Meaning and Definition

Transcription

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2 Meaning and Definition For a common man e-commerce is known as buying and selling of products and services over internet. E commerce in its simplest form can be defined as the application of computer and computer network for modern business purposes. It means any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact. A more complete definition is: E-commerce is the 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.

3 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.

4 Features Non-Cash Payment: E-Commerce enables 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 business of enterprises and services provided by them to customers are available anytime, anywhere. Here 24x7 refers to 24 hours of each seven days of a week. 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: Using E-Commerce, orders for the products can be generated any time, any where without any human intervention. By this way, dependencies to buy a product reduce at large and sales increases. Support: E-Commerce provides various ways to provide pre sales and post sales assistance to provide better services to customers. Inventory Management: Using E-Commerce, inventory management of products becomes automated. Reports get generated instantly when required. Product inventory management becomes very efficient and easy to maintain. Communication improvement: E-Commerce provides ways for faster, efficient, reliable communication with customers and partners.

5 Advantages E-Commerce advantages can be broadly classified in three major categories: Advantages to Organizations Advantages to Consumers Advantages to Society

6 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.

7 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. 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.

8 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.

9 Applications of e commerce Supply chain management Procurement and purchase Online marketing and advertisement Online Auction E-Banking E-Tailing (WEB, TELE ETC.) Online Publishing Video On Demand Online Booking

10 Supply chain Management A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. There are four major decision areas in supply chain management: 1) Location 2) Production 3) Inventory 4) Transportation (distribution)

11 Procurement and purchase Procurement refers to the overall process of acquiring a product or service. Depending on the circumstances, it may include some or all of the following Identifying a need Specifying the requirements to fulfill the need Identifying potential suppliers Soliciting bids and proposals Evaluating bids and proposals Awarding contracts or purchase orders Tracking progress and ensuring compliance Taking delivery Inspecting and inventorying the deliverable, and Paying the supplier.

12 Online Marketing and advertisement Term referring to the Internet and based aspects of a marketing campaign, such as banner ads, marketing, search engine optimization, PayPer-Click, and other tools. Also referred to as "Online Advertising."

13 Online auction Offer the general public the opportunity to bid electronically on a wide array of assets. The auctions are completely web-enabled, allowing all registered participants to bid on a single item or multiple items (lots) within specified time frames.

14 E banking E banking includes customer can check the balances of their saving and loan accounts Transfer money to their other accounts Pay their bills On line stock trading

15 E Tailing / E-Retailing E-tailing (or electronic retailing) is the selling of retail goods on the Internet. It is the most common form of business-to-consumer (B2C) transaction.

16 Online publishing Electronic publishing includes the publication of newsletters, online magazines and databases, brochures and other promotional materials, ebooks, and the like. Among the benefits of using online media are Low-cost Universal access The independence of time and place and Ease of distribution.

17 Video on demand Video on demand is a system where a viewer can watch their favorite videos and movies. The viewer select the movie using telephone call, SMS and webpage.

18 Online booking Booking or reserving any travel tickets, events (sports match, musical performances etc.) and hotel rooms using an electronics communication device can be said as online booking.

19 Types of E-Commerce or E-Commerce Business Models Business - to - Business (B2B) Business - to - Consumer (B2C) Consumer - to - Consumer (C2C) Business - to - Government (B2G) Government - to - Business (G2B)

20 Business - to - Business (B2B) It refers to the exchange of goods and services between two business organization. It is the largest form of e-commerce.

21 Business - to - Consumer(B2C) This model involves businesses and consumers. Website following B2C business model sells its product directly to a customer. This is the most common e-commerce segment.

22 Consumer - to - Consumer (C2C) This model facilitates online transaction between two people. Website following C2C business model helps consumer to sell their assets like residential property, cars, motorcycles etc. or rent a room by publishing their information on the website.

23 Business - to - Government (B2G) B2G model is a variant of B2B model. Such websites are used by government 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.

24 Government - to - Business (G2B) Government uses B2G model website to approach business organizations. Such websites support auctions, tenders application submission functionalities. and

25 E-Commerce EDI EDI stands for Electronic Data Exchange. EDI is an electronic way of transferring business documents in an organization internally between its various departments or externally with suppliers, customers or any subsidiaries etc. The computer to computer exchange of routine business data in a standard data formats is called Electronic Data Interchange. In EDI, paper documents are replaced with electronic documents like word documents, spreadsheets etc.

26 EDI Documents Following are few important documents used in EDI: Invoices Purchase orders Custom Declarations Shipping Requests Acknowledgement Business Correspondence letters Financial information letters

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28 Advantages of an EDI System Reduction in paperwork - As lot of paper documents are replaced with electronic documents there is huge reduction in paperwork. Cost Effective - As time is saved and orders are processed very effectively, EDI proves to be highly cost effective. Reduction in data entry errors. - Chances of errors are much less being use of computer in data entry. Shorter processing life cycle - As orders can be processed as soon as they are entered into the system. This reduced the processing time of the transfer documents. Electronic form of data - It is quite easy to transfer or share data being in electronic format. Standard Means of communication - EDI enforces standards on the content of data and its format which leads to clearer communication. Security EDI can be accessed only by authorized person, not subject to virus etc. Faster cash flow Improved trading partner relationship

29 Steps in EDI process There are 3 steps in sending EDI documents Prepare the document to be send the first step is to collect and organize the data in an electronic file. 2. Translate the document into EDI format the next step is to convert the electronic data into the standard EDI format using EDI translator software or by the operator. 3. Connect and transmit EDI document 1.