E-commerce and electronic data interchange

Ecommerce

Electronic commerce is a general term for the conduct of business with assistance of telecommunications, and telecommunication based tool like internet. It primarily consists of the buying and selling of products or services over electronic medium like the Internet .

The seamless application of information and communication technology from its point of origin to its end point along the entire value chain of the business process.
E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.

ECOMMERCE VERSUS E-BUSINESS

E-commerce refers to online transactions - buying and selling of goods and/or services over the Internet. E-business covers online transactions, but also extends to all Internets based interactions with business partners, suppliers and customers such as: selling direct to consumers, manufacturers and suppliers, monitoring and exchanging information; auctioning surplus inventory; and product design. These online interactions are aimed at improving or transforming business processes and efficiency. E-business is about making good products, brainstorming and giving quality service, planning about product exposure and executing it E-commerce is an integral part of the e-business process but in strict terms, it is the activity of selling and buying.

COMPONENTS OF E BUSINESS

Production processes, which include procurement, ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes, Customer-focused processes, which include promotional and marketing efforts, selling over the Internet, processing of customers purchase orders and payments, and customer support etc. Internal management processes, which include employee services, training, internal information-sharing, videoconferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communications and electronic publishing of internal business information are likewise made more efficient

Advantage of ecommerce over traditional commerce

TRADITONAL COMMERCE manual Method

ECOMMERCE Automates manual task No paper work \ paperless exchange. Product promotion with products for comparison. Fund can be transfer from EDI, or other electronic network Increased productivity and efficiency wider choice No delay in finalizing transaction of EDI, Email cost-effective and efficient Multiple task can be perform Close contact with clients Planning and execution of meetings

Lots of paperwork Limited Product/price comparison

Time consuming and less efficient

Difficult to spread business allover the world Delay in finalizing transaction Higher in cost Single task is perform

Types of Ecommerce

Business to business: Ecommerce is conducted between two business. The interaction between the two Business takes place though two computer applications. Examples The first company sells automobile parts and the second company assembles these parts and sells the automobiles to the customers

Business to customers: ECommerce is conducted between a user and a business through a computer link. The B2C interaction is between a user and a computer application. Examples A company that assembles the automobile parts and offers automobiles to customers. The Transaction between the company and Customers is known as a B2C transaction It is for the customers to buy stores from the web. E.g. eBay, online banking, Google*
.

Customer to business: C2B e-commerce occurs when consumers use the Internet to interact with business, learn about them & give feedback Consumers can communicate with businesses marketplace, customer can Communicate with the site operators And between Ecommerce sites and their Customers. e.g. online billing, e-books (transaction of information),etc

Customers to customers: The seller and buyer are both customers. The interaction between these two customers takes place though a computer application. Buyer put his product on the website for others to respond according to the requirement. for ex: auctions sites and classifieds where one can virtually sell and buy any goods. E.g.bidjeeto.com,auctionindia.com

BUSINESS

CONSUMER

GOVERNMENT

BUSINESS

B2B Heinz selling ketchup to Mc Donald's C2B selling my old school books online

B2C Dell selling me a laptop C2C Ankit buying an iPod from Shubham on eBay G2C applying for passports through relevant website of the Government

B2G TATA selling buses to Delhi Govt, for CWG games. C2G Paying of water bills online G2G request of allocation of budget by any department of the government

CONSUMER

G2B GOVERNMEN Inviting business T through online tenders advt.

E-FRASTRUCTURE & E-MARKET

E-FRASTRUCTURE- Architecture of the system needed to carry out ecommerce activities. example: logistics-transportation, warehousing and distribution content management software application service providers -deployment of packaged software outsourcing of functions -., outsourcing providers such as eShare, Net Sales, iXL Enterprises and Universal Access); security and customer care solutions Web-based commerce enablers

E-MARKET- Websites or any other electronic medium through which buyers and sellers interact with each other and conduct transactions.

DRIVERS OF E-COMMERCE

Digital convergence The digital revolution has made it possible for almost all digital devices to communicate with one another. The Internets massive growth during the past 10 years, which is completely a creation of market forces will continue . Ubiquity e-commerce is available to everywhere in the world, Ecommerce ties together the industrial sector, merchants, the service sector, and the content provider using text, multimedia, video, and other technologies . Changes in organizations More and more todays business empower front-line workers to do the kind of work once performed by junior management. A trend also is developing toward partnering owners and managers across departments to develop a chain of relationships that adds value to the enterprise

DRIVERS OF E-COMMERCE

Information Density Global competitions and the proliferation of products and services worldwide have added unusual pressure to keep a close watch on operating costs and maximize profit margins. E-commerce addresses there concerns quickly, efficiently, and at a low cost

Personalization/Customizations customers are collectively demanding higher quality and better performance, including a customized way of producing delivering, and paying for goods and services. Mass customization puts pressure on firms to handle customized request on a mass-market scale

E com and business

Online Promotion: Here the site can take the user through the purchasing decisions by allowing them to choose the product and its cost . Online ordering: here the user is given secure name and password and by which they initiate product delivery. (price info) Electronic shopping: the product is selected and is purchased by the credit cards. Comparison: comparing products and services of business

Future of E com
Intrusion detection, Intrusion protection, Hard ware firewalls for secured financial transactions. Unless and until the cyber security norms are not proper (Completely secured) the success of e-commerce is suspicious.

EDI: Electronic Data Interchange

What is EDI?

Exchange of electronic data between companies using precisely defined transactions

Set of hardware, software, and standards that accommodate the EDI process

Electronic Data Exchange

How does EDI work? (Figure )

Suppliers proposal sent electronically to purchasing organization. Electronic contract approved over network. Supplier manufactures and packages goods, attaching shipping data recorded on a bar code. Quantities shipped and prices entered in system and flowed to invoicing program; invoices transmitted to purchasing organization

Electronic Data Interchange

Figure -Suppliers, manufacturers, and retailers cooperate in some of the most successful applications of EDI.

Electronic Data Interchange

Figure -Benefits of EDI

Electronic Data Exchange

Manufacturer ships order. Shipment notice EDI transaction sent (not shown) Purchasing organization receives packages, scans bar code, and compares data to invoices actual items received. Payment approval transferred electronically. Bank transfers funds from purchaser to suppliers account using electronic fund transfer (EFT).

Electronic Data Interchange

The Importance of EDI

Need for timely, reliable data exchange in response to rapidly changing markets Emergence of standards and guidelines Spread of information into many organizational units Greater reliability of information technology Globalization of organizations