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Presentation On E-COMMERCE

Definition In general words it means, selling good/services online. Electronic commerce, commonly known as ecommerce, ecommerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks.

Advantages •Increased profits,increased sales& decreased cost •Allows company to extend existing services to customers •Advertising done well on web •Increases sale and purchasing opportunity for sellers and buyers respectively •Allows company to increase its customers •Offers a wider choice and allows cheaper prices •May give to the company a worldwide access •Being able to conduct business 24*7*365

•E-commerce increases the speed & accuracy with which businesses can exchange information, which reduces cost on both sides of transactions •E-commerce provides buyers with a wide range of choices than traditional commerce •Some digital products such as software, music, video files, images can easily be delivered through the internet.

BENEFITS OF E-COMMERCE a)BENEFITS TO ORGANISATIONS 1.E-Commerce expands the market place to national & international markets. 2.E-Commere decreases the cost of creating, processing, distributing, storing and retrieving paper based information. 3.Ability for creating highly specialized businesses. 4.E-Commerce reduces the time between the outlay of capital and receipt of products and services. 5.E-Commerce lowers telecommunications cost- the Internet is much cheaper than VANs (Value Added Networks) 6.Improved image 7.Improved customer service 8.New found business partners 9.Simplified processes 10.Increased Productivity 11.Eliminating Paper 12.Reducing Transportation Costs 13.Increased Flexibility

b)BENEFITS TO CONSUMERS 1.Customers can interact with other customers in electronic communities and exchange ideas as well as compare experience 2.E-Commerce allows quick delivery 3.E-Commerce provides customers with less expensive products and services by allowing them to shop inn many places and conduct quick comparisons 4.Customers can participate in virtual auctions 5.Customers can receive relevant and detailed information in seconds, rather than days or weeks 6.E-Commerce facilitates competition, which results in substantial discounts

c)BENEFITS TO SOCIETY 1.Work at home and to do less travelling for shopping, resulting in less traffic on the roads and lower air pollution 2.E-Commerce allows some merchandise to be sold at lower prices, so less affluent people can buy more and increase standard of living. 3.E-Commerce enables people in rural areas to enjoy products and services that otherwise are not available to them 4.E-Commerce facilitates delivery of public services, such as health care, education and distribution of government social services at a reduced cost &/ or improved quality

LIMITATIONS OF E-COMMERCE a)TECHNICAL LIMITATIONS 1.There is lack of system security, reliability, standards 2.The software development tools are still evolving and changing rapidly 3.There is sufficient telecommunication bandwidth in many countries 4.Vendors may need special web servers and others infrastructures, in addition to the network servers 5.Some E-Commerce software might not fit with some hardware or may be incompatible with some operating systems or other components.

b)NON-TECHNICAL 1.Cost and LIMITATIONS Justification :The cost of developing E-commerce in house can be very high, and mistakes due to lack of experience may result in delays 2.Lack of trust and user resistance :switching from physical to virtual stores may be difficult due to lack trust of unknown faceless seller 3.Secirity and Privacy: It is very difficult to ensure the security and privacy on the online transactions 4.Lack of touch and feel online

5.Many legal issues are as yet unresolved 6.There are not yet enough buyers and sellers 7.There are not enough support services 8.Accessibility to the internet is still expensive &/ or inconvenient for many potential customers. 9.E-Commerce could result in a breakdown of human relationships

MANAGEMENT ISSUES RELATING TO E-COMMERCE Is it real? The first question that comes to the mind of those not involved in ECommerce is ‘Is it real? Answer is definitely “yes”. Just ask anyone who has experienced home banking or online stock purchasing.

How to evaluate magnitude of the business pressures Management especially needs to know what is going on in its industry. The best approach is to solicit the expertise of research institutions which specialize in E-Commerce.

What should be the company’s strategy towards E-Commerce? There are three basic strategies: lead, wait or experiment. Management has to understand how e- commerce can improve marketing and promotion, customer service and sales. Further more, new business opportunities can be found through E-Commerce. To capitalize on the potential of E-Commerce, management needs to view E-Commerce from a strategic perspective, not merely as a technological advancement.

What is the best way to learn E-Commerce It can be learned by reading good book or by searching on ECommerce at search engine like at www.Yahoo.com. It is not a bad ides to create a task force dedicated to E-Commerce in your organization.

What ethical issues exist? Organizations must deal with ethical issues of their employees, customers and suppliers. This may be difficult because what is ethical in one company or country may be unethical in another. The use of E-Commerce raises many ethical issues, ranging from the surveillance of customers of e-mail to the potential invasion of privacy of millions of customers whose data are stored in private and public databases.

PRINCIPLES OF E-COMMERCE 1.THE VALUABLE FORMULA A successful company must articulate its “Valuable Formula” a clear , crisp portrayal and justification of each product or service. This formula is composed of three equal parts : •Focus statement : the products intentions. •Market proposition : This is the promise the company makes to customers. •Business system : This involves how to deliver the product or service, elements of which may appear hidden to the buyer.

2.CAPABILITYBUILDIN G

True values comes from building the capability to sustain growth . You accomplish this by: •Institutionalizing the growth culture in high-energy startups. •Formalizing the processes leading to new valuable formulas. •Investing in programs to identify and develop next generation leaders.

3.COMMITMENT The successful e-commerce companies have created nearly millions of jobs over the past three years . Employees in the highly rated companies enjoy extremely high levels of satisfaction . The successful e-commerce companies introduce new products about twice as fast as the average company. Companies with sales of $5 billion or more, such as Northern Telecom, Nokia have all recognized the value of continued growth. They’ve built the commitment to maintained growth into their corporate values

4.LEVERAGING ALLIANCES Ignoring the conventional wisdom the strategic alliances are too unreliable to consider as a source of growth, several top 100 growth companies have become alliance activists .Leveraging alliances is a skill that can be learned . Foe example, Bell Atlantic’s alliance activity encompasses a set of agreements with GTE, Vodafone and Air Touch, Dell and Microsoft are teaming up to invest in Navi Site, a Web-hosting company. Companies can improve their success rates by repeatedly entering into alliances and learning more each time. Alliances are essential to sustained growth and high performance. Thus, e-companies can follow a trail, blazes by pioneers, converting early momentum into sustained success.

E-COMMERCE STRATEGIES E Commerce Strategies E Commerce requires the mastery of many interrelated skills- both technical and business- and this complex requirement often constitutes the first obstacle facing the e-merchant. The information overload can be staggering < and to help break the matter into digestible sections we show how the various resource sections of this guide can be built into simple strategies. Here are just two simple strategies, employing only a small fraction of the resources available in the e-book.

•SELLING YOUR OWN PRODUCT Usual steps are to: • Ensure that the product service are appropriate • Currently sold • research to find competitive advantage, probably with market • employ web designer to build site • host in-house 2. Not currently sold

1. Identify market niche 1. Build information-rich websites ranking well on the search engines, using 1. Reciprocal links, 2. Press releases 3. and other promotions 2. Brilliant idea- move swiftly by raising capital and/or building a corporate team 3. unpopular at present – maintain a shoestring operation by:1. Using ‘out of the box’ software. Or 2. Using ‘all in ecommerce hosting ‘solutions, or 3. Building the site yourself 1. with cheap/freeware html editors 2. Find competitive hosting through directories 3. Employ freelance staff for technical input as required 2. Decide on the selling approach 1. Trading on brand image: corporate approach 2. through massive off-line advertising 3. Through on-line promotion/selling 1. Affiliates and/or 2. Pay-for-click search engines, using 3. Search engine ads and/for 4. information-rich websites ranking well on the search engines, using 1. Reciprocal links, 2. Press releases

using 1. Reciprocal links, 2. Press releases 3. and other promotions 4. Email marketing 5. Banner 3. Plan advertising by 1. Researching 1. Marketing techniques and cost 2. Website built approaches 3. Order fulfillment techniques and services 4. Staffing levels 5. Capital requirements 2. Writing a business plan 4. Operate within a sound business framework of 1. Tax requirements 2. Legal requirements 3. Record keeping 1. Customers records, sales receipts, etc. 2. Site traffic analysis 3. ROI analysis 4. Integration within larger/long term company goals

5. Maintain a competitive advantage on 1. Price 1. Use market segmentation studies to further identify customers 2. Introduce supply chain management 2. Quality 1. Research suppliers 2. Introduce regular customer surveys 3. Service 1. Streamline ordering system 2. Add helpful information to the site, plus a search mechanism 3. Introduce favored customer accounts 4. Use customer relationship management 5. Employ customer help services 2. SELLING ON A COMMISSION BASIS You will need to: 1. Find a suitable product or products by 1. Employing specialized knowledge or contacts and/or 2. Researching 1. Areas of market growth 2. High quality and popular products 3. Attractive commissions

2. Market effectively, with 1. Website 1. Promote website through 1. Search engines 2. pay-for-click search engines 3. Search engine ads 2. Build indispensable content into site 3. Design as effective selling machine with 1. Appropriate design 2. Compelling sales copy 3. Foolproof navigation 4. Clear, rapid safe referral or ordering system 5. Banner ads 2. Email marketing 1. Identify market segment(s) 2. Obtain lists 1. Purchase lists 2. Rent lists 3. Use list broker 4. Generate lists 5. Purchase e-zines 3. Compose regular and useful newsletters 4. Distribute emails with 1. Bulk emailing software 2. Bulk emailing services

3. Calculate profit margins carefully with 1. Spreadsheet profit and loss scenarios 2. Business plan

CONSTRAINTS Time for delivery of physical products It is possible to visit a local music store and walk out with a compact disc, or a bookstore and leave with a book. E-commerce is often used to buy goods that are not available locally from businesses all over the world, meaning that physical goods need to be delivered, which takes time and costs money. In some cases there are ways around this, for example, with electronic files of the music or books being accessed across the Internet, but then these are not physical goods.

Physical product, supplier & delivery uncertainty . When you walk out of a shop with an item, it’s yours. You have it; you know what it is, where it is and how it looks. In some respects e-commerce purchases are made on trust. This is because, firstly, not having had physical access to the product, a purchase is made on an expectation of what that product is and its condition. Secondly, because supplying businesses can be conducted across the world, it can be uncertain whether or not they are legitimate businesses and are not just going to take your money. It’s pretty hard to knock on their door to complain or seek legal recourse! Thirdly, even if the item is sent, it is easy to start wondering whether or not it will ever arrive.

Perishable goods Forget about ordering a single gelato ice cream from a shop in Rome! Though specialised or refrigerated transport can be used, goods bought and sold via the Internet tend to be durable and nonperishable: they need to survive the trip from the supplier to the purchasing business or consumer. This shifts the bias for perishable and/or non-durable goods back towards traditional supply chain arrangements, or towards relatively more local ecommerce-based purchases, sales and distribution. In contrast, durable goods can be traded from almost anyone to almost anyone else, sparking competition for lower prices. In some cases this leads to disintermediation in which intermediary people and businesses are bypassed by consumers and by other businesses that are seeking to purchase more directly from manufacturers

Returning goods Returning goods online can be an area of difficulty. The uncertainties surrounding the initial payment and delivery of goods can be exacerbated in this process. Will the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be left with nothing? How long will it take? Contrast this with the offline experience of returning goods to a shop.

Privacy, security, payment, identity, contract. Many issues arise privacy of information, security of that information and payment details, whether or not payment details (example: credit card details) will be misused, identity theft, contract, and, whether we have one or not, what laws and legal jurisdiction apply.

Defined services & the unexpected E-commerce is an effective means for managing the transaction of known and established services, that is, things that are everyday. It is not suitable for dealing with the new or unexpected. For example, a transport company used to dealing with simple packages being asked if it can transport a hippopotamus, or a customer asking for a book order to be wrapped in blue and white polka dot paper with a bow. Such requests need human intervention to investigate and resolve.

Myths 1. It’s Easy. Undoubtedly, there are infomercials on after I go to bed that tout how easy e-commerce is for anyone. But in reality, there will be obstacles to overcome: customer service fires that need to be put out, charge backs that will require attention, and technical issues you need to get help to solve. So it’s not easy but is doable with persistence. 2. It’s Free. You get what you pay for and nothing is free. You may be able to save money doing many of the tasks yourself, such as writing product descriptions, taking product photos, and marketing. You will still have a hosting bill, cost of goods, and fees for processing credit cards. 3. No Experience needed. You may not need e-commerce experience; however, experience in starting a business, marketing, merchandising and branding will all help you succeed.

4. It’s not a business. E-commerce is e-business which means this IS a business. You need products or services, marketing, company policies, accounting, IT, fulfilment, customer support and more. 5. Manufacturer pictures will work. Stock images show you as a copycat whenever someone is searching for a specific product. Take your own pictures and stand out from the crowd. 6. Only price matters. Competing on price has been successful for the few, but unrealistic for the majority since it requires that you generate a massive volume of sales for substantial profit. Setting yourself apart as a leader and authority, or offering stellar customer service and ease of shopping, can allow you to command a higher price. 7. Build it and they will come. Just like any store, an online store needs traffic. And since there is no foot traffic in the online world, you need to get your internet marketing hustle on to drive traffic to your online store.

6. Only price matters. Competing on price has been successful for the few, but unrealistic for the majority since it requires that you generate a massive volume of sales for substantial profit. Setting yourself apart as a leader and authority, or offering stellar customer service and ease of shopping, can allow you to command a higher price. 7. Build it and they will come. Just like any store, an online store needs traffic. And since there is no foot traffic in the online world, you need to get your internet marketing hustle on to drive traffic to your online store. 8. Fraud. In the beginning you need to check everything for potential fraud. Fraudulent orders cut your profits and could put you out of business; especially if you leverage drop shipping.

9. Competition. Know who your competition is before you open up shop. Like a hawk, watch every move they make, so you don’t get caught by surprise on anything. Google alerts on company names is a good place to start. 10. One year, one million dollars. I would love to know where people get this one from. It is possible to build a million dollar online business in a few years; previous experience in other ecommerce businesses is a huge predictor of success though.

E-Business vs. e-Commerce The main difference between them is that e-commerce defines interactions between organizations and their customers, clients, or constituents. On the other hand e-business is broader term that encompasses an organization’s internal operations. Electronic commerce describes the buying and selling of product, services and information via computer networks including the internet, where e-business describes the broader definition of EC. It includes buying and selling of products and services, servicing customers, collaborating business partners and conducting other intra business tasks.

Business Models Its is categorized into the following :-

1)Business to business (b2b)

to business commonly known as b2b involve electronic transactions for business activity between two or more business. Business sell their products and services to other business. ExampleGrainger.com sells industrial supplies to large & small businesses through its website. SUPPLIES

:-Business

BUSINESS ORGANIZATI ON ORDER PROCESSING

WHOLESALER SELLS CUSTOMER

ORDER

WEBSITE

2)Business to customer(b2c):B2C is a website where all transactions takes place between a business organization and the final consumer. For eg, a customer would log into a web site and would go for details. If he wants to buy a product, an order would be placed and sent as an e-mail to the office of the business organization. The email would be received at the office, the goods would be dispatched, and the customer would receive the ordered goods. WEBSITE

PLACES ORDER

PROCESSES ORDER

RECEIVES GOODS BUSINESS ORGANIZATION

CUSTOMER

3)Business to government(b2g):-Businesses sell their goods and services to government and government agencies . This category includes business transactions with government agencies such as paying taxes, excise customs & filling required reports. A no. of states have web sites that help company to do business with state government agencies. Example- ‘CAL – BUY’ site makes it easy for businesses to conduct online transactions with the state of California.

organization

web

government

4)Customer to administration(c2a):-It involves providing relevant information to people by government administrative agencies. Instead of visiting government offices for getting relevant information, people get this relevant information through C2A websites.

CONSUMER TO CONSUMER (C2C) In this category consumer sell directly to consumer. Eg are- individual selling residential property cars, and so on. If you have something to sell then you get listed at an auction site, and others can bid for it. These sites are again mass usage sites like the b2c ones, which depend on more and people visiting and using the site’s services. For eg, at auction site, customers located in India and Washington can register. A customer from India places an advertisement on the web site. A customer from Washington, while surfing, looks at the advertisement and decides to purchase the product. Thus, the deal is finalized through web site without an actual meeting.

PLACES AN ADVERTISEMENT

WANTS TO BUY

WANTS TO SELL

RECEIVES PRODUCTS

RECEIVES MONEY CUSTOMER LOCATED IN INDIA

CUSTOMER LOCATED IN WASHINGTON

CONSUMER TO BUSINESS(C2B) In such sites, the consumer places an estimate of the amount of money he is willing to spend for a particular service. As an example, we have hotel rooms or airline tickets. Businesses that can offer this service within the customer’s specified limit get back to him with the offer. Such sites depend on proper estimates by consumers and the ability of corporate users to fulfill customer transaction.

WEBSITE

PLACES MONEY FOR A PARTICULAR SERVICE

PROCESSES ORDER

RECEIVES PRODUCTS RECEIVES MONEY BUSINESS ORGANIZATION

CUSTOMER

E-Governance The word “electronic” in the term e-Governance implies technology driven governance. E-Governance is the application of Information and Communication Technology (ICT) for delivering government services, exchange of information communication transactions, integration various stand-one systems and services between Government-to-Citizens (G2C), Government-toBusiness(G2B),Government-to-Government( G2G) as well as back office processes and interactions within the entire government frame work. In other words, E-government is a way for governments to use the new technology to provide people with more convenient access to government information and services, to improve the quality of the services and provide greater opportunities to participate in our democratic institutions and processes. E-government provides higher quality, cost- effective, government services and a better relationship between citizens and their government.

Therefore, e-government means 1.Replacing tired old bureaucratic service lines with access information and services, available 24 hours a day, using powerful technologies like digital signatures and electronic forms. 2.Making the process of accessing government services, immediate , simple, seamless and intuitive. 3.Reducing paper work within government and reducing costs so we can move those dollars into direct delivery of services. Improving services delivery to all segments of our populations, whether connected to the internet or not, because as we move more of our citizens.

How will E-government improve the Quality of government? It will improve in 4 important ways: 1.It will be easier for people to have their say in government. For example, consider a situation where a ministry proposes to make changes to the way it provides a particular service. It could outline the proposed policy changes on its Internet site and seek comment from people who have something to say about those services, and the proposed new policy. The feedback could then be used to refine that policy. 2. People will get better services from government organizations. For example, instead of joining a queue to pay electricity bill, the consumer will be able do it from his or her home and at any time of the day on any day of the week.

3.People will receive more integrated services because different government organizations will be able to communicate more effectively with each other. 4.People will be better informed because they can get up-to-date and comprehensive information about government laws, regulations, policies and services. E-Governance in developing countries DOES NOT IMPLY : every citizen to a digital node or giving them access to Internet or computers. E-Governance in developing countries IMPLIES : ensuring every community or village has easy access to information available on digital network and no one is excluded from accessing information on this network. Access of information may be through : internet, cyber café, post offices, public phone booths, radio, T.V., local newspapers and government information centers.

BUSINESS TO GOVERNMENT A B2G web site is a variation of the B2B web site. It is a web site used by the government to exchange information and trade with various organizations across the world. A B2G web site would : •Be accredited by the government. •List all rules and regulations pertaining to the specific industry. •Provide a medium for the submission of forms and applications to the government

BUSINESS ORGANISATION

WEB

GOVERNMENT

GOVERNMENT TO BUSINESS It is the online non-commercial interaction between local and central government and the commercial business sector, rather than private individuals (G2C), with the purpose of providing businesses information and advice on ebusiness 'best practices'. Objectives of G2B are: •Increase the ability for citizens and businesses to fine, view and comment on rules and regulation. •Reduce burden on business by enabling online tax filling. •Reduce the time to fill out export forms and locate information. •Reduce time for businesses to file and comply with regulations.

GOVERNMENT

WEB

BUSINESS ORGANIZATION

CITIZEN-TO-GOVERNMENT A C2G website is an attempt by citizen to reach out to Government. Such sites provide access to various applications form, such as for birth, marriage and death certificates. The objective of C2G portfolio is to provide one stop, online access to information and services to individuals. Citizens should able to find what they need quickly and easily and access information in minutes or seconds, instead of days or hours. Citizens may not conduct their dealings with government organizations electronically.

CITIZEN

WEB

GOVERNMENT

GOVERNMENT TO CITIZEN(G2C) A G2C web site is an attempt by the government to reach out to people in general. The government regularly conducts auctions and sales of vehicles, machinery and other material. These auctions are high valued and are visited by customers. These websites also provides access to various official records and application forms such as for birth, marriage, and death certificates.

GOVERNMENT

WEB

PEOPLE/ CUSTOMER

Government to Government (G2G) It is the online non-commercial interaction between Government organisations, departments, and authorities and other Government organisations, departments, and authorities.

Government to Employees (G2E)

It is the online interactions through instantaneous communication tools between government units and their employees. G2E is an effective way to provide E-learning to the employees, bring them together and to promote knowledge sharing among them. It also gives employees the possibility of accessing information in regard to compensation and benefit policies, training and learning opportunities and civil rights laws. G2E services also includes software for maintaining personnel information and records of employees.

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