Skip to main content

E-Commerce


E-Commerce

Non Technical aspect involves any kind of transaction for business/dealing which leads to earnings. Further the earnings can be of 2 types:
1.       Direct Earning
2.       Indirect Earning eg: Infomediaries
Technical aspect involves usage of Internet for building websites, updating the website and managing it and the online payment model used within the website.

Key Requirements of a Server: 24/7 365 days working,(Must operate all the time), efficient, robust, high performance, storage capacity

Technologies required for conducting E-Commerce
  •  Internet
The term Internet is made up of 2 words: inter(between two) and net(network). Web is a network between various computers or interconnection of networks. Connections are always host to host. Network in a network is called as subnet. Before websites, internet was there which was used in the form of FTP(File Transfer Protocol) and Telnet(Remote distance communication). Web is a spectrum or a repository of websites. World Wide Web(www) services can be used for storing and retrieving website.
  •  Protocols
Protocol is basically a set of rule that governs data communication that is exchange of information between system and supports distributed applications such as e-mail, file transfer etc...  The commonly used protocols are:
FTP: File Transfer Protocol
Telnet: for remote login
SMTP: Simple Mail Transfer Protocol
IP: Internet Protocol
The basic protocol used is HTTP(Hyper Text Transfer Protocol) which is a stateless protocol and the basic technology used is Client/Server using OSI(Open System Interconnection) model.
  •   Website Building
Website is an outlook of an individual person or a business. Web technologies are required to code the website.The different web technologies that can be used are: html, css, javascript, .net, php, java.....
  1. Presentation: Web designer is responsible for creating an attractive user friendly website that presents products to the user.
  2. SEO(Search engine Optimiser): SEO is responsible for bringing the traffic to a particular website.
  3. Web Analytics: Web Analytic is responsible for analysing the behaviour of the visitor.
                                     i.       From where the visitors are coming?
                                   ii.       Why are the visitors not becoming customers?
                                  iii.       What is the bounce rate?
                                 iv.       What is the goal of a website(sales, download, time spent)?
  4. Search Algorithm: It is a way to hold the customer. Search algorithm should be smart and efficient. Search algorithm should be such that it must give results in 3 seconds but the result may not be the best.   
  • Security
Security is very big issue whether we are online or offline. For security we use https where ‘s’ is for secure, SET(Secure Electronic Transaction) and SSL(Secure Socket Layer).
  •  Communication
It refers to the value added services like VPN, VoIP and Tunneling. VPN(Virtual Private Network) is an intranet over internet ie a personal network over internet. Eg: Work from home
  •  Web Analytics
Process of analysing the behaviour of visitors to a website ie study of impact of a website on its users.
  •   Search Engine Optimizer
Improving the visibility of a website by getting a high rank in SERP(Search  Results Page) of a search engine like Google, Bing, Yahoo etc. 

Types of Search Engine Optimizers
E-Commerce v/s E-Business
E-Business implies digital enablement of transactions and processing within a firm involving information system under the control of the firm. It made not include commercial transactions. They involve exchange of value along organizational boundaries. Any kind of business that do not involve any transaction. Eg: Cash On Delivery
E-Commerce means transaction across boundaries that is monetary transaction is done online. 
E-Commerce = E-Business + Online Transaction
Eg: Online payments

              Suppliers ---------->                                                <----------  Customers

Difference between E-Commerce and E-Business
Why E-Commerce has become a revolution?
  1. Information Asymmetry: Discrepancy in the information regarding price, cost, profit among parties in a transaction. This was a flaw in the traditional market as same product having same features is available at different prices and we are unable to judge whether it is original or not. On the other hand in E-Commerce buyer can easily compare the price, features, design as the information is symmetrically distributed over internet.
  2. Loss of cognitive energy: Mental effort required to complete a task. But via E-Commerce its all about views and clicks.
  3. Geographical limitation: The traditional market had a constraint of geographical boundaries that is it was limited to a particular location only. E-Commerce enables us to buy products from every nick and corner of the world. It has brought all the traders/sellers on the same platform for the customer reach.
  4. Tiredness: More effort was required in visiting markets and searching for a good quality and desired product. 
  5. Time waste: Earlier traveling was a hectic job which consumed a lot of time.
  6. Money waste: The irrelevant expenses like traveling cost, recreational expenses... have been minimized via E-Commerce.

Labels:

Comments

Post a Comment

Popular posts from this blog

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
1 comment
Read more

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
Post a Comment
Read more

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 never be p
Post a Comment
Read more