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Introduction

E-commerce is not only buying and selling using internet.

Electronically mediated financial and non-financial transaction such as customer requesting for further information.

All electronically mediated transaction between an organization and any third party deals.

Definition of e commerce

use of electronic communications and digital information processing technology

in business transactions to create, transform, and redefine relationships for value creation

between or among organizations, and between organizations and individuals.

Communication perspective : the delivery of information, products or services or payment by electronic means.

A business process perspective: the application of technology towards the automation of business transactions and workflows.

A service perspective: enabling cost cutting at the same time as increasing the speed and quality of service delivery.

online perspective: online perspective

Definition of E-Business

The transformation of an organization’s processes ( from physical existence to online) to deliver additional customer value through ICT(information and communications technologies.

Differences between E-commerce and E-business

E-commerce- ICT is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals).

E-Business- ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network.

Advantages of E-commerce

Non-Cash Payment- enable use of credit cards, debit cards, smart cards, electronic fund transfer via bank's website, and other modes of electronics payment

24x7 Service availability-E-commerce automates the business of enterprises and the way they provide services to their customers. It is available anytime, anywhere.

Advertising / Marketing-E-commerce increases the reach of advertising of products and services of businesses. It helps in better marketing management of products/services.

Improved Sales - orders for the products can be generated anytime, anywhere without any human intervention. It gives a big boost to existing sales volumes.

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Advantages of E-commerce to Organization

reduce paper works

increase productivity of organization

helps organization to provide better customer services

reduces the cost to create process , distribute retrieve and manage the paper based information by digitizing information

Advantages of E-commerce to customer

provides 24x7 support.

customer can acquire about a product or services and place orders anytime, anywhere rom any location

customer can put review about the product and can see others review

Advantages of E-commerce to Society

customer does not require to travel to shop, can avoid air pollution and traffic on the road

helps in reducing cost of product, so more people can afford product

enabled rural areas to access service and products

Business or consumer models of E-commerce transaction

B2B Business to business

B2C

C2B

C2C

B2G

G2B

Business - to - Business sells its products to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end product to the final customer who comes to buy the product at one of its retail outlets.

Business - to - Consumer-sells its products directly to a customer. A customer can view the products shown on the website. The customer can choose a product and order the same. The website will then send a notification to the business organization via email and the organization will dispatch the product/goods to the customer.

Consumer - to - Consumer-helps consumers to sell their assets like residential property, cars, motorcycles, etc., or rent a room by publishing their information on the website. Website may or may not charge the consumer for its services. Another consumer may opt to buy the product of the first customer by viewing the post/advertisement on the website.

Consumer to Business approaches a website showing multiple business organizations for a particular service. The consumer places an estimate of amount he/she wants to spend for a particular service.

For example, the comparison of interest rates of personal loan/car loan provided by various banks via websites. A business organization who fulfills the consumer's requirement within the specified budget, approaches the customer and provides its services.

Business to Government websites are used by governments to trade and exchange information with various business organizations. Such websites are accredited by the government and provide a medium to businesses to submit application forms to the government.

Government business websites to approach business organizations. Such websites support auctions, tenders, and application submission functionalities

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E-Business Infrastructure combination of hardware such as servers and client PCs in an organization, the network used to link this hardware and the software applications used to deliver services to workers within the e-business and also to its partners and customers.

THE INFORMATION SYSTEM FUNCTION CHAIN -

Storage/physical. Memory and disk hardware components equivalent to Level IV in Figure

Processing. Computation and logic provided by the processor (processing occurs at Levels I and II in Figure ).

Infrastructure. This refers to the human and external interfaces and also the network, referred to as ‘extra structure’. (This is Level III in Figure, although the human or external interfaces are not shown there.)

Application/content This is the data processed by the application into information. (This is Level V in Figure .)

Intelligence. Additional computer-based logic that transforms information to knowledge. (This is also part of the application layer I in Figure)

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