e commerce
Page 1: Introduction to E-Commerce
Lecturer Information
Prepared By: Mrs. Swetalina Das
Course: 6th Semester IT, Lecturer (Computer Applications)
Page 2: Introduction to E-Commerce
Definitions
E-Business: Administration of conducting business through the Internet, which includes buying/selling goods/services and providing support.
E-Commerce: Focused on the online buying and selling of goods/services.
E-Business vs E-Commerce:
E-business includes services beyond transactions.
E-commerce is mainly about the transaction itself.
Importance of E-Commerce
Growing trend due to convenience and accessibility.
E-commerce requires a website and facilitates communication between buyers and sellers without physical interaction.
Page 3: Types of E-Commerce
B2B (Business to Business): Transactions between businesses (e.g., Oracle, Alibaba).
B2C (Business to Customer): Sales from businesses to consumers (e.g., Dell, Intel).
C2C (Customer to Customer): Transactions between customers (e.g., OLX, Quickr).
C2B (Customer to Business): Customers provide products/services to businesses.
E-Business
Definition: Online presence of a business, not limited to e-commerce.
Activities include transactions, communication, and service provision.
Types:
Pure-play: Online-only businesses (e.g., Hotels.com).
Brick and Click: Businesses that operate both online and offline.
Page 4: Features and Comparison
Features of E-Commerce
Non-Cash Payment: Use of cards and electronic fund transfers.
24x7 Availability: Always-on service.
Advertising/Marketing: Greater reach and management of advertising efforts.
Improved Sales: Orders can be placed without human interaction, boosting sales.
Support: Customer support through various electronic means.
Inventory Management: Automation of inventory systems.
Communication Improvement: Efficient communication channels.
Traditional Commerce vs. E-Commerce
Accessibility: Traditional commerce is time-limited; e-commerce is available 24/7.
Customer Interaction: Traditional is face-to-face; e-commerce is via screens.
Business Scope: Traditional is local; e-commerce is global.
Information Exchange: E-commerce provides a uniform platform for transactions.
Payment Methods: Traditional uses cash/cheques; e-commerce supports electronic payments.
Delivery: Traditional provides instant delivery; e-commerce can take time.
Page 5: Advantages of E-Commerce
For Organizations
Expands market access with low capital.
Reduces costs associated with paper-based processes.
Enhances brand image and customer service.
Simplifies and speeds up business processes.
For Customers
Availability of 24/7 support.
More product options and easier comparison.
Access to reviews and virtual auctions.
Readily available information and substantial discounts due to competition.
For Society
Reduces traffic and pollution by minimizing travel.
Lowers product costs, making them accessible to more consumers.
Enables service access in remote areas.
Enhances government service delivery at reduced costs.
Page 6: Disadvantages of E-Commerce
Technical Disadvantages
Security Issues: Security and reliability concerns.
Bandwidth Issues: Network speed can hinder usability.
Software Compatibility Problems: Integration difficulties with existing systems.
Non-Technical Disadvantages
High Initial Costs: Creating e-commerce applications can be expensive.
User Resistance: Trust issues may deter users from transitioning online.
Security/Privacy Concerns: Online transactions carry risks of data breaches.
Lack of Physical Inspection: Inability to physically inspect products before purchase.
Page 7: E-Commerce Business Models
Models Defined
B2B: Sales to intermediate buyers.
B2C: Direct sales to consumers.
C2C: Platforms for consumers to sell to others.
C2B: Consumers provide services/products to businesses.
B2G: Government interactions with businesses.
G2B: Government deals with businesses.
G2C: Government providing services to citizens.
Page 8: Electronic Data Interchange (EDI)
Definition and Use
EDI: Electronic transfer of documents like invoices and purchase orders between organizations.
Steps in EDI System
Document generation.
Conversion to agreed format.
Electronic file transmission.
Acknowledgment receipt.
Advantages of EDI
Reduces data entry errors.
Shortens processing cycles.
Lowers paperwork and costs.
Establishes standard communication.
Page 9: Electronic Fund Transfer (EFT)
Definition and Process
EFT is a popular method for transferring money from one account to another using electronic means.
Describes processes via ATMs or banking websites, including the role of ACH for interbank transfers.
Page 10: Comparison of HTML and XML
HTML vs. XML
HTML: Presentation-focused, preset tags, case insensitive.
XML: Data transport-focused, customizable tags, case sensitive.
Practical Use Cases
HTML: Creating web pages.
XML: Data exchange between applications.
Page 11: EDI Trade Cycle
Definition and Cycle Description
EDI exemplifies standardized coding for trade transactions.
Trade Cycle Steps: Pre-sale (searching, negotiating), Execution (ordering, delivery), Settlement (invoicing, payments), After-sales support.
Page 12: Internet Commerce and Trade Cycle
Definition
Internet commerce encompasses advertising and sale of various goods/services online with real-time delivery.
Trade Cycle Steps
Similar to EDI, includes Search, Execution, Settlement, After-Sales processes.
Page 13: Electronic Markets and Trade Cycle
Definition
Electronic markets facilitate comparison shopping and purchase decisions, with emphasis on search phases.
Page 14: Supply Chain Management
Definition and Importance
A supply chain encompasses all steps to deliver products/services to customers, from raw material to end-user.
Effective supply chain management lowers costs and boosts profitability.
Page 15: E-Procurement
Definition and Benefits
E-Procurement refers to the purchase of goods/services through an electronic interface.
Highlights benefits, including automation, improved workflows, and better visibility.
Page 16: E-Commerce Applications
Sectors Involved
Manufacturing.
Wholesale.
Retail.
Service Sector.
Page 17: Manufacturing E-Commerce Applications
Overview
E-commerce helps in supply chain management, reducing costs and improving efficiency.
Page 18: Wholesale E-Commerce Applications
Overview
E-commerce enhances competition and employs various operational efficiencies to overcome local challenges.
Page 19: Retail E-Commerce Applications
Overview
Retailing online has made purchasing easier for consumers, allowing convenient access to products 24/7.
Page 20: E-Commerce in Service Sector
Overview
E-commerce enhances service delivery across various domains such as banking, insurance, and logistics.
Page 21: IT Infrastructure
Definition
IT infrastructure refers to the hardware, software, and network resources necessary for effective business operations.
Page 22: IT Infrastructure Components
Hardware
Software
Facilities
Network
Personnel
Page 23: Internet Fundamentals
Definition and Uses
The Internet is a global system of interconnected networks serving various purposes including online business, education, social networking, and entertainment.
Page 24: Intranet and Extranet
Definitions
Intranet: A private network within an organization.
Extranet: A private network allowing access to specific users outside of the organization.
Page 25: Internet, Intranet, Extranet Comparison
Feature Internet Intranet Extranet | |||
Accessibility | Global | Private | Restricted |
Regulation | None | Owned by one | Owned by many |
Devices Connected | Many | Few | Comparable |
Page 26: Virtual Private Network (VPN)
Definition
A VPN connects remote users to an internal network securely, encrypting data transferred over the Internet.
Page 27: Firewall Definition and Operations
Definition
A firewall prevents unauthorized access to private networks.
Operations
Monitors traffic against rules and filters packets based on defined criteria.
Page 28: Firewall Types
Packet Filtering Firewalls
Stateful Inspection Firewalls
Application Layer Firewalls
Next Generation Firewalls (NGFW)
Page 29: Concept of Cryptography
Definition
Cryptography secures communication through encoding techniques, ensuring information privacy.
Page 30: Types of Cryptography
Symmetric Key Cryptography
Hash Functions
Asymmetric Key Cryptography
Page 31: Digital Signature Overview
Purpose
Digital signatures validate authenticity and integrity of documents using cryptographic techniques.
Page 32: Digital Certificate
Definition
A digital certificate proves the identity of the individual or entity over the Internet.
Page 33: Digital Certificate vs. Digital Signature
Differences
Digital certificates verify identity; digital signatures ensure authenticity and integrity of messages.
Page 34: Digital Envelope
Definition and Function
Digital envelopes protect messages using encryption layers to ensure secure communication.
Page 35: Electronic Payment Systems
Definition and Types
E-Payments allow customers to pay via electronic methods like debit/credit cards, direct deposits.
Page 36: Working of E-Payment Systems
Steps Involved
Payment initiation
Payment authentication
Payment settlement
Page 37: Risks Associated with Payment Systems
Credit Risk
Liquidity Risk
Legal Risk
Operational Risk
Systemic Risk
Page 38: Secure Sockets Layer (SSL)
Definition
SSL is a security protocol for encrypted communications between clients and servers.
Page 39: Biometrics
Definition
Biometric technologies use unique physical/behavioral traits for identification and access control.
Page 40: E-Commerce Security Systems
Essential Security Requirements
Confidentiality, Integrity, Authenticity, Non-repudiability, Encryption, Auditability.
Page 41: E-Waste Overview
Definition and Problems
E-Waste refers to discarded electronic products and poses environmental hazards if not handled properly.
Page 42: Solutions to E-Waste Problem
Recycling
Education
Community Involvement
Continuous Learning
Page 43: E-Surveillance
Definition and Applications
E-Surveillance records and documents activities, often for security and monitoring purposes.
Page 44: E-Governance Overview
Definition and Objective
E-Governance is the use of IT for enhancing government services and making processes efficient, transparent, and accountable.
Page 45: Types of E-Governance
Government-to-Citizen
Government-to-Business
Government-to-Government
Government-to-Employee
Page 46: Advantages of E-Governance
Speed, Cost Saving, Transparency, Accountability.
Page 47: Disadvantages of E-Governance
Loss of communication, High setup cost, Illiteracy, Cybercrime risks.
Introduction to E-Commerce
Definitions
E-Business: Administration of conducting business through the Internet, which includes buying/selling goods/services and providing support.
E-Commerce: Focused on the online buying and selling of goods/services.
E-Business vs E-Commerce:
E-business includes services beyond transactions.
E-commerce is mainly about the transaction itself.
Importance of E-Commerce
Growing trend due to convenience and accessibility.
E-commerce requires a website and facilitates communication between buyers and sellers without physical interaction.
Types of E-Commerce
B2B (Business to Business): Transactions between businesses (e.g., Oracle, Alibaba).
B2C (Business to Customer): Sales from businesses to consumers (e.g., Dell, Intel).
C2C (Customer to Customer): Transactions between customers (e.g., OLX, Quickr).
C2B (Customer to Business): Customers provide products/services to businesses.
E-Business
Definition: Online presence of a business, not limited to e-commerce.
Activities: Transactions, communication, and service provision.
Types:
Pure-play: Online-only businesses (e.g., Hotels.com).
Brick and Click: Businesses that operate both online and offline.
Features of E-Commerce
Non-Cash Payment: Use of cards and electronic fund transfers.
24x7 Availability: Always-on service.
Advertising/Marketing: Greater reach and management of advertising efforts.
Improved Sales: Orders can be placed without human interaction, boosting sales.
Support: Customer support through various electronic means.
Inventory Management: Automation of inventory systems.
Communication Improvement: Efficient communication channels.
Traditional Commerce vs. E-Commerce
Accessibility: Traditional commerce is time-limited; e-commerce is available 24/7.
Customer Interaction: Traditional is face-to-face; e-commerce is via screens.
Business Scope: Traditional is local; e-commerce is global.
Information Exchange: E-commerce provides a uniform platform for transactions.
Payment Methods: Traditional uses cash/cheques; e-commerce supports electronic payments.
Delivery: Traditional provides instant delivery; e-commerce can take time.
Advantages of E-Commerce
For Organizations
Expands market access with low capital.
Reduces costs associated with paper-based processes.
Enhances brand image and customer service.
Simplifies and speeds up business processes.
For Customers
Availability of 24/7 support.
More product options and easier comparison.
Access to reviews and virtual auctions.
Readily available information and substantial discounts due to competition.
For Society
Reduces traffic and pollution by minimizing travel.
Lowers product costs, making them accessible to more consumers.
Enables service access in remote areas.
Enhances government service delivery at reduced costs.
Disadvantages of E-Commerce
Technical Disadvantages
Security Issues: Security and reliability concerns.
Bandwidth Issues: Network speed can hinder usability.
Software Compatibility Problems: Integration difficulties with existing systems.
Non-Technical Disadvantages
High Initial Costs: Creating e-commerce applications can be expensive.
User Resistance: Trust issues may deter users from transitioning online.
Security/Privacy Concerns: Online transactions carry risks of data breaches.
Lack of Physical Inspection: Inability to physically inspect products before purchase.
E-Commerce Business Models
Models Defined
B2B: Sales to intermediate buyers.
B2C: Direct sales to consumers.
C2C: Platforms for consumers to sell to others.
C2B: Consumers provide services/products to businesses.
B2G: Government interactions with businesses.
G2B: Government deals with businesses.
G2C: Government providing services to citizens.
Electronic Data Interchange (EDI)
Definition and Use
EDI: Electronic transfer of documents like invoices and purchase orders between organizations.
Steps in EDI System
Document generation.
Conversion to agreed format.
Electronic file transmission.
Acknowledgment receipt.
Advantages of EDI
Reduces data entry errors.
Shortens processing cycles.
Lowers paperwork and costs.
Establishes standard communication.
Electronic Fund Transfer (EFT)
Definition and Process
EFT is a popular method for transferring money from one account to another using electronic means. It describes processes via ATMs or banking websites, including the role of ACH for interbank transfers.
Comparison of HTML and XML
HTML vs. XML
HTML: Presentation-focused, preset tags, case insensitive.
XML: Data transport-focused, customizable tags, case sensitive.
Practical Use Cases
HTML: Creating web pages.
XML: Data exchange between applications.