Electronic Commerce

E-Commerce

Md. Rakibul Hoque

University of Dhaka

E-business
E-business is the use of the Internet and IT to execute all of the business processes for the firm. E-business includes e-commerce, all internal processes, and coordination with business partners such as customers and suppliers

E-business

E-business refers to the use of digital technology and the internet to execute the major business processes in the enterprise. It includes the activities for the internal management of the firm and for coordination with supplier and other business partners. It also includes ecommerce.

E-business

E-business is the conduct of business on the Internet, in supply-chain planning, tracking, fulfillment, invoicing, and payment. It includes buying and selling as well as serving customers and collaborating with business partners. It combines the resources of traditional information systems with the global reach of the Web.

E-Commerce
E simply means anything done via the internet and commerce means buying and selling products, services and information. So, E Commerce refers to the process of buying and selling or exchanging of products, services, or information via computer networks including internet.

E-Commerce
E-commerce is associated with buying and selling of information, products and services via computer networks to-day and in the future via any one of the myriad of networks that make up the Iway. E-commerce concerns the processes for buying and selling goods and services electronically

E-Commerce
E-commerce is the online process of developing, marketing, selling, delivering, servicing, and paying for products & services transacted on internetworked, global marketplaces of customers, with the support of a worldwide network of business partners.

The Growth of E-Commerce

Retail e-commerce revenues have grown exponentially since 1995 and have only recently slowed to a very rapid 16 percent annual increase, which is projected to remain the same until 2010.

Key Concepts in E-Commerce

Digital goods: Digital goods are goods that can be delivered over a digital network.

E.g., Music tracks, newspapers, books

video,

software,

Costs of delivery over the Internet very low Marketing costs remain the same; pricing highly variable Industries with digital goods are undergoing revolutionary changes (publishers, record labels, etc.)

Key Concepts in E-Commerce

Digital market: In Digital market, consumers and suppliers can see the prices being charged for goods, and in that sense digital markets are said to be more transparent than traditional market.

E-Commerce

E-commerce involves digitally enabled commercial transactions between and among organizations and individuals.

Digitally enabled transactions include all transactions mediated by digital technology Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services

E-Commerce
Electronic commerce is the paperless exchange of business information using electronic data interchange (EDI), e-mail, electronic bulletin boards, fax transmissions and electronic fund transfer. It refers to Internet shopping, online stock and bond transactions, the downloading and selling of soft merchandise such as software, documents, graphics, music etc (Business town.com).

Electronic Commerce from the different perspective

Communication Perspective: Electronic Commerce is the delivery of the information, products/ services, or payments over the telephone lines, computer network, or any other electronic means.

Electronic Commerce from the different perspective

Business Process Perspective: EC is the application of the technology toward the automation of business transactions and workflow. Online Perspective: EC provides the capability of buying and selling products and information on the internet and other online services

Electronic Commerce from the different perspective

Service Perspective: EC is the tool that addresses the desire of firms, consumers, and mgt to cut service costs while improving the quality of goods and increasing the speed of service delivery.

The Scope of E-Commerce

Differences in Marketing (Traditional Vs. Web Marketing)

Clicks and Bricks

Bricks-and-clicks is a business model by which a company integrates both offline (bricks) and online (clicks) presences. It is also known as click-and-mortar or clicks-and-bricks, as well as bricks, clicks and flips, flips referring to catalogs. For example, an electronics store may allow the user to order online, but pick up their order immediately at a local store, which the user finds using locator software. Conversely, a furniture store may have displays at a local store from which a customer can order an item electronically for delivery.

Strategic impact

Electronic commerce can have a strategic impact on business by: Providing an innovative approach for conducting business. Providing a reduction in the cost of transactions. Providing unique, customized products for its customers. Providing customer access 24 hours every day.

Common Denominators of E-commerce

It extends beyond the boundaries of a single enterprise. A full range of on-line business transaction is now possible. Every business of the world become accessible to other businesses via computer.
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Common Denominators of E-commerce

It can be applied to almost all type of business relationship. The buyers and sellers from companies large and small can meet on equal term. Buyers can browse multimedia catalog, solicit bids, and place orders.
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Common Denominators of E-commerce

Sellers can respond to bids, schedule production, and coordinate deliveries. Intermediaries can entire the market place with value added services such as specialized directories, brokering, referral and vendor certification.
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Benefits of E-Commerce

For Consumers

Reduced Prices Global marketplace 24 hour access Larger Purchase per transaction Reduced time

Benefits of E-Commerce

For Business

Increased potential market share

Easier entry to new market Low cost advertisement Low barriers to entry Improved customer relation

Benefits of E-Commerce

For Business

Eliminate Middleman Reduced paperwork Advice from experts and peers New business opportunity Improved market analysis

Disadvantages of E-Commerce

For Consumer

Unable to examine products personally Security Credit card fraud Trust

Disadvantages of E-Commerce

For Business

Hardware and software Maintenance of Website Intellectual property Taxation Limited market place Training and maintenance

Categories of E-Commerce
There are many ways in which e-commerce can be classified. On the basis of the nature of the participants, e-commerce are three types. These are

Business-to-consumer (B2C) Business-to-business (B2B) Consumer-to-consumer (C2C)

Business-to-consumer (B2C)

Business-to-customer(B2C): Selling or retailing of products and services directly to individual customers (Wal-Mart.com) It involves commercial interaction between a business entity and an individual consumer, where a business sells to a consumer for example, a customer buying a shirt from a retailer through the Internet. Munshigi.com, bengalcommerc.com, bajna.com and ebangla.com are the most popular B2C ecommerce in Bangladesh.

Business-to-consumer (B2C)

Businesses typically sell products and services to consumers at E-commerce websites that provide attractive Web pages, multimedia catalogs, interactive order processing, secure electronic payment systems, and online customer support

Categories of E-Commerce

Business-to-Business (B2B)

Business-to-business (B2B): Sales of goods and services to other businesses (Grainger.com, Ariba.com)
Business-to-business applications of Ecommerce involve electronic catalog, exchange, and auction marketplaces that use Internet, intranet, and extranet websites and portals to unite buyers and sellers.

Business-to-Business (B2B)

It involves online commercial interaction between two business entities for example, a wholesale buyer doing business negotiations with a garments manufacturer over the Internet. B2B application already exists in the export sector of Bangladesh, especially in the Ready Made Garments (RMG) industry.

Business-to-Business

Three main types of B2B e-commerce: Supplier-oriented marketplace supplier company provides e-commerce capabilities for other businesses to order its products. Buyer-oriented marketplace buyer requests quotations or bids from other companies electronically. Intermediary-oriented marketplace acts as an intermediary between buyer and seller.

Consumer-to-consumer (C2C)

Consumer-to-consumer

(C2C):

Individuals using the Web for private sales or exchange. Consumer selling directly to consumer (eBay.com). It involves commercial interaction between two private individuals for example, auction sites. If a person wants something to sale, then he can get it listed at an auction site, and others can bid for it.

Other types of e-commerce

Other types of e-commerce are

Consumer-to-government (C2G) Business-to-government(B2G) Government-to-government(G2G)

History of e-commerce

Began in 1995 and grew exponentially; still growing at an annual rate of 16 percent

Rapid growth led to market bubble

While many companies failed, many survived with soaring revenues E-commerce today the fastest growing form of retail trade in U.S., Europe, Asia

Seven Unique Features of E-commerce Technology

Available everywhere, all the time Offers global reach (across cultural/national boundaries). Operates according to universal standards (lowers market entry for merchants and search costs for consumers).

Seven Unique Features of E-commerce Technology

Provides information richness (more powerful selling environment) Is interactive (can simulate face-to-face experience, but on a global scale) Increases information density (amount and quality of information available to all market participants) Permits personalization/customization

E-commerce Opportunities for industries

Financial service Stock trading Banking Legal and professional service Tour and travel Healthcare

Essential e-commerce Processes

Essential e-commerce processes required for the successful operation and management of e-commerce activities. There are nine key components of an ecommerce process architecture that is the foundation of the e-commerce initiatives of many companies.

Essential E-Commerce Architecture

Essential e-commerce Processes

Access Control and Security: Ecommerce processes must establish mutual trust and secure access between the parties in an ecommerce transaction by authenticating users, authorizing access, and enforcing security features.

Essential e-commerce Processes

Profiling and Personalizing: Processes that gather data on you and your website behavior and choices, and build electronic profiles of your characteristics and preferences. These profiles are then used to recognize you as an individual user and provide you with a personalized view of the contents of the site, as well as product recommendations and personalized Web advertising.

Essential e-commerce Processes

Search Management: Efficient and effective search processes provide a top ecommerce website capability that helps customers find the specific product or service they want to evaluate or buy. Content Management: Software that helps e-commerce companies develop, generate, deliver, update, and archive text data and multimedia information at ecommerce websites.

Essential e-commerce Processes

Catalog Management: Software that helps generate and manage catalog content. Workflow Management: Software that helps employees electronically collaborate to accomplish structured work tasks within knowledge-based business processes.

Essential e-commerce Processes

Event Notification: Software that notifies customers, suppliers, employees, and other stakeholders of their status in a transaction based on events initiated by one of the parties. Collaboration and Trading: Processes that support the vital collaboration arrangements and trading services needed by customers, suppliers, and other stakeholders.

E-Commerce Success Factors

Selection & Value Performance & Service Look & Feel Advertising & Incentives Personal Attention Community Relationships Security & Reliability

Some Key Factors for Success in E-commerce

E-Commerce Success Factors

Selection and value: Attractive product selections, competitive prices, customer support after the sale, satisfaction guarantees. Performance and service: Fast, easy navigation, shopping and purchasing, quick shipping and delivery.

E-Commerce Success Factors

Look and feel: Multimedia product catalog pages, shopping features, website shopping area. Advertising and Incentives: E-mail promotions, discount and special offers, Advertising at affiliate sites. Personal attention: Personalized product recommendations, Web advertising.

E-Commerce Success Factors

Community Relationship: Virtual communities of customers, suppliers, and others via newsgroup, chat room and links to related sites. Security and Reliability: Security of customer information and website transactions, reliable order fulfillment.

Technology and E-commerce

The Internet and Web are just two of a long list of technologies, such as automobiles and radio, that have followed a similar historical path. Although e-commerce has grown explosively, eventually its growth will cap as it confronts its own fundamental limitations.

Technology and E-commerce

The Internet, intranets, and extranets are the network infrastructure or foundation. Customers must be provided with a range of secure information, marketing, transaction processing, and payment services.

Technology and E-commerce

Trading and business partners rely on the Internet and extranets to exchange information and accomplish secure transactions. Company employees depend on a variety of Internet and intranet resources to communicate and collaborate.

Technology and E-commerce

IS professionals and end users can use a variety of software tools to develop and manage the content and operations of the websites and other e-commerce resources.

Technology and E-commerce

Technology and E-commerce

E-commerce in Bangladesh
E-commerce in Bangladesh actually started in the year of 1999 based in USA with some non-resident Bangladeshis. This people opened some Bangladeshi sites focused on providing local news and some transactional things like sending gift items to Bangladesh.

E-commerce in Bangladesh
www.banglaCommerce.com www.muktobazar.com www.chorka.com

www.hutbazar.com
www.ekusheybd.com www.cellbazar.com www.bajna.com

E-commerce in Bangladesh
www.bangladeshinfo.com

www.bd

Bazar.com www.Quickezine.com www.Webbangladesh.com www.Deshigift.com www.Bangla2000.com www.Banglabaskets.com

Problems of e-commerce in Bangladesh

Enterprise managers lack of initiatives and leadership in taking advantages of e-commerce. Lack of sufficient Infrastructure Lack of General awareness about ecommerce Lack of awareness at government level of e-commerce issues

Problems of e-commerce in Bangladesh

Poor number of users of web sites Mistrust Bandwidth Small number of Credit card users Limitations of supportive legal system Absence of cyber law

Overcome

Infrastructure development Legal framework Skilled manpower Ensure proper security about customers information (i.e Credit card number) by cyber law. Development of proper educational institution to create efficient IT professionals

Overcome

To increase the use of computers and internet facilities, government should withdraw all taxes from computers and its accessories. Proper banking infrastructure for issuing debit/credit card and online money transaction facility. Government should create an image of e-commerce awareness and leadership, and demonstrate to business community the importance of e-commerce.

Overcome
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Relax foreign exchange control on travel and for business and allow issuance of international credit cards. Establish sufficient number of cyber caf through private entrepreneurs.

Overcome

Make business Association and organizations aware of the benefit of ecommerce. BGMEA can play a significant role in this respect. Political commitment to improve governance and institutional strengthening are essential for successful of ecommerce.

Thanks You