E-commerce and E-Governance Notes PDF

6 E-Commerce and E-Governance     Let us learn service to others then it is called as  commerce.  E-...

6 E-Commerce and E-Governance     Let us learn service to others then it is called as  commerce.  E-Commerce – concept, advantages, One of the most popular activity on disadvantages and types. the Web is shopping. E-Commerce  E-Commerce Trade cycle. became possible in 1991 when the Internet  Various Payment modes. was opened to commercial use. Since that  Common forms of E-Commerce. date thousands of businesses have taken  Electronic Data Interchange. up residence at websites. History of e-  E-Governance-concept, advantages commerce is a history of a new, virtual and types. world which is evolving according to the  Various security measures.  customer advantage.  Definition of E-Commerce Introduction “E-Commerce can be broadly defined E-Commerce stands for Electronic as the process of buying and selling of Commerce. Before moving to the concept goods or services using an electronic of E-Commerce, let’s first, understand medium such as Internet.” what is commerce? E-commerce is also referred as a Commerce is an important part of a paperless exchange of business business. In simple words, commerce is information using EDI, E-mail, Electronic nothing but buying and selling of goods. fund transfer etc. That means when we buy a product or service from others or sell a product or 2  Difference between Traditional Commerce and E-Commerce : Traditional Commerce E-commerce Traditional commerce focuses on the ex- E-commerce trading activities are online change of products and services through via the internet and can be considered personal interactions so it is manual. automatic. Traditional commerce is limited to busi- E-commerce is 24X7, it can be done ness hours, mostly during the day. anytime day and night. As far as consumer interactions are con- E-commerce can be termed as screen to cerned, traditional commerce provides face interaction. face to face interaction. Traditional commerce is limited to a E-commerce is global and has no physical particular geographical location. limitation. Modes of payment in traditional In E-commerce modes of payments are commerce include cash, cheques and bank transfer, credit card, e-wallet, mobile credit cards. payment and many more. Goods and delivery of services is instant In E-commerce delivery of goods or with traditional commerce. services takes some time. Traditional Commerce’s scope is local. E-commerce’s scope is global. Advantages of E-Commerce : the cost of searching a product. E- commerce has enabled rural areas  Global scope : E-commerce provides to access services and products, which the sellers with a global reach. Now are otherwise not availableto them. sellers and buyers can meet in the virtual world, without barrier of place  Anytime shopping : One other great (geography). advantage is the convenience. A customer can shop 24×7. The website  Electronic transaction : E-commerce is functional at all times, it does not reduces the paper work and have working hours like a shop. significantly lower the transaction cost. E-Commerce enables the use of  No intermediaries : Electronic credit cards, debit cards, smart cards, commerce also allows the customer electronic fund transfer via bank's and the business to be in touch directly, website and other modes of electronic without any intermediaries. This payment. allows for quick communication and transactions.  Cost Saving : E-commerce application provides users with more options  Public services : E-commerce helps to compare and select the cheaper the government to deliver public and better option. It helps in reducing 3  services such as healthcare, education, notification to the business social services at a reduced cost and organization via email and the in an improved manner. organization will dispatch the product/ goods to the customer. These B2C Disadvantages of E-Commerce : businesses are online retailers.  Setup Cost : The setup of the hardware Example : Amazon, Flipkart etc. and the software, the training cost of employees, the constant maintenance and upkeep are all quite expensive.  Physical presence : This lack of a personal touch can be a disadvantage for many types of services and products like interior designing or the jewellery business.  Business - to - Business (B2B) : In  Security : Security is another area of B2B model, business sells it’s products concern. Credit card theft, identity to an intermediate buyer who then theft etc. remain big concerns with the sells the product to the final customer. customers. As an example, a wholesaler places  Goods Delivery : There may arrive an order from a company's website some problem with fulfilment of and after receiving the consignment, order. Even after the order is placed sells the product to the final customer there can be problems with shipping, who comes to buy the product at one delivery, mix-ups etc. This leaves the of its retail outlets. Example : Tata customers unhappy and dissatisfied. communications (network provider). Types of E-Commerce : The most common participants in e- Commerce are business, administration, government and consumer. The primary e-Commerce types are as follows:  Business - to - Consumer (B2C) : In B2C model, business sells it’s products directly to a customer. A customer can view the products shown on the website. The customer can choose a product and order the same.  Consumer - to - Consumer (C2C) : The website will then send a In C2C model, consumer helps 4  consumer to sell their assets like E-Commerce Trade Cycle residential property, cars, motorcycles Atrade cycle is the series of exchanges, etc., or rent a room by publishing their between a customer and supplier that information on the website. Website take place when a commercial exchange may or may not charge the consumer is executed. A general trade cycle consists for its services. Example OLX, Quikr, of following phases: online auction.  Pre-Sales : It consist of two steps like Search and Negotiate. Customer search for required website for product to be purchased. In Negotiate step customer find a supplier who offers good quality product at cheaper price and then customer agrees the terms forwarded by supplier.  Consumer - to - Business (C2B) : In  Execution : This phase consist of this model, consumers have products Order and Delivery. Customer sends or services of value that can be an order for the selected product and consumed by businesses. For example, after processing the order, customer the comparison of interest rates of receives delivery of the product. personal loan/car loan provided by various banks via websites. A business  Settlement : This phase consist of Invoice (if any) and Payment. Invoice organization who fulfills the means customer will receive a bill for consumer's requirement within the purchased product and after specified budget, approaches the confirmation of received product, customer and provides its services. customer will pay for the same. For e.g. - A blog can be written by an author for a business to improve sale  After-Sales : This phase consists of of products, ebay. warranty and After Sale Services. In warranty period, customer will get all maintenance services for free or at minimum cost. After sale services means customer will do complaints (if any) about the performance of product and get maintenance service from the supplier. 5  money from bank account is usually fast and safer than withdrawing and paying in cash because every transaction will be authenticated by checking customer’s banking credentials. Example : NEFT, IMPS etc. 4. E-wallets : E-wallet is a type of electronic card which is used for Trade Cycle transactions made online through a computer or a smartphone. E-wallet Modes of Payment is a type of pre-paid account in which a user can store money for any future online transaction. An E-wallet is protected with a password. Examples are State Bank Buddy, Paytm Wallets... 1. Credit Cards : Credit cards are the Do it yourself most common way for customers to pay online. Merchants can reach out Find out some more payment modes to an international market with credit used in E-Commerce. cards, by integrating a payment gate- Forms of E-Commerce way into their business. Some common forms of E-Commerce 2. Mobile Payments : Mobile payments are as follows. offer a quick solution for customers to purchase on e-commerce websites.  M-commerce (Mobile commerce) : M-Commerce is the buying and Mobile payments are also commonly used on donation portals, browser selling of goods and services through games and social media networks wireless handheld devices such as such as dating sites where customer smartphones and tablets. As a form of can pay by scanning a barcode on an e-commerce, m-commerce enables app on mobile. Examples are apps users to access online shopping like BHIM, UPI, Paytm, Google Pay, platforms without needing to use a Paypal,..etc. desktop computer. Some of application of M-Commerce are mobile banking, 3. Bank Transfers : Bank transfer is ticket booking, E-bill payment, online used when money is sent from one auctions, stock market trading. bank account to another. Transferring 6  technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventorymanagement systems and automated data collection systems. Let’s see one of the common E- commerce technology i.e EDI. Electronic Data Interchange (EDI) : EDI is the electronic interchange of  Social Commerce : Social commerce business information using a standardized is a form of electronic commerce that format; a process which allows one involves social media, online media company to send information to another that supports social interaction. It company electronically rather than on enable shoppers to get advice from paper. Business entities conducting trusted individuals, find goods and business electronically are called trading services and then purchase them. The partners. Many business documents can social networks that spread this advice be exchanged using EDI, two most have been found to increase the common documents are purchase orders customer's trust in one retailer over and invoices. It is computer-to-computer another. Social commerce is the use interchange of strictly formatted of networking websites such as documents via telecommunications or Facebook, Instagram and Twitter as physically transported on electronic vehicles to promote and sell products storage media. and services. The success of a social commerce campaign is measured by the degree to which consumers interact with the company's marketing through retweets, likes and shares. E-Governance It signifies the implementation of information technology in the government processes and functions so E-Commerce Technology as to cause simple, moral, accountable Electronic commerce draws on and transparent governance. The basic purpose of e-governance is to simplify 7 processes for all, i.e. government, access to the services anytime from citizens, businesses etc. at National, State anywhere. Furthermore, Many and local levels. Hence, E-governance services like license renewals and delivers SMART government. (S- Simple, paying tax are essential in G2C. M-Moral, A-Accessible, R-Responsive, It also focuses on geographic land T-Transparent Government) barriers. Advantages of E-governance : 2. Government-to-Business (G2B)  Reduced corruption The Government to business  High transparency is the exchange of services  Increased convenience between Government and Business  Direct participation of constituents organizations. G2B provides access to relevant forms needed to comply.  Reduction in overall cost. The G2B also consists of many  Expanded reach of government services exchanged between business Types of E-Governance : sectors and government. It aims at eliminating paper work, saving time, E-Governance is of 4 types depending on cost and establish transparency in the specific types of services. the business environment, while interacting with government. 3. Government-to-Government (G2G) The Government-to-Government refers to the interaction between different government departments, organizations and agencies. In G2G, government agencies can share the same database using online communication. The government departments can work together. In conclusion, G2G services can be at 1. Government-to-Citizen (G2C) the local level or the international level. Likewise, it provides safe and The Government-to-citizen refers to secure inter-relationship between the government services which enable domestic or foreign government. citizens to get access to wide variety of public services. Most of the 4. Government-to-Employee (G2E) government services fall under The Government-to-Employee is the G2C. It helps the ordinary people to internal part of G2G sector. reduce the time and cost to conduct Furthermore, G2E aims to bring a transaction. A citizen can have employees together and improvise 8  knowledge sharing. Similarly, G2E and desktops. It include services like provides online facilities to the AADHAAR card, DigiLocker, Bharat employees like applying for leave, Bill Payment System, PAN, EPFO reviewing salary payment record and services, PMKVY services, AICTE, checking the balance of holiday. The CBSE. It also provides utilities like bills G2E sector provides human resource payments, education, job search, tax, training and development. So, G2E is business, health, agriculture, travel, also the relationship between Indian railway tickets bookings, birth employees, government institutions certificates, e-District, e-Panchayat, and their management. police clearance, passport, other utility Some effective examples of successful services from private companies and implementation of E-Governance much more. projects are e-Mitra project (Rajasthan), e-Seva project (Andhra Pradesh), CET Security Measures in E-Commerce (Common Entrance Test). E-Commerce security refers to the principles which guide safe electronic Do you know? transactions, allowing the buying and Digital India is a campaign launched selling of goods and services through the by the Government of India in order to Internet. make Government's services available A) Encryption : Encryption is widely to citizens electronically. Digital India used on the internet to protect user was launched by the Prime Minister of information being sent between a India Narendra Modi on 1 July 2015 browser and a server. This includes with an objective of connecting rural passwords, payment information and areas with high-speed Internet networks other personal information that should and improving digital literacy. be considered private. The process Some of the facilities provided consists of two processes as encryption through this initiative are Bharat net, and decryption. Encryption converts digital locker, e-education, e-health, e- Plain text ( readable form of data ) sign, e-shopping and national into Cipher Text (coded form of data) scholarship portal. means non-readable form of data. UMANG (Unified Mobile Application Decryption is exactly opposite process of encryption. It converts Cipher text for New-age Governance) Mobile App: into Plain text. It is a Government’s all-in-one single unified secure multi-platform, multi- Encryption is of two types- lingual, multi-service freeware mobile 1. Symmetric app for accessing over 1,200 central (Shared Secret Encryption ) and state government services through 2. Asymmetric smart phones, feature phones, tablets (Public-Key Encryption ) 9  Encryption Decryption Plain text cipher text Plain text (readable form of data) (coded form of data) (readable form of data) B) Digital Signature : A digital signature C) Digital Certificate : A Digital is also known as an electronic Certificate is an electronic "password" signature. A digital signature that allows a person, organization to guarantees the authenticity of an exchange data securely over the electronic document or message in Internet using the public key digital communication and uses infrastructure (PKI). Digital encryption technique ( asymmetric Certificate is also known as a public cryptography) to provide proof of key certificate or identity certificate. original and unmodified In this information is transferred documentation. Digital signatures are between two authorized partners who used in e-commerce, software have digital certificates issued by distribution, financial transactions. some supreme authority. This is the direct transfer of information between two partners. Do it yourself Visit Maharashtra Government website, view various Government Resolutions (GR) and observe the digital signature of various authorities. 10  Summary  Buying and selling of goods or services on internet is called as E-Commerce.  Common types of E-Commerce are B2C, B2B, C2C and C2B.  When any business transaction takes place, it completes one trade cycle. Trade cycle consist of phases like presale, execution, settlement and after sale etc.  In E-Commerce commonly used payment modes are credit card, mobile payment, bank transfer, e-wallet etc.  Some common forms of E-Commerce are M-Commerce, social commerce.  Electronic Data Interchange (EDI) is one of the most important technology for paperless exchange of information.  E-Governance is the implementation of information technology in the government processes and functions.  Types of E-Governance are G2C, G2B, G2G and G2E.  In E-Commerce confidential information can be protected by using encryption, digital signature and digital certificate. Exercise Fill in the blanks. 6. The ……. type of e-governance refers to the government services 1. E-Commerce’s scope is which enable citizens to get …………… access to wide variety of public 2. A customer can do shopping services. …………..online using type of 7. The e-governance which provides E-Commerce. safe and secure inter-relationship 3. The…………… phase consist of between domestic or foreign Order and Delivery. government is ……….. 4. E-wallet is a type of ………… State True/False. account in which a user can store 1. C2C type of E-commerce deals his/her money for any future with Business and Customer. online transaction. 2. The lack of a personal touch can 5. EDI is ……………………… be a disadvantage for many types exchange of information. of services and products in E- commerce. 11  3. Checking the balance of holiday 1) Match the following.A is an example of G2C. B 4. E-commerce provides more 1. M-commerce a) Coded form of options to compare and select the data cheaper and better options. 2. Cipher Text b) B2B 5. M-commerce can be used through 3. EDI c) E-bill payment desktop computer. 4. Wholesaler-to d) Paperless Multiple Choice Question. exchange of (1 correct answer) information 1. Invoice and payment are included 5. License renewal e) G2G in ……………phase of trade services cycle. 6. Online facility f) G2C a) Presale b) execution to employees c) settlement d) After sale like leave 2. License renewal is an example of 7. Government g) G2E ………….. e-governance. agencies share a) G2C b) G2B same database c) G2G d) G2E Answer in brief. Multiple Choice Question. 1. Explain phases of trade cycle. (2 correct answer) 1. Encryption consist of two 2. Explain M-Commerce. processes........................ and 3. Describe process of encryption. ……………................... a) encryption b) signature 4. What is E-governance. c) decryption d) digitization 5. List out advantages of e) security E-commerce. 2. Social commerce is a subset of 6. Which are the different types of electronic commerce that e-governance? involves social media like … … … … … … & 7. State two examples of G2E …………………….. services. a) Facebook b) Instagram 8. Write any four advantages of c) gmail d) whatsapp e-governance. e) software  12