ELECTRONIC

BUSINESS

MBA 1 Years

Course Objectives

The Course highlights the basic aspect of E-business & Ecommerce. The students will become familiar with different business models, strategies, legal issues related to E-commerce Familiarizes students with the Electronic payment system, integrity and reliability of transactions Most important the encryption and digital signature techniques needed to support electronic cash, and the technologies available to support secure transactions on the Internet. Also make the students to understand the theoretical & practical experience of web development.
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Lecture-1 & 2

Introduction to E-Business & E-Commerce Electronic commerce Vs Traditional Commerce Advantages of E-Business & E-Commerce Disadvantages of E-Business & E-Commerce The Ocean of E- M-Commerce Brief History of E-Business Internet History of Internet

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What is Business?

A company or other commercial organization that buys and sells goods, makes products, or provides services. A commercial activity involving the exchange of money for goods or services.

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What is Commerce?

Commerce is all about buying and selling between two or more entities. Commerce deals with the exchange of goods, services, information or money from producer to final consumer.

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Electronic Commerce

Electronic Commerce has different definition:

Communication perspective,

Electronic Commerce is the delivery of information, goods/services, or payments via telephone lines, computer networks, or any other media. Electronic Commerce is the application of information technology towards the automation of transaction and workflow. Electronic Commerce provides the capability of buying and selling products and information on the Internet and other online services.
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Business process perspective,

Online perspective,

E-Business & E-Commerce

E-Business is defined as the process of using electronic technology to do business.

E-Commerce can be defined as a subset of E-Business that focuses on commerce.

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So, what is our definition of E-Business?

Any form of business or transaction or information exchange that is executed using any information and communications technology

The Internet

B2C, B2B, C2C

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Traditional Commerce Vs Electronic commerce

Traditional

Face to Face * No personal contact Printed & written documents * Documents on the web Telephone communication * Web pages personalized for a particular customer Postal mail * E-mail or web mail communication Payment by Cash, or check * Payment: credit card, direct withdrawal, EFT Ads: print, radio, tv * Ads on web, radio, tv Merchandize deliver * Merchandise deliver home 2-5 immediately days

E-Commerce

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e-commerce vs. traditional commerce

Key elements Technology E-commerce Enabler Traditional commerce Facilitator

Competitive edge
Accessibility Customer interface Customer interaction Customization Product promotion Product characteristic

Speed
24 x 7 Screen-to-face Self-service One-to-one customization Word of mouth Commodity
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Differentiation
Limited time Face-to-face Seller influenced Mass customization Merchandising & personal selling Perishables, feel and touch
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Traditional Commerce Vs Electronic commerce (Contd)

The ability of internet to handle various business process in an organized way has led to its popularity. For example, if a popular fast food chain wants to renovate its outlet all over the country, in a traditional business model:

Advertise in the newspaper and invite tenders from all the designer and architects Issue forms or a prescribed format for tenders Architect and designing firms would fill and send the prescribe format Desk clerk would analyze and prepare comparative reports These report would be studied by the management A closed door management meeting would be held The tender would finally announced

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Traditional Commerce Vs Electronic commerce (Contd)

The problem in the traditional model is that a lot of time is wasted in preparing the required format, and analyzing the tender received. To overcome this problem by an e-commerce-based model in the following manner:

The daily newspaper announces the plane and reveals the link to the Web site where the format is available Interested firms access the Web site, and fill the form online The companys server is secure, and all the tenders are kept confidential The management can quickly generate comparative reports using software options These reports help the management in taking quick decision.

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Advantages of E-Business & E-Commerce

Reduces processing/paperwork Allows consumer to comparison shop Provide goods & services on a 24 by 7 basis Reaches customer quickly Global Market Shorten business cycles easy to use Reduce business costs Provides feedback easily and swiftly Replacing brick and mortar stores
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Disadvantages of E-Business & E-Commerce

Customer authentication Web-site navigation

Security

Grouping of hypertext links for getting around the particular Web site. Biggest problem of e-commerce, is security. When cash is exchanged on the web across borders and continents, many individuals target this activity to perform illegal means to earn money. Identity theft and hacking of personal information have become one of the serious problem in the Internet.
Seller in USA, buyer from Canada and transaction is done in Pakistan

Tax to the government

Who will pay the tax, to which country? Integration of Internet with other customer service channels
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The Ocean of E-

E- or e- has been added to the almost everything

E-mail

E-form

A system for transmitting messages and data from one computer to another, using a telephone connection and modems or other communication technology . An online document that contains blank spaces for a user to fill in with requested information and that can be submitted through a network to the organization requesting the information. On the Web, e-forms are often coded in CGI and secured via encryption. A generic name for the exchange of money through the Internet. Also called cybercash, digicash, digital cash, e-cash.

E-money

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The Ocean of E-

(Contd)

E-procurement

the purchasing of something, especially for a company, government, or other organization. education for students working at home, with little or no face-toface with teachers and with material provided remotely, for example, by e-mail, television Short for e-mail bombing. A technique used by some attackers in which a target is put on a large number of mailing lists so that network traffic and storage are tied up by e-mail sent by other mailing list subscribers to the lists' recipients.

E-learning

E-bombing

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The Ocean of E-

(Contd)

E-tailing

Electronic tailing refer to the web sites selling goods to consumers. The concept is similar to the to that of retail shop that stock useful products. A customer can log in, survey the products, and place in order. The use of Internet Technology in general and e-commerce in particular to deliver information about public services to citizens (called Government-to-citizen [G2C]), business partners and suppliers (called government-to-business [G2B]) Recently have started to see the same with M- or m-.
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E-Government

others

M-Commerce

M-commerce refers to e-commerce that is conducted in a wireless environment. or M-Commerce is E-Commerce over wireless communications and typically to smaller handheld devices.

Ufone (Ufone Menu) Payment via Credit Card, UTrack TCS, UBANK@MCB, U Book & Shaheen etc Mobilink, Jazz Karobar

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Origin and Growth of E-Commerce

1970s: Electronic Funds Transfer (EFT)

A computer-based system that facilitates the transfer of money between two financial institutions The process by which money is transferred electronically from one financial institution to another is termed EFT Used by the banking industry to exchange account information over secured networks No physical appearance of an individual account holder or any physical paper work involved in EFT, but computers and their network used for this purpose

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Origin and Growth of E-Commerce

(Contd)

Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies EDI refers to the business communication between business partners and clients. Used by Businesses to transmit data from one business to another electronic messaging technologies: 1990s: the World Wide Web on the Internet Provides easy-to-use technology for information publishing and dissemination Cheaper to do business Enable diverse business activities

E-mails, faxes and newsletters is a part of EDI

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Origin and Growth of E-Commerce

(Contd)

Internet A network of networks in which user of any computer can get information from other computer, if they have permission. An internet (note the lowercase letter i) is two or more networks that can communicate with each other. It is a generic term used to mean an interconnection of networks. The second is the name of a specific world wide network. The most notable internet is called Internet (uppercase letter I), in which connect more than hundreds of thousands interconnected networks.

Every computer on the Internet has a unique Internet address (similar to telephone address), which can be accessed any other computer by dialing to the other IP address. The existing version now-e-days IP VER-4.
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Origin and Growth of E-Commerce

(Contd)

The extraordinary communication system Internet came into being in 1969.

In mid-1960, mainframe computers in research organization were stand-alone devices. Computers from different manufacturers were unable to communicate with one another. The ARPA in the DoD was interesting in in finding a way to connect computers, so In 1967, at an Association for Computing Machinery (ACM) meeting, ARPA presented its ideas for ARPANET, a small network connected computes.
The basic purpose to create a network that allows the researchers of one university to able, to talk or share their research to Researchers computers. The network was designed to work without centralized control. This means if one portion of network fails or destroy in disaster or in military attack, the remaining portion will be able to route packets from sender to receiver through alternate path.
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E-COMMERCE TECHNOLOGIES

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Software

Computer Instructions or data, anything that can be stored electronically is called Software. The programs that control the operation of the computer system is called System Software. In short, system software is the collection of those computer programs which runs the computer and also helps the computer to run another programs. e.g. Operating Systems (WINDOWS, UNIX)

Application Software includes programs that do real work for user. Example: Payroll systems, Inventory Control, Manage student database, Word Processor, Spreadsheet and Database Management System etc.
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