Introduction to Information

and Communication
Technology

By
Maria Khattak

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 COMMERCE

• Commerce is a division of trade or production which deals with

the

exchange of goods and services from producer to final consumer.

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 Ecommerce
• E-Commerce or Electronic Commerce is a methodology of
modern

business, which addresses the requirements of business organizations.

• It can be broadly defined as the process of buying or selling of goods

or services using an electronic medium such as the Internet.

• E-Commerce or Electronic commerce is a process of buying, selling,

transferring, or exchanging products, services, and/or information via

electronic networks and computers.

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 Ecommerce
• Ecommerce refers to the paperless exchange of business
information using the following ways:
 Electronic Data Interchange (EDI)
 Electronic Mail (e-mail)
 Electronic Bulletin Boards
 Electronic Fund Transfer (EFT)
 Other Network-based technologies

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Ecommerce

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 Ecommerce Features
1.Non-Cash Payment: E-Commerce enables the use of credit cards,
debit cards, smart cards, electronic fund transfer via bank's website, and
other modes of electronics payment.
2. 24x7 Service availability: E-commerce automates the business of
enterprises and the way they provide services to their customers. It is
available anytime, anywhere.
3.Advertising / Marketing: E-commerce increases the reach of
advertising of products and services of businesses. It helps in better
marketing management of products/services.

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 Ecommerce Features
4.Improved Sales: Using e-commerce, orders for the products can be
generated anytime, anywhere without any human intervention. It gives
a big boost to existing sales volumes.
5.Support: E-commerce provides various ways to provide pre-sales
and post-sales assistance to provide better services to customers.
6.Inventory Management: E-commerce automates inventory
management. Reports get generated instantly when required. Product
inventory management becomes very efficient and easy to maintain.
7.Communication improvement: E-commerce provides ways for
faster, efficient, reliable communication with customers and partners.
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 E-commerce vs. E-business

• We use the term e-business to refer primarily to the digital

enablement of transactions and processes within a firm, involving
information systems under the control of the firm. [refers all aspects
of operating on online business].
• E-commerce include commercial transactions involving an exchange
of value across organizational boundaries.[refers specifically to the
transactions of goods and services.]

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The process of E-commerce
• A consumer uses Web browser to connect to the home page of a
merchant's Web site on the Internet.
• The consumer browses the catalog of products featured on the site and
selects items to purchase. The selected items are placed in the electronic
equivalent of a shopping cart.
• When the consumer is ready to complete the purchase of selected
items, she provides a bill-to and ship-to address for purchase and
delivery.

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The process of E-commerce
• When the credit card number is validated and the order is completed at

the Commerce Server site, the

• merchant's site displays a receipt confirming the customer's purchase.

• The Commerce Server site then forwards the order to a

Processing Network for payment processing and fulfilment.

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Two Major Categories
1. Business-to-consumer (B2C) : Online transactions
are

made between businesses and individual consumers.

E.g. Amazon.com, eBay.com.

2.Business-to-business (B2B): Businesses make

online transactions with other businesses.

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Other Categories
• Consumer-to-consumer (C2C)

• Mobile commerce (m-commerce)

• E-learning

• E-government

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Benefits of E-Commerce

• Benefits to organizations

• Benefits to consumers

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Benefits to organizations
• Global reach

• Cost reduction

• Supply chain improvements

• Extended hours: 24/7/365

• Customization

• Improved customer relations

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Benefits to consumers
• More products and services

• Cheaper products and services

• Instant delivery

• Information availability

• Participation in auctions

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Business applications
• Email

• Instant messaging

• Online shopping and order tracking

• Online banking

• Shopping cart software

• Teleconferencing

• Electronic tickets

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Online Shopping
• Online shopping is the process of buying goods and services from

merchants who sell on the Internet.

• Online consumers are evenly split between men and women

and

tend to be better educated, younger, and more affluent than

the general population.

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Online Shopping (cont)..
Advantages:
• 24-hour access

• Ability to comparison shop

• The in-home privacy

• Variety

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Different types of e-commerce
Business-to-business (B2B)
Business-to-Consumer (B2C)
Business-to-government (B2G)
Consumer-to-consumer (C2C)
Government to consumer (G2C)
Government-to-business (G2B)

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Different types of e-commerce
Business-to-business (B2B)
Business-to-Consumer (B2C)
Business-to-government (B2G)
Consumer-to-consumer (C2C)
Government to consumer (G2C)
Government-to-business (G2B)

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What is B2B e-commerce?
• B2B e-commerce is defined as ecommerce
simply

between companies.
• About 80% of e-commerce is of this type.

Examples:

• Intel selling microprocessor to Dell

• Heinz selling ketchup to Mc Donalds

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What is B2C ecommerce?
• Business-to-consumer e-commerce, commerce between
or
customers gathering
companies and consumers,
involves
information; purchasing physical goods or receiving products
over

an electronic network.

Example:

• Dell selling me a laptop

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What is B2G ecommerce?
• Business-to-government e-commerce or B2G is generally
defined as commerce between companies and the public
sector. It refers to the use of the Internet for public
procurement, licensing procedures, and other government
related operations
Example:
• Business pay taxes, file reports, or sell goods and services
to Govt. agencies.

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What is C2C ecommerce?
• Consumer-to-consumer e-commerce or C2C is
simply
commerce between private individuals or consumers.
Example:
• Mary buying an iPod from Tom on eBay
• Me selling a car to my neighbor

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G2C E-commerce
• This Model is also a part of e-governance.
• The objective of this model is to provide good
and effective services to each citizen.
• The Government provides the following facilities to
the citizens through website.
• Information of all government departments,
• Different welfare schemes,
• Different application forms to be used by the citizens.

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G2B E-commerce
• Government-to-business (G2B) is a business model that
refers to government providing services or information to
business organization.
• Government uses B2G model website to approach
business organizations. Such websites support auctions,
tenders and application submission functionalities.

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G2B E-commerce
• Government-to-business (G2B) is a business model that
refers to government providing services or information to
business organization.
• Government uses B2G model website to approach
business organizations. Such websites support auctions,
tenders and application submission functionalities.

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ADVANTAGES OF E-COMMERCE
• Faster buying/selling procedure, as well as easy to find products.
• Buying/selling 24/7.
• More reach to customers, there is no theoretical
geographic limitations.
• Low operational costs and better quality of services.
• No need of physical company set-ups.
• Easy to start and manage a business.
• Customers can easily select products from different
providers without moving around physically.

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DISADVANTAGES OF E-COMMERCE
• Unable to examine products personally

• Not everyone is connected to the Internet

• There is the possibility of credit card number theft

• Mechanical failures can cause unpredictable effects on the

total processes.

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