INTRODUCTION

E- Information technology has transformed the way people work. Electronic commerce has unleashed yet another revolution, which is changing the way businesses buy and sell products and services. Associated with buying and selling of information, products and services over computer communication networks, e-commerce helps conduct traditional commerce through new ways of transferring and processing information, since it is information which is at the heart of any commercial activity. Information is electronically transferred from computer to computer, in an automated way. Commerce refers to the paperless exchange of business information using electronic data interchange, electronic mail, electronic bulletin boards, electronic funds transfer, World Wide Web, and other network-based technologies. Ecommerce not only automates manual processes and paper transaction, but also helps organization move to a fully electronic environment and change the way the way they operate. After the e-commerce framework was announced by the US Government in 1997-at the time when the internet was allowed to be use d by commercial organizations-it was US Governments announcement all federal purchases would be made paperless that gave an impetus to this new way of conducting trade and commerce. Surprisingly, it is an application that is today associated with e-governance, namely e-procurement. The European Union followed with a similar directive to its member states to make government procurement paperless through e-procurement. Information gathering, processing, manipulating and distributing is common to trade and commerce, no matter what

the commodity or service that is being exchanged. Today, it is the velocity of information processing and dissemination, which determines the speed of real commerce. Computers and network, by virtue of their sheer speeds, are creating electronic marketing with the potential to be more efficient in finding and interacting with customers, communicating with trading partners, and developing new product and markets. While on the one hand, Local Area Networks [LANs], and enterprise wide intra-networks have resulted in rising expectation for data access, communications and productivity throughout the business world, on the other, low cost high speed open networks interconnected as a network, commonly known as the Internet, have kept pace with the requirement through the establishment of national information infrastructures, with high speed national information highways being their main backbones. Widespread access to network communication tools including electronic mail, online services, and web browsers have created a new awareness of the commercial potential of the internet. While the Internet has already been successfully used for marketing, advertising and some commerce, much of its technical potential remains to be commercially harnessed. EDI is still the proven application of e-commerce, especially for business-to-business commerce. Organizations and countries worldwide are seized of the impact e-commerce will have on the world economy, international trade, financial markets, etc. The world is at the threshold of a new industrial revolution that is being shaped by the Internet in general, and e-commerce in particular. ECommerce implies not just using network-based technologies to conduct business. It is about moving organizations to a fully electronics environment through a change in their work procedures, re-engineering their business processes, and

integrating them with their business partner beyond their traditional boundaries.

Define e-commerce
Electronic commerce means buying and selling of products and service by business and consumers over the Internet. It is associated with buying and selling of information, products and services over computer communication networks. Running a web site in a businesslike manner is the basic concept of E-commerce. Electronic commerce is a general concept covering any form of business transaction or information exchange executed using information and communication technology between companies and public administrations. Electronic commerce includes electronic trading of goods, services and electronic material.

What is EDI?
EDI stands for electronic data interchange. It is exchange of documents in standardized electronic form between organization in an automated manner directly from computer application in one organization in another organization EDI used to electronically transmit documents, such as purchase orders, invoices, inquiries, planning receiving

advices and other standard business correspondence between trading partners. EDI can also used to transmit financial information and payments in electronic form. EDI does not create any new process, but it expands the existing business process. EDI can used to electronically transmit documents such as purchase orders, invoices, shipping notices, receiving advices, and other standard business corresponence between trading and partners. EDI can also be used to transmit financial information and payments in electronic form. When used for effecting payments, EDI is usually referred to as financial EDI and Electronic Fund Transfer [EFT]. EDI is a way of substituting electronic transactions for paper ones. However, it is much more than mere substitution. It is a means to streamline procedures, and improve efficiency and productivity. EDI allows a new look at the processes within an organization, with a view to reengineer them in what has come to be known as business process re-engineering [BPR].

Advantages of EDI
EDI can bring number of advantages to the organization using it:

Shortened delay: EDI orders are sent straight into network and the only delay is the supplier retrieves message from the system

Reduction in cost: the cost of stationery and postage also on supporting staff is saved. Reduction in error: since data is not repeated keyed, the chance of error are reduced Fast response: with EDI, customers can get fast response regarding delivery or supply difficulty if any. Accurate invoicing: With EDI, invoices can be sent electronically and can be automatically matched with orders and cleared for payment. EDI payment: EDI payment electronically matched against the relevant invoices. Reduced stock holding: The amount of goods kept in a storeroom gets reduced if orders are regular. It reduces capital requirement. Cash flow: EDI speed up payments and hence improve cash flow. Business opportunities: number of customers get increased with EDI Customer lock-in: An established EDI system is advantage to both customers and supplier. Customer once associate does not get shifted to other one.

E-Commerce types
A business organization can organize itself to conduct ecommerce with its trading partners, which are businesses, and/or with its customers. The resulting modes of doing business are referred to as business-to-business [B2B], and business- to- consumer [B2C] e-commerce. There is yet another category of e-commerce, referred to as consumer -toconsumer [C2C]. The auction or sale of goods by one person to another through special auction sites run by business organizations falls under this definition. The formal definitions of these categories are given below.
B2B: This is e-commerce between businesses. The

exchange of products, services or information between businesses on the Internet is B2B e-commerce. Some example of B2B websites includes company websites, product supply and procurement exchanges, specialized or vertical industry portals, brokering and financial sites that provide information for its business customers and employees. For example, Seekandsource.com is a very large Indian cross industry marketplace that is ideal for businesses buying and selling to a wide cross-section of industries. B2B needs to have inbuilt processes to integrate sellers and buyer system for delivering maximum benefits to trading partners.
B2C: This is business- to- consumer e-commerce. It

may be defined as any business selling its products or services to consumers over the Internet for their own use. Amazon.com, the online bookseller that launched its site in 1995 to sell book and other products directly

to its consumers, is a prime example of B2C ecommerce. In additional to online retailers, B2C has grown to include services such as online banking, travel services, online auctions, real estate, health services, insurance and other services. C2C: This is consumer- to-consumer e-commerce. A virtual marketplace on the Internet in the form of a website enables sellers and buyers to meet and exchange goods, including used goods, at a negotiated price in C2C. Such a web site is known as an auction site, and it started out like a garage sale. The most famous site is ebay.com, which started he C2C revolution. Many similar companies in other countries have been acquired by ebay. For example, in India, the auction site Bazee.com has recently been taken over by ebay .