‘ impulsives buyers
‘ Patient buyers
‘ Analytical buyer.

According to the model, regardless the type of the consumer, the purchasing decision process
is basically a customer's reaction to stimuli, the buyers personal characteristic, the
environment, the technology, the e-commerce logistic and support after sale (figure 1).

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Decision making process also includes another simple method, which is known as pros and
cons method. Entrepreneurs need to use this method, when they are unsure about whether to
incorporate any changes or not, buying a new firm, selling the firm, recruiting new board
officer, and charting a business plan.

First, make an individual sheet for every identified option. On each sheet, draw two columns
and give the title to two columns as pros and cons or simply, change or no change.

Here, suppose entrepreneurs have listed change and no change in the sheet. Now, they need
to write as much as positive effects of the change that they wish to implement in change
column. In no change column, write disadvantages of the change.

Give score to the each change and no change in the column. If change is highly beneficial
according to the entrepreneurs, they need to give it 2 points. If the no change seems more
important, give it one point.

Likewise, give points to every change and no change detail and add them. Finally, select the
decision, which gives more summation. Thus, choose any of the decision making processes
as listed above and make an ideal decision.

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The concept of e-commerce is fast becoming advantageous for both the vendor and consumer
in today's fast moving and electronically-connected world.

For many businesses, e-commerce is becoming the only option, as companies become more
and more interested in expanding their operations online. E-commerce has many benefits and
advantages not found in the typical brick and mortar location, and therefore, explains why so
many businesses are flocking to the web.

E-commerce offers advantages that include the ability to expand into global markets with a
minimum of expense, thus allowing firms to reach narrow market segments that are
geographically scattered.

As the Internet is a cost effective medium of delivery, the main advantage of online
ecommerce is its cost efficiency. And here's why: Ecommerce decreases the cost of creating,
processing, distributing, storing and retrieving paper-based information. High mailing and
printing costs are also lowered or, in many cases, completely eliminated as the buyer most
often pays for the shipping of the products that they buy.

The cost of marketing of promotional material also drops drastically. Another major
advantage that most companies see is the increase in sales e-commerce brings, and increased
sales typically mean increased profits as well.

Yet another advantage of moving a business online is that it allows the flexibility to target
market segmentation, which in turn allows companies to focus on a select group of
customers, thus having a competitive advantage in giving them what they want and satisfying
unique needs.

This benefit ties in with the advantage of 'customer customization," in which the concept of
'built-to-order', allowing for inexpensive customization of products and services and provides
a competitive advantage for companies who adapt this strategy.

Doing business online also has the advantage of removing barriers of global trading due to
the fact that the Internet is a zero-cost delivery channel, and thus, many products and
services, which are generally delivered as a physical object or service, are now delivered
virtually in the form of data. This removes barriers such as time, distance and of course cost.

E-commerce marketing also allow for real-time communications and the interchange of data
in the supply chain, making the supply chain more effective.

¦y having better visibility across the supply chain, company inventory levels can be reduced,
as supplies are more predictable. With lower inventory levels, costs can once again be
automatically be decreased.

Lastly, this sort of ecommerce also allows information to flow freely between cooperating
businesses, making it easier and simpler for organizations to share information.

The cost savings and efficiencies from sharing and economies of scale can have a profound

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effect on the profitability of any online business. As a result this has lead to the development
of collaborative working practices around the world, as collaborating businesses manage,
share, and enhance project work regardless of location.

It is important to consider, however, that buyers or customers also benefit from doing their
buying online. As sales opportunities expand for the vendor, they also increase the buying
opportunities and power for the buyer. It's a win / win for all involved.

Many buyers choose to shop online as it provides them with an almost unlimited variety of
choices from many different products and services from a wider variety of sellers.

Consumers also benefit from less expensive products and services as e-commerce allows
customers to shop the convenience to shop from any location and at any given time of the
day.

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