UNIT –I INTRODUCTION E-Business: eBusiness (e-Business), or Electronic Business, is the administration of conducting business via the Internet. This would include the buying and selling of goods and services, along with providing technical or customer support through the Internet. e-Business is a term often used in conjunction with e-commerce, but includes services in addition to the sale of goods. E-commerce: E-commerce (short for "electronic commerce") is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as email. E-Commerce or Electronics Commerce is a methodology of modern business which addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery. E-commerce refers to paperless exchange of business information using following ways. Electronic Data Exchange (EDI) Electronic Mail (e-mail) Electronic Bulletin Boards Electronic Fund Transfer (EFT) Other Network-based technologies E-Marketing: eMarketing is any marketing done online via websites or other online tools and resources. eMarketing can include paid services while other methods are virtually free. A wide variety of eMarketing methods are at your disposal, including: direct email, SMS/text messaging, blogs, webpages, banners, videos, images, ads, social media, search engines, and much, much more. M-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 nextgeneration e-commerce, m-commerce enables users to access the Internet without needing to find a place to plug in. The emerging technology behind m-commerce, which is based on the Wireless Application Protocol (WAP). E-Commerce/E-Business advantages can be broadly classified in three major categories: 1. Advantages to Organizations 2. Advantages to Consumers 3. Advantages to Society
1.Advantages to Organizations: Using E-Commerce, organization can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers and suitable business partners across the globe. E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information. E-commerce improves the brand image of the company. E-commerce helps organization to provide better customer services. E-Commerce helps to simplify the business processes and make them faster and efficient. E-Commerce reduces paper work a lot. E-Commerce increased the productivity of the organization. It supports "pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way. 2. Advantages to Customers: 24x7 support. Customer can do transactions for the product or enquiry about any product/services provided by a company any time, any where from any location. Here 24x7 refers to 24 hours of each seven days of a week. E-Commerce application provides user more options and quicker delivery of products. E-Commerce application provides user more options to compare and select the cheaper and better option. A customer can put review comments about a product and can see what others are buying or see the review comments of other customers before making a final buy. E-Commerce provides option of virtual auctions. Readily available information. A customer can see the relevant detailed information within seconds rather than waiting for days or weeks. E-Commerce increases competition among the organizations and as result organizations provides substantial discounts to customers. 3. Advantages to Society: Customers need not to travel to shop a product thus less traffic on road and low air pollution. E-Commerce helps reducing cost of products so less affluent people can also afford the products. E-Commerce has enabled access to services and products to rural areas as well which are otherwise not available to them. E-Commerce helps government to deliver public services like health care, education, social services at reduced cost and in improved way.
E-Commerce disadvantages can be broadly classified in two major categories: 1. Technical disadvantages 2. Non-Technical disadvantages 1. Technical Disadvantages: There can be lack of system security, reliability or standards owing to poor implementation of eCommerce. Software development industry is still evolving and keeps changing rapidly. In many countries, network bandwidth might cause an issue as there is insufficient telecommunication bandwidth available. Special types of web server or other software might be required by the vendor setting the ecommerce environment apart from network servers. Sometimes, it becomes difficult to integrate E-Commerce software or website with the existing application or databases. There could be software/hardware compatibility issue as some E-Commerce software may be incompatible with some operating system or any other component. 2. Non-Technical Disadvantages: Initial cost: The cost of creating / building E-Commerce application in-house may be very high. There could be delay in launching the E-Commerce application due to mistakes, lack of experience. User resistance: User may not trust the site being unknown faceless seller. Such mistrust makes it difficult to make user switch from physical stores to online/virtual stores. Security/ Privacy: Difficult to ensure security or privacy on online transactions. Lack of touch or feel of products during online shopping. E-Commerce applications are still evolving and changing rapidly. Internet access is still not cheaper and is inconvenient to use for many potential customers like one living in remote villages. FRAMEWORK OF E-COMMERCE: The software framework necessary for building electronic commerce applications is little understood in existing literature. In general a framework is intended to define and create tools that integrate the information found in today’s closed systems and allow the development of ecommerce applications. It is important to understand that the aim of the architectural frame-work itself is not to build new database management systems, data repository, computer languages, software agent based transaction monitors, or communication protocols Rather, the architecture should focus on synthesizing the diverse resources already in place in corporations to facilitate the integration of data and software for better applications. The electronic commerce application architecture consists of six layers of functionality, or services:
(1) Application services. (2) Brokerage services, data or transaction management. (3) Interface, and; support layers”. (4) Secure messaging, security and electronic document Interchange. (5) Middle ware and structured document interchange. (6) Network infrastructure and basic communications. 1. Application Services: Three distinct classes of electronic commerce application can be distinguished: A. Customer to business, B. Business-to-business, C. Intra organization. A. Consumer-to-Business Transactions This category is also known as marketplace transaction. In a marketplace transaction, customers learn about products differently through\ electronic publishing, buy them differently using electronic cash and secure payment systems, and have them delivered differently. Also, how customers allocate their loyalty may also be different. In light of this, the organization itself has to adapt to a world where the traditional concepts of brand differentiation no longer hold-where “quality” has a new meaning, where “content” may not be equated to “product,” Where “distribution” may not automatically mean “physical transport.” In this new environment, brand equity can rapidly evaporate forcing firms to develop new ways of doing business. B. Business-to Business Transactions This category is known as market-link transaction. Here, businesses, governments, and other organizations depend on computer – to- computer communication as a fast, an economical, and a dependable way to conduct business’ transactions. Small companies are also beginning to see the benefits of adopting the same methods. Business-to-business transactions include the use of EDI and electronic mail for purchasing goods and services, buying information and consulting services, submitting requests for proposals, and receiving proposals. The current accounts payable process occurs through the exchange of paper documents. C. Intra-organizational Transactions This category is known as market-driven transactions. A company becomes market driven by dispersing throughout the firm information about its customers and competitors; by spreading strategic and tactical decision making so that all units can participate; and by continuously monitoring their customer commitment by making improved customer satisfaction an ongoing objective. 2. Information Brokerage and Management: The information brokerage and management layer provides service integration through the notion of information brokerages, the development of which is necessitated by the increasing information resource fragmentation. The notion of information brokerage is used to represent an intermediary who provides service integration between customers and information providers, given some