INTRODUCTION TO THE

INTERNET
Introduction
The Internet or “Net” (network of networks) is
the largest computer network in the world that
connects billions of computer users.
The word internet comes from combination
between “interconnection” and “Network”
Network is a collection of computers and
devices connected via communication
channels and transmission media allow to
share resources (hardware, software, data,
information).
Generally nobody own internet.
ROLE OF E – COMMERCE
AND
M - COMMERCE
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-COMMERC
E
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
 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.
 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
 E-commerce: Business and Technology

E-commerce business models

E-tailer
Transaction broker
Market creator
Content provider
Community provider
Portal
Service provider
 E-commerce: Business and Technology

E-commerce revenue models

Advertising
Sales
Subscription
Free/Freemium
Transaction fee
Affiliate
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.
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
 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
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.
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
C2B E-Commerce
Generally, in the
C2B ecommerce,
the customer
requests a specific
service from the
business.
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
CAROUSEL
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
HEIR 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
HOW CAN E-COMMERCE BE
1. Community-based services: Payment of
USED?
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.
ESE DAYS USE OF E – COMMERCE TECHNOLOGY
ING DONE BY THE DELHI TRAFFIC POLICE IN
IS
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
VEN 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 Limitations
Breakdown in human
Enables more interaction.
flexible working
practices
Social division.
Reliance on
Connects people. telecommunications

infrastructure, power and IT

Facilitates delivery
skills.
of public services.
Wasted resources.
BENEFITS AND LIMITATIONS OF E-
COMMERCE TO CONSUMERS
Benefits Limitations
24/7 access. Computing
equipment.

A basic technical knowledge.

More choices.
Cost of access to the
Internet.
Price comparisons.
Cost of computing
equipment.

Improved delivery Lack of security and privacy of personal

data.
processes.
Physical contact and relationships are
replaced by electronic processes.
An environment of
competition A lack of trust because they are
interacting with faceless computers.
BENEFITS AND LIMITATIONS OF E-COMMERCE TO
ORGANISATIONS
BENEFITS LIMITATIONS
Lack of sufficient system
Operational cost savings. security, reliability,
standards and
communication protocols.
Mass customisation. Rapidly evolving and
changing technology.

Enables reduced Under pressure to innovate

inventories.
Facing increased
competition
Lower
telecommunications cost. Problems with compatibility
of older and ‘newer’
technology.
M - COMMERCE
 MOBILE COMMERCE

Mobile Commerce is also known as M-Commerce.

M-Commerce is thebuying 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. OU CAN JUST SWIPE YOUR CREDIT/DEBIT
CARD TO YO OBILE PHONE. BUT, HOWEVER THIS
FEATURE IS LIMITED
ONLY FEW BRAND OF PHONES.
 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
EBIT/CREDIT CARD IN A CAR’S E PAYMENT
BO
 CONTD..
Mobile Commerce from the Provider`s point of view
✔ The future development of the mobile telecommunication

sector is heading more and more towards

services. Analysts forecast that soon half of mobile
value-added
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
AIRT
E 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 FOR A MOVIE, AN EVENT AND
CKETS
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 thetime of

at
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

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
ASILY ACCESS THE WEB AND DOWNLOAD MUSIC,
DEOS, WALLPAPERS DIRECTLY FROM HIS
MOBILE.
 INFORMATIO
N
A wide variety of information services can be delivered
SERVICES
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
PDATES 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

GVPCE( A) MONDAY, APRIL 13 , 2015 92

TH HDFC’S MOBILE BANKING APP THE CUSTOMERS CAN EASI
MANAGE THEIR ACCOUNTS, TRANSFER FUNDS,PAY BILLS
AND CHECK THEIR BALANCE.
 LOCATION BASED
✔ The
SERVICES
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

 MOBILE PURCHASE
✔ Some merchants provide mobile websites that are
customized for the smaller screen and limited user
interface of a mobile device.

GVPCE( A) MONDAY, APRIL 13 , 2015 95

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 Mobile games
Poster SMS Mobile videos
advertising MMS Audio
advertising Advertisements

MONDAY, APRIL 13 , 2015 98

 ADVANTAGE
✔
S
Advantagesof M-Commerce are:
• Portability

• Instant connectivity

• Mobility

• Personalization

• Localization
 DISADVANTAGE
✔ S of most devices still limit types of file
Small screens
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

GVPCE( A) 100
MONDAY, APRIL 13 , 2015