WHAT IS E-COMMERCE

Commonly

known as Electronic Marketing.

It consist of buying and selling goods and
services over an electronic systems Such as the
internet and other computer networks.
E-commerce is the purchasing, selling and
exchanging goods and services over computer
networks (internet) through which
transaction or terms of sale are performed
Electronically.

TRADITIONAL
BUSINESS

MANF. UNIT
20%

DISTRIBUTOR
10%

WHOLESALER
10%

RETAILER
10%

CUSTOMER
100%

ADVERTISEMENT
50%

DIRECT SELLING
COMPANY

CUSTOMER

Why
Use

E-Commerce
.?

 LOW

ENTRY COST
REDUCES TRANSACTION COSTS
ACCESS TO THE GLOBAL MARKET
SECURE MARKET SHARE

Brief
History
Of
E-Commerce

 1970s:

Used

Electronic Funds Transfer (EFT)

by the banking industry to exchange account

information over secured networks

Late

1970s and early 1980s: Electronic Data

Interchange (EDI) for e-commerce within
companies
Used

by businesses to transmit data from one

business to another

1990s:

the World Wide Web on the Internet

provides easy-to-use technology for information
publishing and dissemination
Cheaper

to do business (economies of scale)

Enable diverse business activities (economies of
scope

1992- Mosaic Browser

Netscape
DSL
Amazon.com 1998 celebrate
1999 August Linux
Napster
2000- merger of AOL+Time warner
2000- loss confidence..
B2B largest business.

IMPORTANCE OF E-COMMERCE
Consumer

sovereignty
Customization
New markets
Efficient use of resources
Employment opportunity
Quick and speedy disposal of
customers
Managing competition

10

ELECTRONIC RETAILING - ETAILING

Online

retailing is normally
referred to as e-tailing.

The

conducting of retail business via

electronic media, especially via the
Internet is called e-tailing

11

PRODUCT SUTABLE FOR

E-COMMERCE
Selling

of commodity items
Product`s shipping profile
Strong brand identity
Automobiles
Online banking
Insurance product

12

E-COMMERCE VS TRADITIONAL
COMMERCE
Traditional

commerce:-

Activities of Buyer
Activates of Seller

13

FEATURES OF TRADITIONAL
COMMERCE
Identity

Immediacy
Value

Discourse

Community
privacy

14

TYPES OF TRADITIONAL
COMMERCE
Retail

store
Retail special order
Phone order from a
catalogue
Bargaining
15

ELECTRONIC COMMERCE

16

DISTINCTION BETWEEN
TRADITIONAL COMMERCE AND ECOMMERCE
Higher

order volume, lower order

quantity
More products
More people
Sending product packaging
Fulfilment centers may make the
sale
17

E-Business

E-Commerce

1
1

Technology in enabling online transaction

It focus on process needed to facilitate

commerce

Focus on B2C activities

Commerce transaction between individual

It is an extension of traditional business

It is the act of selling goods and services

It focus on B2B

Transaction within boundaries of the

business a/cing, inventory control,
HRM..

e-

It is an online business

Using technology to improve the way of

business

18

FEATURES OF E-BUSINESS
Reduce cost of business
Better and improve ROI
Better services
Increased visibility among your competition
Better timing to market
Official B2B designation
More option to customers
You can deal more effective with your
suppliers
Better marketing advantage then your
competition.

19

PROBLEMS AND CHALLENGES OF

E-COMMERCE
Lack

of adequate infrastructure for IT and

internet
High

tariff rate charged by service

provider-speed and connectivity is also

poor.
Absence
Privacy

of effective cyber law

and security issues

20

ADVANTAGES OF E-COMMERCE

No geographical boundaries
Improved market and product analysis
Low transaction cost
Better presentation of goods
Comparison is possible
World wide availability
Reduced paper work
Avoid data redundancy
Quick order processing
Improved customer interaction
More convenient for B2B commerce
Equal opportunity to all
Minimum advertisement

21

BENEFITS FOR GENERAL WELFARE

OF SOCIETY
Electronic

payment of tax,

Electronic

payment is easier to audit

and monitor. It is secure and

providing protection against fraud
and theft losses.
Electronic

transaction enables people

to work from home.

22

DISADVANTAGES OF ELECTRONIC
COMMERCE

Cost and benefit is hard to quantify

Firms face cultural and legal obstacles to

conducting e-commerce

Difficulty of integrating existing database and

transaction processing software designed for
traditional commerce into the software that
enables e-commerce

Troubles in recruiting and training employees

23

 Will

internet fully replace traditional

sales channels ?............

24

ELECTRONIC DATA INTERCHANGE

(EDI)
EDI

is the electronic exchange of

business documents in a standard,

computer processable , universally
accepted format between trading
partners.
25

BENEFITS OF EDI

Low cost

Improvement in overall quality

Effective and efficient management of

information system

Inventory level can be reduced

Data is to be entered only @ source

Improved customer relation

Improved business relation with trading partners

26

WORKING OF EDI
Accredited standards committee ASC
American National Standard Institutions- ANSI

UN/EDIFACT-EDI for Administration, Commerce

and transport
To setup
1. computer
2.communication interface
3.software

27

DRAWBACKS OF EDI

High cost

Limited accessibility

Rigid requirement

Partial solutions

Closed world
28

SUPPLY CHAIN MANAGEMENT

(SCM)

A supply chain is essentially a business process

that connects the manufacturer s, retailers,
customers and suppliers in the form of a chain
to develop and deliver products as one virtual
organization of pooled skills and resources.

29

SCM PARTICIPANTS

Suppliers

Manufactures

Distributors

30

OBJECTIVES OF SCM

To reduce inventory cost

To increase sales

To improve the coordination and coloration with

suppliers, manufactures and distributers.

31

COMPONENTS OF SCM SYSTEM

SCM software and hard ware

Business process

Users

32

PROCESS OF SUPPLY CHAIN

MANAGEMENT

Demand planning and forecasting

Procurement

Manufacturing and assembly

Distribution

Return

33

SUPPLY CHAIN PLANNING

Demand forecasting

Inventory simulation

Manufacturing planning

Transportation scheduling

34

SUPPLY CHAIN EXECUTION

Order processing

Production and assembly

Distribution

Return

35

SUPPLY CHAIN COLLABORATION

36

TYPES OF SUPPLY CHAIN

MANAGEMENT SYSTEMS
Public

B2B Exchanges
Private supply chain
management systems

37

THE PROCESS
F
E-COMMERCE

A consumer uses Web browser to connect to the home

page of a merchant's Web site on the Internet.
The consumer browses the catalog of products featured
on the site and selects items to purchase. The selected
items are placed in the electronic equivalent of a
shopping cart.
When the consumer is ready to complete the purchase
of selected items, she provides a bill-to and ship-to
address for purchase and delivery

When the merchant's Web server receives this

information, it computes the total cost of the order-including tax, shipping, and handling charges--and
then displays the total to the customer.

The customer can now provide payment information,

such as a credit card number, and then submit the
order.