1.e commerce - final 12-11-13

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Ris hik esh . K. B. Chr ist Uni ver sit Ban alore-29 Unit One

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Rishikesh. K. B. Christ Universit Ban alore-29

Unit One

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E-Commerce: Meaning

Electronic Commerce, commonly known as E-Commerce, is a type of industry where the buying

and selling of products or services is conducted overelectronic systems such as the Internet and other

computer networks.

E-Commerce draws on technologies such as MobileCommerce, Electronic Funds Transfer, Supply Chain

Management, Internet marketing, Online transactionprocessing, Electronic Data Interchange (EDI),Inventory Management Systems, and Automated

Data Collection systems.

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E-Commerce Covers:

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E-Commerce Covers: E-tailing or "virtual storefronts" on websites with online

catalogs, sometimes gathered into a "virtual mall" Buying or Selling on various websites and/or online

marketplaces

The gathering and use of demographic data through Web

contacts and social media Electronic Data Interchange (EDI), the business-to-

business exchange of data

E-mail and fax and their use as media for reaching

prospective and established customers (for example, with

newsletters)

Business-to-business buying and selling

The security of business transactions

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E-Commerce Covers:

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E Commerce: Advantages

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E Commerce: Advantages Convenience: 24 hrs a day. 7 days a week. (24/7/365)

Selection: Wide array of products. Comparison Shopping.

Ubiquity: Overcome Geographical Limitations, Global Reach ! Gain New Customers With Search Engine Visibility.

Lower Operational And Promotional Cost:

Eliminate Travel Time And Cost: Always Open !

Locate Products Quicker: Intuitive Navigation through SearchEngines To Narrow Down Product Search.

Abundant Product Information: Transparency & Flexibility.

Deals, Bargains, Coupons and Group Buying:

Targeted Marketing: Personalised And Customised. Interactivity: Gets Quick Response & Immediate Feedbacks.

Identify New Suppliers, Partners, and Customers,.

No Physical Company Setup. Increase Sales – Decrease Cost.

Digital transactions - Less Paperwork !Rishikesh. K. B. Christ Universit Ban alore-29

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E Commerce: Disadvantages Inability to touch and experience the merchandise.

(Psychological Barrier ) – Depersonalise transactions

Inaccessibility to technology and internet.

Majority of business are yet to go online. High startupcost. (Connection, Hardware –  Software, Maintenance)

Hacking, Virus attack, Spy and fraudulent interception.(lacks public trust). Delay in deal.

Anonymity of business leads to suspicion.

Credit Card has not penetrated Indian market.

Small business finds it hard to conform to E-Commercebusiness standards. Huge investments.

Shopping portals vulnerable to attacks. (Eg:

Hacktivists). Inherent technological limitations.Rishikesh. K. B. Christ Universit Ban alore-29

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E Commerce: Disadvantages

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E Commerce Security

 Confidentiality

 Integrity

 Availability

 Authenticity

 Non Repudiability

 Encryption

 Auditability

Rishikesh. K. B. Christ Universit Ban alore-29

Following are the essential requirements for safe e-

payments/transactions

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Confidential - Information should not be accessible to unauthorized

person. It should not be intercepted during transmission.

Integrity - Information should not be altered during its transmission

over the network. Availability - Information should be available wherever and

whenever requirement within time limit specified.

Authenticity - There should be a mechanism to authenticate user

before giving him/her access to required information. Non-Repudiabiity - It is protection against denial of order or denial of

payment. Once a sender sends a message, the sender should not able

to deny sending the message. Similary the receipient of message

should not be able to deny receipt. Encryption - Information should be encrypted and decrypted only by

authorized user.

Auditability - Data should be recorded in such a way that it can be

audited for integrity requirements.Rishikesh. K. B. Christ Universit Ban alore-29

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Encryption - It is a very effective and practical way to

safeguard the data being transmitted over the network.Sender of the information encrypt the data using a

secret code and specified receiver only can decrypt the

data using the same or different secret code.

Digital Signature -Digital signature ensures the

authenticity of the information. A digital signature is a

e-signature authentic authenticated through

encryption and password.

Security Certificates - Security certificate is unique

digital id used to verify identity of an individual website

or user.

Measures to Ensure E-Commerce Security

Rishikesh. K. B. Christ Universit Ban alore-29

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E-Commerce Websites Popular

in India

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Unique Features of E-Commerce Technology and their

Potential Ethical, Social, and Political Implications

E-Commerce

Technology

Dimension 

Potential Ethical, Social, and Political Significance 

Ubiquity  Work and shopping can invade family life

Shopping can distract workers at work lowering productivity

Use of mobile devices can lead to automobile or industrial

accidents 

Global reach  Reduces cultural diversity in products

Weakens local small firms while strengthening large global firms

Easier to move manufacturing production to low-wage areas ofthe world

Weakens nation’s abilities to control their information destiny 

Universal

standards 

Increases vulnerability to viruses and hacking

Increases the likelihood of “information” crime 

Rishikesh. K. B. Christ Universit Ban alore-29

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Unique Features of E-Commerce Technology and their

Potential Ethical, Social, and Political Implications (cont.)

E-Commerce

Technology

Dimension 

Potential Ethical, Social, and Political Significance 

Richness  Reduces use of text and potentially the ability to read

Enables development of persuasive messages that may reduce

reliance on multiple independent sources of information 

Interactivity Interaction with commercial sites may be shallow and meaningless

Customers do not really “co-produce” the product 

Amount of customization is minimal

Informationdensity 

Total amount of information increases, but so does the possibility offalse or misleading information, unwanted information, and

invasion of solitude

Overall information quality may decline

Individual information overload

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Unique Features of E-Commerce Technology and their

Potential Ethical, Social, and Political Implications (cont.)

E-Commerce

Technology

Dimension 

Potential Ethical, Social, and Political Significance 

Personalization/

customization 

Opens up the possibility of intensive invasion of privacy for

commercial and governmental purposes that is unprecedented 

Social

technology 

Creates opportunities for cyber bullying, abusive language, and

predation

Creates new challenges to privacy

Creates new opportunities for surveillance by authorities and other

organizations into private lives 

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Data Mining - Businesses get customers personal

information to better understand the customer’sneeds and so forth. They go on to discuss that this is

legal, but is it ethical…? 

Adware - A form of spyware that collects informationabout the user in order to display advertisements in

the Web browser based on the information it collects

from the user's browsing patterns.

E-mail spoofing - Forging an e-mail header to make it

appear as if it came from somewhere or someone

other than the actual source. 

E-Commerce –  Ethical, Social and

Political Issues

Rishikesh. K. B. Christ Universit Ban alore-29

C S

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Spam  – Email that is sent to thousands of random email

addresses for a purpose. Some business will send their adsto people’s emails to gain new customers and increase

sales.

E-Commerce –  Ethical, Social and

Political Issues

Rishikesh. K. B. Christ Universit Ban alore-29

Spam  – Email that is sent to thousands of random

email addresses for a purpose. Some business willsend their ads to people’s emails to gain newcustomers and increase sales.

Bait and Switch – When a company has a ad thatmost of the time sounds to good to be true, to getpeople on their site and then once they are on thesite the customer finds out what the ad said isn’t

entirely true or misleading. Typo squatting – Purchasing a domain name that is avariation on a popular domain name with theexpectation that the site will get traffic .

Eg: yahooo, gogle..

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 ELECTRONIC BUSINESS

Christ University, Bangalore-29 Rishikesh. K. B.

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E-Commerce E-Business

E-Commerce describes the process ofbuying, selling, transferring, or exchanging

products, services, and/or information via

computer networks, including the Internet.

E-Business refers to a broader definition of

e-commerce, not just the buying and selling of

goods and services, but also servicing

customers, collaborating with business

partners, conducting e-learning.

Christ University, Bangalore-29 Rishikesh. K. B.

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A Win-Win  From the store owner's perspective, Ecommerce provides a

way to instantly satisfy demand for products, services, and

information of each customer individually.

 From the customer's perspective Ecommerce offers

convenience, variety, cost savings, and anonymity.

Ultimately, Ecommerce shifts the power from the merchantto the consumer.

Ecommerce also provides a way for the merchant to connect

his customers, vendors, suppliers and employees all over the

world. He can enable his business or organization to reachan infinite number of customers over the Web, seeking out

potential markets that were once outside the traditional

boundaries of his business.

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E-MarketElectronic markets (or electronic marketplaces) are

information systems (IS) which are used by multipleseparate organizational entities within one or among

multiple tiers in economic value chains.

In analogy to the market concept which can be viewedfrom a macroeconomic (describing relationships amongactors in an economic systems, e.g. a monopoly ) as well

as from a microeconomic (describing different

allocation mechanisms, e.g. public auctions oftelephone frequencies) perspective, electronic markets

denote networked forms of business with manypossible configurations

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Social Commerce

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Social Commerce

Social Commerce 

is a subset of electronic commercethat involves using social media, online media thatsupports social interaction, and user contributions toassist in the online buying and selling of products and

services.

The term social commerce was introduced by Yahoo!

in November 2005, 

to describe a set of onlinecollaborative shopping tools such as shared pick lists,

user ratings and other user-generated content-sharingof online product information and advice

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The concept of social commerce

was developed by David Beisel

to denote user-generated

advertorial content on e-

commerce sites, 

and by Steve Rubel to includecollaborative e-commerce tools

that enable shoppers "to get

advice from trusted individuals,find goods and services and

then purchase them".

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Social Commerce : Examples Customer ratings and reviews

User recommendations and referrals

Forums and Communities

Social Applications and Social Advertising

Augmented Reality - allows shoppers to visualiseapparel items on themselves and solicit feedbackthrough social media tools

* Note: Academics refer Social Commerce as colla-borative networks of online vendors, whereas SocialShopping as collaborative activity of online shoppers.

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  6 C’s in Social Commerce 

Content: engage with customers, prospects and stake-holders through valuable published content on the web

Community: Treating the audience as a community with

the objective of building sustainable relationships

Commerce: Being able to fulfill customers' needs via atransactional web presence

Context: able to track real-world events

Connection: defining and documenting the relationshipsbetween people

Conversation: The Cluetrain Manifesto noted that

‘all markets are conversations’ !

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S i l C

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Social Commerce 

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S i l C

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Social Commerce 

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F-Commerce

Facebook commerce, f-commerce, and f-

comm refer to the buying and selling of

goods or services through Facebook, eitherthrough Facebook directly or through the

Facebook Open Graph.

In March 2010, 1.5 million businesses had

pages on Facebook that were built using

Facebook Markup Language (FBML).

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M-Commerce

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M bil C

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Mobile Commerce

(M-Commerce)

M-commerce (mobile commerce) is the buyingand selling of goods and services through wireless

technology-i.e., handheld devices such as cellular

telephones and personal digital assistants (PDAs).

Japan is seen as a global leader in m-commerce.

As content delivery over wireless devices becomes

faster, more secure, and scalable, m-commerce

will surpass wireline e-commerce as the method

of choice for digital commerce transactions.

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Email MarketingEmail Marketing is directly marketing a commercial

message to a group of people using email. In itsbroadest sense, every email sent to a potential or

current customer could be considered as such.

It usually involves using email to send ads, requestbusiness, or solicit sales or donations, and is

meant to build loyalty, trust, or brand awareness.

(Note: Researchers estimate that United States firms

alone spent US $1.51 billion on email marketing in

2011 and will grow to $2.468 billion by 2016)

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Email Marketing

Sending email messages with the purpose ofenhancing the relationship of a merchant with

its current or previous customers, to encourage

customer loyalty and repeat business. Sending email messages with the purpose of

acquiring new customers or convincing current

customers to purchase something immediately. Adding advertisements to email messages sent

by other companies to their customers.

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E-Trading

Electronic Trading, sometimes called etrading, is amethod of trading securities (such as stocks, and

bonds), foreign exchange or financial derivatives

electronically.

Information technology is used to bring together

buyers and sellers through an electronic trading

platform and network to create virtual market

places such as NASDAQ, NYSE Arca and Globexwhich are also known as electronic

communication networks (ECNs)

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2. Business-to-Consumer

Rishikesh. K. B. Christ Universit Ban alore-29

Website

following

B2C

businessmodel sells

its product

directly to acustomer.

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1 B i t G t

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1. Business-to-Government

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Such websites are used by government to trade

and exchange information with various business

organizations.

Note:

B2G provide a medium to businesses to submit application forms

to the government

2 G t t Citi

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2. Government-to-Citizen

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Such websites support auctions of vehicles,

machinery or any other material. Such website also

provides services like registration for birth, marriage

or death certificates. Main objectives of G2Cwebsite are to reduce average time for fulfilling

people requests for various government services.

3 G t t B i

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3. Government-to-Business

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Such websites support auctions, tenders and

application submission functionalities.

4. Government-to-Government

This model involves transactions between 2

governments

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Clarifications….. if Any….? 

Christ University, Bangalore-29 Rishikesh. K. B.

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