MIRPUR UNIVERSITY OF SCIENCE AND TECHNOLOGY (MUST), MIRPUR

DEPARTMENT OF COMPUTER SCIENCE & INFORMATION TECHNOLOGY

 E-COMMERCE
BIT - 3604

Lecture 01 : Introduction to E-Commerce

Ms. Saeeda Kouser

(Lecturer)

Date: _______________
 COURSE OBJECTIVES

This course is designed to:

• Analyze the impact of E-commerce on business models and strategies
• Describe the infrastructure for E-commerce
• Describe the key features of Internet, Intranets and Extranets and explain
how they relate to each other to provide a successful environment for an e-
commerce business.
• Discuss legal issues and privacy in E-Commerce
• Assess electronic payment systems
• Recognize and discuss global E-commerce issues

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 COURSE SCHEDULE
Till Mid Term After Mid Term
• Introduction to E-Commerce, E-commerce • Electronic Data Interchange (EDI):
impacts on society Components, services and Model,
• E-Commerce Business Models. • EDI System, EDI documents,
• Online Shopping, online catalogs, , online • Product Catalog: Creation and Management,
banking , accounting and finance Leverage of Business and its advantages
• Telecommuters, Security methods, Role of • Data Mining: techniques, stages, phases
Intranets and Extranets, • Data warehouse: concepts, Models
• E- commerce security requirements and • Comparison: Traditional data warehouse vs.
security measures: Encryption, digital cloud data warehouse
signature , Security certificates
• Revenue Models, Advertising techniques
• E- business: Secure Transactions, Payment
• Marketing strategies
methods,
• Security Protocols

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 COURSE TEXTBOOKS

• Danial Armor: E-Business Revolution

• Karra Kota: E-Business
• Dave Chaffey :E-Business and E-Commerce Management Strategy,
Implementation and Practice (fourth or 5th Edition)
ISBN: 978-0-273-71960-1

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 GRADING POLICY

Mid Term: 30%

Quizzes: 10%

Assignments: 10%

Final Exam: 50%

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 HOMEWORK & ASSIGNMENT POLICY
Assignments:
Every student is required to design and develop an e-commerce
project meeting all the basic requirements/criteria specified by
the course. They are required to give one oral presentation of 15
minutes approximately.

Quizzes:
At least two quizzes:
Quiz #1 After 4th Week
Quiz #2 after 12th Week

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 LECTURE CONTENTS

1. Introduction

2. Objectives of the lecture

3. Technique to be taught

4. Key concepts

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 INTRODUCTION

• E-Commerce or Electronics Commerce is a methodology of modern business, which

addresses the requirements of business organizations.

• It can be broadly defined as the process of buying or selling of goods or services using an
electronic medium such as the Internet. This course adopts a simple and practical
approach to explain the governing principles of e-commerce.

• 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.

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 LEARNING OBJECTIVES
Objectives
• Introduce E-Commerce

• Comparison between traditional commerce and e-commerce

• Learn the basic operations of e-commerce

Goals
• Ultimate goal is to get the basic knowledge of this new business paradigm.
• In modern business practice, computer technology produce efficient, low cast,
simplified solution to run a successful E- business.

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 INTRODUCTION: E - BUSSINESS
INTRODUCTION TO E-BUSINESS
• E-Business is a superset of business cases which have been digitized and work on the internet.

• E-Business is the process of buying and selling or exchanging of products, services and

information through telecommunication and computer networks including the internet.

• The business in developing countries that want to increase their export potential using the internet
should build their website to serve their customers.

E-Business = Anytime, Anywhere Business / Shopping.

• These days’ businesses are using electronic medium to distribute information and provide

customer support. These activities are not termed as “Commerce” activities but “business” activities.

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 INTRODUCTION: E - BUSSINESS
• E-Business includes e-commerce along with other applications such as:
1. Re-engineer internal Business Processes.

2. Implement e-commerce system with their customers and Suppliers.

3. Promote enterprise collaboration among business terms and work groups.

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 INTRODUCTION: E - BUSSINESS
• Three definitions of the relationship between e-commerce and e-business

Fig. 1 Relationship between e-commerce and e-business

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 INTRODUCTION: E - COMMERCE
E-COMMERCE
• E-commerce is a subset of E-Business.

• Is the act of buying and selling of goods over the internet.

• E-commerce is the use of technology towards the automation of business transactions and workflow.

• E-Commerce or Electronics Commerce is a methodology of modern business

• Ecommerce 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

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E-COMMERCE: An Overview

Fig. 2 - E-Commerce Model

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 E-COMMERCE: FEATURES
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.

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 E-COMMERCE: FEATURES

• 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.

• Support
• E-commerce provides various ways to provide pre-sales and post-sales assistance to provide better services
to customers.

• 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.

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 COMPARATIVE ANALYSIS

Traditional Commerce E-Commerce

• Heavy dependency on information • Information sharing is made easy via
exchange from person to person. electronic communication channels
• Communication/ transaction are done in • Communication or transaction can be
synchronous way. done in asynchronous way.
• E-Commerce website provides user a
• It is difficult to establish and maintain platform where all information is
standard practices in traditional available at one place.
commerce.
• E-Commerce provides a universal
• No uniform platform for information platform to support commercial/business
sharing as it depends heavily on personal activities across the globe.
communication.

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E-COMMERCE: ADVANTAGES AND DISADVANTAGES

E-Commerce advantages can broadly be classified in three major

categories:

• Advantages to Organizations

• Advantages to Consumers

• Advantages to Society

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 E-COMMERCE: ADVANTAGES AND DISADVANTAGES

Advantages to Organizations:
• Using e-commerce, organizations can expand their market to national and international
markets with minimum capital investment.

• An organization can easily locate more customers, best suppliers, and suitable business
partners across the globe.

• E-commerce helps organizations to reduce the cost to create process and by digitizing the
information.

• E-commerce improves the brand image of the company.

• E-commerce helps to simplify the business processes and makes them faster and efficient.

• E-commerce increases the productivity of organizations.

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 E-COMMERCE: ADVANTAGES AND DISADVANTAGES

Advantages to Customers:
• It provides 24x7 support. Customers can place orders anytime, anywhere from any location.
• E-commerce application provides users with more options and quicker delivery of products.
• E-commerce application provides users with more options to compare and select the
cheaper and better options.
• A customer can put review comments about a product and can see the review comments of
other customers before making a final purchase.
• E-commerce provides options of virtual auctions.
• E-Commerce increases the competition among organizations and as a result, organizations
provides substantial discounts to customers.

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 E-COMMERCE: ADVANTAGES AND DISADVANTAGES

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.

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 E-COMMERCE: ADVANTAGES AND DISADVANTAGES

The disadvantages of e-commerce can be classified into two major

categories

• Technical disadvantages

• Non-Technical disadvantages

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 E-COMMERCE: ADVANTAGES AND DISADVANTAGES

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, setting the e-commerce
environment apart from network servers.

• 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.

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 E-COMMERCE: ADVANTAGES AND DISADVANTAGES

Non-Technical Disadvantages
• Initial cost - The cost of creating/building an e-commerce application may be very high.

• User resistance − Users may not trust the site being an unknown faceless seller. 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.

• 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.

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 ACKNOWLEDGEMENTS

• Dave Chaffey :E-Business and E-Commerce Management Strategy, Implementation and

Practice 5th Edition ISBN: 978-0-273-71960-1

• https://www.tutorialspoint.com/e_commerce/e_commerce/htm

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THANKS