Chapter 6 EManagment.pptx

The term commerce as describing transaction conducted between business partners. Electronic commerce describe buying, selling and exchanging of product,services,and information via computer network or internet. It consists of distributing ,buying ,selling ,marketing and services of product or servic...

The term commerce as describing transaction conducted between business partners. Electronic commerce describe buying, selling and exchanging of product,services,and information via computer network or internet. It consists of distributing ,buying ,selling ,marketing and services of product or services over electronic system via computer network. E-commerce involve electronic fund transfer , e-marketing ,online transaction ,electronic fund transfer automated data collection. Ecommerce is changing all business functional area and their implementation task ranging from advertising to paying bills. E-business E-business is the application of information and communication technology in support of all the activities of business. E Business is defined as the conducting of business transactions over electronic networks instead of paper ,telephones. E-Business using technology to improve four business processes. This include managing internal process such as human resource ,financial and administration system as well as external processes such as sales and marketing supply goods and services and customer relationship. E-Business Activities E-Procurement E-Collaboration E-Commerce ERP E-CRM Information System E-Payment System Business Intelligence Activities using e⚫ Website marketing business ⚫ Online communication such as e-mail ⚫ Online training for staff ⚫ Use of internet for conducting research and manage business activities ⚫ Providing servicing throw online to the customer. E-Business tools ⚫ Mobile phone ⚫ Electronic data change ⚫ File transfer ⚫ Video conferencing ⚫ Call conferencing. Cost-Effective Marketing: With an e-business, all of your marketing efforts end with one goal to drive target traffic to your business website. With one central place to send customers & your e-business website it allows you to use many online marketing tactics including email marketing, article marketing, social media networking and e-newsletters. Most of these online marketing efforts are very low cost or free, so an ebusiness allows for highly cost-effective marketing strategies. ⚫ Flexible Business Hours: E-business breaks down the time barriers that location-based businesses encounter, according to ecommerce Education. Because the Internet is available 24 hours a day, seven days a week, your business never closes. An e-business can literally be making money while you are fast asleep. ⚫ Eliminates Geographic Boundaries: An e-business also allows you to broaden your reach. An online business can reach customers in the four corners of the Earth. As long as someone has an Internet connection, you may be able to reach and sell your product or service to these visitors to your business website. ⚫ Reduces Transaction Cost: Running an online business reduces the cost per transaction because it takes less manpower to complete an online transaction. Once you get your website up and running, the customer places the order online, which removes the need for a salesperson. The customer payment goes through your online payment processing software or system. Someone has to download the order and ship and make payment. ⚫ Low Overhead Costs: Running an e-business cut back or out most of the costs involved in running a physical location. Ebusinesses have less expensive phone, rent and utility bills than businesses with physical locations. An ebusiness also reduces the cost of paying employees because you do not need someone in your business. Disadvantage of e⚫ Lacks Personal Touch business Not that all physical retailers have a personal approach, but I do know of several retailers who value human relationship. As a result, shopping at those retail outlets is reassuring and refreshing. Clicking on "Buy Now," and piling up products in virtual shopping carts, is just not the same for me. different people sing to different tunes. The demise of the personal touch in online transactions can be the biggest disadvantage of e-business. ⚫ Delays Goods: Unless you are using a website to merely order a pizza online, e-commerce websites deliver take a lot longer to get the goods into your hands. Even with express shipping, the earliest you get goods is usually "tomorrow" (with the exception of some Amazon services). ⚫ Many Goods Cannot Be Purchased Online: Despite its many conveniences, there are goods that you cannot buy online. Most of these would be in the categories of "perishable" or "odd-sized." Think about it, you cannot order a popsicle (also referred to as an ice pop or ice lolly) or a dining table set.Well, you could order both of them online, but consider the inconvenience. The popsicle would have to be transported in refrigerated trucks. ⚫ Anyone Can Set Up an e-Commerce Website: We live in an era where online storefront providers bring you the ability to set up an e-commerce store within minutes. I have tried it, and it is possible to set up a basic store in under 10 minutes. But if anybody can set up a store, how do I know that the store I am purchasing from is genuine? ⚫ Security: When making an online purchase, you have to provide at least your credit card information and mailing address. In many cases, e-commerce websites are able to harvest other information about your online behavior and preferences. This could lead to credit card fraud, or worse, identity theft. E-business Model Creating an e-commerce solution mainly involves creating and deploying an e-commerce site. The first step in the development of an e-commerce site is to identify the ecommerce model. Depending on the parties involved in the transaction, e-commerce can be classified into 4 models • Business – to – Business (B2B) model • Business – to – Consumer (B2C) model • Consumer – to- Consumer (C2C) model • Consumer – to – Business (C2B) model E-Business model ⚫ Business to business model(B2B): The B2B model involves electronic transactions for ordering, purchasing, as well as other administrative tasks between houses. It includes trading goods, such as business subscriptions, professional services, manufacturing, and wholesale dealings. Sometimes in the B2B model, business may exist between virtual companies, neither of which may have any physical existence. In such cases, business is conducted only through the Internet. In simple way Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable. Business to business model Business-to-Consumer The B2C model involves transactions between business organizations and consumers. It applies to any business (B2C) organization that sells its products or services to consumers over the Internet. These sites display product information in an online catalog and store it in a database. The B2C model also includes services online banking, travel services, and health information. In simple way: Businesses selling to the general public typically through catalogs utilizing shopping cart software. By dollar volume, B2B takes the prize, however B2C is really what the average Joe has in mind with regards to ecommerce as a whole. Consumer-to-Business ⚫ Consumer-to-Business (C2B) :The C2B model involves a (C2B) transaction that is conducted between a consumer and a business organization. It is similar to the B2C model, however, the difference is that in this case the consumer is the seller and the business organization is the buyer. In this kind of a transaction, the consumers decide the price of a particular product rather than the supplier. This category includes individuals who sell products and services to organizations. in simple way consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions Consumer-to-Business Consumer-to-Consumer (C2C) Model The C2C model involves transaction between consumers. Here, a consumer sells directly to another consumer. eBay and www.bazee.com are common examples of online auction Web sites that provide a consumer to advertise and sell their products online to another consumer. However, it is essential that both the seller and the buyer must register with the auction site. While the seller needs to pay a fixed fee to the online auction house to sell their products, the buyer can bid without paying any fee. The site brings the buyer and seller together to conduct deals. In simple way There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to-person transactions take place everyday since 1995. Consumer-to-Consumer Business - to Government ⚫ Business - to - Government (B2G):B2G model is a variant of B2B model. Such websites are used by government to trade and exchange information with various business organizations. Such websites are accredited by the government and provide a medium to businesses to submit application forms to the government. Government - to ⚫ Government - to - Business (G2B):Government uses Business B2G model website to approach business organizations. Such websites support auctions, tenders and application submission functionalities. Government - to - Citizen ⚫ Government - to - Citizen (G2C)Government uses G2C (G2C) model website to approach citizen in general. Such websites support auctions of vehicles, machinery or any other material. Such website also provides services like registration for birth, marriage or death certificates. Main objectives of G2C website are to reduce average time for fulfilling people requests for various government services. E-commerce is nothing but buying and selling of goods around the web. e-business is a little different as it is not limited to, commercial transactions, but it also provides other services. These are the two emerging modes of doing business, which are gaining importance with the passage of time. in the simple word ecommerce is an abbreviation used for electronic commerce. It is the process through which the buying, selling, dealing, ordering and paying for the goods and services are done over the internet is known as ecommerce. In this type of online commercial transaction, the seller can communicate with the buyer without having a face to face interaction. E-Commerce ⚫ Trading of goods and products, over the internet is known as E-commerce. ⚫ It carry out Commercial transactions. ⚫ It requires Website. ⚫ It uses Internet. E-business ⚫ Running business using the internet is known as E- business. ⚫ It carry out Business transactions ⚫ It uses Website, CRM, ERP, etc. ⚫ It uses Internet, Intranet and Extranet. Count ⚫ Buying and Selling of goods and services through the internet known as e-commerce. Unlike e-business, which is an …iselectronic presence of business, by which all the business activities are conducted through the internet. ⚫ e-commerce is a major component of e-business. ⚫ e-commerce includes transactions which are related to money, but e-business includes monetary as well as allied activities. ⚫ e-commerce has an loud approach that covers customers, suppliers, distributors, etc. On the other hand, e-business has an approach that covers internal as well as external processes. ⚫ e-commerce requires a website that can represent the business. Conversely, e-business requires a website, Customer Relationship Management and Enterprise Resource Planning for running the business over the internet. ⚫ e-commerce uses the internet to connect with the rest of the world. In contrast to e-business, the internet, intranet and extranet are used for connecting with the parties. Contribution of ecommerce to economic ⚫ As the trend of ICT development is gaining larger influence over countries’ development and growth, egrowth commerce plays an important role in enhancing the growth of several developed and developing economies over the 21st century. This chapter aims to build the analytical base to support the importance of the development of e-commerce by investigating the role and contribution of e-commerce to economic growth and development. The first investigates past contributions of e-commerce to economic growth in developed countries. Second, past research findings and frameworks are utilized to investigate the contribution of e-commerce toward economic growth Cont… ⚫ Today the trend of ICT development is gaining larger influence over countries’ development and growth. It would not be surprising to see the industries. The introduction of e-commerce and e-business seems to create a tremendous contribution to the growth of many developed nations and is continuing its increasing impact on the developments of many developing economies over the 21st century. Cont…. ⚫ Some recent literature pointed out the increasing contribution of e-commerce toward economic development in several developed countries such as the United States, Canada, Australia, and the United Kingdom .It was found that from 1997 to 2000, the value of sales from e-commerce increased from less than $20 billion to nearly $300 billion. Moreover, some researchers expect that the contribution of ecommerce will grow faster than the contribution from traditional sales. Especially in the United States in the year 2000, e-commerce represented more than 80% of the worldwide e-commerce that took place, having a significant effect on the large economic sectors such as communications, finance, and retail where it accounts for 15% of the global gross domestic product (GDP) Scope of E-business ⚫ The scope of E-business is huge .All type of business functions such as production , finance , marketing , and personal administration in addition to managerial activities like planning , organizing and controlling are carried out through computer network. The other scope is electronic business process and electronic data interchange and E-payment. Nature of E-business ⚫ E-commerce is the buying and selling of products and services by businesses and consumers over the Internet and through other electronic media. E-business is when a company e-enables its processes to do business in a more efficient way using Web technologies. This might include procuring goods and services, dealing with customers as well as selling products. Cont… ⚫ E-business can be defined as “the use of networks and information technology in order to electronically design, market, buy, sell and deliver products and services worldwide”. E-business, meaning ‘electronic-business’, deals with application of information and communication technologies, in short an electronic medium in support of all the activities of business. ⚫ The e-business mainly stands for the internet enabled business. There are four entities in the internet enabled business. These four entities are Cont.. ⚫ Information (Access to data) We often use internet for retrieving the information. This low cost data access is provided for a wide number of people across the world. For many of the organizations the internet is required to list down the things in the e-pages. To find any information on the net, the customer must use search engines like the well known and widely used Google, Yahoo. Cont.. ⚫ Communication (Bi or Multilateral exchange of information) – internet is a basic mode of communication. The bilateral exchange of information involves communication between two people exchange of information. The exchange of information involves one person communicating one or two person. The exchange of information can be explained by considering the conference calls that helps to communicate with two or many number of people at the same time. Bi or multilateral exchange of information is possible by e-mail based services that act as the customer interaction center for the customer questions as well as the complaints. It helps business people to keep in touch with their business partners across the world. Cont.. ⚫ Community ( Mutual support by knowledge transfer ) – Internet plays an important role in sharing knowledge as well. This is helpful for processes like the research and development of systems, development of open source projects, and also the development of software. The members of the community such as the participants in the open source projects will help in the mutual transfer of the information. Cont.. ⚫ Commerce ( Contract based transactions with the customers ) The internet hepls in facilitating the transactions. The aim of commerce is to satisfy the needs of the customers. This further helps the customers to pay their bills online What is E⚫ Commonly known as Electronic Marketing. Commerce ⚫ “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 EComm erce ⚫ 1970s: Electronic Funds Transfer (EFT) ⚫ Used 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. ⚫ Cheaper to do business (economies of scale) ⚫ Enable diverse business activities (economies of scope The Process Of ECommerc e ⚫ 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. ⚫ When the credit card number is validated and the order is completed at the Commerce Server site, the merchant's site displays a receipt confirming the customer's purchase. ⚫ The Commerce Server site then forwards the order to a Processing Network for payment processing and fulfillment. Types Of ECommerc e Business-to⚫ B2B stands for Business to Business. It consists of largest business (B2B) form of Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. E.g.:-Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products. Business-toconsumer (B2C): ⚫ It is the model taking businesses and consumers interaction. The basic concept of this model is to sell the product online to the consumers. ⚫ B2c is the direct trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s website. Business-to⚫ Business-to-employee (B2E) electronic commerce uses an intrabusiness network Employee (B2E) which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes. C⚫oTnhseuremaree rm-taonycsiotens souffmeriengr f(rCee2cCla)ssifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease. eBay's auction service is a great example of where person-to- person transactions take place everyday since 1995. PROS AND CONS OF E-COMMERCE PRO S ⚫ No checkout queues ⚫ Reduce prices ⚫ You can shop anywhere in the world ⚫ Easy access 24 hours a day ⚫ Wide selection to cater for all consumers CON S ⚫ Unable to examine products personally ⚫ Not everyone is connected to the Internet ⚫ There is the possibility of credit card number theft ⚫ On average only 1/9th of stock is available on the net