ROLE OF E – COMMERCE

AND

M - COMMERCE

MADE BY:- ROLLNO.

SAHIL NAGPAL 232

PRACHI DABAS (LEADER) 492

KARANBIR SINGH 152

GARIMA LONGIANY 1252

PAVAN KUMAR 842

MANOJ KUMAR 902

RAHUL 1462

LALTHANGLEEN SITLHOI 1052

Sri Guru Nanak Dev Khalsa College

(University of Delhi)

Submitted to:

(Supervisor)

LEARNING OBJECTIVES:

To explore more about E-Commerce and M-

Commerce in depth.

To identify the impact of E-Commerce and M

Commerce.

To recognise the benefits and limitations of E

Commerce and M-Commerce.

To identify the different classification of E-

commerce and M-Commerce

To identify the main barriers to the growth

and development of E-commerce and M

Commerce.

E-COMMERCE

E-COMMERCEE-commerce refers to the sale of goods or products through

online Stores.

Online stores are not just about selling products. Many work

on more sophisticated functions such as flight or hotel

booking systems, comparison sites, online brokers or

affiliate marketing schemes.

It’s a big area but still many companies operate in sectors

where this model of business isn’t always appropriate so

looking more widely at the internet and emerging

technology is important in presenting a presentation that is

of use to each and every person accessing it.

THIS IS HOW AN E – COMMERCE

WEBSITE LOOKS LIKE

E-COMMERCE (CONTD.…)

Electronic commerce (EC, E-Commerce)—a process of buying, selling, transferring, or exchanging products, services, and/or information via electronic networks and computers.

A possible response is to introduce a variety of e-commerce initiatives that can improve:

Supply chain operation

Information

Money from raw materials through factories

Increase customer service

Open up markets to more customers

E-COMMERCE (CONTD...)

E-commerce defined from the following perspectives:

Communications: Delivery of goods, services, information, or

payments over computer networks or any other electronic

means.

Commercial (Trading): Provides capability of buying and

selling products, services, and information on the Internet and

via other online services.

Business process: Doing business electronically by

completing business processes over electronic networks,

thereby substituting information for physical business

processes.

Service: A tool that addresses the desire of governments,

firms, consumers, and management to cut service costs

while improving the quality of customer service and

increasing the speed of service delivery

E-Business

A broader definition of EC,

which includes:

Buying and selling of

goods and services

Servicing customers

Collaborating with

business partners

Conducting

electronic

transactions within an

organization

MAJOR DIFFERENCES IN E-COMMERCE AND

E-BUSINESS

HISTORY OF E-COMMERCEE-Commerce started over 40 years ago, and has

evolved over time.

Before the widespread uptake and commercial

use of THE INTERNET, the Electronic Data

Interchange (EDI), was used as the platform

for E-commerce.

EDI uses private communications networks

(VANs) to transmit standardized transaction

data between business partners and suppliers.

WORKING

B2B E - COMMERCE

WHAT IS B2B E-COMMERCE?

B2B e-commerce is simply defined as e-

commerce between companies. This is the

type of e-commerce that deals with

relationships between and among businesses.

About 80% of e-commerce is of this type, and

most experts predict that B2B ecommerce

will continue to grow faster than the B2C

segment

WHAT IS B2B E-COMMERCE?

(CONTD.)

The Internet allows many smaller

companies to participate in

government and private bids they

otherwise would be locked out of by

bigger competitors. Governments and

companies that let out the bids are

finding that they get lower bids through

the Internet because of the increased

number of bidders.

ALIBABA.COM IS THE BEST EXAMPLE OF B2B E

COMMERCE WHERE A BUSINESS ORGANISATION CAN

BUY FROM ANOTHER BUSINESS ORGANISATION IN

BULK.

WHAT IS B2B E-COMMERCE?

(CONTD.)

It is the largest form of today’s commerce In this form the buyers and sellers are

both business entities and does not include individual consumer.

REGULAR MODES OF PAYMENT IN

B2B COMMERCE.

ADVANTAGES OF B2B E-COMMERCE

Some advantages of B2B ecommerce

are;

Direct interaction with customers.

Focused on sales promotion.

Building customer loyalty.

Savings in distribution costs

WEBSITES THAT ARE ENGAGED IN

B2B ECOMMERCE

commodityindia.com

Indiaconstruction.com

clickforsteel.com

etc.

EXAMPLE OF B2B

The more common B2B examples and best

practice models are IBM, Hewlett Packard

(HP), Cisco and Dell. Cisco, for instance,

receives over 90% of its product orders over

the Internet.

B2C E - COMMERCE

WHAT IS B2C E-COMMERCE?

Business-to-consumer e-commerce, or commerce

between companies and consumers, involves

customers gathering information; purchasing

physical goods (i.e., tangibles such as books or

consumer products) or information goods (or goods

of electronic material or digitized content, such as

software, or e-books); and, for information goods,

receiving products over an electronic network. It is

the second largest and the earliest form of e-

commerce. Its origins can be traced to online

retailing (or e-tailing).

WHAT IS B2C E-COMMERCE?

(CONTD.)

The more common applications of this type of

e-commerce are in the areas of purchasing

products and information, and personal

finance management, which pertains to the

management of personal investments and

finances with the use of online banking tools.

EXAMPLE OF B2C ECOMMERCE IS

FLIPKART.COM

OTHER EXAMPLES ARE INFIBEAM

AND EBAY.IN

BUSINESS-TO CONSUMER (B2C)

E-COMMERCE TRANSACTION

PROCESS

Business-to Consumer (B2C) e commerce transaction process includes;

Customer identifies a need.

Searches for the product or services to satisfy the need.

Selects a vendor and negotiates a price.

Receives the product or services (delivery logistics, inspection and acceptance).

Makes payment.

Gets service and warranty claims.

WEBSITES THAT ARE ENGAGED IN

(B2C) E-COMMERCE

Travelocity.doc, hotels.com, rediff.com, jaldi.com, indiatimes.com, Jobclassfied.midayEg online classes

C2B E - COMMERCE

CONSUMER-TO-BUSINESS (C2B)

E-COMMERCE

Also called demand collection model.

It enables buyers to name their own price, often binding, for a specific good or services generating demand

A consumer posts his project with a set budget online and within outs; companies review the customers’ requirements and bids out the project.

Then the customer will review the bids and selects the company that will complete the project.

Eg .stock market

THIS IS THE EXAMPLE OF C2B E –

COMMERCE WEBSITE PRICELINE.COM

C2B E-Commerce

Generally, in the

C2B ecommerce,

the customer

requests a specific

service from the

business.

WEBSITES ENGAGED IN C2B

E-COMMERCE

razerfinish.com,

ReverseAuction.com,

priceline.com are few of them

C2C E - COMMERCE

Consumer-to-Consumer (C2C)e-commerce

It facilitates the online transaction of goods or services between two peoples.

However, there is not visible intermediary involved, but the parties cannot carry out the transactions without the platform, which is provided by the online market such as eBay.

Examples:

Advertisement of personal services over the internet.

Selling of knowledge and experts online.

THE MOST FAMOUS EXAMPLES OF C2C

E – COMMERCE WEBSITES ARE OLX.IN

AND QUICKR.COM

Other Websites engaged in C2C Are

Baazee.com

ICQ.com

MSN.com

ek.com.au

careeron.com.au

bidorbuy.com

PEER-TO-PEER (P2P) E-

COMMERCE

5. Peer-to-Peer (P2P) e-commerce

It is a technology in itself that helps people to

directly share computer files and computer

resources without having a central web

server.

To use this, both the peers should have to

install the software so that they can

communicate on the common platform.

Examples:

Sharing of music’s, videos, and other digital

files electronically

ONE EXAMPLE OF P2P E – COMMERCE IS TO RENT

CARS BY A PEER TO PEER FOR A LIMITED PERIOD

OF TIME

MOBILE COMMERCE

(M – COMMERCE)

6. M-commerce

It refers to the use of mobiles devices for conducting the transactions.

The mobile device holder can connect each other and can conduct the business.

This is not really a type of e commerce but a mechanism in transaction.

Many M-Commerce applications involve internet enabled mobile devices. If such transactions are targeted to individual, to specific location, at specific times, they are referred as location base ecommerce (L-Ecommerce).

NOW PEOPLE CAN SHOP AND PAY DIRECTLY FROM

THEIR PHONE RATHER THAN USING A LAPTOP OR PC.

E GOVERNMENT

E-Government

In E-Government a government

departments buys or sells goods,

services or information to business

(G2B) or to the individual citizens

(G2C) or to other government entity

(G2G).

In E-Government; intranets, extranets

and the internet all are applied.

Eg: Filing returns through net

THIS IS THE WEBSITE OF GOVERNMENT OF

INDIA FOR FILING INCOME TAX RETURN

E LEARNING

E-Learning When educations, training or

examination are provided online, it is

called E-Learning.

It is practiced in Universities and

organizations, government

departments. When organizations give

training to their employees, it is called

E-Learning.

EDUCOMP SMAT CLASS IS AN EXAMPLE OF

E LEARNNG WHERE STUDENTS CAN LEARN

AND UNDERSTAND MORE EFFECTIVELY RATHER

OPENING THEIR BOOKS.

1. Community-based services: Payment of utility bills, traffic fines, donations to charity etc.

2. Shopping: Buying and selling goods and services

3. Communication: E-mail, Net telephony products can be commerce-enabled and serviced via the Net.

HOW CAN E-COMMERCE BE USED?

THESE DAYS USE OF E – COMMERCE TECHNOLOGY IS

BEING DONE BY THE DELHI TRAFFIC POLICE IN FILING

PENALTY AGAINST THE VIOLATORS OF LAW.

FOR WHAT E COMMERCE WORK?

1. Travel / Tourism.

2. Retail - items that don’t need personal touch - music, books, gifts, Computers, electronic items, Auctions.

3. Real Estate - houses and investment properties. More efficient and effective processes between businesses (B 2 B).

WITH THE EVOLUTION OF E – COMMERCE WE CAN

EVEN BOOK AIR TICKETS ONLINE RATHER DIRECTLY

GOING TO THE BOOKING AGENT

OR WE COULD EVEN BUY A PROPERTY

ONLINE VIA DIFFERENT SITES LIKE 99ACRES,

MAGIC BRICK ETC.

FOR WHAT IT DOES NOT WORK?

1. Items which require “touch and trial”

• Luxury goods.

• Clothes - beyond T-shirts

2. Groceries - it works for some people but market is restricted.

WHAT ARE THE RISKS?

Failure of the web site:

• problems with the surroundings, power failure.

• failure of the hardware or software.

• attack through virus or computer hackers.

Main issue: Secure payment scheme

FACTORS TO CONSIDER BEFORE

LAUNCHING INTO E-COMMERCE

Developing a deep, lasting relationship with customers takes on even greater importance on the Web.

Creating a meaningful presence on the Web requires an ongoing investment of resources – time, money, energy, and talent.

Measuring the success of a Web-based sales effort is essential to remaining relevant to customers whose tastes, needs, and preferences constantly change

BENEFITS AND LIMITATIONS OF

E-COMMERCE TO SOCIETY

Benefits

Enables more

flexible working

practices

Connects people.

Facilitates delivery

of public services.

Limitations

Breakdown in human

interaction.

Social division.

Reliance on

telecommunications

infrastructure, power and IT

skills.

Wasted resources.

BENEFITS AND LIMITATIONS OF E-

COMMERCE TO CONSUMERS

Benefits

24/7 access.

More choices.

Price comparisons.

Improved delivery

processes.

An environment of

competition

Limitations

Computing equipment.

A basic technical knowledge.

Cost of access to the Internet.

Cost of computing equipment.

Lack of security and privacy of personal

data.

Physical contact and relationships are

replaced by electronic processes.

A lack of trust because they are

interacting with faceless computers.

BENEFITS AND LIMITATIONS OF E-COMMERCE

TO ORGANISATIONS

BENEFITS

Operational cost savings.

Mass customisation.

Enables reduced

inventories.

Lower

telecommunications cost.

LIMITATIONS

Lack of sufficient system security, reliability, standards and communication protocols.

Rapidly evolving and changing technology.

Under pressure to innovate

Facing increased competition

Problems with compatibility of older and ‘newer’ technology.

M - COMMERCE

MOBILE COMMERCE

Mobile Commerce is also known as M-Commerce.

M-Commerce is the buying and selling of goods and

services through wireless handheld devices.

M-Commerce is the process of paying for services using a

mobile phone or personal organizer.

67

NOW FOR PAYING INSTANT BILLS LIKE IN A RESTRAUNT.

YOU CAN JUST SWIPE YOUR CREDIT/DEBIT CARD TO YOUR

MOBILE PHONE. BUT, HOWEVER THIS FEATURE IS LIMITED TO

ONLY FEW BRAND OF PHONES.

HISTORY

Mobile Commerce Services were first delivered in

1997, when the first two mobile-phone enabled Coca

Cola vending machines were installed in the Helsinki

area in Finland.

The M-Commerce server developed in late 1997 by

Kevin Duffey at Logica.

Since the launch of the iPhone, mobile Commerce has

moved away from SMS systems and into actual

applications.69

OVERVIEW

M-Commerce is the ability to conduct Commerce

using a mobile device such as:

1. Mobile Phone

2. Personal Digital Assistant(PDA)

3. Smart Phone

70

DUE TO RAPIDLY CHANGING TECHNOLOGY THERE IS MORE

DEMAND OF M COMMERCE THAN E COMMERCE

CONTD..

Mobile Commerce from the Customer‘ s point of view

The customer wants to access information, goods and

services any time and in any place on his mobile device.

He can use his mobile device to purchase tickets for

events or public transport, pay for parking, download

content and even order books and CDs.

He should be offered appropriate payment methods.

MONDAY, APRIL 13 , 2015 72

E TOLLS CAN BE PAID BY SIMPLY INSERTING

DEBIT/CREDIT CARD IN A CAR’S E PAYMENT BOX

CONTD..

Mobile Commerce from the Provider`s point of view

The future development of the mobile telecommunication

sector is heading more and more towards value-added

services. Analysts forecast that soon half of mobile

operators‘ revenue will be earned through mobile

Commerce.

Innovative service scenarios will be needed that meet the

customer‘s expectations and business models that satisfy

all partners involved.MONDAY, APRIL 13 , 2015 74

SERVICES AND APPLICATIONS

PROVIDED IN M COMMERCE

Mobile ticketing

Mobile Money Transfer

Content purchase and delivery

Information services

Mobile banking

Mobile Browsing

Mobile Purchase

Mobile marketing and advertising

MONDAY, APRIL 13 , 2015 75

SOME OF THE FAMOUS MOBILE

SERVICE PROVIDERS ARE VODAFONE

AIRTE

L

AND RELIANCE MOBILE

MOBILE TICKETING

Mobile Ticketing is the process where the customers

can order, pay for, obtain and validate tickets from any

location and at any time using Mobile phones .

Tickets can be booked and cancelled on the mobile

device with the help of simple application downloads.

Delivery of tickets to mobile phones can be done in

the form of a SMS or by a MMS.

MONDAY, APRIL 13 , 2015 79

BOOK MY SHOW IS AN APPLICATION WHERE A

CONSUMER CAN EASILY BOOK/PRE BOOK

TICKETS FOR A MOVIE, AN EVENT AND SPORTS.

EXAMPLE OF MOBILE TICKETING

Contd..Mobile Tickets can be purchased in a variety of ways

including online, via text messaging or in a secure

mobile application.

Mobile Ticketing is used in many applications like:

1. Airline ticketing

2. Cinema ticketing

3. Railway & Bus ticketing

4. Concert/Event ticketing

5. Consumer voucher distribution

MONDAY, APRIL 13 , 2015 82

Benefits to the ticket buyer

Instant delivery of mobile tickets at the time of

purchase.

Individual mobile tickets can be forwarded to a friend.

Quicker entry with no waiting in lines.

Benefits to the Event organizer

Reduced will call lines and staffing.

Guaranteed security, only one entry per barcode.

Event is 'greener' with reduced paper waste.MONDAY, APRIL 13 , 2015 83

MOBILE MONEY

TRANSFER

Mobile Money Transfer refers to payment services

which are performed by using a mobile phone.

By using this service we can transfer money from one

person to other by using a mobile phone.

Ex: ICICI bank has started IMPS - Interbank Mobile

Payment Service. It is an interbank electronic instant

mobile money transfer service through mobile phones.

MONDAY, APRIL 13 , 2015 84)

TELECOM SERVICE PROVIDERS LIKE VODAFONE

AND AIRTEL HAV PROVIDED A SERVICE WHERE

CUSTOMERS CAN TRANSFER THEIR MOBILE

BALANCE WITH THEIR FRIENDS AND FAMILY.

CONTENT PURCHASE AND

DELIVERY

Mobile content purchase and delivery mainly

consists of the sale of ring-tones, wallpapers,

and games for mobile phones.

The convergence of mobile phones, portable

audio players, and video players into a single

device is increasing the purchase and delivery

of full-length music tracks and video.

MONDAY, APRIL 13 , 2015 87

AS YOU CAN SEE HERE THAT A USER CAN

EASILY ACCESS THE WEB AND DOWNLOAD MUSIC,

VIDEOS, WALLPAPERS DIRECTLY FROM HIS MOBILE.

INFORMATION

SERVICESA wide variety of information services can be delivered

to mobile phone users in much the same way as it is

delivered to PCs. These services include:

News

Stock quotes

Sports scores

Traffic reporting

MONDAY, APRIL 13 , 2015 89

SIMILARLY USER CAN GET NEWS AND STOCK

UPDATES ON THEIR MOBILE PHONES AND OTHER

PORTABLE ELECTRONIC DEVICES

MOBILE BANKING

Banks and other financial institutions use mobile

Commerce to allow their customers to access

account information and make transactions, such as

purchasing stocks, remitting money, receive

notifications, transfer money to other banks.

MONDAY, APRIL 13 , 2015 91

CONTD..

Mobile Banking Services are:

1. Mini-statements and checking of account history

2. Checking the balance

3. Recent transactions

4. PIN provision, Change of PIN and reminder over the

Internet

5. Cash-in, cash-out transactions on an ATM

MONDAY, APRIL 13 , 2015 92GVPCE(A)

WITH HDFC’S MOBILE BANKING APP THE CUSTOMERS CAN EASILY

MANAGE THEIR ACCOUNTS, TRANSFER FUNDS,PAY BILLS AND

CHECK THEIR BALANCE.

The location of the mobile phone user is an important

piece of information used during Mobile Commerce or

M-Commerce transactions.

Knowing the location of the user allows for location-

based services such as:

1. Local discount offers

2. Tracking and monitoring of people

MONDAY, APRIL 13 , 2015 94

LOCATION BASED SERVICES

MOBILE PURCHASE

Some merchants provide mobile websites that are

customized for the smaller screen and limited user

interface of a mobile device.

MONDAY, APRIL 13 , 2015 95GVPCE(A)

LOCATION BASED SERVICES

MOBILE MARKETING AND

ADVERTISING

Mobile marketing is

highly responsive sort of

marketing campaign,

especially from brands’

experience point of view.

Corporations are now

using M-Commerce to

expand everything from

services to marketing

and advertisement.

MONDAY, APRIL 13 , 2015 97

Types of M-marketing and advertising:

Mobile Web Poster Mobile games

SMS advertising Mobile videos

MMS advertising Audio Advertisements

MONDAY, APRIL 13 , 2015 98

ADVANTAGES

Advantages of M-Commerce are:

• Portability

• Instant connectivity

• Mobility

• Personalization

• Localization

DISADVANTAGES

Small screens of most devices still limit types of file

and data transfer (i.e. streaming videos, etc.)

Use of graphics limited

User interface is often difficult to learn how to use

Speed

Limited storage capacity of devices

MONDAY, APRIL 13 , 2015 100GVPCE(A)

THANK YOU SO MUCH