E-LESSON-5-6

IDOL Institute of Distance and Online Learning ENHANCE YOUR QUALIFICATION, ADVANCE YOUR CAREER.

BCA 2 All right are reserved with CU-IDOL Internet Computing and Ethics Course Code: BCA 113 Semester: First SLM Units: 5, 6 e-Lesson No.: 5 www.cuidol.in Unit-5, 6 (BCA113)

E-commerce Fundamentals 33 OBJECTIVES INTRODUCTION Student will be able to define basic of E- In this unit we are going to learn basic of E- Commerce. Commerce , its benefits and limitations. Student will be able to learn about benefits and Also define advantages and disadvantages of limitation of E-Commerce. E-Commerce along with its applications Student will be able to learn about various application of E-Commerce. Student will be able to know about Business Brief explanation of various terms in E- model Commerce and various business model. www.cuidol.in Unit-5, 6 (BCBACA1131)3) INSTIATlUl TrEigOhFt DarIeSTrAeNsCerEvAeNdDwOithNLCINUE-IDLEOALRNING

TOPICS TO BE COVERED 4  Introduction to E-Commerce  E-Commerce Benefits  Limitations of E-Commerce  Applications of E-commerce  E-Commerce Marketplace and E-auction  E-Commerce business model www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

What is E- Commerce  E-Commerce or Electronics Commerce is a methodology of modern business, which 5 addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery.  E-commerce refers to the paperless exchange of business information using the following ways:  Electronic Data Exchange (EDI)  Electronic Mail (e-mail)  Electronic Bulletin Boards  Electronic Fund Transfer (EFT)  Other Network-based technologies www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

The E-commerce environment 6 www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Features of E-Commerce 7  E-Commerce provides the following features:  Non-Cash Payment: E-Commerce enables the use of credit cards, debit cards, smart cards, electronic fund transfer via bank's website, and other modes of electronics payment.  24x7 Service availability: E-commerce automates the business of enterprises and the way they provide services to their customers. It is available anytime, anywhere.  Advertising/Marketing: E-commerce increases the reach of advertising of products and services of businesses. It helps in better marketing management of products/services.  Improved Sales: Using e-commerce, orders for the products can be generated anytime, anywhere without any human intervention. It gives a big boost to existing sales volumes. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Features of E-Commerce 8  Inventory Management: E-commerce automates inventory management. Reports get generated instantly when required.  Product inventory management becomes very efficient and easy to maintain.  Communication improvement: E-commerce provides ways for faster, efficient, reliable communication with customers and partners. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Advantages of E-Commerce 9  The advantages of e-commerce can be broadly classified into three major categories:  Advantages to Organizations  Advantages to Consumers  Advantages to Society www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Advantages of E-Commerce 10 Advantages to Organizations  Using e-commerce, organizations can expand their market to national and international markets with minimum capital investment.  E-commerce helps organizations to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.  E-commerce improves the brand image of the company.  E-commerce helps organizations to provide better customer service.  E-commerce helps to simplify the business processes and makes them faster and efficient.  E-commerce reduces the paper work.  E-commerce increases the productivity of organizations. A business process starts when a request comes from a customer and it uses just-in-time manufacturing way. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Advantages of E-Commerce 11 Advantages to Customer  It provides 24x7 support..  E-commerce application provides users with more options a quicker delivery of products.  A customer can put review comments about a product and can see what others are buying, or see the review comments of other customers before making a final purchase.  E-commerce provides options of virtual auctions.  It provides readily available information. A customer can see the relevant detailed information within seconds, rather than waiting for days or weeks.  E-Commerce increases the competition among organizations and as a result, organizations provides substantial discounts to customers. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Advantages of E-Commerce 12 Advantages to Society  Customers need not travel to shop a product, thus less traffic on road and low air pollution.  E-commerce helps in reducing the cost of products, so less affluent people can also afford the products.  E-commerce has enabled rural areas to access services and products, which are otherwise not available to them.  E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Disadvantages of E-Commerce 13  The disadvantages of e-commerce can be broadly classified into two major categories:  Technical disadvantages  Non-technical disadvantages www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Disadvantages of E-Commerce 14 Technical disadvantages:  There can be lack of system security, reliability or standards owing to poor implementation of e- commerce.  The software development industry is still evolving and keeps changing rapidly.  In many countries, network bandwidth might cause an issue.  Special types of web servers or other software might be required by the vendor.  Sometimes, it becomes difficult to integrate an e-commerce software or website with existing applications or databases.  There could be software/hardware compatibility issues, as some e-commerce software may be incompatible with some operating system or any other component. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Disadvantages of E-Commerce 15 Non-technical disadvantages :  Initial cost: The cost of creating/building an e-commerce application in-house may be very high.  User resistance: Such mistrust makes it difficult to convince traditional users to switch from physical stores to online/virtual stores.  Security/ Privacy: It is difficult to ensure the security or privacy on online transactions.  Lack of touch or feel of products during online shopping is a drawback.  E-commerce applications are still evolving and changing rapidly.  Internet access is still not cheaper and is inconvenient to use for many potential customers, for example, those living in remote villages. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

APPLICATIONS OF E-COMMERCE 16  The applications of E-commerce are used in various business areas such as retail and wholesale and manufacturing. The most common E-commerce applications are as follows:  Online marketing and purchasing  Retail and wholesale  Finance  Online Auction  E-Banking  Online booking (ticket, seat.etc) www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

E-Auctions 17  It is an e-business between auctioneers and bidders, which takes place on an electronic marketplace. It is an electronic commerce which occurs business to business (B2B), business to consumer (B2C), or consumer-to-consumer (C2C).  The auctioneer offers his goods, commodities or services on an auction side on the internet. Interested parties can submit their bid for the product to be auctioned in certain specified periods. The auction is transparent, all interested parties are allowed to participate the auction in a timely manner. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

E commerce Market Place 18  An online marketplace (or online e-commerce marketplace) is a type of website where product or service information is provided by multiple third parties, while transactions are processed by the marketplace operator.  In an online marketplace, consumer transactions are processed by the marketplace operator whereas product delivery is fulfilled by the participating retailers or wholesalers (often called drop shipping).  Such sites allow users to register and sell one or more items for a \"post-selling\" fee.  In these cases, since there are number of of providers, selection is usually more wide, and availability is higher than in vendor-specific online retail stores www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

E Portals 19  An enterprise information portal (e-portal) is a single gateway through which one can gain access to all the information, data, systems, and processes used by stakeholders of an organization.  These stakeholders may include employees, customers, investors, or business partners (suppliers, distributors, resellers, agents, franchisees and so on).  The user's experience of the e-portal is uniquely tailored to his or her individual needs, and the user can access the e-portal via the corporate intranet (typically employees only), extranets, or the Internet. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

E-Commerce Business Models 20 E-commerce business models can generally be categorized into the following categories.  Business - to - Business (B2B)  Business - to - Consumer (B2C)  Consumer - to - Consumer (C2C)  Consumer - to - Business (C2B)  Business - to - Government (B2G)  Government - to - Business (G2B)  Government - to - Citizen (G2C) www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Business to Business 21  A website following the B2B business model sells its products to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a company's website and after receiving the consignment, sells the end-product to the final customer who comes to buy the product at one of its retail outlets. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Business to Consumer 22  A website following the B2C business model sells its products directly to a customer. A customer can view the products shown on the website. The customer can choose a product and order the same. The website will then send a notification to the business organization via email and the organization will dispatch the product/goods to the customer. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Consumer to Consumer 23  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. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Consumer to Business 24  Consumer-to-business (C2B) is a business model in which consumer (individuals) create value and businesses consume that value. For example, when a consumer writes reviews then that consumer is creating value for the business if the business adopts the input.  Another form of C2B is the electronic commerce business model in which consumers can offer products and services to companies, and the companies pay the consumers. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Business to Government 25  Business-to-government (B2G) is a business model that refers to businesses selling products, services or information to governments or government agencies. B2G networks or models provide a way for businesses to bid on government projects or products that governments might purchase or need for their organizations. This can encompass public sector organizations that propose the bids. B2G activities are increasingly being conducted via the Internet through real-time bidding. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Government to Business 26  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. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

Government to Customer 27  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. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS Q1. Which type of e-commerce focuses on consumers dealing with each other? 28 a) B2B b) B2C c) C2C d) C2B Q2.Which is a function of E-commerce a) Marketing b) Advertising c) Ware Housing d) All of the above Q3.Which one of the following is not one of the major types of e commerce? a) C2B b) C2C c) B2C d) B2B Answers: 1. c) 2. d) 3.a) www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS 29 Q4.The primary source of financing during early years of e commerce? a) bank loans b) large retail firms c) venture capital funds d) initial public offering Q5.Unique value auction is mainly applies to? a) New Products b) Second hand products c) Engineering products d) None of these Q6.The dimension of e-commerce that enables commerce across national boundaries is called: a) interactivity b) global reach c) richness d) ubiquity Answers: 4. c) 5. b) 6.b) www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

SUMMARY 30  E-Commerce or Electronics Commerce is a methodology of modern business, which addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery.  Using e-commerce, organizations can expand their market to national and international markets with minimum capital investment..  There could be software/hardware compatibility issues, as some e-commerce software may be incompatible with some operating system or any other component.  E-Auction is an e-business between auctioneers and bidders, which takes place on an electronic marketplace. It is an electronic commerce which occurs business to business (B2B), business to consumer (B2C), or consumer-to-consumer (C2C). www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

SUMMARY 31  An online marketplace (or online e-commerce marketplace) is a type of website where product or service information is provided by multiple third parties, while transactions are processed by the marketplace operator.  An enterprise information portal (e-portal) is a single gateway through which one can gain access to all the information, data, systems, and processes used by stakeholders of an organization.  E-commerce business models can generally be categorized into the following categories.  Business - to - Business (B2B)  Business - to - Consumer (B2C)  Consumer - to - Consumer (C2C) www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTIONS 32 Q1. What do you mean by e-commere? Describe e-commerce environment. Ans: E-Commerce or Electronics Commerce is a methodology of modern business, which addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery. For Further details please refer to the subject SLM unit 5. Q2. List the advantages of e-commerce to organizations. Ans: Using e-commerce, organizations can expand their market to national and international markets with minimum capital investment. For Further details please refer to the subject SLM unit 5. Q3. List the disadvantages of e-commerce with reference to technical perspective. Ans: There can be lack of system security, reliability or standards owing to poor implementation of e- commerce. For Further details please refer to the subject SLM unit 5. Q4. Elaborate e-portal and e-auction. Ans: An enterprise information portal (e-portal) is a single gateway through which one can gain access to all the information, data, systems, and processes used by stakeholders of an organization. For Further details please refer to the subject SLM unit 6. www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

REFERENCES 33  https://www.tutorialspoint.com/e_commerce/index.html  https://www.toppr.com/guides/business-environment/emerging-trends-in-business/electronic- commerce/ www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL

34 THANK YOU www.cuidol.in Unit-5, 6 (BCA113) All right are reserved with CU-IDOL