INTRODUCTION

 Electronic Commerce
Logically it is Commerce carried out through Electronic
means and methods.
 What is Commerce?
 What are electronic means?
Commerce - Any form of transaction between two parties
is called commerce

eCommerce Comp-201
Imran M. Qureshi
 INTRODUCTION

Definition:
“Electronic Commerce is a general concept covering any form of
business transactions or information exchange executed using
information and communication technology, between companies,
between companies and their customers or between companies and
business administrations. Electronic Commerce includes trading of
goods, services and electronic materials” EU Website

“ Formulating commercial transactions at a site remote from the trading

partner and then using electronic communications to execute that
transaction”
 INTRODUCTION

PERSPECTIVES
• “ From a communications perspective, EC is the delivery of
information, products/services or payments over telephone lines,
computer networks, or any other electronic means”
• “ From a business process perspective, EC is the application of
technology toward the automation of business transactions and work
flow”
• “ From a service perspective, EC is a toll that addresses the desire of
firms, consumers and management to cut service costs while improving
the quality of goods and increasing the speed of service delivery.”
• “ From an online perspective, EC provides the capability of buying and
selling products and information on the internet and other online
services”
Kalakota and Whinston
 INTRODUCTION

 E-Commerce is commonly thought to include e-tailing, online

banking and shopping
 Transactions where buyers actually buy and sellers actually sell
 Some suggest that E-Commerce is any transaction online be it a
support inquiry or a catalogue search
 E-business is much more encompassing
 E-business includes all activities from procurement of raw materials,
to production, to stock, to distribution and logistics, to sales, marketing,
after sales, invoicing, debt collection etc.

 INTRODUCTION

CONNECTED DISCIPLINES
 MARKETING
 COMPUTER SCIENCE
 FINANCE
 ECONOMICS
 MANAGEMENT
 MIS (Management Information Systems)
 BUSINESS LAW & ETHICS
BUSINESS PROCESS
INQUIRY

ORDER

PRODUCTION

SHIPMENT

PAYMENT
 INTRODUCTION
BENEFITS
1) Organizations
 Global Markets
 Decreased Costs of Business
 Specialized Businesses
 Reduced Inventory (Pull type Supply chains)
 Faster Capital Conversion
 Facilitates BPA, BPI, BPR
 Volume and frequency of Transactions
 Increased efficiency and productivity
 INTRODUCTION

BENEFITS
2) Customers
 24/7 Access to markets
 Freedom of choice
 Detailed Information
 Electronic Communities
 Work and Shop from home
 Decreased purchase price
 INTRODUCTION

LIMITATIONS
 Establishment cost
 Security & Privacy
 User resistance
 Legal issues
 Support Services
 Accessibility to the internet
 Acceptability of EC
 INFRASTRUCTURE
INTRANET EXTRANET INTERNET

INTRANET
An intranet is a corporate LAN or wide area network (WAN) that
uses internet technology and is secured behind company firewalls.
The intranet links various servers, clients’ databases and
application programs like Enterprise Resource Planning (ERP).

On a practical line an intranet is a TCP/IP network inside a

company that allows employees to access the company’s
information resources through an internet-like interface. Intranet
can be used to provide its employees email and access to
groupware software, a corporate client/server database, corporate
human resource applications or custom applications and legacy
applications. eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE

ERP
CLIENTS SERVERS
E LEGACY
F
X
T I
E I R
N INTRANET EMAIL
R
E
N T
A E
L R W
U N A WEB
S E L
E T L
SERVERS
PRODUCT
R DATABASE
S

eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE

FUNCTIONS OF INTRANET

• Corporate/Department/Individual web pages

• Database access
• Search Engines and Directories
• Interactive Communication
• Document distribution and workflow
• Group ware
• Telephony
• Integration with EC
• Extranet

eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE

INTRANET APPLICATION AREAS

• Electronic Commerce
• Customer service
• Knowledge sharing applications
• Enhanced group decision and business process
• Empowerment
• Software distribution
• Document management
• Project Management
• Training
• Facilitate transaction processing
• Administrative process support
eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE

INDUSTRIES ADOPTING INTRANETS

• Financial Services

• Information Technology

• Manufacturing

• Retail

• Services

eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE

CHARACTERISTICS

• Scalability
• Interoperability
• Configurable
• Compatibility
• Manageability
• Availability
• Reliability
• Stability

eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE

CASE STUDIES - Electronic Commerce A Managerial

Perspective Pg 246 - 248

• FedEx – Package Tracking

• Moen – Connected ERP- Plumbing Supplies
• Compaq
• Silicon Graphics
• Coopers and Lybrand – Taxation and consulting services

eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE
EXTRANET

DEFINITION

Extended intranet that connects multiple intranets through a

secured tunneling internet. Extranets combine the privacy and
security of intranets with the global reach of the internet,
granting access to outside business partners, business partners,
suppliers and customers to a controlled portion of the
enterprise network.

An extranet allows external agents to have access to corporate

computing resources. A higher level of security is required on
an extranet.
eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE

O
N
W
L
E
I
B I
E N
N
S X E PURCHASING
T T
E E
R S DEPARTMENT
R A R
E N
V N
E
R E
E
T V T
Customer
R
E
R
FedEx
Cisco Systems
eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE
STRUCTURE

Secure Connection: This can be implemented using a direct

leased line with full control over it linking all extranets.
Internet based connection: A secure link can be created using a
Virtual Private Network (VPN).

BENEFITS
• Enhanced communication
• Productivity Enhancement
• Business Enhancement
• Cost reduction
• Information delivery
eCommerce Comp-201
Imran M. Qureshi
 INFRASTRUCTURE
EXAMPLES

• General Motors – Interactive Kiosks, PDA at Dealerships,

Shopping Malls (GM Access Network)

• VHA INC. – Product Catalogues, suppliers, memberships $8 Bn

in products annually

• Adaptec Inc. – Computer Chips, Office, Factory, Suppliers,

Customers connectivity

• Caterpillar Inc. – Connecting Suppliers

eCommerce Comp-201
Imran M. Qureshi