MODULE 3 AND MODULE 4

E-Commerce And E-Governance

 What is E-commerce?
(Clicks and Mortar)
Buying and selling of
goods or services through
network.

Wide range of online business

activities.

Electronic commerce
 E-Commerce
• Buying, selling and exchange of Products,
Services and Information via Computer
Networks primarily Internet.
What are the different types of e-Commerce?

B2B
M-C
B2C
C2C
B2G
What is Traditional What is “Modern”
Retail? Retail?

A company A type of business

model that includes
that possesses both online and
a building or offline operations,
store for which typically
include a website
operations. and a physical store.
Differences between Online Retail
and Traditional Retail

• Display
• Location
• Expense
• Communication
• Technology
Clicks and Mortar VS Bricks and
Mortar

V
S
 Examples of Examples of E-
Commerce
Traditional Retail

Hua Ho Argos
Department
Store

Utama Grand EBay

Department
Store
Any purchases done online are not refundable.
 Easy to pick and choose
whatever you like and eliminate
what you don’t like

Goods can be returnable

within 3 days of purchase
The items are only displayed using pictures, graphics and text based
product descriptions.
 Goods are
tangible, therefore
we can see the
exact appearance
of the product.
There are no guarantees for purchased goods as online shopping is
intangible until the product is at hand.
 Any
inquiries?

Need
assistance? Membership
Just ask! card
(TPC)
You can get assistance from the comfort of your home and also at anytime
and anywhere. However, the downside of this would be the waiting of the
reply that wouldn’t be immediate.
Testers and make up trials are provided to cater
to your preferences.
I ADVANTAGES OF E-COMMERCE
N

G
Fast
E
N
Buying & Easy
E selling
R 24/7
A Convenience
L
ADVANTAGES OF TRADITIONAL
RETAILING

Safe
Many
choices
Cash &
carry Convenience
 Advantages of Traditional Retailing

• We can get the product on time.

• It is convenient.
• Free from shipping cost.
• Free from tax.
• It is tangible. We can see the exact appearance
of the product.
• We can make sure the size as we can try the
product before we purchase it.
 Disadvantages of DISADVANTAGES OF
Traditional Retailing E-COMMERCE

No guarantee of
• It may takes time for product quality.
us to find parking.
Many hackers who
look for
• Some appliances need opportunities.
transportation cost to
send it to our home. Mechanical failures
Example, a refrigerator. can cause
unpredictable effects
• We have to queue and on the total processes.
wait for our turn to pay
Customer loyalty is
at the counter. always on a check.
E-commerce operations are very
difficult, therefore we need to
combine both traditional retailing
and e-commerce to provide
comfort to consumers and
producers.
 Benefits of E-Commerce
• To Organization
– Easy expansion
– No physical boundary
– Shortens marketing distribution channel
– Decrease cost
– Help small companies compete with large companies
• To Customers
– Less expensive products
– More choices
– Relevant and detailed information
– Customized products
– Enables working and studying home
– Sharing of ideas, experiences and goods (auction)
• To Society
– Less travelling, work from home, less traffic
– Increases people’s living standard with low priced products
– People in developing countries can get products from abroad
– Facilitates delivery of public services
 Limitations of E-Commerce
• Technical Limitations
– Lack of universally accepted standards
– Insufficient telecommunication bandwidth
– Still evolving software development tools
– Difficulty in integration
– Need for special web servers
– Expensive or inconvenient internet accessibility
• Non-technical Limitations
– Unresolved legal issues
– Lack of national and international government regulation
– Lack of matured methodology
– Many people want to wait for EC to stabilize
– Customer resistance
– Perception that EC is expensive and insecure
 E-Business
• It is a broader term as compared to E-
Commerce
• Not just buying and selling, but also servicing
customers, collaborating with business
partners and conducting electronic
transaction within an organization
 B2C Applications
• Electronic Storefronts
• Electronic Malls
• Service Industries
– Cyber Banking
– Electronic Bill Payment
– Online Securities Trading
– Online job market
– Travel
– Real Estate
• Auctions
• Bartering
• Advertising
– Banners
– E-mail Advertising
 Issues in E-Tailing
• Channel conflict
• Order fulfillment
• Viability of online e-tailers
• Conflicts within click and mortar organizations
• Lack of funding
• Incorrect revenue model
 Models for B2B Applications:
• Sell-Side Marketplace
• Buy-Side Marketplace
 C2C Applications
• Classifieds
• Personal Services
• Peer-to-Peer and File Exchange
 E-Commerce Infrastructure
• Hardware
• Software
• Network
– Web Servers
 Electronic Payment System
• Means of Payment
– Electronic Checks
– Electronic Credit Cards
– Electronic Cash
– Smart Cards
– Person-to-Person Payment
– Electronic Fund Transfer
– Electronic Wallet
– Purchasing Cards
 Security in Electronic Payment
• Security Requirements:
– Authentication
– Integrity
– Non-repudiation
– Privacy
– Safety
• Security Protection:
– Encryption
• Single-Key Encryption
• Two-Key Encryption
– Electronic Certificate
– Protocols
• Secure Socket Layer (SSL) Protocol
• Secure Electronic Transaction (SET) Protocol
Legal and Ethical Issues in E-Commerce

• Ethical Issues:
– Privacy
– Web Tracking
– Disintermediation
• Legal Issues:
– Domain Name
– Taxes and Other Fees
– Copyright
Tools for E-Governance
 WHAT IS E-GOVERNANCE?
• The word “electronic” in the term e-governance implies technology
driven governance.
• E-governance is the application of information and communication
technology (ICT) for delivering government services, exchange of
information communication transactions, integration of various stand-
alone systems and services between government-to-customer (G2C),
government-to-business (G2B), government-to-government (G2G) as
well as back office processes and interactions within the entire
government framework. 
• Through e-governance, government services will be made available to
citizens in a convenient, efficient and transparent manner. The three main
target groups that can be distinguished in governance concepts are
government, citizens and businesses/interest groups. In e-governance
there are no distinct boundaries.
• Generally four basic models are available – government-to-
citizen(customer), government-to-employees, government-to-
government and government-to-business.
 Government to customer
• The goal of Government to Customer (G2C) e-Governance to is offer
a variety of ICT services to citizens in an efficient and economical
manner, and to strengthen the relationship between government
and citizens using technology.
• There are several methods of Government to Customer e-
Governance. Two-way communication allows citizens to instant
message directly with public administrators, and cast remote
electronic votes (electronic voting) and instant opinion voting.
Transactions such as payment of services, such as city utilities, can
be completed online or over the phone. Mundane services such as
name or address changes, applying for services or grants, or
transferring existing services are more convenient and no longer
have to be completed face to face.
• G2C e-Governance is unbalanced across the globe as not everyone
has Internet access and computing skills, but the United
States, European Union, and Asia are ranked the top three in
development.
 Government to employees
• E-Governance to Employee partnership (G2E) Is one of four main primary
interactions in the delivery model of E-Governance.
• It is the relationship between online tools, sources, and articles that help
employees maintain communication with the government and their own
companies.
• E-Governance relationship with Employees allows new learning technology in one
simple place as the computer. Documents can now be stored and shared with
other colleagues online. 
• E-governance makes it possible for employees to become paperless and makes it
easy for employees to send important documents back and forth to colleagues all
over the world instead of having to print out these records or fax . 
• G2E services also include software for maintaining personal information and
records of employees. Some of the benefits of G2E expansion include:
– E-Payroll- maintaining the online sources to view pay checks, pay stubs, pay
bills, and keep records for tax information.
– E-benefits- be able to look up what benefits an employee is receiving and what
benefits they have a right to.
 Government to Government

• From the start of 1990s e-commerce and e-product, there has

rampant integration of e-forms of government process. Governments
have now tried to use their efficiencies of their techniques to cut
down on waste.
• E-government is a fairly broad subject matter, but all relate to how
the services and representation are now delivered and how they are
now being implemented.
• Many governments around the world have gradually turned to
Internet Technologies (IT) in an effort to keep up with today’s
demands. Historically, many governments in this sphere have only
been reactive but up until recently there has been a more proactive
approach in developing comparable services such things as e-
commerce and e-business
 Government to business
• The Main Goal of Government to Business- is to increase
productivity by giving business more access to information in a
more organize manner while lowering the cost of doing business
as well as the ability to cut “red tape”, save time, reduce
operational cost and to create a more transparent business
environment when dealing with government.

• Lowering cost of doing business- electronic transaction save

time compared to conducting business in person.

• Cutting red tape- rules and regulation placed upon business

normally take time and are most likely to cause a delay- in (G2B)
will allow a much faster process with less delays and decreasing
the number of rules and regulations
• Transparency- More information will be available, making G2B
easier to communicate.
 Difference between G2B and B2G
Government to business Business to government
• Government to business • Business to government
(G2B)- Refers to the (B2G)- Professional affairs
conducting of transactions conducted between
between government companies and regional,
bodies and business via municipal, or federal
internet. governing bodies. B2G
typically encompasses the
determination and
evaluation of proposal and
completion of contract.
 Challenges Before E-Governance In India
• E-governance is a wonderful tool to bring transparency,
accountability and whistle blowing in India. However, it has its
own share of challenges that include administrative, legal and
technological challenges. There may be instances where e-
governance can itself be a source of corruption. 
• Use of e-governance in India would also require an efficient
mechanism to deal with e-waste. Absence of privacy  and data
protection laws  has also created many hurdles before successful
implementation of e-governance in India.
• However, the biggest hurdle before Indian e-governance
initiatives comes from poor cyber security in India. According to
techno legal experts, e-governance without cyber security is
useless in India. In fact, that makes the critical infrastructure of
India vulnerable to sophisticated cyber attacks. Absence of
mandatory e-governance services in India is the main reason for
apathy towards this crucial field.
 E-GOVERNANCE
ADVANTAGES:

 SPEED

 COST REDUCTION

 TRANSPARENCY

 ACCOUNTABILITY

Ref: https://www.india.gov.in/
 DISADVANTAGES:

 GOVERNMENT SYSTEM INTO AN ELECTRONIC BASED

SYSTEM

 SERVER PROBLEM BECOMES AN EXCUSE

 LITERACY OF THE USER’S

 ACCESS TO INTERNET
E – GOVERNANCE (AN EFFECTIVE TOOL
TO MANAGE THE COUNTRY’S CITIZENS
AND RESOURCES)
• In an e-government system, individuals are able to initiate a
request for a particular government service and then receive
that government service through the Internet or some
computerized mechanism.

• In some cases, a government transaction is completed without

direct in-person contact with a government employee.
 SPECIFIC TYPES OF SERVICES
THROUGH E- GOVERMENT
• The four types of e-government services are Government-to-
Citizen (G2C), Government-to-Business (G2B), Government-
to-Employee (G2E), and Government-to-Government (G2G).

• G2C includes information dissemination to the public, basic

citizen services such as license renewals, ordering of
birth/death/marriage certificates and filing of income taxes, as
well as citizen assistance for such basic services as education,
health care, hospital information, libraries, and the like.
 SOME OF THE COUNTRY PHASE
EXAMPLES.
1. Singapore's e-citizen Portal : A Case Study in G2C
Transactions

• Singaporeans are able to access about 1,600 e-services pertaining to

business, health, education, recreation, employment, and family. Of
this, 1,300 e-services are completely transacted by citizens with
government online.
• Singaporeans thus have one-stop access to government services- A few
of the popular e-services offered are: submitting application forms for
purchase of apartments, searching for school information, employment
search, career development, and voter registration.
 2. China's Golden Customs: A Case Study in G2B
Transactions

• The Golden Customs project was proposed by Vice Premier Li

Lanqing in 1993 to create an integrated data communications
system connecting foreign trade companies, banks, and the
customs and tax authorities.

• The system aims to speed up customs clearance and strengthen

the authorities’ ability to collect tax and duty payments. The
Golden Customs project allows companies to submit import and
export declarations to customs authorities, calculate duty
payments, and check import and export statistics.
 3. Mississippi, USA’s Payroll Information Self-Service: A
Case Study in G2E Transactions

• Employees are notified by email when their pay stubs arrive

and they can then review the information before actual pay day.

• This application has given the state of Mississippi US$0.50 in

savings for every W-2 form that is printed and mailed Of the
more than 40,000 state employees of Mississippi, 17% have
adopted and used this new application.” 
 4. Global Cooperation on Transnational Crime: A Case Study
in G2G Transactions

• The inherently transnational nature of the Internet has not only

seen the transformation of legitimate business activities, but also
provided new opportunities for illicit business. In recent years,
there has been a significant increase in the sophistication of
organized crime and illegal trafficking activities, encouraged by
the anonymity provided by the Internet.
• To combat this growing trend, 124 heads of government came to
Palermo, Italy in December 2000 to sign the United Nations
Convention Against Transnational Organized Crime. In putting
the convention into effect, the UN designed the “Global Program
on Transnational Organized Crime” to improve information
sharing and further enhance international cooperation.
E-GOVERNANCE- WORLD
PERSPECTIVE
The United Nations E-Governance Survey finds that
citizens are benefiting from more advanced e-service
delivery, better access to information, more efficient
government management and improved interactions
with governments, primarily as a result of increasing
use by the public sector of information and
communications technology. High-income countries
enjoy the top rankings in the e-government
development index .
 U.S.A- PERSPECTIVE

The U.S. States E-Governance Survey assessed the

practice of digital governance in states across the United
States by evaluating their websites and ranking them on
a national scale.

The national portal of the United States is a leader in e-

government. The USA.gov homepage links to more
than 100 online government services and transactions.
 JAPAN-
PERSPECTIVE
Japan’s E-Stat portal is directly accessible and
prominently featured on the extensive national e-
government portal. A user-friendly interface provides
users with options to gain easy access to official
Japanese statistics, learn about data, understand
statistical systems and study statistics

Users can securely register to receive email updates

on statistics and have the option to subscribe to RSS
Feeds(Rich site summary). A mobile version of the
portal is also available
 SINGAPORE-
PERSPECTIVE
Mobile service delivery is a strategic initiative of the country’s
E-government master plan. Citizens and businesses have
expressed a high level of satisfaction and enjoy the
convenience of accessing more than 300 public services
through mobile technology.

The next wave of mobile services planned by the Singapore

Info com Development Authority will support even more 24/7
transactions, including some that use near field technology to
enable payment of train and bus fares, redemption of e-
coupons
 E-GOVERNANCE EXAMPLES
(INDIA)
E-CHOUPAL- AN INITIATIVE OF ITC

• E-Choupal is an India-based business initiative by ITC

Limited that provides Internet access to rural farmers.
The purpose is to inform and empower them and, as a
result, to improve the quality of agricultural goods and
the quality of life for farmers.

• Farmers can use that information to their own prices.

They also obtain higher profit margins because they’re
no longer forced to sell through a middleman. ITC
Limited also benefits from the initiative, by simplifying
its supply chains and increasing its profits.
 E-CHOUPAL MODEL

The E-Choupal model is positioned as an alternative

to traditional modes of procurement where farmers
travel to the government market (or mandi) to sell
their produce. ITC provides infrastructure and
connectivity at the e-Choupal centres, each of which
services 4-5 villages. At the centre, farmers can access
a web portal with current market rates from a wide
range of procurement centres, including mandis and
ITC procurement hubs. An ITC procurement hub is
set up for every 20-30 km radius, servicing about 30-
40 centres.
 BHOOMI

Karnataka started Bhoomi in mid-1998 as a major

initiative to computerize land records to ensure more
secure to avoid corruption. The existing registry of
the 20 million land records of 6.7 million land owners
in 176 talukas of Karnataka have been computerized
and organized into a database. The government
intends to sustain Bhoomi and replicate it at many
more delivery points at sub-district levels.
 CONCLUSION

E- Commerce , E-Gov will become an affordable,

transparent and flexible tool to fill in the digital gap
between developed and developing countries,

Given the rapid price decline of mobile products, They are

adopting the use of mobile technology at a fast rate, which
will trigger the need to develop more mobile e-
government services. The private sector in these countries
has an opportunity to work with government to create and
distribute mobile services.
THANKYOU