MBAEX 9607 - Managing E-Business

Faculty of Management Studies

University of Delhi

July 07, 2017

(Week 1)
 JYOTI PRAKASH DAS

Work Experience: Worked as a Business and IT

consultant for 28+ years.
Attached with organizations
like PwC, IBM Global Services,
HCL Technologies

Education: MS Business Finance

MBA - specialization in MIS
University of Texas
B.Com with Accountancy Hons.,
Calcutta University

Teaching Experience: Visiting Faculty, FMS

Guest Faculty, Sharda University
Guest Lecturer, BIMTECH

Contact Details: email: jyotidas2004@gmail.com

Cell: +91 98719 21112
Self Introduction

Name

Academic Background

Work Experience

Expectation from this course

Course Outline

Introduction

I todays o petiti e e iro e t, a PGDM stude t eeds to keep pa e ith the

technology developments and its impact on how business is conducted and success
measured. Since businesses today are more and more dependent on Information
Technology the managers of tomorrow must be fully aware and conversant with the how
to leverage technology to create a differentiator.

Trading of merchandise over the internet, popularly known as E-Commerce, and its
gradual transition to running the entire enterprise using the internet, known as E-
Business has become a game changer in the world of business and their role cannot be
overemphasised. For the managers of tomorrow it has become imperative to
understand not only the concept of E-Commerce and E-Business but also to comprehend
its complete framework and technologies.

This course attempts to address the subject matter from these perspectives.
Course Outline

Objectives Pedagogy
Lecture
Develop an appreciation of how
Class Discussions
technology is transforming how
Group Presentations
business is conducted today;
Class and take-home assignments
Understand the different aspects of
Course Examination
technology involved in E-enabling an
organization; and
Different business models that are
being used by organizations to address
their E-Business initiatives
Course Outline

Evaluation Component and Weightage

Evaluation Component Weightage

Class Participation 05

Individual Assignments 05

Group Assignment 10

Mid-Term Examination 10

Term-End Examination 70
Course Outline

Group Assignment
Eight teams will be formed by the students. The team should have a proportionate
representation of male and female students. Each team shall identify a team leader and the
leader shall submit the name of the team members on class session number 4.

Each team shall be assigned one out of the following E-Business transaction type by the class
instructor:
Business to Business (B2B)
Business to Consumer (B2C)
Business to Employee (B2E)
Consumer to Business (C2B)
Consumer to Consumer (C2C)
Government to Citizen (G2C)
Government to Business (G2B)
Educational Institutions to Students (E2S)
Course Outline

Group Assignment

The tea shall sele t a orga izatio s hose e site falls i the tra sa tio type assig ed to
the team. The team must give justification as to why it decided to select the particular
organization.

The tea s prese tatio should o er at a i i u the follo i g:

The Model transaction type

How well the E-Business features have been addressed
Suggested improvements for the site

Each team will be allowed 45 minutes for the presentation.

The team shall utilize 30 minutes for their presentation.

10 minutes shall be allocated for questions/discussion on the presentation.
5 minutes shall be assigned for feedback from the faculty member/members.
Course Outline

Text Book

Electronic Commerce: Framework, Technologies and Applications

Author: Bharat Bhaskar

Reference Books
E-Commerce: An Indian Perspective
Author: P K Joseph

E-Business and E-Commerce Management

Author: Dave Chaffey

E-Commerce: fundamentals and Applications

Author: Henry Chan & Lee Raymond
Course Outline

Session Plan

Topic Contents Week

Introduction to E- Definition of E-Commerce, Features of E- 1&2
Commerce commerce, Need for E-commerce, Difference between E-
Commerce and E-Business, Interdisciplinary
Nature of Electronic Commerce, Classification of E-
Commerce, E-Commerce Applications, Future of E-
Commerce,Benefits of E-Commerce, Limitations of E-
Commerce:- Non-Technical and Technical Limitations
Framework of E- E-Commerce Functions, E- 3
Commerce Commerce Generic Framework, E-
Commerce Building Blocks
Course Outline

Session Plan

Topic Contents Week

Business Models in E- Meaning of Business Models, Importance of Business 4
Commerce Models, E-Commerce Business Models Taxonomy,
Transplanted Content based Models, Transplanted
Transaction based Models, Native Content based Models,
Native Transaction based Models
Electronic Payment Types of Electronic Payment Systems, Traditional Payment 5
Systems Systems v/s Electronic PaymentSystems, Electronic Payme
nts and Protocols, Security Requirements in Electronic Pa
ymentSystems, Electronic Payment Systems and Consumer Em
powerment
Electronic Payment Desirable Properties Of Digital Currency, Managerial Issues in 5
Systems Electronic Payment Systems, Cash on
Delivery, Issues and Challenges, Opportunities for Retailers
with COD, Emerging E- Payment Models
and systems: M P aisa, Pay Pal, Credit Card/ Debit Cards,
Gift, Vouchers, Internet Banking, E-Wallets, Mobile Wallets
Course Outline

Session Plan
Topic Contents Week
Electronic Data Interchange Introduction to conventional purchasing processes. Electronic 6
Data Interchange - Definition, Building blocks of
EDI systems, Benefits of EDI Systems, Value Added Networks,
Mobile Commerce Introduction to Mobile Universe, Definition- 7
Mobile Commerce, Benefits of Mobile Commerce, Issues
in Mobile Commerce,
Architectural framework of mobile commerce
Elements of the Mobile Commerce framework: Mobile Network I
nfrastructure, Information
Distribution for Mobile Networks, Multimedia Content Publishing
Technology, Security and Encryption,
Payment Services in Mobile Environment, Business Services Infras
tructure, Public Policy and Legal
Infrastructure,
Mobile Commerce Applications, App development environment
Course Outline

Session Plan
Topic Contents Week

MID TERM 8
Internet Advertising Overview of internet advertising, Importance and competitivenes 9
s of internet advertising, Weaknesses of internet advertising,
Models of advertising on the internet,
Banner advertising and its effectiveness, Sponsored
content, Corporate web sites, Interstitials, Superstitials, Opt-ins
E-Commerce & Web Introduction to Online 10
Publishing Publishing, Online Publishing Strategies, Advantages of Web Pu
blishing, Information Publishing and Web Browsers.
Hyper Text Markup Language (HTML), HTML-
Basics, HTML Syntax, Forms,Multimedia Content, Graphics and I
mage Formats, Web Image Formats
Course Outline

Session Plan

Topic Contents Week

E-Business: Influence on Importance of Supply Chain Management, Impact of E-Business 11
Supply Chain management on SCM
E-Business: Influence on Impact on 4Ps Product, Physical Distribution, Price, 12
Marketing Promotion; marketing Communication; Emerging Tools
Legal Issues IT Act, Convergence Bill, Cyber Appellate Tribunal, Public Key 12
Infrastructure (PKI) Framework, Security and privacy issues
related to E-Commerce
GROUP PRESENTATION 13 & 14
COURSE REVIEW 15
TERM-END EXAMINATION
Introduction to E-Business
Class awareness of the subject

What do you understand by the term E-Commerce

How is E-Business different from E-Commerce

Example of an E-Commerce site

Example of an E-Business site

What is the difference between a Portal and a Website

Difference between a website and a Web Portal
What is a Website?

A website is a collection of interlinked web pages typically hosted from a single domain. A
website is accessible over the internet or a private network such as Local Area Network (LAN)
through an address known as Uniform Resource Locator (URL).

The URLs organize the web pages into a hierarchical form which help a user to navigate through
the pages. A home page is included that usually is the starting point of all navigation artifacts,
i ludi g li ks to other pages, a A out Us page, or a Co ta t Us page.

What is a Web Portal?

A web portal is a customized website that immerses information from a wide array of sources in
a consistent and uniformed manner.

A web portal may be customized based on the restrictions of domain searches. An enterprise
portal usually has a consistent design and has the capability to interact with applications and
databases.
Electronic Commerce: Introduction

E-Business

E-Commerce
Commerce
Internet Mobile
Commerce Commerce
What is Commerce
What is E-Commerce

Formulating commercial transactions at a site remote from the

trading partner and then using electronic communications to
execute the transaction.
E-Commerce Definition (Contd)
E-Business Definition
Difference between E-Commerce and E-Business (Contd)

The terms e-business and e-commerce are often used interchangeably. When electronic
medium is used in all the day-to-day activities, then it may be termed as e-business. When
a commercial transaction takes place over electronic network, then it is termed as e-
commerce.

E-business is a very broad concept that involves a business organization to use electronic
medium to carry out all specialized or overall business activities. In e-business, information
and computing technologies are used to e ha e o es usi ess. It i ludes a y pro ess that
a business organization conducts over electronic and computer enabled network.

E-business may include functions like recruiting, training employees and sharing any
internal information to enhance business process. In e-commerce, information and
computing technologies are used in inter business and intra-business transactions and in
business to consumer transactions.
Difference between E-Commerce and E-Business (Contd)

Some experts consider when business is completely carried on through an electronic

medium, it may be referred to as e-business. E-business does not have physical
presence in a market. When a business organization physically owns an office and
along with its physical presence carries out a business transaction over internet, it
may be referred as e-commerce.

Amazon (Amazon.com) and ebay (ebay.com) are o sidered to e the orlds t o

biggest e-business units. When Nalli Stores along with its physical presence sells
textiles through its web site (nalli.com), then it may be referred as e-commerce.
What is Internet commerce

Broad term covering all commercial activity on the internet, including

auctioning, placing orders, making payments, transferring funds, and
collaborating with trading partners.

Internet commerce is not a synonym for electronic commerce (e-commerce)

A couple of years ago many viewed electronic commerce as simply trading

using online networks and EDI (Electronic Data Interchange). ... Internet
Commerce is the use of the Internet for all phases of creating and completing
business transactions
What is Mobile commerce

M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless handheld devices such as cellular telephone and personal digital
assistants (PDAs). Known as next-generation e-commerce, m-commerce enables users to
access the Internet without needing to find a place to plug in.

As content delivery over wireless devices becomes faster, more secure, and scalable,
there is wide speculation that m-commerce will surpass wireline e-commerce as the
method of choice for digital commerce transactions.
Industries affected by Mobile commerce

Financial services, which includes mobile banking (when customers use their
handheld devices to access their accounts and pay their bills) as well as
brokerage services, in which stock quotes can be displayed and trading
conducted from the same handheld device

Telecommunications, in which service changes, bill payment and account

reviews can all be conducted from the same handheld device

Service/retail, as consumers are given the ability to place and pay for orders on-
the-fly

Information services, which include the delivery of financial news, sports figures
and traffic updates to a single mobile device
Why do you need E-Commerce

YOU CAN GAIN NEW CUSTOMERS THROUGH SEARCH ENGINES

SELL YOUR PRODUCTS NATION / WORLD WIDE

CUSTOMERS CAN BROWSE YOUR PRODUCTS NO MATTER WHERE THEY ARE

YOUR SOCIAL MEDIA FOLLOWING IS GROWING BUT POTENTIAL CUSTOMERS

HAVE TO VISIT YOUR

THE NUMBER OF PEOPLE VISITING YOUR SHOP IS FALLING

YOU WANT TO INCREASE SALES

BECAUSE ITS 7!
Brief history of E-Commerce
Brief history of E-Commerce (Contd )
Brief history of E-Commerce (Contd )
Brief history of E-Commerce
Advantages and Disadvantages of E-Commerce
ADVANTAGES DISADVANTAGES
Low Financial Cost No One Can Buy During a Site Crash
24 x 7 Potential Income Custo ers Ca t Try Before They Buy
Sell Globally Ecommerce Is Highly Competitive
Easy to Showcase Bestsellers Customers Can Be Impatient
Personalized Online Experience You Need To Ship Your Products
Affordable employees Physical Retail is Still More Popular
Despite Decline
Easier to Encourage Impulse Buy
Easy to Retarget or Remarket to Customer
Customers Get a Less Invasive Experience
Gain Access to Customer Data Easily
Able to Process a High Number of Orders
Can Scale Business Quickly
Can Grow Business Organically with
Content
Class Discussion

Is E-Business is a technology initiative?

Interdisciplinary Nature of Electronic Commerce

Main disciplines involved in E-Business

Computer Science

Marketing

Consumer Behaviour

Finance

Economics

Management Information Systems

Accounting & Auditing

Management

Legal issues
Interdisciplinary Nature of Electronic Commerce (Contd...)
Electronic commerce is a new area, is simply the development of its theoretical or
scientific basis. Ii is based on several disciplines. The main disciplines of E-Commerce
with some sample questions they are concerned about the following:

Marketing
Many offline marketing issues relevant to online E-Commerce for example, the cost
advantages of advel1isements and advertising strategies. Other issues are unique to
ECommerce, ranging from online marketing strategy for interactive kiosks.

Computer science
Many of the problems in the e-commerce infrastructure, such as languages, multimedia
and networks fall into the discipline of computer science. Intelligent agents play a major
role in electronic commerce as well.
Interdisciplinary Nature of Electronic Commerce (Contd...)

Consumer behaviour and psychology

Consumer behaviour is the key to the success of B2C commerce, but it is the behavior of
sellers. The relationship between cultures and attitudes of consumers in the electronic
market is an example of a research problem in the area.

Finance
Financial markets and banks are one of the main participants in E Commerce. In addition,
funding arrangements are in many online transactions. Issues such as the use of the
Internet as a substitute for a stock exchange and fraud in the online stock trading are a
sample of the many topics of deposit.
Interdisciplinary Nature of Electronic Commerce (Contd...)

Economy
E-Commerce is influenced by economic forces and has a major impact on the world
and the countries economies. Furthermore, the theories of micro and macro must
be taken into account in the planning of electronic commerce, and economic
impacts of E Commerce on business.

Management information systems (GIS)

The Information Systems Department is usually responsible for the deployment of E-
Commerce. This discipline covers issues ranging from the analysis of systems
integration systems, not to mention planning, implementation, security and
payment systems, among others.
Interdisciplinary Nature of Electronic Commerce (Contd...)
Accounting and Auditing
The back-office operations of electronic transactions are similar to other
transactions in some respects, but different in others. For example, auditing
electronic transactions presents a challenge for the accounting profession; so does
the development of methodologies for .cost-benefit justification.

Management
Electronic commerce efforts need to be managed properly, and because of the
interdisciplinary nature of E-Commerce, its management may require new
approaches and theories.

Business Law and Ethics

Legal and ethical issues are extremely important in E-Commerce, especially in a
global market. A large number of legislative bills are pending, and many ethical
issues are interrelated with legal ones, such as privacy and intellectual property.
Building Blocks for E-Commerce
Framework for E-Commerce
Classification of E-Commerce by Transactions or Interactions
Classification of E-Commerce by Transactions or Interactions
Classification of E-Commerce by Transactions or Interactions
Classification of E-Commerce by Transactions or Interactions
Business Models in E-Commerce
Business Models in E-Commerce (Contd...)
Business Models in E-Commerce (Contd...)
E-Commerce Revenue Models
E-Commerce Revenue Models
E-Commerce Revenue Models
Unique features of E-Commerce
Unique features of E-Commerce
Unique features of E-Commerce
Unique features of E-Commerce
Unique features of E-Commerce
Unique features of E-Commerce
Unique features of E-Commerce
Class Discussion
Benefits of Business

Benefits to Organizations

Electronic commerce expands the market place to national and international market
with minimal capital outlay, a company can easily and quickly locate more customers,
the best suppliers, and the most suitable business partners worldwide.

Electronic commerce decreases the cost of creating, processing, distributing, storing,

and retrieving paper-based information. For example, by introducing an electronic
procurement system, companies can cut the purchasing administrative costs by as
much as 85 percent.

Ability for creating highly specialized businesses For example, dog toys which can be
purchased only in pet shops or department and discounts stores in the physical world
are sold now in a specialized www.dogtoys.com
Benefits of E-Business (Contd...)

Benefits to Organizations

Electronic commerce allo s redu ed in entories and o erhead y fa ilitating pull

type supply chain management. In a pull-type system the process starts from
customer orders and uses just-in-time manufacturing.

The pull-type processing enables expensive customization of products and services

which provides competitive advantage to its implementers.

Electronic commerce reduces the time between the outlay of capital and the
receipt of products and services.

Electronic commerce initiates business processes reengineering projects. By

changing processes, productivity of salespeople, knowledge workers, and
administrators can increase by 100 percent or more.
Benefits of E-Business (Contd...)

Benefits to Organizations

Electronic commerce lowers telecommunication cost the internet is much cheaper

than value added networks.
Other benefits include
improved image,
Improved customer service,
new found business partners,
simplified processes,
compressed cycle and delivery time,
increased productivity,
eliminating paper,
expediting access to information and
increased flexibility.
Benefits of E-Business (Contd...)

Benefits to Consumers

Electronic commerce enables customers to shop or do other transactions 24 hours a

day, all year round, from almost any location.

Electronic commerce provides customer with more choices; they can select from
many vendors and from many more products.

Electronic commerce frequently provides customers with less expensive products and
services by allowing them to shop in many places and conduct quick comparisons.

In some cases, especially with digitized products E-Business allows quick delivery.
Benefits of E-Commerce (Contd...)

Benefits to consumers

Customers can receive relevant and detailed information in seconds, rather than
days or weeks.

Electronic commerce makes it possible to participate ate in virtual auctions.

Electronic commerce allow customers to interact with other customers in electronic

communities and exchange ideas as well as compare experiences.

E-commerce facilitates competition, which results in substantial discounts..

Benefits of E-Commerce (Contd...)

Benefits to Society

Electronic commerce enables more individuals to work at home and to do

less travelling for shopping, resulting in less traffic on the roads and lower air
pollution.

Electronic commerce allows some merchandise to be sold at lowest prices,

so less affluent people can buy more and increase their standard of living.

Electronic commerce enables people in third world countries and rural areas
to enjoy products and services that otherwise are not available to them.
Benefits of E-Commerce (Contd...)

Benefits to Society

Electronic commerce facilitates delivery of public services, such as health

care, education, and distribution of government social services at a reduced
cost and/or improved quality. Health care services, e.g., can reach patients in
rural areas.

Electronic commerce facilitates delivery of public services, such as health

care, education, and distribution of government social services at a reduced
cost and/or improved quality. Health care services, e.g., can reach patients in
rural areas.
Advantages and Disadvantages of E-Commerce
ADVANTAGES
Low Financial Cost
24 x 7 Potential Income
Sell Globally
Easy to Showcase Bestsellers
Personalized Online Experience
Affordable employees
Easier to Encourage Impulse Buy
Easy to Retarget or Remarket to Customer
Customers Get a Less Invasive Experience
Gain Access to Customer Data Easily
Able to Process a High Number of Orders
Can Scale Business Quickly
Can Grow Business Organically with Content
DISADVANTAGES
No One Can Buy During a Site Crash
Custo ers Ca t Try Before They Buy
Ecommerce Is Highly Competitive
Customers Can Be Impatient
You Need To Ship Your Products
Physical Retail is Still More Popular Despite
Decline
Some products do not sell well over the net
Data Security & privacP - Some customers do
not thrust the internet
Limitations of E-Commerce
Class Discussion
Useful E-Business Terms
Useful E-Business Terms (Contd)
Useful E-Business Terms (Contd)
Some E-Commerce Terms
Some E-Commerce Terms
Some E-Commerce Terms
Portal and Website Differentiation
Portal and Website Differentiation
Web Auctions
Types of Auctions
Types of Auctions
Award Winning Web site
Marucci Sports Best Overall Site Design
Di Bruno Best in Food and Beverage

Di Bruno Best in Food and Beverage

Nine Line Apparel Best in Apparel
SISU Guard Best in Sports
Sierra Designs Peoples Choi e