SCOPE OF E-COMMERCE
PART III
Prepared By
P. K. Nakhate
SCOPE OF E-COMMERCE
Electronic Markets:-
An electronic market is the use of information and communication technology to present a range of offerings available in a market segment so that the purchaser can compare the prices of the offerings and make a purchase decision.
e.g. Airline Booking System
Electronic Data Interchange:-
⮚ It provides a standardized system for coding trade transactions so that they can be communicated from one computer to another without the need for printed orders and invoices & delays & errors in paper handling.
⮚ It is used by organizations that make a large no. of regular transactions.
e.g. EDI is used in the large supermarket chains for transactions with their suppliers.
Internet Commerce:-
⮚ Information and communications technologies can be used to advertise & make sales of wide range of goods & services.
⮚ This application is both for business to business & business to consumer transactions.
e.g. The purchase of goods that are then delivered by post or the booking of tickets that can be picked up by the clients
E-Commerce Trade Cycle
E-Commerce can be applied to all, or different phases of the trade cycle.
The trade cycle varies depending on:-
⮚ The nature of the organization (or individuals) involved.
⮚ The nature and type of goods or services being exchanged.
⮚ The frequency of trade between the partners to the exchange process.
The trade cycle has to support:-
❖ Finding goods or services appropriate to the requirement and agreeing the terms of trade often referred to as search and negotiation.
❖ Placing the order, taking delivery and making payment i.e., execution & settlement of transaction.
❖ After sales activity such as warrantee, service etc.
There are numerous categories of trade cycles depending on the factors outlined above and, for many transactions, further complicated by the complexities of international trade.
• Three generic trade cycles can be identified:-
Electronic Markets:-
❖ It increases the efficiency of the market.
❖ It reduces the search cost for the buyer and makes it more likely that buyer will continue the search until the best buy is found.
❖ It exists in financial markets & they are also used in airline booking system.
❖ It is irregular transaction trade.
Electronic Data Interchange: -
❖ It is used for regular repeat transactions.
❖ It takes quite a lot of work to set up systems.
❖ Mature use of EDI allows for a change in the nature of the product or service.
e.g. Applications are sending test results from the pathology laboratory to the hospital or dispatching exam results from exam boards to school.
Internet Commerce: -
❖ The first stage
• Advertising appropriate goods and services.
• Internet sites offer only information & any further steps down the trade cycle are conducted on the telephone.
❖ The Second stage
• An increasing no. of sites offer facilities to execute & settle the transaction.
• Delivery may be electronic or by home delivery depending on the goods and services.
▪❖ The final stage
• After-sales service.
• On-line support & On-Line services.
ECommerce in Perspective.
Different Perspective of eCommerce
Following are the different perspective of eCommerce;
Communication
Delivery of goods, services, information and payment over computer network or any other electronic means.
Commercial
That is providing capability of buying and selling product, services and information on the internet via other online services.
Business Process
That is doing business electronically by completing business process over electronic network, there by substituting information for physical business process.
Services
A tool that addresses the desire of government, firms, consumers and management to cut service cost while improving the quality of the customer service and increasing the speed of service delivery.
Learning Perspective of eCommerce
Enabler of online training and education in schools, universities and other organization including business.
ECommerce in Perspective
Collaboration
The framework for INTER and INTRA organization collaboration.
Community
It provides the gathering place for community members to learn, Collaborate and transact. So modern definition of E com includes buying and selling of goods and services, servicing customers, collaborating with business partners and conducting electronic transactions with in the organization.
ECommerce in Perspective
Thank You