Electronic commerce or e-commerce consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over

electronic systems such as the Internet and other computer networks. It involves :

electronic funds transfer, supply chain management, e-marketing, online marketing, online transaction processing, electronic data interchange (EDI),

It typically uses electronic communications technology such as the Internet, extranets, e-mail, e-books, databases, and mobile phones.

"The conducting of business communication and transactions over networks and through computers. As most restrictively defined, electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications. EC also includes all inter-company and intracompany functions (such as marketing, finance, manufacturing, selling, and negotiation) that enable commerce and use electronic mail, EDI, file transfer, fax, video conferencing, workflow, or interaction with a remote computer."

 Communications Commercial

(trading) Business process Service Learning Collaborative Community

ADVANTAGES Reduces costs to buyers Reduces costs to suppliers Reduces time, errors in information processing It provides the creation of new market Operating cost is reduced and profit increases

DISADVANTAGES Privacy and security issues of customers credit card detail Customers are hesitant to buy some products online as they cannot test the comfort of an expensive product such a sofa.

Many people consider shopping a social experience, but by online shopping they cannot experience that.

 COMMUNICATION PROCESS

MANAGEMENT SERVICE MANAGEMENT TRANSACTION CAPABILITIES

 BUSINESS-TO-BUSINESS BUSINESS-TO-CONSUMER CUSTOMER-TO-CONSUMER CONSUMER-TO-BUSINESS

 E-mail

and messaging Documents, Spreadsheets, Database Accounting and finance systems Online shopping Conferencing Domestic and international payment systems Newsgroup Orders and shipment information

E COMMERCE IN INDIA

 E-Commerce

with mobile devices (PDAs, Cell Phones, Pagers, etc.) Different than E-Commerce? No, but additional challenges:
Security Usability Heterogeneous Technologies Business Model Issues

But

first, lets learn a little about wireless technologies

Intermediated reconciliation (credit or debit card, 3rd party money order)

Seller bank Deposit cash or payment information Payment Info flows for notational changes

Seller

goods

Withdraw cash or payment information Buyer bank Buyer

 Non-cash

transaction (use payment information)

intermediaries required(credit card company or check clearing company)

Payment

information needed

information identities of seller and buyer Financial information such as credit card or bank account numbers Actual values represented by digital currency

 Lack

of face to face interaction lack of trust require intermediaries to provide security, identification, authentication and payment support

 Non-sensitive

Transfer system

no sensitive info is passed over the network only seller /buyer id, amount, item intermediary is the centralized commerce enabler, verify seller/buyer id and do the rest maintain membership and payment info

Settlements Payment requests and confirmation Seller bank seller

ID number Intermediary

Goods

Buyer bank

buyer

Non-sensitive Transfer system

 Notational

funds transfer system (NFT)

sensitive info is passed over the network no intermediary is needed

Settlements Payment information

Seller bank

seller

Payment clearing services(PCS)

Payment info

goods

Buyer bank

buyer

offline

online Notational Funds Transfer System

 Digital

currency payment system

transfer digital product representing values

Settlements Inside money flow Seller bank seller

ID number Intermediary

Goods

Buyer bank

buyer

Digital currency payment system

Cardholder / Customer

Processor

Cardholder Issuing Bank

Payment Gateway

Settlement

Acquiring Bank

Credit Card Associations Merchant

Merchant Bank

Merchant
Cardholder / Customer

Payment Gateway

Processor

Merchant
Payment Gateway Processor

Cardholder Issuing Bank

Merchant Bank

Acquiring Bank

Merchant

Payment Gateway

Processor

Cardholder Issuing Bank

Cardholder / Customer

E-CRM is:

Applying Internet and other digital technology (web, e-mail, wireless, iTV, databases) to acquire and retain customers (through a multi-channel buying process and customer lifecycle) by improving customer knowledge, targeting, service delivery and satisfaction

A CRM system supports the following marketing applications: 1. Sales force automation (SFA). Sales representatives are supported in their account management through tools to arrange and record customer visits. 2. Customer service management. Representatives in contact centres respond to customer requests for information by using an intranet to access databases containing information on the customer, products and previous queries. 3. Managing the sales process. This can be achieved through ecommerce sites, or in a B2B context by supporting sales representatives by recording the sales process (SFA). 4. Campaign management. Managing ad, direct mail, e-mail and other campaigns. 5. Analysis. Through technologies such as data warehouses and approaches such as data mining, which are explained further later in the chapter, customers characteristics, their purchase behaviour and campaigns can be analysed in order to optimize the marketing mix.

Three phases of customer relationship management

Supply Chain
The flow of materials, information, money, and services from raw material suppliers through factories and warehouses to the end customers e-supply chain A supply chain that is managed electronically, usually with Web technologies

 Supply

chain management (SCM) The coordination of many activities so that the shipment of goods and services from supplier to customer is done efficiently and effectively. SCM aims to
1) minimize inventory levels, 2) optimize production and increase throughput 3) decrease manufacturing time, 4) optimize logistics and distribution, 5) streamline order fulfillment, and 6) reduce the costs associated with these activities
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Infrastructure for e-SCM

Electronic Data Interchange (EDI) Extranets Intranets Corporate portals Workflow systems and tools: software to manage the flow of info in organization Groupware and other collaborative tools

Simple Value Chain

E-SUPPLY CHAIN
Electronic supply-chain management (e-SCM) is the collaborative use of technology to enhance business-tobusiness processes and improve speed, agility, real-time control, and customer satisfaction. Not about technology change alone, e-SCM is about cultural change and changes in management policies, performance metrics, business processes, and organizational structures across the supply chain.

Suppliers
Production Materials

Enterprise Process Flow Enterprise

Manufacturing Process Order-Fulfillment Process

Customers
Delivered Orders

Forecast Requirements

Planning Processes

Customer Forecast

Returns & Repairs Purchase Requirements Procurement Process Design Requirements Customer Orders

Design Requirements Support Processes Settlements

Design Requirements Settlements

COMPONENTS OF THE E-SUPPLY CHAIN

1.Supply-chain replenishment 2.E-procurement 3.Collaborative planning 4.Collaborative product development 5.E-logistics 6.Supply webs.

e-procurement The use of Web-based technology to support the key procurement processes, including requisitioning, sourcing, contracting, ordering, and payment. E-procurement supports the purchase of both direct and indirect materials and employs several Web-based functions such as online catalogs, contracts, purchase orders, and shipping notices

Collaborative Planning Collaborative planning requires buyers and sellers to develop a single shared forecast of demand and a plan of supply to support this demand, and to update it regularly, based on information shared over the Internet. Collaborative planning is a business-tobusiness (B2B) workflow across multiple enterprises over the Internet, with data exchanged among them dynamically.

E-Logistics E-logistics is the use of Web-based technologies to support the warehouse and transportation-management processes. Elogistics enables distribution to couple routing optimization with inventory tracking and tracing information. Internet-based freight auctions allow spot buying of trucking capacity. Thirdparty logistics providers offer virtual logistics services by integrating and optimizing distribution resources.

Order taking can be done over the Internet, EDI, EDI/Internet, or an extranet, and may be fully automated Order fulfillment can become instant if the products can be digitized Electronic payments can expedite both the order fulfillment cycle and the payment delivery period

Managing risk to avoid supply-chain breakdown can be done in several ways Inventories can be minimized by introducing a build-toorder (on-demand) manufacturing process as well as by providing fast and accurate information to suppliers Collaborative commerce among members of the supply chain can be done in many areas