IT in e commerce

E-commerce is the application of current and emerging information and communication

technologies (ICTs) to conduct business. These include existing technologies like landline telephone
and fax, but the ICTs offering most scope for small businesses are mobile phones, electronic mail and
other Internet-based services.
The exchange or buying and selling of commodities on a large scale involving transportation from place to
place is known as commerce. When all this is done electronically, it is known as “e-commerce”.
E-commerce from communication perspective is the delivery of information, products or services, or
payments via telephone lines, computer networks, or any other means-commerce from business
perspective, is the application of technology toward the automation of business transaction and workflows.
E-commerce from service perspective is a tool that addresses the desire of firms, consumers and
management to cut service costs while improving the quality of goods and increasing the speed of service
delivery. E-commerce from online perspective provides the capability of buying and selling products and
information on the Internet and other online services.
Features of e-Commerce
• e-Commerce is doing business online and electronically.
• e-Commerce is about buying and selling products and services on the Internet.
• The sellers are individuals, small businesses or large corporations.
• The buyers are consumers or businesses.
• Payment can be made by credit or debit card, money order, cash, check, services or trade.
• e-Commerce helps in lowering both order taking cost and customer service costs.
• The ranges of things that can be sold using e-commerce is enormous and include art, apartment,
antennas, batteries, bicycles, books, cars, cells phones, computer, cosmetics and whatever else can
change hands.

Framework of e-commerce

Framework tells about the detail of how e-commerce can take place. It defines actually how e-commerce
implemented, how online trading or business can be done. It defines important components that should be
present to do some transaction.

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The important components of this framework are:

1. Network Infrastructure
 Network Infrastructure is called as “INFORMATION SUPERHIGHWAY” is the path through
which actual information flows and moves between sender and receiver.
 Information Superhighway consists of telecommunication companies that provide telephone
lines.
 Cable TV systems that provide coaxial cables and direct broadcast satellite networks.
 Wireless companies that provide mobile radio and satellite networks.
 Computer networks include private networks and public data networks like the Internet.
All these modes of communication are interconnected. They are connected with routers, switches,
bridges, gateways etc which are devices to connect similar and different network. All the information
flow on these lines and through these devices and reach the desired destinations.

2. Multimedia Contents And Network Publishing

The Information Superhighway is the transportation foundation that enables the transmission of
content. The most prevalent architecture that enables networking publishing is the World Wide Web.
The web allows small businesses and individuals to develop content in the form of Hypertext Markup
Language (HTML) and publish it on a web server. Web provides a means to create product
information (content) and a means to publish it in a distribution center ( network server).

3. Messaging And Information Distribution Infrastructure

The information content transferred over the network consists of text, numbers, pictures, audio and
video. But the network does not differentiate among content as everything is digital, that is,
combinations of zero’s and one’s. Once contents has been created and
stored on a server, messaging and information distribution methods carry that content across the
network. Messaging vehicle is called middleware software. Messaging and information distribution
include translators that interpret and transforms data formats.

4. Common Business Services Infrastructure

This infrastructure includes the different methods for facilitating online buying and selling processes.
In online commerce, the buyers send an electronic payment as well as some remittance information to
the seller. Settlement occurs when the payment and remittance information are authenticated by the
seller and accepted as valid. In order to enable online payment for information and ensure its safe
delivery, the payment services infrastructure needs to develop encryption (making contents
indecipherable except for the intended recipient) and authentication (making sure that customers are
who they say they are) methods that ensure security of contents traveling on the network.

5. Public Policy And Technical Standards

Public Policy And Technical Standards are two support pillars for all e-commerce applications and
infrastructure. Public policy related to e-commerce encompasses such issues as universal access,
privacy and information pricing.
Technical Standards dictate the specifics of information publishing tools, user interfaces and transport.
Standards are essential to ensure compatibility across the entire network of world.

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These are the main components of framework of e-commerce. By following all these trade can be done
efficiently on the network. There are many applications of e-commerce which work on this framework.

Types of e-Commerce Systems

1. B2C (Business to Consumer)

This is most common form of e-commerce. These systems allow businesses to sell goods ands services to
consumers via the internet. Group of these online shop-fronts are called e-malls and are essentially online
shopping centers.

2. B2B (Business to Business)

These systems are designed for businesses to collaborate or sell goods and services to each other.

3. Consumer - to - Consumer
A website following the C2C business model helps consumers to sell their assets like residential
property, cars, motorcycles, etc., or rent a room by publishing their information on the website. Website
may or may not charge the consumer for its services. Another consumer may opt to buy the product of
the first customer by viewing the post/advertisement on the website.

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4. Consumer - to – Business

In this model, a consumer approaches a website showing multiple business organizations for a
particular service. The consumer places an estimate of amount he/she wants to spend for a particular
service. For example, the comparison of interest rates of personal loan/car loan provided by various
banks via websites. A business organization who fulfills the consumer's requirement within the
specified budget, approaches the customer and provides its services.

5. Business - to – Government
B2G model is a variant of B2B model. Such websites are used by governments to trade and
exchange information with various business organizations. Such websites are accredited by the
government and provide a medium to businesses to submit application forms to the government.

6. Government - to – Business

Governments use B2G model websites to approach business organizations. Such websites support
auctions, tenders, and application submission functionalities.

7. Government - to – Citizen

Governments use G2C model websites to approach citizen in general. Such websites support auctions
of vehicles, machinery, or any other material. Such website also provides services like registration for
birth, marriage or death certificates. The main objective of G2C websites is to reduce the average time
for fulfilling citizen’s requests for various government services.

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