TYPES OF E-COMMERCE

Understanding the concept of E-Commerce

E-Commerce involves three inter related themes.

1) technology

2) business

3) Society

Technology includes internet, computer, modem, internet service provider, websites, web servers, networks, client person.

Business- While technology provides infrastructure, business application provides potential prospects of Return on Investment. The technology has provided new ways for organizing productions and doing transactions, the basic concept like knowledge of electronic markets, business models, industry of value market, consumer behavior in the E-market should be understood.

Society- The primary societal issues like intellectual property, individual privacy and the public policy should be understood.

TYPES OF E-COMMERCE

There are two types of E- Commerce- E-Commerce I and E-Commerce II.

E-Commerce I is a first phase in E-Commerce and started in 1990. Some of the companies were first movers who came online. Some of the companies were totally based online. Those companies who were first movers succeeded and rest failed. Most of the companies failed because they don't had internet connection and there was less awareness and reluctant customers.

E-Commerce I was a technology driven and was a period of expensive growth that began in 1995 and was ended in 2000. The vision of E-Commerce I was universal communication and computing environment that provides excess to cheap inexpensive computers and world wide universe of knowledge.

E-Commerce II was started at 2001. There was a crash in the stock market value for the E-commerce I companies in 2002. in 2001, E-commerce II involved with the business prospective in which new features and ideas were incorporated. The concept of I st movers were replaced by fast followers i.e. most of the traditional firms opened up their online ventures to promote their business.

In case of E-commerce I the I st movers were Etoys.com, Furniture.com..

Advantages and Disadvantages of EIS Advantages of EIS Easy for upper-level executives to use, extensive computer experience is not required in operations Provides timely delivery of company summary information Information that is provided is better understood Filters data for management Improves to tracking information Offers efficiency to decision makers Disadvantages of EIS System dependent Limited functionality, by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow, large, and hard to manage Need good internal processes for data management May lead to less reliable and less secure data

Inter-Organizational Value Chain

The value chain of a company is part of over all value chain. The over all competitive advantage of an organization is not just dependent on the quality and efficiency of the company and quality of products but also upon the that of its suppliers and wholesalers and retailers it may use. The analysis of overall supply chain is called the value system. Different parts of the value chain 1. Supplier 2. Firm 3. Channel 4 . Buyer

Big-M Method and Two-Phase Method

Big-M Method The Big-M method of handling instances with artificial variables is the “commonsense approach”. Essentially, the notion is to make the artificial variables, through their coefficients in the objective function, so costly or unprofitable that any feasible solution to the real problem would be preferred, unless the original instance possessed no feasible solutions at all. But this means that we need to assign, in the objective function, coefficients to the artificial variables that are either very small (maximization problem) or very large (minimization problem); whatever this value,let us call it Big M . In fact, this notion is an old trick in optimization in general; we simply associate a penalty value with variables that we do not want to be part of an ultimate solution(unless such an outcome is unavoidable). Indeed, the penalty is so costly that unless any of the respective variables' inclusion is warranted algorithmically, such variables will ...

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