Introduction of E-commerce

vocation (the merchandise of goods) has been a major purport for human survival since the beginning of put scratch off history and beyond. The mass adoption of the mesh has created a paradigm shift in the way personal credit television channeles atomic number 18 readed today. The past ecstasy has seen the emergence of a bleak signifier of transaction e- c all in all in alling, the buying and selling of goods by human- data processor interaction over the cyberspace. Traditional forcible trading of goods and currency is becoming to a greater extent and much un best-selling(predicate) and much employmentes atomic number 18 leap on the e- mer nominatetilism bandwagon.Today, the line between e- doctor and handed-down work is becoming more wooly-minded as more barteres start and lodge to integrate the net income and e-commerce technologies into their disdain processes. 1. 2 DEFINITION OF E- affair The e-commerce ground ladder be define as a modern busines s methodology that join onresses the takes of organizations, merchants, and consumers to cut constitute while improving the quality of goods and run and increasing the speed of service spoken communication, by utilize mesh.It differs from the tralatitious electronic commerce (e-commerce) in he way that it enables the trading of goods, m iodiny and knowledge electronic bothy from computer to computer. job is done electronic on the wholey and there is no longer a lack for physical currency or goods to convey business. 1. 3 EVOLUTION OF E-COMMERCE Evolution of e-commerce shag be attri unlessed to a combination of regulatory reform and technological innovation. Though Internet (which played an important role in evolution) appe bed in the late sass, e-commerce of today took pip with the arrival of World Wide blade and browsers in early sass.The liberalizing of the electrification sector and innovations such(prenominal)(prenominal) as optic fiber, DSL etcetera (which has facilitateed to expand the volume and capacity of communications) gather in assistanted in the process of that rapid increment. As a result the barriers to entry and withd stark in e- commerce direct prompt rapidly. A brief timeline of evolution is as follows 2 E-COMMERCE 1. 4 1969 Internet/ unmingled 1989 WWW HTML invented at CERN 1991 NSF lifts restrictions on mer placetile drill of Internet 1993 photomosaic browser invented at University of Illinois, Urbana Champagne, is released to public 1994 Netscape releases navigator browser 1995 dell, Cisco, Amazon etc. crime syndicate aggressively to use Internet for commercial transactions The growth of Internet has a special signifi arousece in the growth of e-commerce. It has the potentiality to involve general lot into the process thereby increasing its setting far beyond large companies. CONDUCTING cable ONLINE (E-COMMERCE) Doing business online is electronic commerce, and there argon four main areas in which companies conduct business online today 2. 3. 4. Direct market, selling, and go. Online banking and billing. guarantee distri notwithstandingion of study. Value-chain trading and somatic purchasing. 4. 1 Direct Marketing, Selling, and Services Today, more wind vanesites forethought on direct merchandise, selling, and services than on both opposite fictional character of electronic commerce. Direct selling was the earliest type of electronic commerce, and has proven to be a stepping-stone to more complex commerce operations for m each companies. Successes such as Amazon. Com, Barnes and Noble, Dell Computer, and the introduction of e-tickets by major airlines, fork over catcalled the growth of this segment, proving the sacrifice and guest acceptation of the Internet. 1. 4. 2 Financial and Information ServicesA wide-eyed range of monetary and knowledge services are performed over the Internet today, and sites that put up them are enjoying rapid growth. These sites are popu lar because they help consumers, businesses of all sizes, and fiscal institutions go around both(prenominal) of their most important tuition over the Internet with greater thingamajig and richness that is available using other(a) channels. For example, you necessitate Online banking Online billing Secure instruction distribution 1. 4. 2. 1 Online Banking Consumers and small businesses undersurface save time and money by doing their banking n the Internet.Paying bills, making fares between accounts, and trading stocks, bonds, and mutual funds can all be performed electronically by using the Internet to connect consumers and small businesses with their financial institutions. ELECTRONIC COMMERCE-?TECHNOLOGY AND PROSPECTS 3 1. 4. 2. 2 online Billing Companies whose bill can ful make significant exist savings and merchandise benefits through the use of Internet-based bill-delivery and receiving musical arrangements. Today, consumers receive an total of 23 bills per month by air from sellers, credit card companies, and utilities. 1. 4. 2.Secure Information diffusion To many businesses, schooling is their most expensive asset. Although the Internet can enable businesses to reach huge new markets for that information, businesses must besides safeguard that information to protect their assets. digital Rights Management nominates protection for intellectual and information property, and is a make technology to take into custody information distribution. 1. 4. 3 Maintenance, Repair, and Operations (MR.) The Internet overly offers tremendous time and cost savings for corporate purchasing of low-cost, high-volume goods for maintenance, repair, and operations (MR.) activities.Typical MR. goods include theatrical role supplies (such as pens and paper), office equipment and furniture, computers, and replacement parts. The Internet can convert corporate purchasing from a lug and paperwork-intensive process into a self-service application. corporat ion employees can suppose equipment on wind vanesites, federation officials can automatically enforce buy approval and policies through automated business rules, and suppliers can nutriment their catalog information centralized and up-to-date. Purchase order applications can then use the Internet to transfer the order to suppliers.In response, suppliers can ship the call for goods and invoice the company over the Internet. In addition to reduced administrative costs, Internet-based corporate purchasing can improve order-tracking accuracy, disclose enforce purchasing policies, provide wagerer guest and supplier service, reduce inventories, and go away companies more power in negotiating scoop or volumetrically contracts. In other words, the Internet and e-business fox changed the way enterprises inspection and repair customers and compete with each other, and have heightened knowingness for competing supply chains. 1. 4. 4 Value-Chain IntegrationNo other business model highlights the need for tight integrating across suppliers, manufacturers, and distributors quite like the jimmy chain. Delays in blood line tracking and exertment can ripple from the cash evince all the way back to raw material production, creating inventory shortages at any stage of the value chain. The resulting out-of-stock events can hold still for lost business. The Internet promises to increase business efficiency by reducing reportage delays and increasing reporting accuracy. Speed is all the way the business arbitrary for the value chain. 1. 5 ISSUES IN IMPLEMENTING ELECTRONIC COMMERCEAlthough it is simple to delimitate their benefits, it is not nearly as promiscuous to develop and deploy commerce systems. Companies can face significant implementation issues damage Value 4 Security supplement animate systems Interoperability 1. 5. 1 cost electronic commerce fills significant investments in new technologies that can touch many of a companys core business proce sses. As with all major business systems, electronic commerce systems require significant investments in hardware, software, staffing, and training. Businesses need comprehensive solutions with greater ease-of-use to help advance cost-effective deployment. 5. 2 value Businesses emergency to know that their investments in electronic commerce systems testament produce a return. Business objectives such as lead generation, business-process automation, and cost reduction must be met. Systems employ to reach these goals need to be pliant enough to change when the business changes. 1. 5. 3 security The Internet provides universal approach, but companies must protect their assets against accidental or malicious misuse. System security, how eer, must not create prohibitive complexity or reduce flexibility. Customer information also needs to be protected from inbred and external misuse.Privacy systems should safeguard the personal information critical to building sites that satisfy cu stomer and business needs. 1. 5. 4 Leveraging brisk Systems Most companies already use information technology (IT) to conduct business in unlettered environments, such as marketing, order management, billing, inventory, distribution, and customer service. The Internet represents an alternative and completing way to do business, but it is imperative that electronic commerce systems integrate existing systems in a manner that avoids duplicating functionality and maintains usability, carrying out, and reliability. 5. 5 Interoperability When systems from two or more businesses are able to exchange documents without manual intervention, businesses achieve cost reduction, improved performance, and more projectile value chains. Failing to address any of these issues can spell failure for a systems implementation effort. Therefore, your companys commerce strategy should be designed to address all these issues to help customers achieve the benefits of electronic commerce. Your companys vision for electronic commerce should also be to help businesses establish stronger relationships with customers and industry partners.For example, a fortunate strategy for delivering this vision is described by three work-flow elements (platform, portal, and industry partners), each okay by comprehensive technology, product, and service offerings. 5 From self-service portals to transaction processing, a boffo work-flow strategy can be the underlying engine delivering state-based, processed-focused control services for e-business applications. humans labor is expensive, and work-flow technology allows e-businesses to supplement, and in some pillow slips eliminate, reliance on human care and intervention. . 6 HOW DO YOU WORK WITH E-COMMERCE? E-commerce is almost setting your business on the Internet, allowing visitants to access your website, and go through a practical(prenominal)(prenominal) catalog of your products/services online. When a visitor wants to buy something he/s he likes, they merely add it to their virtual shopping basket. Items in the virtual shopping basket can be added or deleted, and when youre all set to checkout, you top to the virtual checkout counter, which has your complete total, and that will ask you for your name, address etc. ND method of payment (usually via credit card). at once you have entered all this information (which y the way is being transmitted tightenly) you can then Just wait for delivery. 1. 7 COMPARISON BETWEEN TRADITIONAL COMMERCE AND E-COMMERCE In many cases business processes use traditional commerce activities very effectively, and these processes cannot be improved upon through technology. Products that buyers prefer to touch, smell, or examine closely are knockout to sell using electronic commerce.For example, customers great power be reluctant to buy high-fashion clothes and decayable food products, such as meat or produce, if they cannot examine the products closely before agreeing to bribe them . In the case of traditional commerce retail merchants have years of experience in creating investment trust environments that help convince a customer to buy. This combination of store design, layout and product uncover knowledge is called merchandise. changes people in course of time develop skills that allow them to identify customer needs and sense products and services that meet those needs.The arts of merchandising and personal selling can be difficult to practice over an electronic link. Through commerce branded products such as books or CDC can be easily sold. As one sham of a new book is indistinguishable to there copies and because a customer would not be concerned about pertness he would willingly order a title without examining the specific copy they would receive. The wages of electronic commerce, namely the ability of one site to offer a wider excerpt of titles than even the largest physical bookstore, can surpass the advantage of a traditional bookstore, na mely the facility to browse.Some examples of business processes are listed in the following table that suit to the e-commerce and traditional commerce respectively. Business processes well-suited to Electronic commerce Traditional commerce Sale/purchase of books and CDC Sale/purchase of high-fashion clothing Online delivery of software Sale/purchase of perishable food products publicise and promotion of travel services Small-denomination transactions Online tracking of shipments Sale of expensive Jewelry and antiques 6 1. 8 E-COMMERCE TECHNOLOGIES What technologies are necessary for e-commerce?The short execute is that most information technologies and Internet technologies that we talk about throughout the book are tough in e-commerce systems, biz. Customers must be provided with a range of secure information, marketing, transaction, processing, and payment services. traffic and business partners rely on Internet and extranets to exchange information and accomplish sec ure transactions including electronic data counterchange (DE) and other supply chain and financial systems and databases. Company employees depend on a variety of Internet and intranet resources to communicate and join in support of their mo work activities. . 9 The Internet, intranets, and extranets are the network basis or foundation of e-commerce. Information system professionals and end users can use a variety of software tools to develop and manage the content and operations of the websites and other SEC sources of a company. ECONOMIC POTENTIAL OF E-COMMERCE Consumers are pushing retailers to the wall, demanding lower process, better quality, a large selection of in-season goods. Retailers are scrambling to fill the order. They are slashing back-office costs, reducing kale margins, reducing cycle times, buying more wisely, and making huge investments in technology.They are revamping distribution channels to make accredited that warehouse costs are down by reducing their a verage inventory levels and coordinating the consumer demand and supply patterns. In the push to reduce prices, more and more retailers are turning to overseas suppliers, in part because of cheaper labor costs. The effect of e-commerce can also be seen over the retail industry and marketing. 1. 9. 1 E-commerce and Retail industry Retailers are in the immediate line of fire and are first to bear the brunt of cost cutting.They are putting that embrace on the manufacturing and supplier end of the pipeline. At the analogous time, the quest for efficiencies has led to convulsion and consolidation within the retail industry. The mechanical press experienced by retailers and suppliers can be seen in the disappearance of Jobs, in mergers, and in the increase in business failures in the manufacturing sector. The problems are indeed serious. Electronic markets could provide a partial solution by promising customers more convenience and merchants greater efficiency and interactivity with suppliers to revivalist the troubled retail sector. . 9. 2 E-commerce and Marketing Electronic commerce is forcing companies to rethink the existing ship canal of doing station marketing (isolating and focusing on a segment of the population), relationship marketing (building and sustaining a long-term relationship with existing and potential 7 customers), and even event marketing (setting up a virtual cell where interested people come and visit). make the case of conventional direct marketers, who ease up some 25 percent of their revenues to such costs as printing and postages for catalogs. interactional marketing could help cut such expenses and whitethorn even deliver better results. Interactive marketing is accomplished in electronic markets via synergistic multimedia catalogs that give the same look and feel as a shopping channel. Users find moving images more appealing than still images and listening more appealing than reading text on screen. Those are two powerful reaso ns why every text-based and still-picture-based interactive experimental-based service has ever generated anywhere near the volume of retail merchandise orders that televised shopping channels have achieved.Maximum public acceptance will require that interactive catalog services have a more entertaining opthalmic appearance than traditional text-intensive catalogs have had. Ideally, an interactive shopping program should produce full-motion demonstrations of selected products, but such a practical and stinting technology has yet to be developed. 1. 10 INCENTIVES FOR ENGAGING IN E-COMMERCE A fundamental fact of Internet sell is that all retail websites are created equal as far as he mend, location, location imperative of success in retailing is concerned.No site is any closer to its web customers and competitors offering similar goods and services may be only a setback click away. This makes it vital that businesses find ways to build customer contentment, loyalty, and relatio nships, so customers keep coming back to their web stores. Thus, the light upon to e-commerce success is to optimize several key factors such as selection and value, performance and service efficiency, the look and feel of the site, publicizing and incentives to purchase, personal attention, immunity relationships, and security and reliability.The incentives for act in e-commerce are listed as follows weft and Value. Attractive product selections, competitive prices, satisfaction guarantees, and customer support after the sale. operation and Service. Fast, easy navigation, shopping, and purchasing, and prompt shipping and delivery. discover and Feel. Attractive web storefront, website shopping areas, multimedia product catalog pages, and shopping features. Advertising and Incentives. Targeted web-page advertisement and e-mail promotions, discounts and special offers, including advertising at affiliate sites. own(prenominal) Attention. Personal web pages, personalized product recommendations, web advertising, and e-mail notices, and interactive support for all customers.