E Commerce By: Vitthal Jagtap SBPCOE Indapur.

Transcription

1 E Commerce By: Vitthal Jagtap SBPCOE Indapur

2 CONTEXT: Definition of E-Commerce. History of E-Commerce. Advantages and Disadvantages of E-Commerce. Some of E-Commerce Websites Types of E-Commerce and M Commerce. ERP(Enterprise resource planning) SCM(Supply Chain Management) CRM (Customer relationship Management) BPR (Business process Reengineering) 2

3 WHAT IS E-COMMERCE? E-commerce consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. Electronic commerce commonly known as e- commerce or ecommerce. 3

4 History of E-Commerce The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Another form of E-Commerce was the airline reservation system, for example Sabre in the USA and Travicom in the UK. 4

5 By the end of 2000, many European and American business companies offered their services through the World Wide Web. Since then people began to associate a word E-Commerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services. 5

6 Advantages of E-commerce Faster buying/selling procedure, as well as easy to find products. Buying/selling 24/7. Low operational costs and better quality of services. Easy to start and manage a business. No need of physical company set-ups. Customers can easily select products from different providers without moving around physically. 6

7 Disadvantages of E-commerce There is no guarantee of product quality. There are many hackers who look for opportunities, and thus an ecommerce site, service, payment gateways, all are always prone to attack. 7

8 Hardware Storage capacity and computing power required of the Web server depends on: Software that will run on the server Volume of e-commerce transactions Website hosting 8

9 Web Server Software Security and identification Web sites must be designed to protect against attacks Denial-of-service (DOS) attack Retrieving and sending Web pages Web site tracking 9

10 Web Server Software (continued) Web site development Web page construction Static Web page Dynamic Web page 10

11 E-Commerce Software Catalog management Product configuration Shopping cart facilities E-commerce transaction processing Web traffic data analysis 11

12 Electronic Payment Systems (continued) Electronic wallet: a computerized stored value that holds credit card information, electronic cash, owner identification, and address information Credit card Charge card Debit card Smart card 12

13 Threats to E-Commerce E- and m-commerce incidents Theft of intellectual property Intellectual property: music, books, inventions, paintings, and other special items protected by patents, copyrights, or trademarks Patents on business processes 13

14 Fraud Phishing: bogus messages purportedly from a legitimate institution to pry personal information from customers by convincing them to go to a spoof Web site Online auction fraud Spam: sent to a wide range of people and Usenet groups indiscriminately 14

15 Types of E-comerce B2B (Business-to-Business) B2C (Business-to-Consumer) C2B (Consumer-to-Business) C2C (Consumer-to-Consumer)

16 1) BUSINESS TO BUSINESS (B2B) B2B can be open to all interested parties or limited to specific, pre-qualified participants (private electronic market). Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. 16

17 2) BUSINESS TO CONSUMER(B2C) Businesses selling to the general public typically through catalogs utilizing shopping cart software. B2C is the indirect trade between the company and consumers. It provides direct selling through online. If you want to sell goods and services to customer so that anybody can purchase any products directly from supplier s website. 17

18 3) CONSUMER TO BUSINESS (C2B) A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. C2B empowers consumers around the world by providing the meeting ground and platform for such transactions. 18

19 4)CONSUMER TO CONSUMER (C2C) It facilitates the online transaction of goods or services between two people. Though there is no visible intermediary involved but the parties cannot carry out the transactions without the platform which is provided by the online market maker such as ebay. 19

20 E-COMMERCE EXAMPLES: An individual purchases a book on the Internet. A government employee reserves a hotel room over the Internet. A business buys office supplies on-line or through an electronic auction. A manufacturing plant orders electronic components from another plant within the company using the company's intranet. 20

21 21

22 22

23 E Market and E Commerce : Parameter E-Market M-commerce Definition Electronic Market (or also called E-commerce) refers to the activities of buying and selling products and services with the use of Mobile Commerce (or also called M-commerce) refers to the process of buying and selling products and services with the use of internet/cellular data via wireless handheld devices. electronic systems such as the internet. History 1970 s 1990 s Devices used Computers, laptops Wireless handheld devices such as cell phones, ipads, tablets The use of Internet Mandatory Not mandatory(allow the use of offline mode, might not work properly though) Connectivity Smaller Larger owing to the bigger number of mobile users Mobility Limited Less limited because of lighter weight and smaller size leading to easier to carry 23

24 Parameter E-Market M-commerce Reach Payment gateway Usage Platform used Cost Only at the places where the electricity and the internet are available Credit cards Less simple because of more complicated user interface and more functions Web stores Less costly for the creation a web store and the use of internet Broader due to its portability Caller s rate, mobile banking or user s credit card Simple because all functions have been simplified Web stores (mobile version/web app), hybrid app, native app More costly for the creation of a mobile app and the use of cellular data 24

25

26 What is ERP? The practice of consolidating an enterprise s planning, manufacturing, sales and marketing efforts into one management system. Combines all databases across departments into a single database that can be accessed by all employees. ERP automates the tasks involved in performing a business process. 26

27 Evolution of ERP 27

28 How Do ERP Systems Work? 28

29 Benefits of ERP Systems Improving integration, flexibility Fewer errors Improved speed and efficiency More complete access to information Lower total costs in the complete supply chain Shorten throughput times Sustained involvement and commitment of the top management 29

30 Vendors 30

31 31

32 SUPPLY CHAIN MANAGEMENT Supply Chain Management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability 32

33 SUPPLY CHAIN MANAGEMENT Four basic components of supply chain management include: 1. Supply chain strategy strategy for managing all resources to meet customer demand 2. Supply chain partner partners throughout the supply chain that deliver finished products, raw materials, and services. 3. Supply chain operation schedule for production activities 4. Supply chain logistics product delivery process 33

34 SUPPLY CHAIN MANAGEMENT Wal-Mart and Procter & Gamble (P&G) SCM 34

35 SUPPLY CHAIN MANAGEMENT Effective and efficient SCM systems can enable an organization to: Decrease the power of its buyers Increase its own supplier power Increase switching costs to reduce the threat of substitute products or services Create entry barriers thereby reducing the threat of new entrants Increase efficiencies while seeking a competitive advantage through cost leadership 35

36 SUPPLY CHAIN MANAGEMENT Effective and efficient SCM systems effect on Porter s Five Forces 36

37 37

38 CUSTOMER RELATIONSHIP MANAGEMENT Customer relationship management (CRM) involves managing all aspects of a customer s relationship with an organization to increase customer loyalty and retention and an organization's profitability Many organizations, such as Charles Schwab and Kaiser Permanente, have obtained great success through the implementation of CRM systems 38

39 CUSTOMER RELATIONSHIP MANAGEMENT CRM is not just technology, but a strategy, process, and business goal that an organization must embrace on an enterprisewide level CRM can enable an organization to: Identify types of customers Design individual customer marketing campaigns Treat each customer as an individual Understand customer buying behaviors 39

40 CUSTOMER RELATIONSHIP CRM overview MANAGEMENT 40

41 41

42 BUSINESS PROCESS REENGINEERING Business process a standardized set of activities that accomplish a specific task, such as processing a customer s order Business process reengineering (BPR) the analysis and redesign of workflow within and between enterprises The purpose of BPR is to make all business processes bestin-class 42

43 BUSINESS PROCESS REENGINEERING Reengineering the Corporation book written by Michael Hammer and James Champy that recommends seven principles for BPR 43

44 Finding Opportunity Using BPR A company can improve the way it travels the road by moving from foot to horse and then horse to car BPR looks at taking a different path, such as an airplane which ignore the road completely 44

45 Finding Opportunity Using BPR Progressive Insurance Mobile Claims Process 45

46 Finding Opportunity Using BPR Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit 46

47 47