Electronic Commerce

OUTLINE
What is E-commerce? E-commerce in India The main Elements of Electronic Commerce. How can Electronic commerce be used? Human Skills required for E-commerce. Advantage &Disadvantage of E-commerce. Education & Awareness on E-commerce. Government initiatives on E-commerce Examples of Electronic Commerce today. Conclusion

A modern business methodology ... to cut costs while improving the quality of goods and services and increasing the speed of service delivery. Includes: Online business to business transactions Online business to consumer transactions Digital delivery of products and services Online merchandising Automated telephone transactions eg phone banking EFTPOS and other automated transfer systems

The Internet and E-Commerce industry employs approximately 82000 people( ref: Industry association study 1999) which include Web Developer, Web Designers, System Analysts, ISP Infrastructure Providers, Marketing Staff, E-Software professionals etc., It is projected that by March 2003, the Internet and E-Commerce industry would employ over 3,00,000 people.

INDIA - GROWTH OF E-COMMERCE Year Total E-Commerce Transactions (in Million $) 1998-99 31.138 1999-00 103.848 2000-01* 489.154 2001-02* 1595.066 2002-03* 4253.509 2003-04* 8507.018 * Projections (Ref: Nasscom-McKinsey study)

Consumer shopping on the Web, called B2C (business to consumer) Transactions conducted between businesses on the Web, call B2B (business to business) Transactions and business processes that support selling and purchasing activities on the Web

Community-based services: Payment of utility bills, traffic fines, donations to charity etc. Shopping: Buying and selling goods and services Communication: E-mail, Net telephony products can be commerce-enabled and serviced via the Net. Biz-to-Biz applications where the purchase orders are generated and seamlessly integrated with EDI systems.

Developing Electronic Commerce solutions successfully across the Organization means building reliable, scalable systems for security, Ecommerce payments, supply-chain management, sales force, data warehousing, customer relations integrating all of this with existing backend operations. It's not just about E-commerce; It's about redefining business models, Reinventing business processes, Changing corporate cultures, and Raising relationships with customers and suppliers to unprecedented levels of intimacy

 Increased sales Reach narrow market segments in geographically dispersed locations Create virtual communities Decreased costs Handling of sales inquiries Providing price quotes Determining product availability Being in the space

Loss of ability to inspect products from remote locations Rapid developing pace of underlying technologies Difficult to calculate return on investment Cultural and legal impediments

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 Private Institutes

Online education through web

Government Institutes/Colleges

Conferences/Exhibitions

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 Financial assistance given for setting up Electronic Commerce laboratories AICTE recommended to include Electronic Commerce as an essential part of every technical and management program Conference and Exhibition on EC is organized on regular basis Session on EC for CEOs of top Indian companies is organized during every conference

If we consider some of the goals of businesses with regards to electronic commerce: higher revenues through exposure to additional customers; cost reduction; lower product cycle times; faster customer response; and improved service quality, we see how dramatically a company's bottom line can be influenced with the addition of electronic commerce. A number of pioneering firms are implementing electronic commerce solutions today and are finding new ways to save and make money.

Education and information on EC has a very vital role to play specially in the developing countries where most of the players are in SME sector. Two main challenges before us are to provide the required numbers and improve quality to raise productivity and moving up the value chain. Governments jointly with private sector need to take adequate measures for the promotion and propagation of EC to make trade and industry competitive in the global trade

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