30-07-2012, 11:42 AM
What’s Electronic Commerce
E-Commerce.ppt (Size: 465.5 KB / Downloads: 123)
From VANS to Internet
Electronic Commerce has, so far, meant electronic data interchange (EDI) over Value added Networks (VANS) used by corporate organisations. That was computer-to-computer exchange of routine business documents in a standard format. Now, it has the scope to use the Internet too as the medium. The Internet enables customers, partners and users to access a company’s EDI network, which earlier was closed to smaller companies, simply because of the costs involved.
While the Internet speeds up transaction times, another advantage it has over EDI transactions conducted over a private network is the connect charges applicable. Traditionally, VAN providers charge for EDI on a per-transaction basis. Organisations that use EDI therefore tend to send transactions in a batch to their customers once a day. Over the Internet where all connect charges are fixed, Organisations can well afford to send transactions at any time they want to, thus enabling real time commerce.
How can E-commerce be used?
Community-based services: Payment of utility bills, traffic fines, donations to charity etc.
Shopping: Buying and selling goods and services
Communication: E-mail, Net telephony products can be commerce-enabled and serviced via the Net.
Biz-to-Biz applications where the purchase orders are generated and seamlessly integrated with EDI systems.
Electronic Trade
A recent report by the Organisation for Economic Co-operation and Development (OECD) predicts Internet trading will grow from today’s estimated $500 million to $5 billion by 2001. In keeping with the trend worldwide, India has entered into over 50 tax treaties to follow the flow of the increasingly seamless worldwide electronic trade.With emerging payments standards such as the Secure Electronic Transaction (SET) protocol, E-Commerce practises are reportedly reaching the end of usefulness rapidly.
Trends in Electronic Commerce
Even though fewer than one in five of the largest retailers in the U.S. sell their wares on the Internet, consumers managed to spend more than $10 billion shopping on the Web in 1997. Over 10% of that was spent at a single Website--NetMarket, an online discount service created for its dues-paying members by CUC International. NetMarket handled over $1.2 billion in sales last year.
NEW CAPABILITIES THE INTERNET BRINGS TO COMMERCE
The Internet will augment electronic commerce already being conducted between businesses--at a much lower cost--as well as will dramatically increase electronic commerce conducted with consumers. Critical issues such as how to handle electronic payment, security, privacy, and fraud prevention are being addressed with reliable commercial software, and businesses are beginning to use information technology on the Internet to exploit the advantages of conducting business electronically. Increasingly, business people are discovering important bottom-line benefits on the Web, including:
E-Commerce and India
While some blame the high cost of implementation, others worry about the lack of security. The systems needed to transact over the Net are in the early stages of development and are still costly and complicated for Indian Businesses to use. But it’s clear that E-Commerce is in, and the combination of the Internet and the EDI (Electronic Data Interchange) is the next step in building competitive advantage.
E-Commerce.ppt (Size: 465.5 KB / Downloads: 123)
From VANS to Internet
Electronic Commerce has, so far, meant electronic data interchange (EDI) over Value added Networks (VANS) used by corporate organisations. That was computer-to-computer exchange of routine business documents in a standard format. Now, it has the scope to use the Internet too as the medium. The Internet enables customers, partners and users to access a company’s EDI network, which earlier was closed to smaller companies, simply because of the costs involved.
While the Internet speeds up transaction times, another advantage it has over EDI transactions conducted over a private network is the connect charges applicable. Traditionally, VAN providers charge for EDI on a per-transaction basis. Organisations that use EDI therefore tend to send transactions in a batch to their customers once a day. Over the Internet where all connect charges are fixed, Organisations can well afford to send transactions at any time they want to, thus enabling real time commerce.
How can E-commerce be used?
Community-based services: Payment of utility bills, traffic fines, donations to charity etc.
Shopping: Buying and selling goods and services
Communication: E-mail, Net telephony products can be commerce-enabled and serviced via the Net.
Biz-to-Biz applications where the purchase orders are generated and seamlessly integrated with EDI systems.
Electronic Trade
A recent report by the Organisation for Economic Co-operation and Development (OECD) predicts Internet trading will grow from today’s estimated $500 million to $5 billion by 2001. In keeping with the trend worldwide, India has entered into over 50 tax treaties to follow the flow of the increasingly seamless worldwide electronic trade.With emerging payments standards such as the Secure Electronic Transaction (SET) protocol, E-Commerce practises are reportedly reaching the end of usefulness rapidly.
Trends in Electronic Commerce
Even though fewer than one in five of the largest retailers in the U.S. sell their wares on the Internet, consumers managed to spend more than $10 billion shopping on the Web in 1997. Over 10% of that was spent at a single Website--NetMarket, an online discount service created for its dues-paying members by CUC International. NetMarket handled over $1.2 billion in sales last year.
NEW CAPABILITIES THE INTERNET BRINGS TO COMMERCE
The Internet will augment electronic commerce already being conducted between businesses--at a much lower cost--as well as will dramatically increase electronic commerce conducted with consumers. Critical issues such as how to handle electronic payment, security, privacy, and fraud prevention are being addressed with reliable commercial software, and businesses are beginning to use information technology on the Internet to exploit the advantages of conducting business electronically. Increasingly, business people are discovering important bottom-line benefits on the Web, including:
E-Commerce and India
While some blame the high cost of implementation, others worry about the lack of security. The systems needed to transact over the Net are in the early stages of development and are still costly and complicated for Indian Businesses to use. But it’s clear that E-Commerce is in, and the combination of the Internet and the EDI (Electronic Data Interchange) is the next step in building competitive advantage.