Unit I
Unit I
Unit I
UNIT-1
Meaning of business:-
Meaning of business:-
A general term that refers to any type of business activity on the internet, including
marketing, branding, and research.
Branding: - The process involved in creating a unique name and image for a product in the
consumer’s mind, mainly through advertising campaigns with a consistent theme.
Commerce: - The buying and selling of products and services between firms, usually in different
status or countries.
E-commerce: - e-commerce means buying and selling of products or services over electronic
systems such as the internet and other computer networks.
In both cases , E stands for “Electronic networks “ and describes the applications of
Electronic network technology – including internet and electronic data interchange (EDI) – to
improve and change business process .
E-commerce covers outward - facing processes that touch customers , suppliers and
external partners , including sales , marketing , order taking , delivery , customer service , purchasing
of raw materials ---.
E-business includes E-commerce but also covers internal process such as production ,
inventory management , products development , finance , human resources , E-business strategy is
more complex , productivity and cost savings .
Ex:-E-bay, Amazon.
Definition of E-commerce:-
Or
Write about E-commerce.
E-commerce means buying and selling of products or services over Electronic systems such as
internet and other computer networks.
✓ This use of Electronic transmission medium (Tele communication) to Engage in the
exchange, including buying and selling, of products and services either physically or digitally,
from location to location.
✓ The key element of E-commerce is information processing.
✓ This information processing activity is in the form of business transactions.
✓ Some of the business transactions are :-
1. Transactions between company and the consumer over networks for the purpose of
home shopping and home banking .
2. Transactions between trading partners .
3. Transactions for information distribution .
2. Explain activities of E-commerce?
a) Increasing the speed of service delivery.
b) Use of computer networks to search and retrieve information in support of human and
corporate decision –making.
c) Buying and selling of information, products and services via computer network.
d) Faster customer response and improve services quality.
e) Advertising on the internet.
f) Online electronic commerce payments i.e., electronic funds transfer.
3. Give some potential benefits of E-commerce.
A. The most important feature s of E-commerce is
1. The global nature of the technology.
2. Low cost.
3. Opportunity to reach hundreds of millions of people.
4. Interactive nature.
5. Variety of possibilities.
6. Rapid growth of the supporting infrastructures.
According to these features, E-commerce benefits are classified into 3 types.
➢ Benefits to organization.
➢ Benefits to consumers.
➢ Benefits to society.
Benefits to organization:-
1. E-Commerce enables more individuals to work at home and to do less travelling for
shopping resulting in less traffic on the roads and lower air pollution.
2. E-Commerce enables people in rural areas to enjoy products and services that are not
available to them. This includes opportunities to learn professions and earn college degrees.
3. E-Commerce facilitates delivery of public services such as health care education and
distribution of Government social services at a reduced cost and or improved quality.
CLASSIFICATIONS OF E-COMMERCE:
ECOMMERCE APPLICATIONS:
It is consider to be broad in scope because not refers to marketing on the internet but
also done in Email and wireless media.
E-Marketing ties together the creative and technical aspects of the internet, including
design development, advertising and sales.
Internet marketing is associated with several business models ie., B2C, B2B, C2C.
Internet marketing is inexpensive when examine the ratio of cost to the reach of the
target.
2) E-ADVERTISING: It is also known as online advertising it is a form of promotion that
uses internet and world wide web to deliver marketing messages to attracts customers.
Example: Banner ads, Social network advertising, online classified advertising etc.,
The growth of these particular media attracts the attention of advertisers as a more
productive source to bring in consumers.
The term online advertisement comprises all sorts of banner advertisement, email
advertising, in game advertising and key soon.
Means any user with a personal computer and browser can get connected to his banks,
website to perform any of the banking functions. In internet banking system the bank has a
centralized data base i.e., web-enabled.
SERVICES ARE:
1. Mobile ticketing
2. Mobile Vouchers, Coupons and
3. Mobile contract purchase and delivery mainly consumes of the sale of ring tones,
wallpapers and games of mobile phones.
4. Local base services
Local discount offers
Local weather
5. Information services
News
Sports, Scores
6. MOBILE BANKING: Banks and other financial institutions used mobile commerce to allow
their customers to assess account information and make transactions, such as purchasing,
withdrawals etc.,
7. MOBILE BROWSING: Using a mobile browser- A www browser on mobile device customers
can shop online without having to be at their personal computer.
6) ONLINE SHOPPING:-
Online shopping is the process where by consumer directly buy goods or services from a
sell in real time, without an intermediary services over the internet .it is a form of E-
commerce
An online shop, e-shop, e-store, internet shop web shop, web store, online store, or
virtual shop evokes the physical analogy of buying products or services in a shopping
center.
The process is called business-to-consumer (B2C) online shopping. When a business
buys from another business it is called business-to-business (B2B) online shopping.
In order to shop online, one must be able to have access to a computer, a bank account
and debit card.
Online shopping widened the target audience to men and women of the middle class.
Online shoppers commonly use credit card to make payments , however some systems
enable users to create accounts and pay by alternative means ,such as
1. Billing to mobile phones and landline.
2. Cheque.
3. Debit cards.
4. Gift cards
5. Postal money order.
Online stores are usually available 24 hours a day, and many consumers have internet
access both at work and at home.
Online stores must describe products for sale with text, phones, and multimedia files .
One advantage of shopping online is being able to quickly seek out deals for items or
services with many different vendors.
Another major advantage for retailers is the ability to rapidly switch suppliers and
vendors without disrupting users shopping experience.
7) SEARCH ENGINE:-
A web search engine is designed to search for information on the WWW and FTP servers.
The search results are generally presented in list of result and are often called hits.
The information may consist of web pages, images, information, and other types of files.
Some search engines also mine data available in database or open directories.
Search engines work by storing information about many web pages, which they retrieve from
the HTML it self.
When a user enters a query into a search engine (typically by using keywords), the engine
examines its index and provides a listing of best matching according to its criteria.
Most search engines support the use of Boolean operator AND, OR, and NOT.
Some search engines, such as GOOGLE, store all or part of the source page as well as
information about the web pages.
8) ONLINE TRADING:-
An online trading community provides participants with a structured method for trading
bantering (exchanging goods with goods) or selling goods and services.
These communities often have forums and chat rooms, designed to facilitate communication
between the members.
A formal trading community consists of a website or network of websites that facilitates and
track made transactions.
While trading any used items online, be sure to include the condition and quality of the
product so as the receiver can determine its overall value.
A trading circle is a form of online trading design to facilitate viewing of television series and
episode media.
9) ENTERTAINMENT:-
The conventional media that have been used for entertainment are
1. Books/magazines.
2. Radio.
3. Television/films.
4. Video games.
The internet as an entertainment media is not a elastic by itself, but rather a unique interactions
of all of the above media.
Computer based systems have been used as an entertainment medium in the form of video
games , CD , ROMs , etc..
Online books /newspapers, online radio, online television, online firms, and online games are
common place in internet where we can entertain.
Online social networking websites are one of the biggest sources of E-entertainment for today’s
tech-savvy (who have knowledge interest in) generation.
What are the driving forces behind electronic commerce ?
Economic forces that drives e-commerce
Technological forces that drives electronic commerce
Market forces that drives electronic commerce
VIRTUAL VIRTUAL
INFORMATION
SPACE
TRADITIO
NAL
MARKET
PLACE
OPEN MARKET
Electronic
Information
Electronic transactions
Electronic
Relationship
Existing
Market
Space
Short Question & Answers
1) Define E-Business.
2) Define E-commerce
3) What are the potential benefits of E-commerce?
4) What are the applications of E-commerce?
5) Explain types of E-commerce.
6) Explain limitations of E-commerce.
7) Explain Define E-marketing, E-banking.
8) Explain search engines & mobile commerce.
Long Questions
1) Explain benefits of E-commerce to organizations, consumers , society .
2) Explain impact of E-commerce on business pedal.
3) Explain ICDI model, three pillar of E-commerce.
4) Explain terms
E-Advertising.
E-learning.
E-shopping.
INTERNET OVERVIEW
Internet
Internet is defiend as an Information super Higway, to access information over the web. However,
It can be defined in many ways as follows:
Internet is a world-wide global system of interconnected computer networks. Internet
uses the standard Internet Protocol TCP /IP.
Every computer in internet is identified by a unique IP address.
A special computer DNS DomainNameServer is used to give name to the IP Address so that
user can locate a computer by a name.
Advantages
Internet covers almost every aspect of life, one can think of. Here, we will discuss some of the
advantages of Internet:
Internet allows us to communicate with the people sitting at remote locations. There are
various apps available on the wed that uses Internet as a medium for communication. One
can find various social networking sites such as:
Facebook
Yahoo
Google+
Flickr
Orkut
One can surf for any kind of information over the internet. Information regarding various
topics such as Technology, Health & Science, Social Studies, Geographical Information,
Information Technology, Products etc can be surfed with help of a search engine.
Apart from communication and source of information, internet also serves a medium for
entertainment. Following are the various modes for entertainment over internet.
Online Television
Videos
Social Networking Apps
Banking
Matrimonial Services
Online Shopping
Data Sharing
Internet provides concept of electronic commerce, that allows the business deals to be
conducted on electronic systems
Disadvantages
However, Internet has prooved to be a powerful source of information in almost every field, yet
there exists many disadvanatges discussed below:
There are always chances to loose personal information such as name, address, credit card
number. Therefore, one should be very careful while sharing such information. One should
use credit cards only through authenticated sites.
Another disadvantage is the Spamming.Spamming corresponds to the unwanted e-mails in
bulk. These e-mails serve no purpose and lead to obstruction of entire system.
Virus can easily be spread to the computers connected to internet. Such virus attacks may
cause your system to crash or your important data may get deleted.
Also a biggest threat on internet is pornography. There are many pornographic sites that can
be found, letting your children to use internet which indirectly affects the children healthy mental life.
There are various websites that do not provide the authenticated information. This leads to misconception
among many people.
The building blocks of the Web are web pages which are formatted in HTML and connected
by links called "hypertext" or hyperlinks and accessed by HTTP. These links are electronic
connections that link related pieces of information so that users can access the desired
information quickly. Hypertext offers the advantage to select a word or phrase from text
and thus to access other pages that provide additional information related to that word or
phrase.
A web page is given an online address called a Uniform Resource Locator (URL). A
particular collection of web pages that belong to a specific URL is called a website,
e.g., www.facebook.com, www.google.com, etc. So, the World Wide Web is like a huge
electronic book whose pages are stored on multiple servers across the world.
Small websites store all of their WebPages on a single server, but big websites or
organizations place their WebPages on different servers in different countries so that
when users of a country search their site they could get the information quickly from the
nearest server.
Difference between World Wide Web and internet:
Some people use the terms 'internet' and 'World Wide Web' interchangeably. They think
they are the same thing, but it is not so. Internet is entirely different from WWW. It is a
worldwide network of devices like computers, laptops, tablets, etc. It enables users to
send emails to other users and chat with them online. For example, when you send an
email or chatting with someone online, you are using the internet.
WEB BROWSER
A web browser, which is commonly known as a browser, is a program that displays text,
data, pictures, videos, animation, and more. It provides a software interface that allows
you to click hyperlinked resources on the World Wide Web. When you double click the
Browser icon installed on your computer to launch it, you get connected to the World
Wide Web and can search Google or type a URL into the address bar.
In the beginning, browsers were used only for browsing due to their limited potential.
Today, they are more advanced; along with browsing you can use them for e-mailing,
transferring multimedia files, using social media sites, and participating in online
discussion groups and more. Some of the commonly used browsers include Google
Chrome, Mozilla Firefox, Internet Explorer, Safari, and more.
Keep costs under control — An outsourced agency can mean big bucks, especially if
you’re just getting your footing. It’s possible that you can’t afford to use an outside
agency, particularly if you’re not going to see an immediate return on your investment
for their services.
Time-consuming — There’s a lot of merit in “going about things on your own.” But is
your business spending your time wisely by building your own in-house ecommerce
solution? Managing an online store requires a significant investment of developer
time – a key resource that could potentially be better allocated towards improving
your core business and product offering.
Security issues — Data breaches at huge corporations such as Anthem and Target
have spurred customers to take a greater interest in how merchants handle their
payment information. Companies selling digital products and software online must be
sure to comply with proper PCI standard (PCI DSS) to protect cardholder data.
Time-saving — Reduce your time to market and start achieving your revenue
potential faster. Partnering with a full-service ecommerce platform like FastSpring can
enable you to configure your online store in minutes, all without having to invest
considerable time creating your own ecommerce solution.
Security solutions — Complying with payment security standards and local laws is
easy when you have an external partner handling compliance on your behalf. Give
your customers peace of mind when they shop using FastSpring’s secure checkout
and reduce costly chargebacks with our robust fraud management services.
Finding the right partner — How can you be sure that the outsourced ecommerce
solution will do what they promise they’ll do? It’s important that you carefully assess
any agency or solution prior to signing on with them. You’ll want to be sure that your
new partner has the skills and technical capabilities to support your business needs
and keep up with the latest ecommerce trends.
You’re not their only customer — Unfortunately, if the ecommerce solution is really
great, it’s unlikely that you’re the only company they’re servicing. If you have a small
issue or a question, understand that it may take some time for these requests to be
handled. Again, it’s important to check out the agency’s customer service record.
Determine how committed they are to aiding you quickly and efficiently before you
sign on with them.