MIS and E-business

Unit 1 : Introduction to E-commerce

 E-Commerce

• Commerce: It is the exchange of any goods and services of economic

value between two or more entities (e.g. producer to consumer).

• Commerce is simply the action of buying and selling.

• E-commerce: It is known as electronic commerce. Commerce done

through electronic medium i.e through internet and devices like computers
and mobiles.
Examples of E-commerce and EC applications
 Process of EC transaction
1. Product selected by user on E-commerce
site

2. Add item/product into the cart

3. Pay online through credit card or online

banking

4. Con rmation of payment through email,

OTP, etc

5. Amount deducted on users’s account

6. Message sent to inventory department

7. Shipment to the customer/user.

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 E-Commerce

• De nition: E-commerce or electronic commerce is a technique of carrying

out purchase, sell, transport and trade of goods, services and data
through the medium of internet and electronic devices which address the
needs of business organization, sellers and buyers to improve the quality
commerce and speed of delivery.

• E-commerce is digital way of doing commerce to establish paperless

exchange of business information.
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 Features of E-Commerce
• 24/7 availability : Service is available to the customers 24 hrs a day. Anyone can get the service of E-
commerce anytime and anywhere. Service can be delivered faster, reliably.

• Cashless System : Using E-payment and electronics transaction like credit card, debit card, mobile
banking, etc physical cash can be completely eliminated.

• Customer Support : Customer can report, review, give feedback back to the organization through
their EC site which can be used for improving the service even-more.

• Better sales : Wider range, large number of customers and more internet tra c equals to higher sales
and pro t.

• Advertisement : Advertisement and marketing become more e ective through E-commerce. It can
leverage the huge number of its users to promote products and services.

• Automation : All the process are automated. Transaction, organizational records, reports, and other
inventory management are managed e ciently and easily.
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Traditional Commerce vs E-commerce
 E-Business
• E-Commerce is subset of E-business

• E-Business is de ned as the method of carrying out business through

internet such as buying and selling of good and services through e-
commerce along with other business aspects like collaboration with other
business organization, sharing information, maintaining transaction,
recruiting, conduction of e-learning, etc.
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 Pure vs Partial EC
• EC is pure and partial based on:

• The product (service)

• The process

• The delivery agent

 Examples

• Partial EC : Buying guitar from daraz.com, Buying laptop from apple

online store, etc.

• Pure EC : Buying e-book on amazon kindle, Buying Microsoft o ce from

Microsoft online store, Buying songs on Spotify, etc.

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 EC Framework

• In general, a framework is a real or conceptual structure intended to

serve as a support or guide for the building of something that expands the
structure into something useful.

• EC Framework is the framework for establishing a proper functioning of a

E-commerce business.
EC Framework
 Assignment

• Advantages and Disadvantages of E-commerce

1. Advantages to society, organization, individual

2. Technical and Non-technical disadvantages/limitations

 Classi cation of E-Commerce
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 B2B E-commerce

• B2B (Business to Business) e-commerce refers to all electronic

transactions of goods and sales that are conducted between two
companies. This type of e-commerce typically explains the
relationship between the producers of a product and the
wholesalers who advertise the product for purchase to
consumers.

• Example : Intel selling microprocessor to HP, CG selling waiwai to

Bhatbhateni, etc.
 B2C E-commerce

• B2C business-to-consumer ecommerce, also

called retail ecommerce, is a business model that
involves sales between online businesses and
consumers.

• Example : Apple selling laptops to customers form

apple.com, Daraz selling its products to users, etc.
 C2C E-commerce

• Consumer-to-consumer (C2C) ecommerce is a

commerce model in which one consumer sells his
goods or services to other consumers online.

• Example : Selling second hand bike on

hamrobazar.com, Putting up display on website for
room rent, house sale, etc.
 C2B E-commerce

• C2B ecommerce is also known as consumer-to-

business. This change heralds a complete reversal of
the traditional model, with those who would normally
be end-users creating products and services that
are consumed by the businesses and organizations or
sell it to other users.

• Example : Freelancing websites like verr, upwork, etc.

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 B2G E-commerce

• B2G stands for Business-to-government, implying the relationship between a business to

government agencies and government institutions. B2G is de ned as a sales model when
companies sell products, services and information to governments or government
agencies (such as federal, state, or local agencies).

• Example : IT companies making government websites, etc

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 G2B E-commerce

• Government-to-business (G2B) is a business model that refers to government providing

services or information to business organization. Government uses B2G model website
to approach business organizations. Such websites support auctions, tenders and
application submission functionalities

• Example : Government opening e-tender for various governmental tasks, etc

 G2C E-commerce
• 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 certi cates. The main objective of
G2C websites is to reduce the average time for ful lling citizen’s requests for various
government services.

• Example : Citizens paying up taxes through internet, registering for passport online, etc

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 Assignment

• Advantages and disadvantages of each types of E-commerce (B2B, B2C,

C2C and rest )
 Electronic Markets
• Basically, an electronic market is a website where companies can buy from and sell to each
other using a common technology platform. They are the commerce sites on the internet that
allow a large number of buyers and suppliers to meet and trade with each other. They
are also known as electronic marketplaces, online markets or e-hubs.

• Example : E-commerce sites, online stock market, etc.

• Characteristics of E-markets
1. Online platform for large number of buyers and sellers

2. Maintain electronics transaction and EDI (Electronic Data Interexchange)

3. Provide legal infrastructure and proper integration of trading processes like

1. Search

2. Negotiate

3. Valuation

4. Logistics

5. Payment

6. Authentication

4. Maintain online community forums and discussion groups

5. Advertisement and marketing to promote products

 Role of Internet and web in E-commerce
• The Internet and world wide web (WWW) enables people from all over the world to connect
in a cost-e ective and reliable manner. It is a global collection of networks connected to
share information utilizing a standard set of protocols as technical infrastructure.

• The Internet is an enabler for e-commerce because it allows businesses to showcase and
sell their products and services online while also providing potential customers, prospects,
and business partners with information about these businesses and their products and
services that could lead to a purchase.

• Advancement of web technologies from web 1.0, 2.0 to 3.0 have brought tremendous
growth in E-commerce.

• Search Engine Optimization helps buyer to search their desired product more easily and
e ciently.

• 3D graphics makes E-commerce more interactive and immerging

• Cloud technologies is making EC more cost e ective by using appropriate services like
Infrastructure as a service (IaaS), Platform (PaaS), Software (SaaS).

• Social Networks are being used as medium for commerce and business nowadays.

• Development of strong and more powerful mobile apps is helping in the growth of E-
commerce

• Integration of AI and machine learning in EC sites helps to better recognize the needs users
and helps in decision making process of the business.
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 Social Networks and Services
• Social network is an online platform for connecting people around the globe.

• A social networking service (SNS) is an online vehicle for creating relationships with other people
who share an interest, background, or real relationship. Social networking service users create a
pro le with personal information and photos and form connections with other pro les.

• Characteristics:

• While social networking services may take many forms, they share several characteristics,
such as all utilizing the internet. Other similar characteristics include

• User-generated content, such as photos, videos, and posts that inform other users
about the activities and interests of the poster.

• The ability to connect individuals from all over the world, though some platforms
recommend that individuals know one another in real life before connecting online.

• They are free. Their business model is based on breadth of membership, therefore
charging for use would be counterproductive. Still, the possibility remains that if a
network grew large and useful enough, charging a fee may be possible.

• They connect people with common histories, such as school attendance, work
colleagues, or people who share a common interest.

• They may help forge and develop relationships between people who share a profession
or business network.

• They may be used to help individuals nd information, products, services, or resources

that are relevant to them.
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Types of social media
 M-Commerce

• Mobile Commerce : Using wireless handheld

devices like smartphones and tablets for
conducting E-Commerce.

• It is dependent on mobile based applications (apps)

• Main concept of M-commerce is that people can

use their mobile phones to carry out the business
transactions anytime and anywhere they go.
 M-Commerce : Attributes
Speci c attributes of M-commerce

1. Mobility : Mobile computing and m-commerce are based on the fact that users carry a mobile device anywhere they go.

2. Broad Reach : In mobile computing, people can be reached at any time. Of course, users can block certain hours or
certain messages, but when users carry an open mobile device, they can be reached instantly.

Value-added attributes of M-commerce

1. Ubiquity: The availability of any products or services at any location at any given time.

2. Convenience: Users can operate the wireless devices in any environments.

3. Instant connectivity: Connections are available quickly and easily at anytime and anywhere.

4. Personalization: The ability to customize the information to the customers.

5. Localization of products and services: Knowing the exact locations of the customers to o er product or services
information is the key factors to success.
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 M-Commerce : Bene ts

• Easy access to shopping

• Increased number of customers

• Provision of all the possible product information

• Reduced time

• Advanced marketing capabilities

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 L-Commerce
• L-Commerce : Location based commerce
• E-commerce applications provided to customers based on a user’s speci c location
• Location-based technologies
• Global positioning systems (GPS): a wireless system that uses satellites to enable
users to determine their position anywhere on the earth.

• Geographical information systems (GIS): relates longitude and latitude of GPS into
place or address (mapinfo.com)

• Location Based Mobile System (LBMS): Real time location tracking feature of the
smartphone.

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 L-Commerce Infrastructure
• Location nder (positioning) component
• Mobile Positioning Center
• User
• Mobile devices
• Mobile communication network
• Service or application providers
• Data or content provider
• Geographical Information System (GIS)
• Opt-in application - Permissions grantable
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Location Based Services and Applications
• Location : Locating person carrying smartphone and smart-devices with GPS

• Navigation : plotting route from one place to another.

• Tracking : tracking of assets, locating friends in a geographical location, tracking stolen cars,
tracking of children by parents.

• Mapping : Creating maps of speci c geographical location.

• Information or directory services : dynamic pages automatically inform the users

about the nearest restaurants, parking facility, tra c updates.

• Emergency services : emergency medical ambulance, search and rescue mission,

roadside assistance, police and re response.

• Advertising promotion : targeted ads, promotional messages, customer identi cation in a store.
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