INDEX: Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. Topics Introduction of E-Commerce Types of E-Commerce Ways to Conduct Online - Marketing Security Issues & Procedures Success of E-Commerce Advantages of E-Business Applications Disadvantages of E-Business Applications Conclusion & Future Scope Page No.s 03 07 12 16 23 27 33 38
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Introduction
• The term e-commerce is really a "catch-all" phrase that encompasses many concepts. To help you better understand, presented below is my over-simplistic definition of e-commerce. • According to Dictionary.COM, the term commerce is defined as follows: "The buying and selling of goods, especially on a large scale, as between cities or nations". This definition is straight forward and easy to understand. From here, we add the "e" for "electronic", and we derive the definition: "buying and selling of goods electronically". This typically means that orders and payments pass electronically. • ESCAP defines Electronic Commerce as “the process of using electronic methods and procedures to conduct all forms of business activity.” E- Commerce is not just about using network based technologies to conduct business. • E-commerce is technology-enabled buying and selling that occurs over telecommunications networks such as the Internet. As in physical marketplaces, these exchanges can occur between businesses, between a business and a consumer, or even between consumers. • E-commerce has grown dramatically since the late 1990s. This transition from traditional physical market places to technologyenabled ones has important economic and social implications.
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It is about moving organizations to fully electronic environment through change in their work procedures, reengineering their business processes, integrating them with their business partners beyond their traditional boundaries.
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E- Commerce has brought about a veritable revolution in the way businesses are conducted. One significant economic effect is the reduction of transaction costs compared to traditional commerce. A business connected to the Internet is immediately in reach and connectivity with no additional cost.
• E-commerce reduces transaction costs by removing many of the geographic and time barriers that buyers and sellers previously faced. • Customers who had to drive to a physical store location during business hours, park, and manually do comparison shopping before buying, can now do this for many products online, anytime, with the help of comparison shopping sites such as MySimon. • For information products, such as digital music, which can be both bought and delivered online, e-commerce also reduces the product delivery cost. • The volume of electronic commerce seems to be converging on around US$ 600 billion in the year 2000 which is about 10% of all trade. This figure is $ 200 billion. The trend is thus unmistakable. The Internet is becoming a force to reckon with as a comparatively cheap carrier for EC transactions. • IT and business were never so closely related. Together they are defining new organisations, new products and services, new ways of delivering them, new ways of satisfying the needs of customers.
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• Today's business is a networked organisation, a knowledge-based organisation which is forever in a learning mode to handle competition, customer, cost and change. • The Internet has redefined time and space. It knows no geographical boundaries.The way we conduct commerce, the way we distribute information, the way governments deliver services to their citizens, the way transactions are carried out; everything is changing. And this change has been brought about by the Internet. • New methods have been developed for distributing data,delivering entertainment over telephone, while at the same time connecting cableTV and satellite networks to the Internet. Merging of data, information, entertainment electronics has opened up new vistas for businesses. While new businesses are getting created around the convergence of computer, communication, and consumer electronics; the existing businesses, companies, corporates and organisations are restructuring and re-organising themselves to take advantage of the Internet into their scheme of things. • E-Commerce impacts upon a large number of business activities like marketing, sales and sales promotion pre-sales, subcontracts, supply, financing and insurance, commercial transactions, ordering, delivery, payment product service and maintenance, cooperative product development, etc.
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Types of E-Commerce
• E-Commerce utilizes information & communication technologies to carry out market transactions among two or more parties – usually business & consumers. At times one of these parties may be the government as well. • However, there is more to this - much more, as E-Commerce has been classified in these categories based upon the entities involved in a transaction which are as below:
B2B (Business-to-Business):
• E-Commerce really refers to supply chain technology, which is by far the largest & most successful e-commerce technology employed today.
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In the past EDI (electronic data interchange) was conducted on a direct link of some form between the two businesses where as today the most popular connection is the internet. The two businesses pass information electronically to each other.
• Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers fall under this category. • B2B E-Commerce currently makes up about 94% of all ecommerce transactions.
B2C (Business to Consumer):
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• E-Commerce refers to the selling and buying of goods and services via the web from web retailers to web customers. This really is the same thing as B2B E-Commerce with one key exception. With B2B implementations, the parties are "Trusted Business Partners" who have an established working relationship. • With B2C E-Commerce, the retailer is often selling to unknown, un-trusted strangers. Therefore extra effort must be made to capture customer and payment information. Further, this data is typically verified before orders are fulfilled. In this respect, B2C is a tougher solution to provide than B2B. • However, B2C almost always involves customer typing information into an order screen; there is no need to link together two complex accounting systems. In this respect, B2B is a much tougher solution to deliver
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. Having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, all-inclusive trip to a tropical island? With the advent ecommerce, all three things can be purchased literally in minutes without human interaction. Oh how far we've come!
C2C (Consumer to Consumer):
• E-Commerce has also emerged in form of many sites that allows unknown, un-trusted parties to sell goods and services to oneanother. • These sites are usually some form of an auction site. The consumer lists items for sale with a commercial auction site. Other consumers access the site and place bids on the items. The site then provides a
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connection between the seller and buyer to complete the transaction. The site provider usually charges a transaction cost. In reality this site should be call C2B2C. To accommodate this activity, several technologies have emerged. • There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like Pay Pal & EBay’s auction service.
C2B (Consumer-to-Business):
• Consumer to Business is a growing arena where the consumer requests a specific service from the business. • A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. • The consumer reviews the bids and selects the company that will complete the project. • E.g. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions.
B2E (Business to Employee):
• Business to Employee e-commerce is growing in use. This form of e-commerce is more commonly known as an 'Intranet'. An intranet is a web site developed to provide employees of an organization with information. The intranet is usually accessed through the organization’s network, though it can and is often extended to an
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entrant who uses the Internet but restricts uses by sign on and password. • The internet based business-to-employee applications are often used for implementing improved employee relationship management initiatives. • This B2E application offers employees a self service capability which in turn helps in creating better business value and gaining competitive advantage.
G2G (Government-to-Government):
• G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government from procurement to filing taxes to business registrations to renewing licenses. • There are other categories of ecommerce out there, but they tend to be superfluous.
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Ways to Conduct Online Marketing: Online Marketing Can Be Conducted By Following Ways:
Electronic Presence: • A firm can set up its Corporate Site to provide basic information about the company such as history, location, management, products and services. • Some firms may design its Marketing site in order to enable the prospects or customers to transact business with the firm. The marketing website may provide catalogue, promotional tools like coupons, contests, etc. • In order to attract prospects or customers, the firms promotes its website through print and broadcast advertising, and also through banner ads that are inserted on other web site. Advertising Online: • Firms can online place online ads in three ways- classified ads in special sections offered by major Commercial Online services, ads in certain internet newsgroups that are set up for commercial purpose, online ads that pop up while subscribers are surfing online services or website. • These include banner ads, pop-up windows, tickers (banners that move across the screen) and roadblocks (full screen ads)
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Forums, Newsgroups, and Bulletins Boards: • Firms may participate in or sponsor internet forums, newsgroups and bulleting boards that appeal to special interest groups. 1. Forums are discussion groups located on commercial On-Line services. A forum may operate a chat room, a library, and even a classified ad directory. 2. Newsgroups are the internet version of forums. These groups are limited to people posting and reading messages on a specified topic. The newsgroups deal with topics like health, sports, gardening, etc. 3. Bulletin board systems are specialized online services that deal with a specific topic such as vacations, health, computer games, and real estate. Marketers can participate in newsgroups and bulletins boards. Web Communities: • These are commercially sponsored web sites, where members engage themselves online and exchange views on issues of common interest. • For instance, Agriculture Online (www.agriculture.com), where farmers and others in USA can find commodity prices, recent farm news, and chat rooms. • Online buyers join internet groups to share product-related information, with the results that the ‘word of web’ becomes an important buying influence.
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E-mail: • A company can encourage prospects and customers to send questions, suggestions, and complaints to the company via E-mail. • Customer services representatives can quickly respond to these messages. • The company may also develop internet-based electronic mailing lists. Using the lists, online marketers can send out customer newsletters, special product or promotion offers, reminders of service requirements, or announcements of special events. • However, companies should avoid ‘spam’ (unsolicited e-mail), as consumers get irritated with such junk-mail.
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Security Issues:
• Security is very important for information system professional. Since 1993 computing facilities and information system they support, have become increasingly accessible because of intent facility. • Since confidential information is transferred or increasingly traversed through modern networks, so security, privacy and authentication of information is the commonly discussed issue in E-Commerce. • Confidence, reliability and protection of this information against security threats is the major prerequisite for the functioning of the E-Commerce. When we are doing electronic transactions then there should not be any compromise on alteration of data.
Security threats:
• Security threats is a circumstance or event with the potential to cause economic hardship to data or network resources in the form of destruction, disclosure, modification of data, denial of services or fraud and abuse. Security threats can be analyzed into the following type :
Natural Threats:
• Occurs due to natural effects such as act of nature a fire, earthquake, tidal waves etc.
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Accidentals Threats:
• By human being who are directly involved e.g. failing to perform a manual procedure correctly, mis-coding information etc. • By other person e.g. insolvency, bankruptcy or withdrawal of support by a key supplier. • By machine and machine designers e.g. diskhead-crash, electricity failure, software bug etc.
Intentional Threats:
• By human beings who are directly involved e.g. intentional capture of incorrect data, unjustified amendment or deletion of data, theft of backups etc. • By other humans e.g. release of malicious software, riot,, terrorism, welfare etc. From the above threatening events, intentional threats threat is to be considered seriously which directly affects the security of information. Intentional threats are as follows:
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Damage to data: Data gets damaged while in transit on the
network.
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Loss of data: Data get loss or disclosure of data when data is in
transit on the network.
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Unauthorized use of data: Unauthorized person can use the
data when data is in transaction. He may alter the content of data and may change the user names, credit card numbers and amount during transaction. Sometimes competitors also try to use the data in transit to get the confidential and secure information.
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Security Procedures:
Because of security threats which take place at any time and place, companies need to put a security infrastructure to make their systems much more secure. Security procedures are as follows: 1. Firewall 2. Encryption 3. Password 4. Access control list 5. Digital certificates
Firewall:
• Firewall is the most commonly accepted network protection. Firewall is a barrier between two network i.e. a company’s internet network and external network called internet. • Firewall is used to control and monitor all traffic between external network and local network. It allows full access to insiders for services of the external world, while it grants access to the external network based on log-on name, password, IP address etc.
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Firewall is a system containing a route, a personal computer, a host. A firewall system is usually located at a site’s connection to the internet. It examines incoming and outgoing packets as per the set rules. Then it decides either to allow pockets or block the pockets. Firewall provides controllable filtering of network traffic and allows restricted access to certain applications.
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• Different technologies are used in the creation of firewalls such as pocket filtering, circuit gateways and application proxies.
Encryption:
• Encryption is the process of changing plain text into cipher data. Decryption is the reverse of encryption process i.e. changing unintelligible data into intelligible data. • Data in network is held in a common storage facility. Anyone who has authority to use the network has potential to access classified data. • To avoid this, store the data in an encrypted form, so any unauthorized person who will access the data will not be able to read it. • There are two types of primary encryption i.e. link and end-toend. Link encryption is used to make data unreadable between two computers. Link encryption prevents the casual readying of data. End-to-end encryption protects data anywhere on the system. • Encryption is the heart of e-commerce transaction to secure the data on the internet.
Password:
• Password is the easiest and inexpensive way to provide security. It is a first level barrier to accidental intrusion. • Password and username can be used in different areas of networking to protect the data. Password is used to provide protection from unauthorized access.
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Following rules are used for password:
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Use uncommon names: Use uncommon username that cannot
be easily identified but can be remembered by those who need it.
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Make password meaningless to others: Make the password
meaningful to you but it should be meaningless to others.
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Use a long password: The password should contain more than
8 characters. It must contain mixed case letters and at least one non -alphanumeric character. Run a program to test all possible number/letter combination and make it long enough, so that it is not possible to discover it.
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Change your password often: Change the password
periodically, so that it is not the same word every time. Generally username remains static and password is changed.
Access control list:
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Access control is used to provide access to authorized users.
limited to authorized individuals and programs. Control access is associated with user of group of data.
• That access and modification of particular portions of data is
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The control of access by user is referred as authentication. It is a process of using a key to verify the integrity of a document. Electronic devices like identification number, callback procedures, encryption are evolved to establish authenticity of an instruction. New challenges arise to solve the problem unique to electronic authentication such as issue of data, integrity, non-repudiation (non refusing), choice of technology etc.
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Digital Certificates:
• Digital certificates are used to verify the identity of each person in an electronic transaction. • Certificates are issued by certificate authorities. Certificates authorities verify the authenticity of certificate request in connection with person’s public key and their identification. • Then certificate authorities provide a unique digitally signed certificate which is used as a proof in electronic transaction. • Certificate Authority is a trusted party or a public entity to assign digital certificates. • This certificate authority links a public key to the user. Examples of different Certificate Authority services are Verisign, Belsign etc.
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Success of E-Commerc: Success factors
• In many cases, an E-Commerce company will survive not only based on its product, but by having a competent management team, good post-sales services, well-organized business structure, network infrastructure and a secured, well-designed website. • A company that wants to succeed will have to perform 2 things: Technical and organizational aspects and customer-oriented aspects. Following factors will make business of companies succeed in e-commerce:
Technical and organizational aspects
• Sufficient work is done in market research and analysis. Ecommerce is not exempt from good business planning and the fundamental laws of supply and demand. Business failure is as much a reality in e-commerce as in any other form of business. • A good management team armed with information technology strategy. A company's IT strategy should be a part of the business re-design process. • Providing an easy and secured way for customers to effect transactions. Credit cards are the most popular means of sending payments on the internet, accounting for 90% of online purchases. In the past, card numbers were transferred securely between the customer and merchant through independent payment gateways. Such independent payment gateways are still used by most small
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and home businesses. Most merchants today process credit card transactions on site through arrangements made with commercial banks or credit cards companies. • Providing reliability and security. Parallel servers, hardware redundancy, fail-safe technology, information encryption, and firewalls can enhance this requirement. • Constructing a commercially sound business model. • Setting up an organization of sufficient alertness and agility to respond quickly to any changes in the economic, social and physical environment. • Providing an attractive website. The tasteful use of colour, graphics, animation, photographs, fonts, and white-space percentage may aid success in this respect. • Providing complete understanding of the products or services offered, which not only includes complete product information, but also sound advisors and selectors. • Naturally, the e-commerce vendor must also perform such mundane tasks as being truthful about its product and its availability, shipping reliably, and handling complaints promptly and effectively.
Customer-Oriented Aspects:
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A successful e-commerce organization must also provide an enjoyable and rewarding experience to its customers. Many factors go into making this possible. Such factors include: • Providing value to customers: Vendors can achieve this by offering a product or product-line that attracts potential customers at a competitive price, as in non-electronic commerce. • Providing service and performance: Offering a responsive, userfriendly purchasing experience, just like a flesh-and-blood retailer, may go some way to achieving these goals. • Providing an incentive for customers to buy and to return: Sales promotions to this end can involve coupons, special offers, and discounts. Cross-linked websites and advertising affiliate programs can also help. • Providing personal attention: Personalized web sites, purchase suggestions, and personalized special offers may go some of the way to substituting for the face-to-face human interaction found at a traditional point of sale. • Providing a sense of community: Chat rooms, discussion boards, soliciting customer input and loyalty programs (sometimes called affinity programs) can help in this respect. • Owning the customer's total experience: E-tailers foster this by treating any contacts with a customer as part of a total experience, an experience that becomes synonymous with the brand.
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• Letting customers help themselves: Provision of a self-serve site, easy to use without assistance, can help in this respect. This implies that all product information is available, cross-sell information, advise for product alternatives, and supplies & accessory selectors. • Helping customers do their job of consuming: E-tailers and online shopping directories can provide such help through ample comparative information and good search facilities. Provision of component information and safety-and-health comments may assist e-tailers to define the customers' job.
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Advantages of E-Business Applications: Catalog flexibility and Online fast updating
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Direct "link" capabilities to content information and visual displays already existing on other client web site. You can update your ECatalog anytime, whether it's adding new products, or adjusting prices, without the expense and time of a traditional print catalog. Extensive search capabilities by item, corporate name, division name, location, manufacturer, partner, price or any other specified need.
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Shrinks the Competition Gap
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Reduced marketing/advertising expenses compete on equal footing with much bigger companies; easily compete on quality, price, and availability.
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Unlimited Market Place and Business Access Which Extend Customer Base
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The Internet gives customers the opportunity to browse and shop at their convenience and at their place. They can access your services from home, office, or on the road, 24 hours a day, 7 days a week. The Internet allows you to reach people around the world, offering your products to a global customer base.
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A 24 Hour Store Reduced Sale Cycle
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Reduce unnecessary phone calls and mailings.
Lower Cost and prices
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Reduce inventory, employees, purchasing costs, order processing costs associated with faxing, phone calls, and data entry, and even eliminate physical stores. Reduce transaction costs. More suppliers are able to compete in electronically open market place. it causes a great competition which naturally lowers the price of the goods Cost savings also occur because of efficient communication, closer access to market, no traveling cost and no sales tax.
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Eliminate Middlemen
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Sell directly to your customers.
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Easier Business Administration
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With right software, store inventory levels, shipping and receiving logs, and other business administration tasks can be automatically stored, categorized and updated in real-time, and accessed on demand. Business on e-commerce can capture all the accounting data online. Also orders, billing and customers support can be linked in network system to automate the entire business.
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Provides better customer services
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Gives customers control of sales process. Builds loyalty. All business transactions such as generation, processing, coordination and distribution of goods and services are automated by e-commerce. Ti also provides better and efficient communication with customers. Customers have access to your business in 24 hours a day and 7 days a week. So customers can enjoy shopping at any time throughout the world. Customers don’t have to leave home but product is delivered at their door.
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Increase in efficiency and accuracy
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Better way to deal with dealers and suppliers.
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E-commerce provides 24 hours access to customers, so people form all over the world can visit the cyber store at any time free of cost. it makes more easier and efficient to do business but the customers. Efficiency and accuracy of business increases because order processing is automated, efforts required for inventory control and billing are minimized.
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Workflow automation
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Shipping, real time inventory accounting system which adjusts stock levels and site, location availability instantaneously Secured, automated registration verification, account entry and transaction authorization features Automated RFP and RTQ features for vendor bid development and selection. Banking and accounting features customized for pre-approved third party direct sales, vendor, consignment or internal transfer transactions.
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Secure Payment Systems
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Recent advancements in payment technologies allow encrypted, secure payment online.
Improved productivity
• With e-commerce, time required to conduct business transactions is significantly reduced. • It also eliminates human errors and duplication of records.
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• So the improvement in speed and accuracy result in increase in productivity.
Requires less marketing efforts
• Once website is created, it promotes all your products, services and pricing in one place which is globally accessible. • If required data can be updated quickly and easily. • Also it is possible to update electronic brouchers without going to a printer. • Visitors can check the availability of product and can request about more information of the product and finally place an order.
Better Distribution to the firm
• Business on net cause’s distribution cost or cost-of-sales shrink to zero. • Since digital products can be delivered immediately, it eliminates the need of middleman. • Buyers and sellers can access and contact each other directly which eliminates some of the marketing expenses which make product distribution more efficiently.
Operational benefits to the firm
• Operational benefits of web for industrial sellers are reduced error, time and overhead cost in information processing. • It also reduces cost to suppliers by providing online data base.
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• In addition, it also provides the opportunity to new market segments and easier entry into new markets. • It eliminates delays between steps of business sub processes.
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Disadvantages of E-Business Applications: Catalog Inflexibility
• The catalog needs to regenerate every time when there are some new information or items to add in.
High Marketing / Advertising Expenses
• Reduced marketing/advertising expenses, compete on equal footing with much bigger companies; easily compete on quality, price, and availability
Limited Market Place
• Normally, customer will only locally and limited to certain area.
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High Sale Cycle
• Usually, a lot of phone calls and mailings are needed.
Higher Cost of Doing Business
• Cost regarding inventory, employees, purchasing costs, and orderprocessing costs associated with faxing, phone calls, and data entry, and even physical stores. Subsequently, increase transaction costs.
May Require A Middlemen
• Some sales or transaction may taking part indirectly or gone through third party to your customers.
Inefficient Business Administration
• Store inventory levels, shipping and receiving logs, and other business administration tasks might need to be categorized and updated manually in and done only when has time. This cause the information might not the latest or updated.
Need to employ number of staff
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Need staff who gives customer service and sales support
Change in business environment and technological issues
• To start a web shop requires personal computers, modem and a subscription to a value added network (VAN).
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• So it requires more extensive involvement. • Due to rapid use in technology, it requires updation of current technology and network. • It requires lot of money. • It is not possible to decide a figure on this cost.
Privacy and security problem
• 60% of the users do not trust the web as a payment channel. • Web transaction takes place with credit cards, but credit cards itself is not safe. • Anyone who transfers the data of the credit card on the web is not sure about the salesman’s identity. • Also the salesman is not sure about the buyer’s identity. • Buyer is also not sure that this credit card number is not used for some malicious purposes. • So transaction with credit card is not safe.
Legal questions and public-social policies
• While marketing on web, some legal questions arises such as electronic signature, non-reputability of some shops on the web, legal aspect of electronic contract, copyright violations, loss of right to trade secrets etc. • There are also government rulers, regulars, economic policies and censorship.
Inefficient consumer search
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• Data base or product information provided on web sites is not complete. • Also sometimes sellers may not provide all necessary information. • Because of this consumers will not get detailed information about the product. Requirement of intermediate • E-market does not require wholesalers and retail outlet. • But it requires other types of intermediaries such as certification authorities, e-mails which guarantee product quality, mediators for bargaining and conflict resolution. • All this brokers add transaction costs
Reconsideration of existing business plans
• Once it is decided to start the shop on the web, it will create competition with exiting business channel. • It requires to carefully integrate the effort with overall business plan
Problem of trust on retailers
• The fluctuation and instability of internet retailers make difficult for new retailers to establish a reputation. • Since it is observed that many retailers do not survive. • Hence there is a lack of confidence that exists in trusting internet retailers.
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Problem of eligibility authentication
• Ecommerce faces the problem of eligibility and authentication. • It is difficult to e-business to locate criminals and cheats. • Also it is not possible to find evidence of their crimes. So it takes the advantage of anonymity.
No guarantee to get returns
• Resources are required to set up shop on internet. • Resources are in terms of time and responses. • But there is no guarantee that your cyber store will offer a net return.
Ethical issues
• Ethics involve community standards of acceptable behaviour. • E-commerce links diverse communities of national and cultural differences. • So it may happen that a thing which is ethical to one community may be unethical to another community.
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CONCLUSION AND FUTURE SCOPE:
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ELECTRONIC COMMERCE IS POTENTIALLY A GREAT BOON TO PEOPLE. ELECTRONIC COMMERCE IS GROWING EXPLOSIVELY ON THE INTERNET.
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THE INFORMATION SERVICES AND ELECTRONIC COMMERCE DIVISION HAS ALSO TAKEN THE LEAD IN ELECTRONIC COMMERCE POLICY ISSUES.
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ELECTRNIC COMMERCE PROVIDES A REAL OPPORTUNITY FOR GOVERNMENT AND PRIVATE INDUSTRY TO WORK TOGETHER, TO
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ENSURE THE GROWTH AND ACCEPTANCE OF A NEW MASS COMMERCIAL MEDIUM. . • BEFORE THE END OF THIS DECADE, MILLIONS OF INDIVIDUALS AND COMPANIES WILL BE BUYING, ADVERTISING AND COLLOBORATING ON THE INTERNET. • BY ENCOURAGING ELECTRONIC COMMERCE, ALL NECESSITIES WILL GAIN BETTER LOWER PRICE AND BETTER QUALITY MATERIAL. • THE TECHNOLOGY AND TOOLS OF INTERNET COMMERCE HAVE BEGUN TO TRANSFORM INDUSTRIES IN MANY FUNDAMENTAL WAYS. • THE INFORMATION AGE IS CHARACTERISED BY THE EXTENSIVE USE OF GLOBAL COMMUNICATION NETWORK. THERE HAS BEEN NO END TO THE CREATIVE IMAGINATIONS OF THIS, WHO HAVE PUT TO USE THE INTERNET FOR BUSSINESS AND COMMERCE ALREADY. • THE BUSINESS WISHING TO JOIN THE ELECTRONIC COMMERCE SHOULD CONTINUALLY EXAMINE THE RISKS AND APPORTUNITIES CREATED BY ELECTRONIC COMMERCE. • THE NEW REVOLUTION IS NOT JUST A CHANGE IN THE MARKETS, BUT A FUNDAMENTAL CHANGE IN ECONOMIC RELATIONSHIP BETWEEN PEOPLE, BETWEEN ECONOMICS AND BETWEEN SOCITIES. • INFORMATION AND INFORMATION TECHNOLOGY ARE THE KEY DRIVERS OF THE MODERN AGE.
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GOVERNMENT CAN GET PROFIT BY ADOPTING ELECTRONIC COMMERCE FRAME WORK. FOR EXAMPLE: IN 1991 THE GOVERNMENT OF INDIA STARTED THE ECONOMIC LIBERALISATION POLICY WITH THE OBJECTIVE OPENING UP THE ECONOMY AND INTEGRATING IT WITH THE GLOBAL ECONOMY.
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INTERNATIONAL DATA CORPORATION SAID THAT ELECTRONIC COMMERCE WILL CONTRIBUTE $ 3.2 TRILLIONS BY 2003, WHICH IS 5% OF THE WORLDS GROSS NET PROFIT (GNP).
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IN FUTURE THERE WILL BE A HUGE MARKET, WHICH WOULD BE PROVIDING SECURE WIRELESS ELECTRONIC COMMERCE.
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ELECTRONIC COMMERCE IS A BOON TO THE PEOPLE OF THIS WORLD TO MAKE THERE COUNTRY GROW ECONOMICALLY STABLE IN THIS GLOBAL ECONOMIC WORLD.
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doc_559348549.doc
1
Introduction
• The term e-commerce is really a "catch-all" phrase that encompasses many concepts. To help you better understand, presented below is my over-simplistic definition of e-commerce. • According to Dictionary.COM, the term commerce is defined as follows: "The buying and selling of goods, especially on a large scale, as between cities or nations". This definition is straight forward and easy to understand. From here, we add the "e" for "electronic", and we derive the definition: "buying and selling of goods electronically". This typically means that orders and payments pass electronically. • ESCAP defines Electronic Commerce as “the process of using electronic methods and procedures to conduct all forms of business activity.” E- Commerce is not just about using network based technologies to conduct business. • E-commerce is technology-enabled buying and selling that occurs over telecommunications networks such as the Internet. As in physical marketplaces, these exchanges can occur between businesses, between a business and a consumer, or even between consumers. • E-commerce has grown dramatically since the late 1990s. This transition from traditional physical market places to technologyenabled ones has important economic and social implications.
2
•
It is about moving organizations to fully electronic environment through change in their work procedures, reengineering their business processes, integrating them with their business partners beyond their traditional boundaries.
•
E- Commerce has brought about a veritable revolution in the way businesses are conducted. One significant economic effect is the reduction of transaction costs compared to traditional commerce. A business connected to the Internet is immediately in reach and connectivity with no additional cost.
• E-commerce reduces transaction costs by removing many of the geographic and time barriers that buyers and sellers previously faced. • Customers who had to drive to a physical store location during business hours, park, and manually do comparison shopping before buying, can now do this for many products online, anytime, with the help of comparison shopping sites such as MySimon. • For information products, such as digital music, which can be both bought and delivered online, e-commerce also reduces the product delivery cost. • The volume of electronic commerce seems to be converging on around US$ 600 billion in the year 2000 which is about 10% of all trade. This figure is $ 200 billion. The trend is thus unmistakable. The Internet is becoming a force to reckon with as a comparatively cheap carrier for EC transactions. • IT and business were never so closely related. Together they are defining new organisations, new products and services, new ways of delivering them, new ways of satisfying the needs of customers.
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• Today's business is a networked organisation, a knowledge-based organisation which is forever in a learning mode to handle competition, customer, cost and change. • The Internet has redefined time and space. It knows no geographical boundaries.The way we conduct commerce, the way we distribute information, the way governments deliver services to their citizens, the way transactions are carried out; everything is changing. And this change has been brought about by the Internet. • New methods have been developed for distributing data,delivering entertainment over telephone, while at the same time connecting cableTV and satellite networks to the Internet. Merging of data, information, entertainment electronics has opened up new vistas for businesses. While new businesses are getting created around the convergence of computer, communication, and consumer electronics; the existing businesses, companies, corporates and organisations are restructuring and re-organising themselves to take advantage of the Internet into their scheme of things. • E-Commerce impacts upon a large number of business activities like marketing, sales and sales promotion pre-sales, subcontracts, supply, financing and insurance, commercial transactions, ordering, delivery, payment product service and maintenance, cooperative product development, etc.
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Types of E-Commerce
• E-Commerce utilizes information & communication technologies to carry out market transactions among two or more parties – usually business & consumers. At times one of these parties may be the government as well. • However, there is more to this - much more, as E-Commerce has been classified in these categories based upon the entities involved in a transaction which are as below:
B2B (Business-to-Business):
• E-Commerce really refers to supply chain technology, which is by far the largest & most successful e-commerce technology employed today.
•
In the past EDI (electronic data interchange) was conducted on a direct link of some form between the two businesses where as today the most popular connection is the internet. The two businesses pass information electronically to each other.
• Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers fall under this category. • B2B E-Commerce currently makes up about 94% of all ecommerce transactions.
B2C (Business to Consumer):
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• E-Commerce refers to the selling and buying of goods and services via the web from web retailers to web customers. This really is the same thing as B2B E-Commerce with one key exception. With B2B implementations, the parties are "Trusted Business Partners" who have an established working relationship. • With B2C E-Commerce, the retailer is often selling to unknown, un-trusted strangers. Therefore extra effort must be made to capture customer and payment information. Further, this data is typically verified before orders are fulfilled. In this respect, B2C is a tougher solution to provide than B2B. • However, B2C almost always involves customer typing information into an order screen; there is no need to link together two complex accounting systems. In this respect, B2B is a much tougher solution to deliver
•
. Having a hard time finding a book? Need to purchase a custom, high-end computer system? How about a first class, all-inclusive trip to a tropical island? With the advent ecommerce, all three things can be purchased literally in minutes without human interaction. Oh how far we've come!
C2C (Consumer to Consumer):
• E-Commerce has also emerged in form of many sites that allows unknown, un-trusted parties to sell goods and services to oneanother. • These sites are usually some form of an auction site. The consumer lists items for sale with a commercial auction site. Other consumers access the site and place bids on the items. The site then provides a
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connection between the seller and buyer to complete the transaction. The site provider usually charges a transaction cost. In reality this site should be call C2B2C. To accommodate this activity, several technologies have emerged. • There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like Pay Pal & EBay’s auction service.
C2B (Consumer-to-Business):
• Consumer to Business is a growing arena where the consumer requests a specific service from the business. • A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project. • The consumer reviews the bids and selects the company that will complete the project. • E.g. Elance empowers consumers around the world by providing the meeting ground and platform for such transactions.
B2E (Business to Employee):
• Business to Employee e-commerce is growing in use. This form of e-commerce is more commonly known as an 'Intranet'. An intranet is a web site developed to provide employees of an organization with information. The intranet is usually accessed through the organization’s network, though it can and is often extended to an
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entrant who uses the Internet but restricts uses by sign on and password. • The internet based business-to-employee applications are often used for implementing improved employee relationship management initiatives. • This B2E application offers employees a self service capability which in turn helps in creating better business value and gaining competitive advantage.
G2G (Government-to-Government):
• G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government from procurement to filing taxes to business registrations to renewing licenses. • There are other categories of ecommerce out there, but they tend to be superfluous.
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Ways to Conduct Online Marketing: Online Marketing Can Be Conducted By Following Ways:
Electronic Presence: • A firm can set up its Corporate Site to provide basic information about the company such as history, location, management, products and services. • Some firms may design its Marketing site in order to enable the prospects or customers to transact business with the firm. The marketing website may provide catalogue, promotional tools like coupons, contests, etc. • In order to attract prospects or customers, the firms promotes its website through print and broadcast advertising, and also through banner ads that are inserted on other web site. Advertising Online: • Firms can online place online ads in three ways- classified ads in special sections offered by major Commercial Online services, ads in certain internet newsgroups that are set up for commercial purpose, online ads that pop up while subscribers are surfing online services or website. • These include banner ads, pop-up windows, tickers (banners that move across the screen) and roadblocks (full screen ads)
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Forums, Newsgroups, and Bulletins Boards: • Firms may participate in or sponsor internet forums, newsgroups and bulleting boards that appeal to special interest groups. 1. Forums are discussion groups located on commercial On-Line services. A forum may operate a chat room, a library, and even a classified ad directory. 2. Newsgroups are the internet version of forums. These groups are limited to people posting and reading messages on a specified topic. The newsgroups deal with topics like health, sports, gardening, etc. 3. Bulletin board systems are specialized online services that deal with a specific topic such as vacations, health, computer games, and real estate. Marketers can participate in newsgroups and bulletins boards. Web Communities: • These are commercially sponsored web sites, where members engage themselves online and exchange views on issues of common interest. • For instance, Agriculture Online (www.agriculture.com), where farmers and others in USA can find commodity prices, recent farm news, and chat rooms. • Online buyers join internet groups to share product-related information, with the results that the ‘word of web’ becomes an important buying influence.
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E-mail: • A company can encourage prospects and customers to send questions, suggestions, and complaints to the company via E-mail. • Customer services representatives can quickly respond to these messages. • The company may also develop internet-based electronic mailing lists. Using the lists, online marketers can send out customer newsletters, special product or promotion offers, reminders of service requirements, or announcements of special events. • However, companies should avoid ‘spam’ (unsolicited e-mail), as consumers get irritated with such junk-mail.
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Security Issues:
• Security is very important for information system professional. Since 1993 computing facilities and information system they support, have become increasingly accessible because of intent facility. • Since confidential information is transferred or increasingly traversed through modern networks, so security, privacy and authentication of information is the commonly discussed issue in E-Commerce. • Confidence, reliability and protection of this information against security threats is the major prerequisite for the functioning of the E-Commerce. When we are doing electronic transactions then there should not be any compromise on alteration of data.
Security threats:
• Security threats is a circumstance or event with the potential to cause economic hardship to data or network resources in the form of destruction, disclosure, modification of data, denial of services or fraud and abuse. Security threats can be analyzed into the following type :
Natural Threats:
• Occurs due to natural effects such as act of nature a fire, earthquake, tidal waves etc.
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Accidentals Threats:
• By human being who are directly involved e.g. failing to perform a manual procedure correctly, mis-coding information etc. • By other person e.g. insolvency, bankruptcy or withdrawal of support by a key supplier. • By machine and machine designers e.g. diskhead-crash, electricity failure, software bug etc.
Intentional Threats:
• By human beings who are directly involved e.g. intentional capture of incorrect data, unjustified amendment or deletion of data, theft of backups etc. • By other humans e.g. release of malicious software, riot,, terrorism, welfare etc. From the above threatening events, intentional threats threat is to be considered seriously which directly affects the security of information. Intentional threats are as follows:
1.
Damage to data: Data gets damaged while in transit on the
network.
2.
Loss of data: Data get loss or disclosure of data when data is in
transit on the network.
3.
Unauthorized use of data: Unauthorized person can use the
data when data is in transaction. He may alter the content of data and may change the user names, credit card numbers and amount during transaction. Sometimes competitors also try to use the data in transit to get the confidential and secure information.
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Security Procedures:
Because of security threats which take place at any time and place, companies need to put a security infrastructure to make their systems much more secure. Security procedures are as follows: 1. Firewall 2. Encryption 3. Password 4. Access control list 5. Digital certificates
Firewall:
• Firewall is the most commonly accepted network protection. Firewall is a barrier between two network i.e. a company’s internet network and external network called internet. • Firewall is used to control and monitor all traffic between external network and local network. It allows full access to insiders for services of the external world, while it grants access to the external network based on log-on name, password, IP address etc.
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Firewall is a system containing a route, a personal computer, a host. A firewall system is usually located at a site’s connection to the internet. It examines incoming and outgoing packets as per the set rules. Then it decides either to allow pockets or block the pockets. Firewall provides controllable filtering of network traffic and allows restricted access to certain applications.
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• Different technologies are used in the creation of firewalls such as pocket filtering, circuit gateways and application proxies.
Encryption:
• Encryption is the process of changing plain text into cipher data. Decryption is the reverse of encryption process i.e. changing unintelligible data into intelligible data. • Data in network is held in a common storage facility. Anyone who has authority to use the network has potential to access classified data. • To avoid this, store the data in an encrypted form, so any unauthorized person who will access the data will not be able to read it. • There are two types of primary encryption i.e. link and end-toend. Link encryption is used to make data unreadable between two computers. Link encryption prevents the casual readying of data. End-to-end encryption protects data anywhere on the system. • Encryption is the heart of e-commerce transaction to secure the data on the internet.
Password:
• Password is the easiest and inexpensive way to provide security. It is a first level barrier to accidental intrusion. • Password and username can be used in different areas of networking to protect the data. Password is used to provide protection from unauthorized access.
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Following rules are used for password:
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Use uncommon names: Use uncommon username that cannot
be easily identified but can be remembered by those who need it.
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Make password meaningless to others: Make the password
meaningful to you but it should be meaningless to others.
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Use a long password: The password should contain more than
8 characters. It must contain mixed case letters and at least one non -alphanumeric character. Run a program to test all possible number/letter combination and make it long enough, so that it is not possible to discover it.
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Change your password often: Change the password
periodically, so that it is not the same word every time. Generally username remains static and password is changed.
Access control list:
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Access control is used to provide access to authorized users.
limited to authorized individuals and programs. Control access is associated with user of group of data.
• That access and modification of particular portions of data is
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The control of access by user is referred as authentication. It is a process of using a key to verify the integrity of a document. Electronic devices like identification number, callback procedures, encryption are evolved to establish authenticity of an instruction. New challenges arise to solve the problem unique to electronic authentication such as issue of data, integrity, non-repudiation (non refusing), choice of technology etc.
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Digital Certificates:
• Digital certificates are used to verify the identity of each person in an electronic transaction. • Certificates are issued by certificate authorities. Certificates authorities verify the authenticity of certificate request in connection with person’s public key and their identification. • Then certificate authorities provide a unique digitally signed certificate which is used as a proof in electronic transaction. • Certificate Authority is a trusted party or a public entity to assign digital certificates. • This certificate authority links a public key to the user. Examples of different Certificate Authority services are Verisign, Belsign etc.
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Success of E-Commerc: Success factors
• In many cases, an E-Commerce company will survive not only based on its product, but by having a competent management team, good post-sales services, well-organized business structure, network infrastructure and a secured, well-designed website. • A company that wants to succeed will have to perform 2 things: Technical and organizational aspects and customer-oriented aspects. Following factors will make business of companies succeed in e-commerce:
Technical and organizational aspects
• Sufficient work is done in market research and analysis. Ecommerce is not exempt from good business planning and the fundamental laws of supply and demand. Business failure is as much a reality in e-commerce as in any other form of business. • A good management team armed with information technology strategy. A company's IT strategy should be a part of the business re-design process. • Providing an easy and secured way for customers to effect transactions. Credit cards are the most popular means of sending payments on the internet, accounting for 90% of online purchases. In the past, card numbers were transferred securely between the customer and merchant through independent payment gateways. Such independent payment gateways are still used by most small
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and home businesses. Most merchants today process credit card transactions on site through arrangements made with commercial banks or credit cards companies. • Providing reliability and security. Parallel servers, hardware redundancy, fail-safe technology, information encryption, and firewalls can enhance this requirement. • Constructing a commercially sound business model. • Setting up an organization of sufficient alertness and agility to respond quickly to any changes in the economic, social and physical environment. • Providing an attractive website. The tasteful use of colour, graphics, animation, photographs, fonts, and white-space percentage may aid success in this respect. • Providing complete understanding of the products or services offered, which not only includes complete product information, but also sound advisors and selectors. • Naturally, the e-commerce vendor must also perform such mundane tasks as being truthful about its product and its availability, shipping reliably, and handling complaints promptly and effectively.
Customer-Oriented Aspects:
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A successful e-commerce organization must also provide an enjoyable and rewarding experience to its customers. Many factors go into making this possible. Such factors include: • Providing value to customers: Vendors can achieve this by offering a product or product-line that attracts potential customers at a competitive price, as in non-electronic commerce. • Providing service and performance: Offering a responsive, userfriendly purchasing experience, just like a flesh-and-blood retailer, may go some way to achieving these goals. • Providing an incentive for customers to buy and to return: Sales promotions to this end can involve coupons, special offers, and discounts. Cross-linked websites and advertising affiliate programs can also help. • Providing personal attention: Personalized web sites, purchase suggestions, and personalized special offers may go some of the way to substituting for the face-to-face human interaction found at a traditional point of sale. • Providing a sense of community: Chat rooms, discussion boards, soliciting customer input and loyalty programs (sometimes called affinity programs) can help in this respect. • Owning the customer's total experience: E-tailers foster this by treating any contacts with a customer as part of a total experience, an experience that becomes synonymous with the brand.
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• Letting customers help themselves: Provision of a self-serve site, easy to use without assistance, can help in this respect. This implies that all product information is available, cross-sell information, advise for product alternatives, and supplies & accessory selectors. • Helping customers do their job of consuming: E-tailers and online shopping directories can provide such help through ample comparative information and good search facilities. Provision of component information and safety-and-health comments may assist e-tailers to define the customers' job.
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Advantages of E-Business Applications: Catalog flexibility and Online fast updating
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Direct "link" capabilities to content information and visual displays already existing on other client web site. You can update your ECatalog anytime, whether it's adding new products, or adjusting prices, without the expense and time of a traditional print catalog. Extensive search capabilities by item, corporate name, division name, location, manufacturer, partner, price or any other specified need.
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Shrinks the Competition Gap
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Reduced marketing/advertising expenses compete on equal footing with much bigger companies; easily compete on quality, price, and availability.
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Unlimited Market Place and Business Access Which Extend Customer Base
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The Internet gives customers the opportunity to browse and shop at their convenience and at their place. They can access your services from home, office, or on the road, 24 hours a day, 7 days a week. The Internet allows you to reach people around the world, offering your products to a global customer base.
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A 24 Hour Store Reduced Sale Cycle
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Reduce unnecessary phone calls and mailings.
Lower Cost and prices
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Reduce inventory, employees, purchasing costs, order processing costs associated with faxing, phone calls, and data entry, and even eliminate physical stores. Reduce transaction costs. More suppliers are able to compete in electronically open market place. it causes a great competition which naturally lowers the price of the goods Cost savings also occur because of efficient communication, closer access to market, no traveling cost and no sales tax.
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Eliminate Middlemen
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Sell directly to your customers.
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Easier Business Administration
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With right software, store inventory levels, shipping and receiving logs, and other business administration tasks can be automatically stored, categorized and updated in real-time, and accessed on demand. Business on e-commerce can capture all the accounting data online. Also orders, billing and customers support can be linked in network system to automate the entire business.
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Provides better customer services
• •
Gives customers control of sales process. Builds loyalty. All business transactions such as generation, processing, coordination and distribution of goods and services are automated by e-commerce. Ti also provides better and efficient communication with customers. Customers have access to your business in 24 hours a day and 7 days a week. So customers can enjoy shopping at any time throughout the world. Customers don’t have to leave home but product is delivered at their door.
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•
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Increase in efficiency and accuracy
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Better way to deal with dealers and suppliers.
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E-commerce provides 24 hours access to customers, so people form all over the world can visit the cyber store at any time free of cost. it makes more easier and efficient to do business but the customers. Efficiency and accuracy of business increases because order processing is automated, efforts required for inventory control and billing are minimized.
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Workflow automation
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Shipping, real time inventory accounting system which adjusts stock levels and site, location availability instantaneously Secured, automated registration verification, account entry and transaction authorization features Automated RFP and RTQ features for vendor bid development and selection. Banking and accounting features customized for pre-approved third party direct sales, vendor, consignment or internal transfer transactions.
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•
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Secure Payment Systems
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Recent advancements in payment technologies allow encrypted, secure payment online.
Improved productivity
• With e-commerce, time required to conduct business transactions is significantly reduced. • It also eliminates human errors and duplication of records.
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• So the improvement in speed and accuracy result in increase in productivity.
Requires less marketing efforts
• Once website is created, it promotes all your products, services and pricing in one place which is globally accessible. • If required data can be updated quickly and easily. • Also it is possible to update electronic brouchers without going to a printer. • Visitors can check the availability of product and can request about more information of the product and finally place an order.
Better Distribution to the firm
• Business on net cause’s distribution cost or cost-of-sales shrink to zero. • Since digital products can be delivered immediately, it eliminates the need of middleman. • Buyers and sellers can access and contact each other directly which eliminates some of the marketing expenses which make product distribution more efficiently.
Operational benefits to the firm
• Operational benefits of web for industrial sellers are reduced error, time and overhead cost in information processing. • It also reduces cost to suppliers by providing online data base.
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• In addition, it also provides the opportunity to new market segments and easier entry into new markets. • It eliminates delays between steps of business sub processes.
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Disadvantages of E-Business Applications: Catalog Inflexibility
• The catalog needs to regenerate every time when there are some new information or items to add in.
High Marketing / Advertising Expenses
• Reduced marketing/advertising expenses, compete on equal footing with much bigger companies; easily compete on quality, price, and availability
Limited Market Place
• Normally, customer will only locally and limited to certain area.
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High Sale Cycle
• Usually, a lot of phone calls and mailings are needed.
Higher Cost of Doing Business
• Cost regarding inventory, employees, purchasing costs, and orderprocessing costs associated with faxing, phone calls, and data entry, and even physical stores. Subsequently, increase transaction costs.
May Require A Middlemen
• Some sales or transaction may taking part indirectly or gone through third party to your customers.
Inefficient Business Administration
• Store inventory levels, shipping and receiving logs, and other business administration tasks might need to be categorized and updated manually in and done only when has time. This cause the information might not the latest or updated.
Need to employ number of staff
•
Need staff who gives customer service and sales support
Change in business environment and technological issues
• To start a web shop requires personal computers, modem and a subscription to a value added network (VAN).
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• So it requires more extensive involvement. • Due to rapid use in technology, it requires updation of current technology and network. • It requires lot of money. • It is not possible to decide a figure on this cost.
Privacy and security problem
• 60% of the users do not trust the web as a payment channel. • Web transaction takes place with credit cards, but credit cards itself is not safe. • Anyone who transfers the data of the credit card on the web is not sure about the salesman’s identity. • Also the salesman is not sure about the buyer’s identity. • Buyer is also not sure that this credit card number is not used for some malicious purposes. • So transaction with credit card is not safe.
Legal questions and public-social policies
• While marketing on web, some legal questions arises such as electronic signature, non-reputability of some shops on the web, legal aspect of electronic contract, copyright violations, loss of right to trade secrets etc. • There are also government rulers, regulars, economic policies and censorship.
Inefficient consumer search
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• Data base or product information provided on web sites is not complete. • Also sometimes sellers may not provide all necessary information. • Because of this consumers will not get detailed information about the product. Requirement of intermediate • E-market does not require wholesalers and retail outlet. • But it requires other types of intermediaries such as certification authorities, e-mails which guarantee product quality, mediators for bargaining and conflict resolution. • All this brokers add transaction costs
Reconsideration of existing business plans
• Once it is decided to start the shop on the web, it will create competition with exiting business channel. • It requires to carefully integrate the effort with overall business plan
Problem of trust on retailers
• The fluctuation and instability of internet retailers make difficult for new retailers to establish a reputation. • Since it is observed that many retailers do not survive. • Hence there is a lack of confidence that exists in trusting internet retailers.
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Problem of eligibility authentication
• Ecommerce faces the problem of eligibility and authentication. • It is difficult to e-business to locate criminals and cheats. • Also it is not possible to find evidence of their crimes. So it takes the advantage of anonymity.
No guarantee to get returns
• Resources are required to set up shop on internet. • Resources are in terms of time and responses. • But there is no guarantee that your cyber store will offer a net return.
Ethical issues
• Ethics involve community standards of acceptable behaviour. • E-commerce links diverse communities of national and cultural differences. • So it may happen that a thing which is ethical to one community may be unethical to another community.
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CONCLUSION AND FUTURE SCOPE:
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ELECTRONIC COMMERCE IS POTENTIALLY A GREAT BOON TO PEOPLE. ELECTRONIC COMMERCE IS GROWING EXPLOSIVELY ON THE INTERNET.
•
THE INFORMATION SERVICES AND ELECTRONIC COMMERCE DIVISION HAS ALSO TAKEN THE LEAD IN ELECTRONIC COMMERCE POLICY ISSUES.
•
ELECTRNIC COMMERCE PROVIDES A REAL OPPORTUNITY FOR GOVERNMENT AND PRIVATE INDUSTRY TO WORK TOGETHER, TO
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ENSURE THE GROWTH AND ACCEPTANCE OF A NEW MASS COMMERCIAL MEDIUM. . • BEFORE THE END OF THIS DECADE, MILLIONS OF INDIVIDUALS AND COMPANIES WILL BE BUYING, ADVERTISING AND COLLOBORATING ON THE INTERNET. • BY ENCOURAGING ELECTRONIC COMMERCE, ALL NECESSITIES WILL GAIN BETTER LOWER PRICE AND BETTER QUALITY MATERIAL. • THE TECHNOLOGY AND TOOLS OF INTERNET COMMERCE HAVE BEGUN TO TRANSFORM INDUSTRIES IN MANY FUNDAMENTAL WAYS. • THE INFORMATION AGE IS CHARACTERISED BY THE EXTENSIVE USE OF GLOBAL COMMUNICATION NETWORK. THERE HAS BEEN NO END TO THE CREATIVE IMAGINATIONS OF THIS, WHO HAVE PUT TO USE THE INTERNET FOR BUSSINESS AND COMMERCE ALREADY. • THE BUSINESS WISHING TO JOIN THE ELECTRONIC COMMERCE SHOULD CONTINUALLY EXAMINE THE RISKS AND APPORTUNITIES CREATED BY ELECTRONIC COMMERCE. • THE NEW REVOLUTION IS NOT JUST A CHANGE IN THE MARKETS, BUT A FUNDAMENTAL CHANGE IN ECONOMIC RELATIONSHIP BETWEEN PEOPLE, BETWEEN ECONOMICS AND BETWEEN SOCITIES. • INFORMATION AND INFORMATION TECHNOLOGY ARE THE KEY DRIVERS OF THE MODERN AGE.
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GOVERNMENT CAN GET PROFIT BY ADOPTING ELECTRONIC COMMERCE FRAME WORK. FOR EXAMPLE: IN 1991 THE GOVERNMENT OF INDIA STARTED THE ECONOMIC LIBERALISATION POLICY WITH THE OBJECTIVE OPENING UP THE ECONOMY AND INTEGRATING IT WITH THE GLOBAL ECONOMY.
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INTERNATIONAL DATA CORPORATION SAID THAT ELECTRONIC COMMERCE WILL CONTRIBUTE $ 3.2 TRILLIONS BY 2003, WHICH IS 5% OF THE WORLDS GROSS NET PROFIT (GNP).
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IN FUTURE THERE WILL BE A HUGE MARKET, WHICH WOULD BE PROVIDING SECURE WIRELESS ELECTRONIC COMMERCE.
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ELECTRONIC COMMERCE IS A BOON TO THE PEOPLE OF THIS WORLD TO MAKE THERE COUNTRY GROW ECONOMICALLY STABLE IN THIS GLOBAL ECONOMIC WORLD.
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doc_559348549.doc