Topic: E-commerce

Subject: Information Technology

Submitted by: Group # 04
Submitted to: Maam Raheela Firdous
MBA (B & F)
2
nd
semester
Morning
Alfalah Institute Of Banking and Finance
BAHAUDDIN ZAKARIYA UNIVERSITY
MULTAN

26/5/2013
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Aneeka Niaz MBK-M-12-04
Usama Bin Shafqat MBK-M-12-54
M. Imran maqbool MBK-M-12-14
Anam Hassan MBK-M-12-24

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What is e-commerce
History of e-commerce
Implementation of e-commerce
Applications of e-commerce
Categories of e-commerce
Merits and demerits of e-commerce
Security issues with e-commerce
Summary

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Presenting


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Exchange of goods and services
Between producers and consumers
OR
Between seller and buyer
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Exchange of products and services by
electronic means
Systems that support electronically executed business
transactions
The fundamental purpose of e-commerce is to execute
transactions


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Technological
Political
Social
Economic
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EC applications first developed in the early
1970s
- Electronic funds transfer (EFT)

Limited to:
- Large corporations.
- Financial institutions.
- A few other daring businesses.

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Electronic data interchange (EDI)electronic
transfer of documents:
- Purchase orders
- Invoices
- E-payments between firms doing business

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Enlarged pool of participants to include :
- Manufacturers
- Retailers
- Service providers

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With the introduction of the Web in the early
1990s, EC applications have rapidly expanded.
E-C Failure:
- E-C began to fail in 1999
- This does not mean that ECs days are
numbered
- Large EC companies like Amazon.com are
expanding but success or failure is not
certain

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Requires large investment &
expertise
Hardware & a variety of software
Changes in Infrastructure
E-Commerce host





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E-Commerce requires significant infrastructure
changes such as;

- Hire Employees who are technical experts
- Employ one or more server computers
- A high-speed Internet connection

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Attract Customers via
Gathering Information - Target Customers,
Competitors

Target E-Mails

Enable good shopping experience
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Convert Walk-in Customers into
Accounts

Incentives, Discounts

Free gifts on purchases

E Mails to first time customers
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Extend and retain the customers

E-Mails on new products

E-Mails on new discounts/Sale

Up Sell and Cross Sell
e.g. Samsung Galaxy Tab, Galaxy Note, S3

Ability to configure products and see actual prices
between multiple vendors

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Presenting
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21
Four Categories of E-Commerce

B2B
B2C
C2B
C2C Consumers
Business
And selling
to...
Business originating
from...
Business

Consumers
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refers to e-commerce that can occur between
two organizations.
Includes:
- purchasing and procurement
- supplier management
- inventory management, sales activities.

Example: Free Markets, Dell and General Electric

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Connects individual consumers with sellers ,
cutting out the middleman
Often connects manufacturers directly with
consumers.
Requires shipping individual products directly
to consumers
E.g. Amazon.com
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when consumers band together to present
themselves as a buyer in group.
Example:
- www.planetfeedback.com

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involve transactions between and among
consumers.
- It may include involvement of third party for
transections.
Example:
- Olx.com., Craiglist, Monster


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Process of buying or acquiring goods or
services
Realizing a need
Researching a product
Selecting a vendor
Providing payment
Accepting delivery
Using product support

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Sellers business practices
- Market research to identify customer needs
- Manufacturing products or supplying
services that meet customer needs
- Marketing and advertising
- Providing a method for acquiring payments
- Making arrangements for delivery of the
product
- Providing after-sales support
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Presenting

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To
Organizations
To
Customers
To
Society
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To Organization :

Provide better material and services.
Expands a companys marketplace.
Lower telecommunications costs



No need for supervisors and cashiers
Helps small businesses compete against large
companies.
No Need for a Physical Store

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To Customers:

Provides less expensive products and services.
Give consumers more choices.
24 hours a day access to market

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Delivers relevant and detailed information.
Enables consumers to get customized products,
from PCs to cars, at competitive prices.
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To Society:
More individuals can work from home
Benefits less affluent people
Third world countries gain access
Facilitates delivery of public services

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Technological Limitations:
restricted a large number of people from using
e-commerce.
Internet has not touched the lives of every
common man.
Insufficient telecommunications bandwidth.
Need for special Web servers in addition to the
network servers.
Expensive and inconvenient Internet
accessibility.
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Security:
Online businesses are not trusted by the
customers.
frauds and faulty payments.
Ineffective Customer Relations:
customer relations are difficult to maintain.
E-business also requires loyal customers.


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Unsuitable for perishable items:
Perishable goods require proper storage and
warehousing.
people always prefer conventional mode. For
purchasing perishable goods like food items
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Non-technical limitations:

Unsolved legal issues
Lack of Government regulations & industry
standards
Customer resistance to changing from a real to
a virtual store.
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Perception that EC is expensive and unsecured.
Inability to Experience the Product Before Purchase
Need for an Internet Access Device
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There are significant privacy and security
concerns
Public network
No buyer or seller identity verification
Hacker attacks

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Digital certificate
A type of electronic business card
Attached to Internet transaction data
Verifies the sender of the data
Provided by certification authorities
Encryption

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E-Commerce:
Systems that support electronically
executed transactions
Four main types of e-commerce:
Business-to-consumer (B2C)
Business-to-business (B2B)
Consumer-to-consumer (C2C)
_ consumer to business(C2B)


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Infrastructure:
- Internet
- Ethernet
- Extranet
- Protocols
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Todays role of E-Commerce:
Playing an increasingly important role
in our personal and professional lives
Allows us to discover new and
interesting products
Allows us to find better deals
Used to monitor bank accounts and
transfer electronic funds

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The present scenario of e-commerce can also be
changed for good, so that it can easily adapt to
the ever changing needs of the customers as
well as of the world.
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