A

Summer Internship Project Report

On
Bottleneck towards success in E-Commerce
Market
Bookmywish E-commerce Pvt. Ltd.
submitted to
NRIBM PGDM
In partial fulfllment of the
Requirement of the award for the degree of
Post Graduation in Diploma Management
Under The Guidance Of
Ms. Nishtha Israni
Professor
(project head)
Submitted by
Sunita Motwani - 1333
Page | 1
Shweta Manchhani 13!"
#nudesh Gandhi 1313
PR$%#&$
The summer internship program ofered by the NR N!""#"E
$% M&N&'EMEN" !"#(E! is an enlightening course for
students like us who are wishing to master their business
administration skills with their knowledge. This is a unique
course; it not only develops our management talent but also
develops our technical skills. It imparts the necessary theoretical
knowledge about the feld but also provides an opportunity to
practically eperience the application of the business
administration fundamentals in the corporate as well as non
corporate sector.
!e were unaware about "#$ommerce market. %ere we really got
practical knowledge about "#commerce market and
marketplaces. &ow we are aware about the buying and selling
system in "#commerce market through marketplace. !e are very
much thankful to 'rs. &ishtha Israni( cluster head and our pro)ect
guide as well.
!e therefore have pleasure to present our training report( which
we hope is as per our curriculum requirements.
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#&'N()*$DG$M$N+
It gives us pleasure to present this pro)ect report( which is an
outcome of the study E-Commerce Market
$ompleting a task is often a result of valuable contribution of
number of individuals in a direct or indirect manner that helps on
shaping and achieving an ob)ective.
!e wish to epress our sincere gratitude to innumerable number
of people who have been associated with us throughout this
pro)ect. !e feel blessed to have the opportunity of epressing our
hearty gratitude to the following personalities( without the help
of whom our pro)ect could not have been hatched.
*irstly we would like to acknowledge our sincere thanks to 'rs.
&ishtha Israni( who gave us an opportunity to carry out this
pro)ect and had been a constant inspiration. !e also thank
chairman 'r. +nish &agpal and 'r. +mit ,urswani for constant
motivation for this pro)ect.
!e are also thankful to the other staf member of -ookmywish "#
$ommerce ,vt. .td. for their continuous motivation throughout
this program( which really helped us in completing this pro)ect.
!e are grateful to our guide 'r. /a)esh Israni for the 0ummer
Internship ,ro)ect( for their regular guidance without which our
pro)ect report would not have been completed.
Page | 3
$,$&-+I.$ S-MM#R/
+s a partial fulfllment of our ,12' curriculum. !e have
undergone 3 months summer training at -ookmywish "#commerce
,vt. .td.4 !e have done our summer training pro)ect from 35
th
of 'ay to
35
th
of 6uly. The -ookmywish 1roup has emerged as one of
the top "#commerce companies in India.

!e were placed under the 0ales manager to study the market
scenario and we also learned how to do the trading on "#
$ommerce marketplaces. The title of our pro)ect is E-
Commerce Market
The questionnaire was used as data collection instrument( only
open ended type of questions are used because it was found that
clients were not interested in open ended question due to time
factor.
Page | 4
+#B*$ (% &(N+$N+S
SR0N( +(PI& N#M$ P#G$ N(0
Preface 2
Acknowledgement 3
Eecuti!e "ummar# 4
&hapter-1 #bout the industry $
1%1 &hat i" E'(ommerce ) *
1%2 +e# ,ri!er" of E'(ommerce 1-
1%3 &hat i" the Impact of E'(ommerce 1.
1%4 (la""if#ing E'(ommerce 2$

&hapter-! #bout the company 1/
2%1 Introduction of 0ookm#&i"h E'(ommerce P!t%
1td%
22
2%2 (ompan#3" product" and "er!ice" 21
2%3 ,i"tincti!e 4eneft" of 4u#ing from E'(ommerce 2/
&hapter-3
3%1 5unctional area worked in 3-
3%2 Re"earch 3.
3%3 647ecti!e" 3$
3%4 1imitation" 3*
3%- Re"earch methodolog# 3/
3%-%1 Re"earch de"ign 42
3%-%2 ,ata collection 43
3%-%3 Anal#"i" of que"tionnaire -2
Page | -
3%-%4 (onclu"ion .1
3%-%- 0i4liograph# .2
3%-%. .2
3%-%$ .3
3%-%* ..
3%-%/ .$
3%-%12 .$
3%-%11 .*
$2
4%1 $1
4%2 $3
4%3 $3
4%4 $3
4%- $4
4%. $4
4%$ $4
4%* $-
4%/ $*
4%12 **
*/
Page | .
&1#P+$R-1
&B$#" ")E
N(#!"R*
Page | $
21013 )1#+ IS $-&(MM$R&$
$4o5ution
)1#+ IS $*$&+R(NI& &(MM$R&$6
E!en toda#8 "ome con"idera4le time after the "o called 9dot com:Internet
re!olution38 electronic commerce ;e'commerce< remain" a relati!el# new8
emerging and con"tantl# changing area of 4u"ine"" management and
information technolog#% =here ha" 4een and continue" to 4e much pu4licit#
and di"cu""ion a4out e'commerce% 1i4rar# catalogue" and "hel!e" are
flled with 4ook" and article" on the "u47ect% >owe!er8 there remain" a
"en"e of confu"ion8 "u"picion and mi"under"tanding "urrounding the area8
which ha" 4een eacer4ated 4# the di?erent contet" in which electronic
commerce i" u"ed8 coupled with the m#riad related 4u@@word" and
acron#m"%
=hi" 4ook aim" to con"olidate the ma7or theme" that ha!e ari"en
from the new area of electronic commerce and to pro!ide an under"tanding
of it" application and importance to management%
In order to under"tand electronic commerce it i" important to identif#
the di?erent term" that are u"ed8 and to a""e"" their origin and u"age%
According to the editor'in'chief of International 6ournal of "lectronic
$ommerce8
Aladimir Bwa""8 9Electronic commerce i" "haring 4u"ine"" information8
Page | *
maintaining 4u"ine"" relation"hip" and conducting 4u"ine""
tran"action" 4# mean" of telecommunication" network"3%
1% >e maintain" that in it" pure"t form8 electronic commerce ha" ei"ted
for o!er 42 #ear"8
originating from the electronic tran"mi""ion of me""age" during the 0erlin
airlift in 1/4*%
2 5rom thi"8 electronic data interchange ;E,I< wa" the net
"tage of e'commerce de!elopment% In the 1/.2" a cooperati!e e?ort
4etween indu"tr# group" produced a fr"t attempt at common electronic
data format"% =he format"8 howe!er8 were onl# for purcha"ing8 tran"portation
and fnance data8 and were u"ed primaril# for intra'indu"tr# tran"action"%
It wa" not until the late 1/$2" that work 4egan for national
Electronic ,ata Interchange ;E,I< "tandard"8 which de!eloped well into
the earl# 1//2"%
E,I i" the electronic tran"fer of a "tandardi"ed 4u"ine"" tran"action
4etween a "ender and recei!er computer8 o!er "ome kind of pri!ate
network or !alue added network ;AAC<% 0oth "ide" would ha!e to ha!e the
"ame application "oftware and the data would 4e echanged in an
etremel# rigorou" format% In "ector" "uch a" retail8 automoti!e8 defence
and hea!# manufacturing8 E,I wa" de!eloped to integrate information
acro"" larger part" of an organi"ation3" !alue chain from de"ign to
maintenance
"o that manufacturer" could "hare information with de"igner"8
maintenance and other partner" and "takeholder"% 0efore the wide"pread
uptake and commercial u"e of the Internet8 the E,I "#"tem wa" !er#
epen"i!e to run mainl# 4ecau"e of the high co"t of the pri!ate network"%
Page | /
=hu"8 uptake wa" limited largel# to ca"h'rich multinational corporation"
u"ing their fnancial "trength to pre""ure and per"uade ;with "u4"idie"<
"maller "upplier" to implement E,I "#"tem"8 often at a !er# high co"t%
0# 1//. no more than -28222 companie" in Europe and 448222 in the DEA
were u"ing E,I8 repre"enting le"" than 1 per cent of the total num4er of
companie" in each of the re"pecti!e continent"% According to Bwa""8
electronic commerce ha" 4een re'defned 4# the d#namic" of the Internet
and traditional e'commerce i" rapidl# mo!ing to the Internet%
&ith the ad!ent of the Internet8 the term e'commerce 4egan to
includeF
Electronic trading of ph#"ical good" and of intangi4le" "uch a"
information%
All the "tep" in!ol!ed in trade8 "uch a" on'line marketing8 ordering
pa#ment and "upport for deli!er#%
=he electronic pro!i"ion of "er!ice" "uch a" after "ale" "upport or on'line
legal ad!ice%
Electronic "upport for colla4oration 4etween companie" "uch a" colla4orati!e
on'line de"ign and engineering or !irtual 4u"ine"" con"ultanc#
team"%
Eome of the defnition" of e'commerce often heard and found in pu4lication"
and the media areF
Electronic (ommerce ;E(< i" where 4u"ine"" tran"action" take place !ia
telecommunication" network"8 e"peciall# the Internet%
3 Electronic commerce de"cri4e" the 4u#ing and "elling of product"8
"er!ice"8
Page | 12
and information !ia computer network" including the Internet%
4 Electronic commerce i" a4out doing 4u"ine"" electronicall#%
- E'commerce8 ecommerce8 or electronic commerce i" defned a" the
conduct
of a fnancial tran"action 4# electronic mean"%
=he wide range of 4u"ine"" acti!itie" related to e'commerce 4rought
a4out a range of other new term" and phra"e" to de"cri4e the Internet
phenomenon in other 4u"ine"" "ector"% Eome of the"e focu" on purcha"ing
from on'line "tore" on the Internet% Eince tran"action" go through the
Internet
and the &e48 the term" I#commerce ;Internet commerce<8 icommerce and
e!en !eb#commerce ha!e 4een "ugge"ted 4ut are now !er# rarel# u"ed%
6ther term" that are u"ed for on'line retail "elling include e#tailing8
virtual#stores or cyber stores% A collection of the"e !irtual "tore" i"
"ometime"
gathered into a 9virtual mall3 or 9cybermall3%
)1#+ #B(-+ $-B-SIN$SS6
A" with e'commerce8 e#business ;electronic 4u"ine""< al"o ha" a num4er of
di?erent defnition" and i" u"ed in a num4er of di?erent contet"% 6ne of
the fr"t to u"e the term wa" I0G8 in 6cto4er 1//$8 when it launched a
campaign 4uilt around e'4u"ine""% =oda#8 ma7or corporation" are rethinking
their 4u"ine""e" in term" of the Internet and it" new culture and capa4ilitie"
and thi" i" what "ome "ee a" e'4u"ine""%
E'4u"ine"" i" the conduct of 4u"ine"" on the Internet8 not onl# 4u#ing and
"elling 4ut al"o "er!icing cu"tomer" and colla4orating with 4u"ine"" partner"%
E'4u"ine"" include" cu"tomer "er!ice ;e'"er!ice< and intra'4u"ine"" ta"k"%
Page | 11
E'4u"ine"" i" the tran"formation of ke# 4u"ine"" proce""e" through the u"e
of
Internet technologie"% An e'4u"ine"" i" a compan# that can adapt to con"tant
and continual change%
=he de!elopment of intranet and etranet i" part of e'4u"ine""%
E'4u"ine"" i" e!er#thing to do with 4ack'end "#"tem" in an organi"ation%
In practice8 e'commerce and e'4u"ine"" are often u"ed interchangea4l#%
$-&(MM$R&$7 $-B-SIN$SS7 )1( $-&#R$S6
Eome anal#"t" and on'line 4u"ine"" people ha!e decided that e'4u"ine"" i"
infnitel# "uperior a" a moniker to e'commerce% =hat3" mi"leading and
di"tract"
u" from the 4u"ine"" goal" at hand% =he e?ort to "eparate the E'commerce
and E'4u"ine"" concept" appear" to ha!e 4een dri!en 4# marketing
moti!e" and i" dreadfull# thin in "u4"tance%
>ere3" the important thingF E'commerce8 E'4u"ine"" or whate!er el"e #ou
ma# want to call it i" a mean" to an end%
=he di?erent name"8 defnition" and word" referred to in the pre!iou"
"ection" are merel# a "ample of the glo""ar# that ha" originated from
marketing
department" to "ell a concept8 the media to de"cri4e a "en"ational
9new3 phenomenon8 con"ultant" to 7u"tif# their fee" and recommendation"8
and 4u"ine"" to !alidate and implement the new technolog#% In fact there i"
no one defniti!e meaning of e'commerce or e'4u"ine"" that i" uni!er"all#
e"ta4li"hed% =he di?erent term" are u"ed to illu"trate di?erent per"pecti!e"
and empha"e" of di?erent people in di?erent organi"ation" and 4u"ine""
Page | 12
"ector"% Eome argue that it make" little "en"e to ha!e a re"tricti!e defnition
for the term e'commerce "ince it i" unlikel# that there will 4e agreement on
a "ingle unique defnition% 9Attempting to defne E'commerce or E'4u"ine""
i" guaranteed to generate 0#@antine de4ate" with meaningle"" origin"%
It remind" me of tr#ing to an"wer the following que"tionF HIf one
"#nchroni@ed
"wimmer drown"8 would the other" follow)I
0ecau"e of thi" trend8 it i" nece""ar# when undertaking an# electronic
commerce8 electronic 4u"ine"" or an# other e'related pro7ect or a""ignment8
to clearl# defne an# term in the contet and en!ironment in which it i"
4eing u"ed%
#N $-DIS+IN&+I(N
5or the purpo"e of clarit#8 the di"tinction 4etween e'commerce and
e4u"ine""
in thi" 4ook i" 4a"ed on the re"pecti!e term" commerce and
4u"ine""% (ommerce i" defned a" em4racing the concept of trade8
9echange of merchandi"e on a large "cale 4etween di?erent countrie"3%
0# a""ociation8 e'commerce can 4e "een to include the electronic medium
for thi" echange% =hu" electronic commerce can 4e 4roadl# defned a" the
echange of merchandi"e ;whether tangi4le or intangi4le< on a large "cale
4etween di?erent countrie" u"ing an electronic medium J namel# the
Internet% =he implication" of thi" are that e'commerce incorporate" a
whole "ocio'economic8 telecommunication" technolog# and commercial
infra"tructure at the macro'en!ironmental le!el% All the"e element" interact
together to pro!ide the fundamental" of e'commerce%
0u"ine""8 on the other hand8 i" defned a" 9a commercial enterpri"e a" a
Page | 13
going concern3% E'4u"ine"" can 4roadl# 4e defned a" the proce""e" or
area" in!ol!ed in the running and operation of an organi"ation that are
electronic or digital in nature% =he"e include direct 4u"ine"" acti!itie" "uch
a" marketing8 "ale" and human re"ource management 4ut al"o indirect
acti!itie" "uch a" 4u"ine"" proce"" re'engineering and change management8
which impact on the impro!ement in eKcienc# and integration of 4u"ine""
proce""e" and acti!itie"%
5igure 1%1 illu"trate" the ma7or di?erence" in e'commerce and e'4u"ine""8
where e'commerce ha" a 4roader defnition referring more to the
macro'en!ironment8 e'4u"ine"" relate" more to the micro'le!el of the frm%
Page | 14
%i8ure 101 Electronic commerce and electronic 4u"ine""
Introduction to e'commerceL$
Although di?erent8 4oth e'commerce and e'4u"ine"" are al"o highl#
integrated
and reliant upon each other%
)1#+ #R$ +1$ '$/ DRI.$RS6
It i" important to identif# the ke# dri!er" of e'commerce to allow a
compari"on
4etween di?erent countrie"% It i" often claimed that e'commerce i"
more ad!anced in the DEA than in Europe% =he"e ke# dri!er" can 4e
mea"ured
4# a num4er of criteria that can highlight the "tage" of ad!ancement
Page | 1-
of e'commerce in each of the re"pecti!e countrie"% =he criteria that can
determine the le!el of ad!ancement of e'commerce are "ummari"ed in
=a4le 1%1 and can 4e categori"ed a"F
1 Technological factors 7 =he degree of ad!ancement of the
telecommunication"
infra"tructure which pro!ide" acce"" to the new technolog# for
4u"ine"" and con"umer"%
! ,olitical factors 7 including the role of go!ernment in creating go!ernment
legi"lation8 initiati!e" and funding to "upport the u"e and de!elopment
of e'commerce and information technolog#%
3 0ocial factors J incorporating the le!el and ad!ancement in I= education
and training which will ena4le 4oth potential 4u#er" and the workforce
to under"tand and u"e the new technolog#%
9 "conomic factors 7 including the general wealth and commercial health
of the nation and the element" that contri4ute to it%
Eince a di"tinction ha" 4een made in thi" 4ook 4etween e'commerce
and e'4u"ine"" for con"i"tenc#8 the ke# dri!er" of e'4u"ine"" are al"o
identifed%
=he"e are mainl# at the le!el of the frm and are inMuenced 4# the
macro'en!ironment and e'commerce8 which includeF
8rganisational culture J attitude" to re"earch and de!elopment ;RN,<O it"
willingne"" to inno!ate and u"e technolog# to achie!e o47ecti!e"%
$ommercial benefts J in term" of co"t "a!ing" and impro!ed eKcienc#
that impact on the fnancial performance of the frm%
0killed and committed workforce J that under"tand"8 i" willing and a4le to
implement new technologie" and proce""e"%
Page | 1.
/equirements of customers and suppliers J in term" of product and "er!ice
demand and "uppl#%
$ompetition J en"uring the organi"ation "ta#" ahead of or at lea"t keep"
up with competitor" and indu"tr# leader"%
=he"e ke# dri!er" for the implementation of e'4u"ine"" can 4e put into the
contet of the cla""ic economic equation of "uppl# and demand illu"trated
in 5igure 1%2%

=hu"8 e'commerce pro!ide" the infra"tructure and en!ironment that
ena4le" and facilitate" e'4u"ine""% &ithin thi"8 the implementation of
e'4u"ine"" i" "olel# dependent on whether there i" a demand 4# the
organi"ation
and whether it can 4e "upplied within the organi"ation% ,emand
i" created largel# 4# the need to cut co"t"8 impro!e eKcienc#8 maintain
)1#+ IS +1$ IMP#&+ (% $*$&+R(NI& &(MM$R&$6
E'commerce and e'4u"ine"" are not "olel# the Internet8 we4"ite" or dot com
companie"% It i" a4out a new 4u"ine"" concept that incorporate" all pre!iou"
4u"ine"" management and economic concept"% A" "uch8 e'4u"ine""
and e'commerce impact on man# area" of 4u"ine"" and di"cipline" of
4u"ine"" management "tudie"% 5or eampleF
'arketing J i""ue" of on'line ad!erti"ing8 marketing "trategie" and
con"umer 4eha!iour and culture"% 6ne of the area" in which it impact"
particularl# i" direct marketing% In the pa"t thi" wa" mainl# door'todoor8
home partie" ;like the =upperware partie"< and mail order u"ing
catalogue" or leaMet"% =hi" mo!ed to telemarketing and =A "elling with
Page | 1$
%i8ure 10! +e# dri!er" of e'4u"ine""
the ad!ance" in telephone and tele!i"ion technolog# and fnall# de!eloped
into e'marketing "pawning 9e(RG3 ;cu"tomer relation"hip management<
data mining and the like 4# creating new channel" for direct
"ale" and promotion%
$omputer sciences J de!elopment of di?erent network and computing
technologie" and language" to "upport e'commerce and e'4u"ine""8 for
eample linking front and 4ack oKce legac# "#"tem" with the 9we44a"ed3
technolog#%
*inance and accounting J on'line 4ankingO i""ue" of tran"action co"t"O
accounting and auditing implication" where 9intangi4le3 a""et" and
Page | 1*
human capital mu"t 4e tangi4l# !alued in an increa"ingl# knowledge
4a"ed econom#%
"conomics J the impact of e'commerce on local and glo4al economie"O
under"tanding the concept" of a digital and knowledge'4a"ed econom#
and how thi" ft" into economic theor#%
c ,roduction and operations management J the impact of on'line proce""ing
ha" led to reduced c#cle time"% It take" "econd" to deli!er digiti@ed
product" and "er!ice" electronicall#O "imilarl# the time for proce""ing
order" can 4e reduced 4# more than /2 per cent from da#" to minute"%
Production "#"tem" are integrated with fnance marketing and other
functional "#"tem" a" well a" with 4u"ine"" partner" and cu"tomer" ;"ee
Intel mini'ca"e<%
&#S$ S+-D/
Intel launched their on'line 4u"ine"" in "ummer 1//* when their "ale" "hot
from @ero to
P1 4illion per month in the fr"t month of operation% =he rea"on for thi" i"
that the#
totall# re'engineered their proce""e" to include "mall and medium'"i@ed
4u"ine""e"%
Pre!iou"l# onl# Intel3" larger cu"tomer" were connected to them 4#
epen"i!e E,I
network"8 lea!ing the "mall and medium'"i@ed companie" "ending fae" or
phoning in
order" or requirement"% Intel concentrated on procurement and cu"tomer
"upport for a
range of their product" ;including computer chip" and microproce""or"<8
de!eloping an
Page | 1/
etranet ;which i" the linking of a num4er of intranet" u"ing Internet
technolog# with
added "ecurit# creating !irtuall# pri!ate network"<% 0# u"ing the etranet8
authori"ed
"mall and medium'"i@ed 4u"ine"" partner" could place order"8 track the
order" and look
at product documentation on the "ite% =he "a!ing" for Intel and their
cu"tomer" were
large J the# eliminated 4-8222 fae" in a quarter to =aiwan alone J "a!ing on
time8
telephone charge" and fa paper% Ele!en of the larger Intel companie" were
connected to
another "#"tem which let Intel link to cu"tomer plant" acro"" the Internet to
track part
con"umption%
,roduction and operations management 9manufacturing: J mo!ing from
ma"" production to demand'dri!en8 ma"" cu"tomi"ation cu"tomer pull
rather than the manufacturer pu"h of the pa"t% &e4'4a"ed Enterpri"e
Re"ource Planning "#"tem" ;ERP< can al"o 4e u"ed to forward order"
directl# to de"igner" and:or production Moor within "econd"8 thu"
Introduction to e'commerceL11
cutting production c#cle time" 4# up to -2 per cent8 e"peciall# when
manufacturing plant"8 engineer" and de"igner" are located in di?erent
countrie"% In "u4'a""em4ler companie"8 where a product i" a""em4led
from a num4er of di?erent component" "ourced from a num4er of
manufacturer"8 communication8 colla4oration and coordination are
critical J "o electronic 4idding can #ield cheaper component" and ha!ing
Page | 22
Mei4le and adapta4le procurement "#"tem" allow" fa"t change" at a
minimum co"t "o in!entorie" can 4e minimi"ed and mone# "a!ed%
c 'anagement information systems J anal#"i"8 de"ign and implementation
of e'4u"ine"" "#"tem" within an organi"ationO i""ue" of integration of
front'end and 4ack'end "#"tem"%
%uman resource management J i""ue" of on'line recruiting8 home working
and 9intrapreneur"3 working on a pro7ect 4# pro7ect 4a"i" replacing
permanent emplo#ee"%
-usiness law and ethics J the di?erent legal and ethical i""ue" that ha!e
ari"en a" a re"ult of a glo4al 9!irtual3 market% I""ue" "uch a" cop#right
law"8 pri!ac# of cu"tomer information8 legalit# of electronic contract"8
etc%
=he"e i""ue" will 4e di"cu""ed in more detail throughout the remainder of
thi" 4ook%
)1#+ #R$ +1$ B$N$%I+S (% $-&(MM$R&$6
=he pre!iou" "ection" ha!e included di"cu""ion" a4out what e'commerce i"
and it" impact8 4ut what are the 4eneft" of e'commerce) &hat doe" it o?er
and wh# do it) =he 4eneft" of e'commerce can 4e "een to a?ect three
ma7or "takeholder"F organi"ation"8 con"umer" and "ociet#%
Bene:ts o; e-commerce to or8anisations
International marketplace% &hat u"ed to 4e a "ingle ph#"ical marketplace
located in a geographical area ha" now 4ecome a 4orderle"" marketplace
including national and international market"% 0# 4ecoming e'commerce
ena4led8 4u"ine""e" now ha!e acce"" to people all around the world% In
e?ect all e'commerce 4u"ine""e" ha!e 4ecome !irtual multinational
Page | 21
corporation"%
8perational cost savings% =he co"t of creating8 proce""ing8 di"tri4uting8
"toring and retrie!ing paper'4a"ed information ha" decrea"ed ;"ee Intel
mini'ca"e<%
'ass customisation% E'commerce ha" re!olutioni"ed the wa# con"umer"
4u# good and "er!ice"% =he pull't#pe proce""ing allow" for product" and
"er!ice" to 4e cu"tomi"ed to the cu"tomer3" requirement"% In the pa"t when
5ord fr"t "tarted making motor car"8 cu"tomer" could ha!e an# colour "o
long a" it wa" 4lack% Cow cu"tomer" can confgure a car according to their
"pecifcation" within minute" on'line !ia the www%ford%com we4"ite%
"nables reduced inventories and o!erhead" 4# facilitating 9pull3't#pe "uppl#
chain management J thi" i" 4a"ed on collecting the cu"tomer order and
then deli!ering through QI= ;7u"t'in'time< manufacturing% =hi" i" particularl#
4enefcial for companie" in the high technolog# "ector8 where "tock"
of component" held could quickl# 4ecome o4"olete within month"% 5or
eample8 companie" like Gotorola ;mo4ile phone"<8 and ,ell ;computer"<
gather cu"tomer order" for a product8 tran"mit them electronicall# to the
manufacturing plant where the# are manufactured according to the
cu"tomer3"
"pecifcation" ;like colour and feature"< and then "ent to the
cu"tomer within a few da#"%
.ower telecommunications cost% =he Internet i" much cheaper than !alue
added network" ;AAC"< which were 4a"ed on lea"ing telephone line" for the
"ole u"e of the organi"ation and it" authori"ed partner"% It i" al"o cheaper to
Page | 22
"end a fa or e'mail !ia the Internet than direct dialling%
2igitisation of products and processes% Particularl# in the ca"e of "oftware
and mu"ic:!ideo product"8 which can 4e downloaded or e'mailed directl#
to cu"tomer" !ia the Internet in digital or electronic format%
&o more 3;#hour#time constraints% 0u"ine""e" can 4e contacted 4# or
contact cu"tomer" or "upplier" at an# time%
Bene:ts o; e-commerce to consumers
3;<= access% Ena4le" cu"tomer" to "hop or conduct other tran"action" 24
hour" a da#8 all #ear round from almo"t an# location% 5or eample8 checking
4alance"8 making pa#ment"8 o4taining tra!el and other information% In
one ca"e a pop "tar "et up we4 camera" in e!er# room in hi" hou"e8 "o that
he could check the "tatu" of hi" home 4# logging onto the Internet when
he wa" awa# from home on tour%
'ore choices% (u"tomer" not onl# ha!e a whole range of product" that
the# can choo"e from and cu"tomi"e8 4ut al"o an international "election of
"upplier"%
,rice comparisons% (u"tomer" can 9"hop3 around the world and conduct
compari"on" either directl# 4# !i"iting di?erent "ite"8 or 4# !i"iting a "ingle
"ite where price" are aggregated from a num4er of pro!ider" and compared
;for eample www%mone#etra%co%uk for fnancial product" and "er!ice"<%
Improved delivery processes% =hi" can range from the immediate deli!er#
of digiti"ed or electronic good" "uch a" "oftware or audio'!i"ual fle" 4#
downloading !ia the Internet8 to the on'line tracking of the progre"" of
package" 4eing deli!ered 4# mail or courier%
+n environment of competition where "u4"tantial di"count" can 4e found
Page | 23
or !alue added8 a" di?erent retailer" !ie for cu"tomer"% It al"o allow" man#
indi!idual cu"tomer" to aggregate their order" together into a "ingle order
pre"ented to whole"aler" or manufacturer" and o4tain a more competiti!e
price ;aggregate 4u#ing<8 for eample www%let"4u#it%com%
Bene:ts o; e-commerce to society
"nables more >eible working practices8 which enhance" the qualit# of life
for
a whole ho"t of people in "ociet#8 ena4ling them to work from home% Cot
onl# i" thi" more con!enient and pro!ide" happier and le"" "tre""ful working
en!ironment"8 it al"o potentiall# reduce" en!ironmental pollution a"
fewer people ha!e to tra!el to work regularl#%
$onnects people% Ena4le" people in de!eloping countrie" and rural area"
to en7o# and acce"" product"8 "er!ice"8 information and other people which
otherwi"e would not 4e "o ea"il# a!aila4le to them%
*acilitates delivery of public services% 5or eample8 health "er!ice" a!aila4le
o!er the Internet ;on'line con"ultation with doctor" or nur"e"<8 fling
tae" o!er the Internet through the Inland Re!enue we4"ite%
)1#+ #B(-+ +1$ *IMI+#+I(NS (% $-&(MM$R&$6
=here wa" much h#pe "urrounding the Internet and e'commerce o!er the
la"t few #ear" of the twentieth centur#% Guch of it promoted the Internet
and e'commerce a" the panacea for all ill"8 which rai"e" the que"tion8 are
there an# limitation" of e'commerce and the Internet)
I"aac Cewton3" 3rd 1aw of Gotion8 95or e!er# action there i" an equal
and oppo"ite reaction3 "ugge"t" that for all the 4eneft" there are limitation"
to e'commerce% =he"e again will 4e dealt with according to the three ma7or
Page | 24
"takeholder" J organi"ation"8 con"umer" and "ociet#%
L*imitations o; e-commerce to or8anisations
.ack of su?cient system security( reliability( standards and communication
protocols%
=here are numerou" report" of we4"ite" and data4a"e" 4eing hacked
into8 and "ecurit# hole" in "oftware% 5or eample8 Gicro"oft ha" o!er the
#ear" i""ued man# "ecurit# notice" and 9patche"3 for their "oftware% Ee!eral
4anking and other 4u"ine"" we4"ite"8 including 0arcla#" 0ank8 Powergen
and e!en the (on"umer"3 A""ociation in the D+8 ha!e eperienced
4reache" in "ecurit# where 9a technical o!er"ight3 or 9a fault in it" "#"tem"3
led to confdential client information 4ecoming a!aila4le to all%
/apidly evolving and changing technology8 "o there i" alwa#" a feeling of
tr#ing to 9catch up3 and not 4e left 4ehind%
@nder pressure to innovate and de!elop 4u"ine"" model" to eploit the
new opportunitie" which "ometime" lead" to "trategie" detrimental to the
organi"ation% =he ea"e with which 4u"ine"" model" can 4e copied and
emulated o!er the Internet increa"e that pre""ure and curtail longer'term
competiti!e ad!antage%
*acing increased competition from 4oth national and international
competitor"
often lead" to price war" and "u4"equent un"u"taina4le lo""e" for
the organi"ation%
,roblems with compatibility of older and AnewerB technology% =here are
pro4lem" where older 4u"ine"" "#"tem" cannot communicate with we44a"ed
and Internet infra"tructure"8 leading to "ome organi"ation" running
almo"t two independent "#"tem" where data cannot 4e "hared% =hi" often
Page | 2-
lead" to ha!ing to in!e"t in new "#"tem" or an infra"tructure8 which 4ridge"
the di?erent "#"tem"% In 4oth ca"e" thi" i" 4oth fnanciall# co"tl# a" well a"
di"rupti!e to the eKcient running of organi"ation"%
*imitations o; e-commerce to consumers
$omputing equipment i" needed for indi!idual" to participate in the new
9digital3 econom#8 which mean" an initial capital co"t to cu"tomer"%
+ basic technical knowledge i" required of 4oth computing equipment
and na!igation of the Internet and the &orld &ide &e4%
$ost of access to the Internet8 whether dial'up or 4road4and tari?"%
$ost of computing equipment% Cot 7u"t the initial co"t of 4u#ing equipment
4ut making "ure that the technolog# i" updated regularl# to 4e
compati4le with the changing requirement of the Internet8 we4"ite" and
application"%
.ack of security and privacy of personal data% =here i" no real control of
data that i" collected o!er the &e4 or Internet% ,ata protection law" are not
uni!er"al and "o we4"ite" ho"ted in di?erent countrie" ma# or ma# not
ha!e law" which protect pri!ac# of per"onal data%
,hysical contact and relationships are replaced by electronic processes%
(u"tomer"
are una4le to touch and feel good" 4eing "old on'line or gauge
!oice" and reaction" of human 4eing"%
+ lack of trust because they are interacting with faceless computers%
*imitations o; e-commerce to society
-reakdown in human interaction% A" people 4ecome more u"ed to interacting
electronicall# there could 4e an ero"ion of per"onal and "ocial "kill" which
Page | 2.
might e!entuall# 4e detrimental to the world we li!e in where people are
more comforta4le interacting with a "creen than face to face%
0ocial division% =here i" a potential danger that there will 4e an increa"e
in the "ocial di!ide 4etween technical ha!e" and ha!e'not" J "o people who
do not ha!e technical "kill" 4ecome una4le to "ecure 4etter'paid 7o4" and
could form an undercla"" with potentiall# dangerou" implication" for
"ocial "ta4ilit#%
/eliance on telecommunications infrastructure( power and IT skills8 which
in de!eloping countrie" nullife" the 4eneft" when power8 ad!anced
telecommunication"
infra"tructure" and I= "kill" are una!aila4le or "carce or
underde!eloped%
!asted resources% A" new technolog# date" quickl# how do #ou di"po"e
of all the old computer"8 ke#4oard"8 monitor"8 "peaker" and other hardware
or "oftware)
*acilitates 6ust#In#Time manufacturing% =hi" could potentiall# cripple an
econom# in time" of cri"i" a" "tock" are kept to a minimum and deli!er#
pattern" are 4a"ed on pre'"et le!el" of "tock which la"t for da#" rather than
week" ;"ee (a"e Etud#<%
&#S$ S+-D/
In Eeptem4er 2222 in the D+8 prote"tor" demon"trating o!er the high price
of petrol
4locked petrol depot"8 pre!enting the deli!er# of petrol to petrol "tation"%
&ithin da#"
thi" led to petrol "hortage" throughout the D+% =he knock'on e?ect" were
di"ruption in
Page | 2$
pu4lic tran"port8 ho"pital "er!ice" ;with cancellation of non'emergenc#
operation"<8
"chool clo"ure"8 "hortage" in food a" "upermarket" reported panic 4u#ing
and "ome
warned "upplie" could run out 9in da#" rather than week"3% Petrol and other
e""ential
"upplie" "uch a" 4read and milk were rationed%13 E!en after the 4lockade
wa" lifted8 it
took two to three week" for "upplie" to get 4ack to normal%
2i?culty in policing the Internet8 which mean" that numerou" crime"
can 4e perpetrated and often go undetected% =here i" al"o an unplea"ant
ri"e in the a!aila4ilit# and acce"" of o4"cene material and ea"e with which
paedophile" and other" can entrap children 4# ma"querading in chat
room"%
=he 4eneft" and limitation" di"cu""ed here are 4# no mean" defniti!e or
ehau"ti!e% =hi" chapter i" "etting the "cene and introducing idea"8 which
will 4e eplored in more detail in the re"t of thi" 4ook%
&*#SSI%/ING $-&(MM$R&$
&h# cla""if# e'commerce) &hat doe" it tell u") &h# i" there more than
one wa# of cla""if#ing e'commerce)
Earlier in the chapter8 it wa" pointed out that there i" no one defnition
of e'commerce or e'4u"ine""% ,i?erent a""ociation" of the term" come from
people with di?erent per"pecti!e" and it i" "imilar with framework" for
cla""if#ing e'commerce and e'4u"ine""% Academic" ha!e alread# drawn up a
num4er of framework" for cla""if#ing e'commerce 4ut each one tend" to
eplain it from a particular per"pecti!e% Eome of the"e framework" are
Page | 2*
di"cu""ed in more detail 4elow%
# macro-en4ironmenta5 perspecti4e
=hi" framework8 fr"t de!eloped 4# +alakota and &hin"ton814 Profe""or" of
Information E#"tem" and prolifc author" on the "u47ect8 take" a holi"tic
!iew and identife" the di?erent component" of 4u"ine"" and technolog#
that make up e'commerce% D"ing the analog# of the architecture of a
4uilding illu"trated in 5igure 1%38 the# eplain how the di?erent component"
ft and interact together8 empha"i"ing the relati!e importance of each
component%
%i8ure 103 A framework for electronic commerce
=he technological foundation" of e'commerce are largel# hidden8 4ut
Page | 2/
the# are the 4a"e on which electronic commerce i" 4uilt% +alakota and
&hin"ton u"e the analog# of a traditional tran"portation compan# to
de"cri4e the compleit# of the network and how the di?erent component"
that make up the technolog# infra"tructure are interlinked%
=he network infra"tructure i" like the network of road" that are
interconnected
and are of di?erent width"8 length" and qualit# J for eample8
the Internet8 local area network"8 intranet"% Cetwork infra"tructure"
al"o take di?erent form" "uch a" telephone wire"8 ca4le"8 wirele""
technolog# ;"uch a" "atellite or cellular technolog#<%
c =he pu4li"hing infra"tructure ;including the &orld &ide &e48 &e4
"er!er"< can 4e "een a" the infra"tructure of !ehicle" and warehou"e"8
which "tore and tran"port electronic data and multimedia content
along the network% Gultimedia content i" created u"ing m#riad tool"
"uch a" >=G1 and QAAA% =hi" content can 4e !er# di?erent with
!ar#ing degree" of compleit# "imilar to di?erent !ehicle" tra!elling on
the road"% 5or eample8 tet onl#8 or more comple i" an application8
"uch a" a computer game8 containing audio8 !ideo8 graphic" and a
programme%
Ge""aging and information di"tri4ution infra"tructure are the engine"
and fuel8 which tran"port the data around the network% 6nce the
multimedia content i" created8 there ha" to 4e a mean" of "ending and
retrie!ing thi" information8 for eample 4# E,I8 e'mail8 >#per =et
=ran"fer Protocol%
6nce content and data can 4e created8 di"pla#ed and tran"mitted8
Page | 32
"upporting 4u"ine"" "er!ice" are nece""ar# for facilitating the 4u#ing8
"elling and other tran"action" "afel# and relia4l#% 5or eample8 "mart
card"8 authentication8 electronic pa#ment8 directorie":catalogue"%
=he net component" which facilitate and ena4le e'commerce and which
are 4uilt on the foundation" of technolog# areF
Pu4lic polic#8 regulation" and law" that go!ern i""ue" "uch a" uni!er"al
acce""8 pri!ac#8 electronic contract" and the term" and condition" that
go!ern e'commerce%
Dni!er"al agreement of technical "tandard" dictate the format in which
electronic data i" tran"ferred o!er network" and i" recei!ed acro"" u"er
interface"8 and the format in which it i" "tored% =hi" i" nece""ar# "o that
data can tra!el "eamle""l# acro"" di?erent network"8 where information
and data can 4e acce""ed 4# a whole range of hardware and "oftware
"uch a" computer"8 palmtop"8 and di?erent kind" of 4row"er" and
document reader"%
=he interaction of people and organi"ation" to manage and coordinate
the application"8 infra"tructure" and 4u"ine""e" are all nece""ar# to
make e'commerce work%
All the"e element" interact together to produce the mo"t !i"i4le
manife"tation
of e'commerce% =he"e application" include on'line 4anking and fnancial
tradingO recruitmentO procurement and purcha"ingO marketing and
ad!erti"ingO auction"O "hopping are 7u"t a few eample"%
=hi" i" a particularl# u"eful framework for manager" to under"tand the
importance of technolog# and 4u"ine""8 4oth within the organi"ation and
Page | 31
eternal to it8 in the planning and de!elopment of an# e'commerce or
e'4u"ine"" "olution%
Identi;yin8 transactin8 partners
Another method for cla""if#ing e'commerce i" 4# identif#ing the partner"
directl# in!ol!ed in the tran"action% An informal !er"ion of thi" framework
i" 4eing loo"el# applied in the u"e of the term" 4u"ine""'to'4u"ine"" ;0'to'0<8
4u"ine""'to'con"umer ;0'to'(< and con"umer'to'con"umer ;('to'(<% 0ut
what eactl# doe" thi" mean)
=he framework that i" "ummari"ed in 5igure 1%4 identife" a range of
relation"hip" 4a"ed on the part# that initiate" the tran"action and the part#
that accept" the tran"action% =he part# originating the e'commerce
tran"action
al"o include" the facilitie" for initiating and fulflling it% 5or eample
in the ca"e of 0'to'(8 a 4u"ine"" "et" up a we4"ite that in!ite" and ena4le"
con"umer" to 4u# their product" and then fulfl" the purcha"e% 0ut the
%i8ure 109 (la""ifcation of e'commerce 4# tran"action partner"
Page | 32
Introduction to e'commerceL1/
con"umer actuall# initiate" the tran"action 4# reque"ting and then accepting
the purcha"e% Eo there are a num4er of echange" that take place
4etween the partie" 4efore the tran"action i" completed and fulflled%
Each of the categorie" identifed in 5igure 1%4 are de"cri4ed a"F
Business-to-Business 2B-to-B3 =he echange of product"8 "er!ice" or
information
4etween 4u"ine"" entitie"% According to market re"earch "tudie" pu4li"hed
in earl# 22228 the mone# !olume of 0'to'0 eceed" that of 0'to'( 4#
12 to 1% =he Rartner Rroup e"timate" 0'to'0 re!enue worldwide will 4e
P$%2/ trillion 4# 22248 a compound annual growth of a4out 41 per cent%
&e4'4a"ed 0'to'0 include"F
2irect selling and support to business ;a" in the ca"e of (i"co where
cu"tomer"
can 4u# and al"o get technical "upport8 download"8 patche" online<%
"#procurement ;al"o known a" indu"tr# portal"< where a purcha"ing agent
can "hop for "upplie" from !endor"8 reque"t propo"al"8 and8 in "ome
ca"e"8 4id to make a purcha"e at a de"ired price% 5or eample the autopart"
whole"aler ;relia4leautomoti!e%com<O and the chemical 0'to'0
echange ;chemconnect%com<%
Information sites pro!ide information a4out a particular indu"tr# for it"
companie" and their emplo#ee"% =he"e include "peciali"ed "earch "ite"
and trade and indu"tr# "tandard" organi"ation "ite"% E%g% newmarket
maker"%com i" a leading portal for 0'to'0 new"%
Gan# 0'to'0 "ite" ma# al"o fall into none or more than one of the"e group"%
Page | 33
Business-to-consumer 2B-to-&3 =he echange of product"8 information or
"er!ice"
4etween 4u"ine"" and con"umer" in a retailing relation"hip% Eome of
the fr"t eample" of 0'to'( e'commerce were ama@on%com and dell%com in
the DEA and la"tminute%com in the D+% In thi" ca"e8 the 9c3 repre"ent"
either con"umer or cu"tomer%
Business-to-Go4ernment 2B-to-G3 =he echange of information8 "er!ice"
and
product" 4etween 4u"ine"" organi"ation" and go!ernment agencie" on'line%
=hi" ma# include8
"#procurement services8 in which 4u"ine""e" learn a4out the purcha"ing
need" of agencie" and pro!ide "er!ice"%
+ virtual workplace in which a 4u"ine"" and a go!ernment agenc# could
coordinate the work on a contracted pro7ect 4# colla4orating on'line to
coordinate on'line meeting"8 re!iew plan" and manage progre""%
/ental of on#line applications and databases de"igned e"peciall# for u"e 4#
go!ernment agencie"%
&#S$ S+-D/
In the D+8 the ,epartment of =rade and Indu"tr#3" target wa" that 4# Garch
22218 /2 per
cent of routine procurement of good" would 4e conducted electronicall#% In
the go!ernment3"
ependiture plan" for 2221J221- ;pu4li"hed in Garch 2221< the report ga!e
an
update of thi" targetF
+eeping clo"el# in touch with the 6Kce of Ro!ernment (ommerce ;6R(<8
,=I i" working
Page | 34
toward" the /2S target through increa"ed u"age of the Ro!ernment
Procurement (ard% =wo
"tudie" 4# I(1 Dnita" highlighted that the market for electronic purcha"ing
wa" not full#
de!eloped% A "coping "tud# for the deli!er# of electronic procurement in ,=I
i" underwa#%1.
According to the Rartner Rroup8 0'to'R re!enue i" epected to grow
from P1%- 4illion in 2222 to P.%2 4illion in 222-%
Business-to-Peer Networ<s 2B-to-P3 =hi" would 4e the pro!i"ion of
hardware8
"oftware or other "er!ice" to the peer network"% An eample here would 4e
Cap"ter who pro!ided the "oftware and facilitie" to ena4le peer networking
&onsumer-to-Business 2&-to-B3 =hi" i" the echange of product"8
information
or "er!ice" from indi!idual" to 4u"ine""% A cla""ic eample of thi" would 4e
indi!idual" "elling their "er!ice" to 4u"ine""e"%
&onsumer-to-&onsumer 2&-to-&3 In thi" categor# con"umer" interact
directl#
with other con"umer"% =he# echange information "uch a"F
c "pert knowledge where one per"on a"k" a que"tion a4out an#thing and
get" an e'mail repl# from the communit# of other indi!idual"8 a" in the
ca"e of the &ew Cork Times'aKliated a4u@@%com we4"ite%
c 8pinions a4out companie" and product"8 for eample epinion"%com%
=here i" al"o an echange of good" 4etween people 4oth with con"umer
auction "ite" "uch a" e'4a# and with more no!el 4artering "ite" "uch a"
"wapit"hop%com8 where indi!idual" "wap good" with each other without
the echange of mone#%
Page | 3-
&onsumer-to-Go4ernment 2&-to-G3 Eample" where con"umer" pro!ide
"er!ice"
to go!ernment ha!e #et to 4e implemented% Eee Ro!ernment'to'
0u"ine""%
&onsumer-to-Peer Networ<s 2&-to-P3 =hi" i" eactl# part of what peer'to'
peer
networking i" and "o i" a "lightl# redundant di"tinction "ince con"umer"
o?er their computing facilitie" once the# are on the peer network%
Introduction to e'commerceL21
Go4ernment-to-Business 2G-to-B3 =he echange of information8 "er!ice"
and product"
4etween go!ernment agencie" and 4u"ine"" organi"ation"% Ro!ernment
"ite" now ena4le the echange 4etween go!ernment and 4u"ine"" ofF
c Information8 guidance and ad!ice for 4u"ine"" on international trading8
"ource" of funding and "upport ;uki"help<8 facilitie" ;e%g% www%dti%
org%uk<%
A data4a"e of law"8 regulation" and go!ernment polic# for indu"tr#
ctor"%
c 6n'line application and "u4mi""ion of oKcial form" ;"uch a" compan#
and !alue added ta<%
c 6n'line pa#ment facilitie"%
=hi" impro!e" accurac#8 increa"e" "peed and reduce" co"t"8 "o 4u"ine""e"
are
gi!en fnancial incenti!e" to u"e electronic'form "u4mi""ion and pa#ment
facilitie"%
Go4ernment-to-&onsumer 2G-to-B3 ;Al"o known a" e'go!ernment<%
Ro!ernment
Page | 3.
"ite" o?ering information8 form" and facilitie" to conduct tran"action"
for indi!idual"8 including pa#ing 4ill" and "u4mitting oKcial form"
on'line "uch a" ta return"%
Go4ernment-to-Go4ernment 2G-to-G3 ;Al"o known a" e'go!ernment<%
Ro!ernment'
to'go!ernment tran"action" within countrie" linking local go!ernment"
together and al"o international go!ernment"8 e"peciall# within the
European Dnion8 which i" in the earl# "tage" of de!eloping coordinated
"trategie" to link up di?erent national "#"tem"%
Go4ernment-to-Peer Networ< 2G-to-P3 A" #et there i" no real eample of
thi"
t#pe of e'commerce%
Peerto-Peer Networ< 2P-to-P3 =hi" i" the communication" model in which
each
part# ha" the "ame capa4ilitie" and either part# can initiate a
communication
"e""ion% In recent u"age8 peer'to'peer ha" come to de"cri4e application"
in which u"er" can u"e the Internet to echange fle" with each other
directl# or through a mediating "er!er%
Peer Networ<-to-&onsumer 2P-to-&3 =hi" i" in e?ect peer'to'peer
networking8
o?ering "er!ice" to con"umer" who are an integral part of the peer
network%
Peer Networ<-to-Go4ernment 2P-to-G3 =hi" ha" not #et 4een u"ed8 4ut if
it wa"8
it would 4e u"ed in a "imilar capacit# to the P'to'0 model ;"ee 4elow<8 onl#
with the go!ernment a" the part# accepting the tran"action%
Page | 3$
22LIntroduction
Peer Networ<-to-Business 2P-to-B3 Peer'to'peer networking pro!ide"
re"ource"
to 4u"ine""% 5or eample8 u"ing peer network re"ource" "uch a" the "pare
proce""ing capacit# of indi!idual machine" on the network to "ol!e
mathematical
pro4lem" or inten"i!e and repetiti!e ,CA anal#"e" which require"
!er# high capacit# proce""ing power%
=hi" framework can 4e u"ed 4# organi"ation" to "egment their cu"tomer"
and di"tingui"h the di?erent need"8 requirement"8 4u"ine"" proce""e"8
product"
and "er!ice" that are needed for each%
De8ree o; di8itisation
(hoi et al%1* created a framework for the categori"ation of e'commerce into
di?erent confguration" 4a"ed on the degree of digiti"ation of the product
or "er!ice "old8 the proce"" of the tran"action and the deli!er# agent% 5rom
the model in 5igure 1%-8 three main dimen"ion" can 4e i"olated a"F
Traditional e#commerce8 where product" or "er!ice" are ph#"ical8 the proce""
of the tran"action i" ph#"ical and the deli!er# agent i" ph#"ical% 5or
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%i8ure 10= A framework for a""e""ing the degree of digiti"ation
eample a corner "hop "tock" new"paper" that are 4ought with ca"h
o!er the counter and are taken awa# 4# the cu"tomer out of the "hop%
>owe!er8 in realit# in toda#3" world8 it i" !er# rare that a 4u"ine"" i" trul#
traditional 4ecau"e of the u"e of EP6E "#"tem" for pa#ment ;electronic
point of "ale "#"tem"<%
,ure e#commerce8 where product" or "er!ice" are digital8 the proce"" of the
tran"action i" digital and the deli!er# agent i" digital% 5or eample8
"oftware update "er!ice" of companie" like Gicro"oft8 (i"co8 E#mantecO
downloading of electronic 4ook"O peer'to'peer fle "haring like Cap"ter
would al"o 4e con"idered pure e'commerce%
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c ,artial e#commerce8 where either one or two of the dimen"ion" are
ph#"ical%
5or eample in the ca"e of 4ook"eller" Ama@on8 the product"
;4ook"< are ph#"ical8 the proce"" i" digital and the deli!er# agent i"
ph#"ical%
A "tud# 4# 5orre"ter Re"earch1/ predicted that 4# 22238 mo"t &e44a"ed
retailer" will deli!er product" electronicall# and that almo"t a quarter
of retailer" will o4tain 1.J-2 per cent of their re!enue from the"e digital
download"%
(la""if#ing e'commerce 4# degree of digiti"ation i" a u"eful wa# for
manager" to anal#"e the range of product":"er!ice" the# "ell8 the proce""e"
of carr#ing out and fnali"ing the tran"action and the wa# the product:
"er!ice i" deli!ered% 0# identif#ing the area" that could potentiall# 4e
digiti"ed8
organi"ation" can re'engineer their 4u"ine"" proce""e" to impro!e
eKcienc#8 reduce co"t"8 acce"" glo4al market" and 4eneft from the
ad!antage"
pre"ented 4# e'commerce and e'4u"ine""%
)1#+ #R$ +1$ B#RRI$RS +( $-&(MM$R&$6
=he dri!er" of e'commerce were identifed and "ummari"ed in =a4le 1%1%
(on!er"el#8 there are al"o 4arrier" to the growth and de!elopment of
e'commerce% Cumerou" report" and "ur!e#" identif# the di?erent kind" of
4arrier"8 and man# of them focu" on "ecurit# a" 4eing one of the large"t
inhi4itor" to and pro4lem" for e'commerce% (ommerceCet22 ;a non'proft
con"ortium of 4u"ine""8 technolog#8 academic and go!ernment leader"
who de!elop and implement e'commerce technolog# and 4u"ine"" practice<
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conduct" an annual time "erie" "ur!e# of !i"itor" to the (ommerceCet
we4"ite8 to identif# the 4arrier" to e'commerce% ,i?erent nation" are at
di?erent "tage" of de!elopment of e'commerce and a" "uch the i""ue" that
are rele!ant to one nation ma# not 4e rele!ant to another% Eimilarl#8 the
i""ue" that are rele!ant to the t#pe of organi"ation al"o di?er% 5or eample8
large organi"ation" ha!e di?erent need" and infra"tructure" to EGE"% =he
"tud# of 18222 !i"itor" di!ide" the fnding" into the per"pecti!e" of three
di?erent t#pe" of organi"ationF large 0'to'0 organi"ation"O EGE 0'to'0
enterpri"e"O and 0'to'( retailer"% =he "tud# al"o di!ide" the re"ult" into DE
and non'DE 4a"ed% =hi" i" particularl# u"eful 4ecau"e the DEA i" at a more
ad!anced "tage in the e'commerce adoption lifec#cle than the ma7orit# of
other nation" and "o can 4e u"ed a" a predictor of thing" to come or a" a
warning to pre!ent follower" eperiencing "imilar pitfall" and pro4lem"%
=he fnding" "ummari"ed in 5igure 1%. "how that 4arrier" to ecommerce
can 4e "een a" 4eing rele!ant 4oth to the macro'en!ironment
and the micro'en!ironment le!el of the frm it"elf% 6!erall8 all three kind"
of organi"ation" ha!e "imilar 4arrier" 4ut with di?erent empha"e"%
Internet infrastructure deal" with i""ue" "uch a" a!aila4ilit# and qualit#
of the Internet in term" of "peed and relia4ilit#% =hi" 4arrier i" of particular
concern to EGE" and 0'to'( organi"ation"8 "ince their 4u"ine"" relie" more
on general con"umer"8 and "o the ea"e with which the general pu4lic can
connect to the Internet ha" a direct impact on their &e4'4a"ed 4u"ine""%
Technology infrastructure deal" with i""ue" of "tandardi"ation of "#"tem"
and application"8 which i" a particular concern for larger organi"ation"
who want to implement "olution" "uch a" !alue chain integration and
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e'"uppl# chain management%
0ecurity in it" 4roade"t term i" one of the mo"t "ignifcant 4arrier" to
e'commerce 4oth within the organi"ation and eternal to it% Identifed a"
0ecurity and "ncryptionO Trust and /iskO @ser +uthentication and .ack of
,ublic
Dey InfrastructureO *raud and /isk of .oss it relate" to the de!elopment of a
4roader "ecurit# infra"tructure and it al"o relate" to the kind" of mea"ure"
%i8ure 10> 0arrier" to e'commerce
organi"ation" can take to impro!e "ecurit#% Although "ecurit# i" a ma7or
concern for all t#pe" of organi"ation"8 it i" a dominant concern for
companie" in the 0'to'( e'commerce retail "ector8 "ince it reMect" the
concern" and perception" of u"er" and potential cu"tomer" that are
conducting
fnancial tran"action" on'line%
=he commercial infrastructure relate" to i""ue" "uch a" international
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trade agreement"8 taation law" and other legal agreement" that facilitate
all kind" of on'line trading and "o i" a 4arrier rele!ant to all t#pe" of
organi"ation"%
At the le!el of the organi"ation it"elf8 there are man# 4arrier" to
e'commerce that relate to i""ue" of organisational structure and culture%
=he"e
are mo"t "ignifcant for large organi"ation" that ha!e to deal with change
management i""ue"% 5or eample8 there i" a "en"e that much work "till
need" to 4e done to de"ign the right organi"ational "tructure and corporate
culture that will promote and 4e a4le to maimi"e the 4eneft" of wide"pread
e'commerce application"% Additionall#8 there i" a perception that
4u"ine"" partner" face "imilar organi"ational and technological pro4lem"8
which rai"e" the 4arrier further%
Another "ignifcant i""ue wa" found to 4e the lack of qualifed personnel
to implement in'hou"e and third'part# e'commerce "#"tem"% 5or EGE"8 thi"
i" a particularl# "trong concern 4ecau"e internall# the# do not ha!e
"uKcient re"ource" to attract and maintain their own "upport "ta? to
de!elop a "ophi"ticated technolog# infra"tructure% &ith regard" to third
partie"8 the qualifed per"onnel tended to work for larger organi"ation"8
which were more concerned a4out "er!ing the more lucrati!e larger client"
than EGE"% 6ne re"pondent noted that8 9"mall frm" get lot" of !ague and
general ehortation" to go HonlineI 4ut fnd it !er# diKcult to get relia4le8
well informed ad!ice and al"o to get hone"t8 e?ecti!e "upport from a &e4
"er!ice" pro!ider3%
Another ma7or 4arrier to the de!elopment of e'commerce wa" a lack of
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proven business models. =hi" i" a reMection of the in"ta4ilit# of the whole dot
com phenomenon8 and the poor performance of the dot com" on the
world3" "tock echange" in late 1/// and earl# 2222 after the di@@# height"
to which dot com companie" ro"e in 1//*J/% A fnanciall# "ucce""ful
4u"ine"" model ha" #et to emerge into the 4u"ine"" world3" limelight a" the
model to follow%
Interoperability of systems i" identifed a" one of the ma7or 4arrier" for
large DE'4a"ed 0'to'0 corporation"% =hi" refer" "pecifcall# to implementation
and compati4ilit# pro4lem" of integrating new e'commerce application"
with ei"ting legac# "#"tem" and re"ource" within organi"ation"% =hi"
pro4lem al"o etend" to interacting with "#"tem" of 4u"ine"" partner" and
"takeholder"% =he fact that the DEA i" ahead in the adoption lifec#cle of
e'commerce "ugge"t" that the"e i""ue" will 4ecome more pre!alent in other
nation" that are further 4ehind in the lifec#cle% =hu" there i" a need for
"tandard" to 4e introduced to o!ercome i""ue of incompati4ilit# and
interopera4ilit#% 5or EGE" that ha!e fewer legac# "#"tem"8 the i""ue" are
more a matter of interopera4ilit# with partner "#"tem"%
Gan# of the top 4arrier" recogni"ed 4# re"pondent" in 2222 were al"o
top concern" in 1///8 e"peciall# "ecurit#% =hi" illu"trate" a con"i"tenc# and
relia4ilit# of the mea"ure" 4eing taken 4# the "ur!e# and al"o underline"
the fact that the# are not 4eing addre""ed adequatel#% =he two ma7or
change" were increa"ed concern o!er lack of 4u"ine"" model" and lack of
qualifed per"onnel% =hi" reMect" the downturn in the fortune" of the dot
com" and al"o illu"trate" the increa"ing "kill" "hortage" pro4lem" to deal
with the increa"ing I= implementation and maintenance pro4lem"% =he"e
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i""ue" will 4e dealt with in the remaining chapter" of thi" 4ook%
S-MM#R/
=here i" no one commonl# agreed defnition of e'commerce or e'4u"ine""%
=hu"8 there i" a need to clarif# term" 4eing u"ed and eplain the contet in
which the# are 4eing applied% E'commerce ha" an impact on three ma7or
"takeholder"8 namel# "ociet#8 organi"ation" and cu"tomer" ;or con"umer"<%
=here are a num4er of ad!antage"8 which include co"t "a!ing"8 increa"ed
eKcienc#8 cu"tomi"ation and glo4al marketplace"% =here are al"o limitation"
ari"ing from e'commerce which appl# to each of the "takeholder"%
=he"e include information o!erload8 relia4ilit# and "ecurit# i""ue"8 co"t of
acce""8 "ocial di!i"ion" and diKcultie" in policing the Internet% Eucce""ful
e'commerce in!ol!e" under"tanding the limitation" and minimi"ing the
negati!e impact while at the "ame time maimi"ing the 4eneft"%
In order to aid general under"tanding of e'commerce a num4er of
framework" ha!e 4een introduced to eplore it from di?erent per"pecti!e"F
the macro'en!ironment8 which identife" the interaction of technolog#8
people8 organi"ation"8 polic# and technical "tandard" working together to
ena4le e'commerceO the di?erent participant" and the kind of e'commerce
tran"action" that occur 4etween themO and the degree of digiti"ation that
anal#"e" product8 proce""e" and deli!er# agent" in an organi"ation% =he"e
framework" help identif# the element" of e'commerce and how 4u"ine""e"
can 4etter under"tand e'commerce and it" practical applica4ilit#%
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&1#P+$R-!
&B$#"
")E
C$MP&N*
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2!013 IN+R(D-&+I(N (% +1$ &(MP#N/
0ookm#wi"h%com i" a one "top "hop for all #our fa"hion and life"t#le need"%
0eing IndiaT" large"t e'commerce "tore for fa"hion and life"t#le product"8
0ookm#wi"h%com aim" at pro!iding a ha""le free and en7o#a4le "hopping
eperience to "hopper" acro"" the countr# with the wide"t range of 4rand"
and product" on it" portal% =he 4rand i" making a con"ciou" e?ort to 4ring
the power of fa"hion to "hopper" with an arra# of the late"t and trendie"t
product" a!aila4le in the countr#%
.a5ue proposition
0ookm#wi"h%com !alue propo"ition re!ol!e" around gi!ing con"umer" the
power and ea"e of purcha"ing fa"hion and life"t#le product" online% 6?ering"
"uch a" the large"t in'"ea"on product catalogue8 122S authentic product"8
ca"h on deli!er#8 EGI facilit# and 32 da# return polic# make
0ookm#wi"h%com8 the preferred "hopping de"tination in the countr#% =o make
online "hopping ea"ier for #ou8 a dedicated cu"tomer connect team i" on
"tand4# to an"wer #our querie" 24$%
Brands
0ookm#wi"h%com under"tand" it" "hopper"T need" and cater" to them with
choice of apparel8 acce""orie" and footwear% Prominent 4rand" include
(eni@a" and GA(6R6%
.ision?
=o pro!ide 4e"t !alue for mone# to in!e"tor" through
inno!ati!e product"8 trading:in!e"tment" "trategie"8
"tate of the art technologie" and per"onali@ed "er!ice%
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(bjecti4e? =o ha!e complete harmon# 4etween qualit#'in'proce"" and
continuou" impro!ement to deli!er eceptional "er!ice" that will delight our
cu"tomer" and client"%
Business phi5osophy?
' Ethical practice" and tran"parenc# in all our dealing"%
' (u"tomer" intere"t a4o!e our own
' Alwa#" deli!er what we promi"e
' E?ecti!e co"t management
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2!0!3 &(MP#N/@S PR(D-&+S #ND S$R.I&$S?
0ookm#wi"h E'(ommerce P!t% ltd% o?er" man# product" including 1ife"t#le
product"% Cot onl# that8 from la"t man# #ear" 0ookm#wi"h%com ha" pro!en
it" 4e"t among man# top companie" in the feld of E'(ommerce%
0ookm#wi"h o?er" following product" to it" cu"tomer%
No0 +ype o; Product
1 Gale Ehirt"
2 Gale ='Ehirt"
3 Gale Qean"
4 Gale Cightwear
- Gale Innerwear
. Gale &allet"
$ Gale 0elt"
* 5emale +utri"
/ 5emale +urta"
12 5emale Euit"
11 5emale Cightwear
12 5emale Innerwear
13 5emale Acce""orie"
14 0ed Eheet"
1- (u"hion (o!er"
2!033 Distincti4e bene:ts o; buyin8 ;rom $-&ommerce
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1) Convenience:
The convenience of this method of shopping is what I like best about it.
Where else can you do shopping even a midnight wearing your night suit? You do
not have to wait in a line or wait till the shop assistant is ready to help you with your
purchases. You can do your shopping in minutes even if you are busy apart from
saving time and avoiding crowds. Online shops give us the opportunity to shop 2 !
" and also reward us with a #no pollution$ shopping. There is no better place to buy
information products like e%books. Immediately after the payment is made one can
download the information. &nd downloadable items purchased online eliminate the
need for any kind of material goods at all.
2) Better Prices:
&nother thing which fascinates me is the cheap deals and better prices I get
from online stores because products come to you direct from the manufacturer or
seller without middlemen involved. 'any online shops offer discount coupons and
rebates. &part from this( the Online )tore is only re*uired to collect sales ta! if they
have a physical location in our state even if we buy from a store across the world.
3) Variety:
The choices you can get for products are ama+ing. One can get several
brands and products from different sellers at one place. You can get in on the latest
international trends without spending money on airfare. When you shop online( you
can shop from retailers in other parts of the country or even the world without being
limited by geographic area. These stores offer a far greater selection of colors and
si+es than you will find locally. &part from that( ,ow many times have it happened
that you spend your money reaching a local shop only to find that the product you
need is out of stock? )ome online shops have a provision to accept orders without
stock and ship it across to you when the stock becomes available. You also have the
option of taking your business to another online store where the product is available.
4) Send Gifts:
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Online )hopping makes sending gifts to relatives and friends easy( no matter
where ever they stay. -ow there is no need of making distance an e!cuse for not
sending a gift on occasions like .irthday( Wedding &nniversary( 'arriage( /alentine$s
0ay( 'other$s 0ay etc.
5) Fewer E!enses:
'any times when we opt for conventional shopping we tend to spend a lot
more than the re*uired shopping e!penses on things like eating out( traveling(
impulsive shopping etc.
") Co#!arison of Prices:
Online shops make comparison and research of products and prices
possible. Online stores also give you the ability to share information and reviews with
other shoppers who have firsthand e!perience with a product or retailer.
$) Crowds:
If you are like me( you would like to avoid the crowds when you do the
shopping. 1specially during 2estivals and )pecial events the crowds can really give
a head ache. 3rowds force us to do a hurried shopping most of the time. 2or me
grumpy or irritating people and those who smell bad are a huge turn off. 3rowds also
create a problem when it comes to finding a parking place nearby where you want to
shop and going back to your vehicle later loaded with shopping bags.
%) Co#!&'sive S(o!!in):
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'any times when we go out on )hopping we end up buying things which we
do not re*uire because of the shop keepers up selling skills. )ometimes we even
compromise on our choices because of the lack of choices in those shops.
*) B&yin) +'d or &n&sed St&ff at 'ow !rices:
Online )hops make it possible for us to buy old or unused stuff at rock
bottom prices. If we want to buy anti*ues there is no better options than online
stores.
1,) -iscreet P&rc(ases:
)ome things are better done in privacy. Online shops are also best for
discreet purchases like adult toys( se!y lingerie and so on. Online )hops enable me
to purchase under garments and lingerie without the embarrassment that there are
several people watching me and my choices.
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