E Commerce: Its role and development
- 1. Ms. Anubha Rastogi Astt. Prof, Vidya School Of Business 2017-18
- 2. Web Chain of Events Anubha Rastogi | VSB Introductory Notes Web Chain Analysis
- 3. Web Chain Analysis Anubha Rastogi | VSB
- 4. Customer Lifetime Value Customer Lifetime Value is the present value of future cash flows attributed to the customer relationship. It depends on: • the customer’s activity level • duration • the firm’s retention spending • other related costs and benefits attachable to a specific customer or customer segment. The Internet can be used as a tool for Customer Value Analysis. Valuable sources of data are: • The Consumer Demographic profile • The Consumer search and browsing history • The Consumer Click behaviours • The Consumer Online Transaction Anubha Rastogi | VSB
- 5. Customer Lifetime Value Customer Value Analysis Anubha Rastogi | VSB
- 6. Internet and Its Benefits to Organizations Business Models Revenue Benefits • Advertising Models • Subscription Models • Transaction Models Anubha Rastogi | VSB
- 7. Pricing in the Virtual World Three Pricing Questions are Important for E-marketers • How does the presence of the internet change the price sensitivity of products and services? • How can online content be used to influence the price sensitivity of customers? • What new pricing tools and methods work better on the internet than through more traditional methods? Price Effects in Online Domain • Reference price effect • Difficult comparison effect • Switching cost effect • Price quality effect • Value uncertainty • Purchase importance Anubha Rastogi | VSB
- 8. 8 • Development sites: A test site; low-cost • Intranets: Available internally only • B2B and B2C commerce sites • Content delivery site Each type of site has a different purpose, requires different hardware and software, and incurs varying costs. Types of Web sites Commerce sites must be available 24 hours a day, 7 days a week. Requirements include: • Reliable servers • Backup servers for high availability • Efficient and easily upgraded software • Security software • Database connectivity B2B sites also require certificate servers to issue and analyze electronic authentication information. Commerce Sites Anubha Rastogi | VSB
- 9. • E-mail service • Use of FTP to upload and download information • Shopping cart software • Multimedia extensions (sound, animation, movies) • Secure credit card processing Web hosts are Internet service providers who also allow access to: • E-commerce software • Storage space • E-commerce expertise You can choose: • Managed hosting: the service provider manages the operation and oversight of all servers • Unmanaged hosting: the customer must maintain and oversee all servers What is Web hosting? Will the site be hosted in-house or by a provider? Factors to consider: • The bandwidth and availability needed for the expected size, traffic, and sales of the site • Scalability: If the Web site needs to grow or has a sudden increase in traffic, can the provider still handle it? • Personnel requirements or restraints • Budget and cost effectiveness of the solution • Target audience: Business-to-customer (B2C) or business-to-business (B2B) Hosting Considerations Services provided • Access to hardware, software, personnel • Domain name, IP address • Disk storage •Template pages to use for designing the site Anubha Rastogi | VSB
- 10. E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes for online shopping. EXAMPLES • ATM • Selling physical goods using websites, e.g. flowers, shoes, magazines, electronic items. • Reserving a hotel room online. • Buying an oil pump from a supplier for car engine assembly. • Buying a component from a plant within the same company using Intranet. What Is E-Commerce ? Anubha Rastogi | VSB
- 11. E-commerce business models Anubha Rastogi | VSB Alibaba. Amazon Business. Zendesk. OverDrive. Medline. Grainger. eBay.com Olx Etsy Facebook Hiring Websites Monster Career builder Glassdoor All Major sites AADHAR, Passport Company registration E-tenders Online filing of tax returnsTaxes, reports E-Governance (RARE)
- 12. Basic E-Commerce Strategies • Reach (access and connection with customers) • Richness (depth and detail of information to/from customers) • Affiliation (advancing customers’ interests) Multistage Model for E-commerce • Search and identification • Selection and negotiation • Purchasing products and services electronically • Product and service delivery • After-sales service Anubha Rastogi | VSB
- 13. 13 Model of an Electronic Exchange Anubha Rastogi | VSB
- 14. Principles of Information Systems, Seventh Edition 14 Model of Supply Chain Management Anubha Rastogi | VSB
- 15. • Early e-commerce shopping used forms-based check out methods. Required writing down product codes, unit prices, etc. • A shopping cart: – Keeps track of items selected – Allows you to view the items in a cart – Allows you to change quantities of items • Because the Web is stateless, information must be stored for retrieval. One way to do this is to use cookies, bits of information stored on the client’s computer. Requirements: • A catalog display • Shopping cart capabilities • Transaction processing • Tools to populate the store catalog and to facilitate storefront display choices Any e-commerce software must be integrated with existing systems: – Database – Transaction processing software B2C e-commerce • Small storefront (fewer than 35 items) – Simple listing of products – No particular organization • Larger catalog – Store product information in database – More sophisticated navigation aids – Better product organization – Search engine Catalog display Shopping carts
- 16. • Usually performed with a secure connection. • May require the calculation of: – Sales tax – Shipping costs – Volume discounts – Tax-free sales – Special promotions – Time sensitive offers • Details about transactions must be tracked for accounting, sales reports. Transaction processing Business-to-business e-commerce requires tools and capabilities different from those required for business- to-customer systems. • Encryption • Authentication • Digital signatures • Signed receipt notices • The ability to connect to existing legacy systems, including Enterprise Resource Planning (ERP) software. ERP integrates all facets of a business including planning, sales, and marketing. B2B e-commerce Integration Three sources require integration: • Downstream : between firms and customers, including channel intermediaries(distributors) • Upstream : between the firm and its suppliers • Internal : Information held internally within the organisation and ideally shared and accessible across functions. Advantages of the Internet
- 17. The nature of the channels and the support required will vary for the following reasons: • The Complexity of the products on offer • Their monetary value • The competitive advantage offered by the channel • Known customer service expectations Online Value Paradigms New Intermediaries Playing vital roles in two key areas of the purchasing process:
- 18. Functions of Shopping Carts Payment Service Providers E-procurement
- 19. E-procurement Value Chain 5 Useful E-commerce Applications on Facebook
- 20. Measuring E-commerce Success- The DeLeone and McLean Model Monitoring Social Media Presence of E-commerce Brands E-Commerce Applications: Retail and Wholesale • Electronic retailing (e-tailing): the direct sale from business to consumer through electronic storefronts, typically designed around an electronic catalog and shopping cart model • Cybermall: a single Web site that offers many products and services at one Internet location • Manufacturing, repair, and operations (MRO) goods and services
- 22. B2C STOREFRONTS • A product presentation function • An order entry function • An electronic payment function: credit card, debit card, COD, check (before delivery), and invoice (after delivery).The function should provide the necessary security through Secure Socket Layer (SSL), Secure Electronic Transactions (SET), or some other protocol • An order fulfillment function • A customer service function: include FAQs,toll-free telephone numbers, e-mail, and chat rooms. • A product support function: initial setup and installation, regular operation, troubleshooting, return policy, ongoing maintenance, and warranty or non warranty repair or replacement. SUPPLIER SELL- SIDE B2B SITES • Personalized catalogs and Web pages for all major buyers • A B2B payment gate • Electronic contract negotiation features • Product configuration by customers (e.g., Cisco or Dell) • Affiliate program capabilities • Business alerts (e.g., to special sales, to news)
- 23. Reverse Auctions and Tendering Systems • Catalog of items to be tendered and their content management • Search engine (if the site has many items) • Personalized pages for potential large bidders • Reverse auction mechanisms, sometimes in real time • Facility to help prepare, issue, manage, and respond to a buyer’s request for quotes (RFQs) • Ability to bid dynamically • Automatic vendor approval and workflow (e.g., SmartMatch’s supplier identification technology) • Electronic collaboration with trading partners • Standardization of RFQ writing • Site map • Mechanism for selecting suppliers • Automatic matching of suppliers with RFQs • Automatic business process workflow • Ability for bidders to use m-commerce for bidding • Automated language translation
- 24. Forward Auctions • Both the seller and the buyer complete the online registration process, including providing shipping points and regulatory and banking information. • The seller starts an auction by listing the product, the asking price, and the quantity on a form. • The buyer chooses a bid product and indicates a bid price and quantity. The buyer may also set the maximum price and bid increments. • Sophisticated software determines the auction winner, based on price, volume, and timing. • A funds transfer from the bidder takes place immediately. • Upon successful funds transfer, a freight company is dispatched to the seller’s location; the product is loaded and delivered to buyer’s location. • The buyer inspects and accepts the product. • Funds are released to the seller. The capabilities of forward auctions can be best viewed at ebay.com.
- 25. Development Options Developers have three major options for developing an EC application: • Build from scratch. This option is used rarely. It should be considered only for specialized applications for which components are not available. It is expensive and slow, but it may provide the best fit. • Build from components. The required applications are often constructed from standard components (e.g., Web servers such as Apache or Microsoft’s IIS) using Web scripting languages, such as PHP, Microsoft’s Active Server Pages (ASP), JavaServer Pages ( JSP), or ColdFusion. • Enterprise application integration. The enterprise application integration (EAI) option is similar to the build from components option, but instead of using components, an entire application is employed. This is an especially attractive option when applications from several business partners need to be integrated.
- 29. Potential Benefits of E- Business • More product/service selections • Higher Productivity • Improved accessibility and convenience • Better availability of information • Shorter lead time • Improved communication • Stronger competitive position Trends • Dissintermediation • Static content: • Prepared pages that are sent to a customer on request. • Must be re-created whenever the information changes. • Dynamic content: • Generated at the time of the request. • Taken from information sources such as databases. • Used when the content changes frequently or when the natural storage medium for the information is a database.
- 30. India Plaza – India’s first e-commerce store India got its first e-commerce store in the form of India plaza in 1999, which then offered only music CDs for sale. Back then; India had less than 3 million users on the internet. Between February and October 2000, Megamall – Your favourite departmental store but online Marketplace – Where you know you will get a good deal, you only need to look The Deal-Maker – When going to the same place for an expensive haircut is not your thing Vertical Marketplace – The shopping mall for a specific segment Going once, going twice. Auctioned! – For those that like the thrill of the chase Community Buying – For when buying alone is just no fun (and expensive!) The Aggregators – The ‘Know-All Aunty’ of the Internet Facebook Commerce – To cater for the Facebook addicts of the world The Single Brand Crossover – Your not-so-local brick store that now has a click store For a detailed E commerce In INDIA : https://www.digit.in/technology-guides/fasttrack-to-e-commerce/what-is-e-commerce.html