E Business

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Instructions on CIA
CIA 1 Component

Mark
s
Assessment
10 MCQ Tests

Unit 1 & Unit 2

Week 3 & 4

Component 2

10 Submission of Assignment

Journal Article Review

30th June
2015

20

CIA 2 Section

Section B

Section C

32 4 Questions out of 5 to be answered

8 One question to be answered out of 2

Syllabus

Date

Unit 1, Unit 2 and Unit 3 ???

10 Case Study

50

Syllabus

Date

Component 1

Student Presentation by Group of 2

10 Students

From List of Topics

provided

???

Component 2

10 Mini Project Group Wise

???

???

20

Total

CIA 3 Component

Mark
s
Assignment

Section A

Date

Component 1

Total

Syllabus

Total

Mark
s
Assignment

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Books
Required Text Book

Laudon Kenneth C, Traver Carol Guercio, E-Business- Business. Technology.

Society

Additional recommended references

Turban, E., & King, D. (2012)- Electronic Commerce 2012 Managerial and
Social Networks Perspectives
Kalakota Ravi B. and Whinston Andrew B.- Frontiers of Electronic Commerce
P T Joseph S J, E-Business- An Indian Perspective
Schneider Gary P - Electronic Commerce
Bhasker Bharat - Electronic Commerce: Framework, Technologies and
Applications.
Schneir Bruce and Ferguson Neils - Practical Cryptography
Awad Elias M - Electronic Commerce: From vision to fulfillment
Rayport Jeffrey F. and Jawoski Bernard J. - Introduction to E-Business

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What is E-Commerce?
Definition
E-commerce is the use of internet technology in business transactions of
buying, selling or exchanging products, services or information.

Features
Digitally enabled transactions.
Commercial transactions (involve the exchange of value (e.g., money)
across organizational or individual boundaries in return for products and
services.)

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Difference between E-Commerce and EBusiness

E-Business

The digital enabling of transactions and processes within a firm, involving

information systems under the control of the firm.

Example: A companys online inventory control mechanisms are a component

of e-business, but such internal processes do not directly generate revenue for
the firm from outside businesses or consumers, as e-commerce,
A firms e-business infrastructure provides support for online e-commerce
exchanges.
Same infrastructure and skill sets are involved in both e-business and ecommerce.
E-commerce and e-business systems blur together at the business firm
boundary, at the point where internal business systems link up with suppliers
or customers.

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Sanjay Rao -

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Terminologies in E-Commerce
Pure V/s Partial EC
Meaning depends on degree of digitisation

Brick and Mortar V/s Click and Mortal Organisation

Non Digital V/s Digital E-Commerce

E-Market

A maket where buyers and sellers meet online for exchange of services,
goods, money or information
Market Space
A marketplace extended beyond traditional boundaries and removed from a
temporal and geographic location. It includes potentially billions of
consumers and millions of businesses worldwide .

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Eight Unique Features of E-Commerce Technology

1. Ubiquity
Internet Technology is available everywhere: at work, at home and elsewhere
via laptop and other mobile devices, anytime. Due to ubiquity marketplace is
not restricted by any geographical or time based restrictions. It also reduces the
cost of participation in a market and shipping costs.
2. Global Reach
Internet Technology reaches across regional and geographical boundaries
around the globe thus tearing cultural and national boundaries giving market
access to billions across the globe thereby increasing the size of the market.
3. Universal Standards
There is a single set of standards across the global which is the Internet
Standard. This makes E-Commerce easier to operate.
4. Richness
Multiple Media like Video, Audio, Text messages are possible thereby increasing
consumer experience. However not comparable to the in person interaction in
the traditional small retail stores .

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Eight Unique Features of E-Commerce

Technology

5. Interactivity
Internet technology works through interaction with the user. Vendors can
engage the customers in a one-to-one and one-to-many dialogue at a global
level . This increases customer experience and making the customer a coparticipant in service delivery
6.Information density
Refers to the increased quality and reduced cost of information available
through Internet Technology to all market participants. Also information is
available without time restrictions. Helps better and quicker decision making.
Provides price transparency, cost transparency, price discrimination and
customer preferences helping merchants to segment the market.
7. Personalisation
Internet technologies allows to be personalised messages to be delivered to
individuals and groups helping the merchant to customise products and
services based on individual characteristics. For eg Online version of WSJ
allows you to read news and articles based on preference.

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Eight Unique Features of E-Commerce

Technology
Social Technology
Internet Social and Business Model enables User content generation
and distribution and support of social networks.
Users can share video, text, audio to a worldwide community.
This enables many-to-many model of communication that is unique .

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Interdisciplinary nature of E-Commerce

Marketing
Advt Stategy, Online Marketing Strategy, Interactive Kiosks
Consumer Behaviour
Consumer and Seller behaviour is key to B2C trade. Relation between culture
and consumer attitude is an important research area
Finance

The financial markets and banks are one of the major participants in ECommerce. Internet as a substitute for a stock exchange and fraud in
online stock transactions are areas requiring studies.
Economics
Electronic commerce is influenced by economic forces and has a major
impact on companies, and country economies. Also, theories of micro and
macro-economics need to be considered in E-Commerce planning,
Management
Electronic commerce efforts need to be managed properly, and because of
the interdisciplinary nature of E-Commerce, its management may require
new approaches and theories

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Interdisciplinary nature of E-Commerce

Business Law and Ethics
Legal and ethical issues are extremely important in E-Commerce, especially in
a global market. A large number of legislative bills are pending, and many
ethical issues are interrelated with legal ones, such as privacy and intellectual
property.
HR.

The implementation of eCommerce technologies has considerably

changed how employees , for example, in the banking industry interact
with customers. Some customers use electronic banking applications to
such an extent that they find little or no need to go into a branch. This
change has had a significant impact on the way that jobs are designed
and the way that employees are being managed.
Others
Linguistics (translation in international trades), robotics and sensory
systems, operations research ,management science, statistics, and public
policy and administration.

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Types of E-Commerce
B2C- Business to Consumer
Online businesses attempt to reach individual consumers. Also called e-tailing.
Eg. Amazon.com
B2B Business to Business
Online businesses selling to other businesses.
For eg Dell, all its component parts are purchased through e-commerce.
For P&G all logistics is done through E-Business
C2C Consumer to Consumer
Consumers transact directly with other consumers to auction/sell goods
Eg. E Bay, Craigslist
P2P Peer to Peer
Internet users to share files and computer resources directly without having to
go through a central Web server - no intermediary is required.
Eg. BitTorrent, eDonkey

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Types of E-Commerce
Mcommerce- Mobile Commerce
Usage of Wireless mobile devices such as PDAs and cell phones to conduct
commercial transactions.
30 % of mobile users have made atleast one purchase with their phones
40% of internet shopping site of Walmart is through mobile devices.
B2B2C : Business to Business to Consumer
Business provides some product or service to a client business. The client
business maintains its own customers.
Eg. Godiva.com; wishlist.com.au

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Advantages of E-Business
Sellers

Increased sales opportunities.

Decreased costs
24 hours a day, 7 days a week
sales.
Access to narrow market
segments.
Access to global markets.
Increased speed and accuracy of
information delivery.
Data collection and customer
preference tracking.

Buyers
Wider product availability.
Customized buying options
24 hours a day, 7 days a week
shopping.
Easy comparison shopping.
Access to global markets.
Quick delivery of products and info.
Access to rich media describing
products

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Disadvantages of E-Business
Sellers

Growing competition from other ebusinesses.

Rapidly changing technologies.
Greater telecomm bandwidth
demands
Difficulty of integrating with ebusiness
Problems inherent in maintaining ebusiness systems.
Global market issues: diverse
languages, unknown political
environments, and currency
conversions.

Buyers
Difficulty differentiating among so
many online sellers.
Unpredictable transaction security
and privacy.
Dealing with unfamiliar, possibly
untrustworthy, sellers.
Inability to touch and feel products
before buying them.
Unfamiliar buying processes and
concerns about vendor reliability.
Issues with tax charges and
logistical difficulties of product
returns

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Drivers of E-Business
Technology
Wireless Internet connections (Wi-Fi, WiMax, and 3G) growing rapidly.
New mobile computing and communications platform emerge based on
smart mobile technology like android devices and iPhones to rival the PC
platform.
Safe and secure technology for online financial transaction.
The Internet broadband foundation becomes stronger in households and
businesses.
Bandwidth prices fall as telecommunications companies re-capitalize
their debts.
Computing and networking component prices continue to fall
dramatically.

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Drivers of E-Business
Society
Consumer and user-generated content, and syndication in the form of blogs, wikis,
virtual lives, and social networks, grow to form an entirely new self-publishing
forum that engages millions of consumers.

Traditional media such as newspapers, television broadcasters, and magazine

publishers continue to lose subscribers, and adopt online, interactive models.
Explosive growth in online viewing of video and television programs

Over 76 million adults join a social network on the Internet, with the majority over
35 years of age.

Taxation of Internet sales becomes more widespread and accepted by large online
merchants.

Surveillance of Internet communications grows as a part of the war on terror.

China and India Internet populations continue to grow at over 20% annually.

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Barriers to E-Business

Sophisticated skill set.

How many know how to trade in internet?
Expensive technology.
Using the Internet requires a PC , modem and connect to ISP
Persistent attraction of physical markets and traditional shopping
For many, shopping is a cultural and social event where people
meet directly with merchants and other consumers.
Much of the worlds population does not have mobile, PC and
phone
Lack of trust
Will I get delivery as promised?
Is there a chance that my credit card details be misused?
Limited opportunity to experience the product before purchase.
When product/ service options are unstructured, a talk by
salesman is preferred.
Eg. Non-standard financial instruments (Insurance), used cars.

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I can not experience the

product before I buy it. I want
to know the feel of the shoe
on my feet

It delays goods except

pizza

!!

Now the whole world knows my

address and credit card
details!!
I am famous

How do I return the dining

table to the vendor?
(The reverse supply

chain)

It lacks that
personal touch

I am confused; Let us call

the LIC agent to visit us.

Anybody can set up a web site?

I fear this web site is set up by
Christite MBAs
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.
20

Origin and Growth of E-Business

Year

Milestone

1971

File Transfer Protocol (FTP)

1972

E Mail

1970

A pharmaceutical firm named Baxter Healthcare initiated a primitive

form of B2B e-commerce by using a telephone based modem that
permitted hospitals to reorder supplies from Baxter

1980

Electronic Data Interchange (EDI) standards that permitted firms to

exchange commercial documents and conduct digital commercial
transactions across private networks.

1981

Minitel, the first truly large-scale digitally enabled transaction system

was deployed in France. Minitel was a videotext system that
combined a telephone with an 8-inch screen.

1995

E commerce based on Internet.

2000
onwards

Social Networks, Mobile based commerce

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INDIAN E BUSINESSES

Are these Businesses making

Profits?
Is FDI allowed in E-Business?
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Flipkart
www.flipkart.com
Flipkart is an Indian e-commerce company
headquartered in Bangalore, Karnataka. It was
founded by Sachin Bansal and Binny Bansal in
2007. In its initial years, Flipkart concentrated on
online sales of books, but it later on expanded to
electronic goods and a diversity of other products.
Flipkart offers multiple payment methods like
credit card, debit card, net banking, e-gift voucher,
and the major of all Cash on Delivery. The cash-ondelivery model adopted by Flipkart has proven to
be of great significance since credit card and net
banking penetration is very low in India.
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Snapdeal
www.snapdeal.com
Snapdeal is a leading online marketplace,
headquartered in New Delhi, India. Snapdeal
features products across categories like mobiles,
electronics, fashion accessories, apparel,
footwear, kids, home and kitchen, sports, books;
and services like restaurants, spas &
entertainment amongst others. The company was
started by Kunal Bahl, a Wharton graduate and
Rohit Bansal, alumnus of IIT Delhi, in February
2010. Snapdeal also provides discounted deals
connecting with local merchants.
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Caratlane
www.caratlane.com
Caratlane is India's first online jewellery store with an
assorted range of diamond jewellery designs to offer every
customer. They offer more than 1,40,000 loose diamonds, and
over 1000 ready to choose diamond jewellery online like
diamond rings, pendants, earrings, bracelets, bangles and
gold coins for all budgets. The quality & authenticity of
diamond jewellery is validated with BIS Hallmarking and
Certification from International labs like GIA, IGI, HRD and
AGS. The website offers discount up to 25 percent of prices.
This advantage is achieved with no inventory cost, minimal
overhead cost. Buying jewellery online in India is more
challenging with the lack of touch and feel factor. To counter
this, Cartlane.com also offers try at home facility before
buying a jewellery online, to ensure complete satisfaction of
look and size. The clients also receive
personalized service
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Yebhi.com
www.yebhi.com

Yebhi.com is an Indian Online shopping E-commerce portal for

Home, Lifestyle & Fashion e-retailer, launched in the year 2009.
Yebhi, which began as BigShoeBazaar.com, has a registered user
base of about 1.5 million people, of who about half a million
have transacted on the site. Nexus Venture Partners and N. R.
Narayana Murthys Catamaran Ventures invested40 crore in
Agarwals company in mid-2011.
On July' 10th 2012, Big Shoe Bazaar India Pvt Ltd. owner of
Brand Yebhi.com announced that it has raised100 Cr in Series C
round of funding led by Fidelity Growth Partners India and
Qualcomm.
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Dealsandyou
www.dealsandyou.com

Dealsandyou is a deals website to find the

best deals in Indian shopping. The site
provides offers for any one for local services
such as full body massages or buffet
restaurants. Shopping using these deals in
the website is a nice experience which can
save a great deal of money as well.
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Homeshop18
www.homeshop18.com
HomeShop18 is the online and on-air retail and
distribution venture of Network 18 Group,
headquartered in NOIDA, India. HomeShop18
was launched on 9 April, 2008 as India's first 24hour Home Shopping TV channel, where anchors
performed live demonstration of products on
sale. The television channel established
HomeShop18's foothold in Indian retail because
of high television penetration. Later, as the
internet reach grew all over the country,
HomeShop18 expanded to the internet.
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Myntra
www.myntra.com
Myntra was established by Mukesh Bansal,
Ashutosh Lawania, and Vineet Saxena in February
2007. All three are IIT graduates, and have
worked for several start-ups. Myntra is
headquartered in Bangalore and has been funded
by Venture Capital funds like IndoUS, IDG & Accel
Partners. Myntra.com works as an online
shopping retailer of fashion and casual lifestyle
products. The company started off in the business
of personalization of products, and soon
expanded to set up regional offices in New Delhi,
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Mumbai and Chennai.

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Inkfruit
www.inkfruit.com

Inkfruit is an online t-shirt store, where t-shirt designs

are submitted and voted for by a group of people. It
was initiated in December 2007 (then called Gnome) by
Fingerprints Fashion Inc., based in Mumbai, India.
Kashyap Dalal, an undergraduate of IIT Bombay, and
graduated from IIM Lucknow is the CEO of Inkfruit. This
concept is taken from Threadless to India by Inkfruit.
The community of Inkfruit submits t-shirt designs.
These designs are put to vote on a scale of 1 to 5. The
design that receives most votes wins, gets printed
and is put for sale. The member whose design is
selected gets paid a winning amount.
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Fashionandyou
www.fashionandyou.com

Fashion and You is a private invitation only

shopping club, based in Gurgaon, India. It was
founded by Harish Bahl in November, 2009.
The fashion site features collections by top
designers for men, women and children for up
to 80% off retail prices. Fashion and You obtain
authentic designer merchandise straight from
the brand and provides it exclusively to its
members through limited-time events.

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