ELECTRONIC

BUSINESS

MBA 1 Years

Lecture-5 & 6

Taxonomy of Electronic Commerce Applications Three main categories:

Business to consumer (B2C)

Business-to-Consumer Applications
E-tailing

Business to business (B2B)

Business-to-Business Applications

Consumer to consumer (C2C)

Brokering, Procurement, and Consultancy

Other Categories:

Consumer-to-Consumer Applications

Business to government (B2G) Applications in Education Applications in Finance

Government-to-customer Applications Business-to-Government Applications E-learning, University, and E-book Banking Services and Insurance Services

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Taxonomy of Electronic Commerce Applications

As we require an office to do business in the traditional business model, we require e-commerce-enabled Web site to initiate electronic transactions. There is no way to classify netizens. They vary in profile, nationality, age, gender, and profession. The product or services in e-commerce can be targeted at

The different categories of e-commerce applications refer to the different businesses that can take place on a Web sites over the Internet. Legalities, and security of a Web site differ as per the business requirements.
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Businesses Consumers Government

B2C Applications

Which involve a business entity and end consumer Offer directly to the customer an interface of activity Growth of B2C applications thanks to Internet

Allow company to extend existing services to customers Allow company to increase its customers Offer a wider choice and allow cheaper prices May give to the company a worldwide visibility Online shops are accessible 24h a day The process whereby consumers directly buy goods or services from a seller in real-time, without an intermediary service

A new kind of B2C applications are the Cybermalls (A cybermall is a "single Web site that offers many products and services at one internet location.)
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B2C Applications

(Contd)

Web site where all transactions take place between a business house and the final consumer. e.g.

A customer log in to a Web site, which is the virtual processing office of a business or organization.
Processing Order Receive good Place Order
Consumer

After going to the product details and catalogues, the customer may want to buy certain goods. An order would be placed and sent as an e-mail to the office of the business organization. E-mail would be received at the office, the goods will be dispatched, and the customer would receive the order goods.
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B2C Applications

(Contd)

www.amazon.com

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E-Tailing

The application of B2C e-commerce is also known as e-tailing. Electronic tailing refer to, selling goods to consumers. Examples of e-tailing Websites include: www.half.ebay.com

www.store.nike.com
www.bizrate.com

Online book store (e.g. amazon.com) Online car purchasing (e.g. automall.com)
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E-Tailing
www.half.ebay.com

(Contd)

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E-Tailing
www.store.nike.com

(Contd)

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E-Tailing
www.bizrate.com

(Contd)

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B2B Applications

Both the sellers and buyers are business organizations. Realize transactions needed to perform financial or commercial activities by companies over the Internet Popularly known, is one of the fastest growing e-commerce segments with total estimated sales exceeding $8 trillion. B2B applications are used by companies that sell their goods and services to other companies and not to the consuming public directly. Help to automate communications between companies making them easier and quicker Allow to cut prices drastically Help in reducing mistakes

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B2B Applications

(Contd)

E-Commerce web sites, dedicated to exchange of information, goods, and services to other business rather than the final consumer. For example A wholesaler places an order through the company Web site for fresh stocks Receive processed order in the form of shipped supplies Wholesaler then sells the supplies to the final consumer, the customer who walks into the retail outlet
Wholesaler

Supplies

Order

Order processing
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B2B Applications

(Contd)

The following Some typical application are involved in businessto-business E-Commerce:

Brokering The E-Commerce site which is paid to act as an agent for others, for example, in negotiating contracts or buying and selling goods and services. www.sunbeltnetwork.com Find a business for sale, sale your businesses, locate a broker, become a broker. www.forcesestate.com
Houses for rent, houses for sale, plot for sale, advertise for property.

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B2B Applications

(Contd)

Procurement The E-Commerce site for purchasing of something, especially for a company, government, or other organization www.sialkotbusiness.com

B2B Company Pakistan, Importers Exporters Directory, For Manufacturers, services providers, distributors, wholesalers, retailers and governmental agencies to find trade opportunities to promote Business Worldwide.

Consultancy The E-Commerce site of business or professional practice that provides expert advice in a particular field www.amztrade.com

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B2B Applications

(Contd)

E marketplace Online B2B e-marketplace for buyers and sellers with extensive range of selling products, goods, services and latest trade offers from reliable importers, exporters, wholesalers, distributors and international traders. Disintermediation Intermediaries or middlemen provide information When the function's of these intermediaries can be automated or eliminated, this process is called disintermediation.

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C2C Applications

An individual sells products or services to other individuals. Concern the consumers who run negotations with other consumers sometimes utilizing as intermediary a company

Allow consumers to interact directly among them Give to the consumers a new way of purchasing and selling services and goods

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C2C Applications

(Contd)

E-Commerce web site where all the transactions take place between a consumer and the Web site, acting as a plate form that brings the buyer and the seller together. e.g. At an auction
site, customers located in Karachi and in Lahore can register. Customer from Karachi place an advertisement on the Web site.
Want to sell
Receives products

Want to buy Consumer located in Lahore

Receives money

Consumer located in Karachi

Customer from Lahore, while surfing, looks at advertisement and decides to purchase the product. Deal is finalized through the Web site without an actual meeting.
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Examples

Visit these web sites in turn and discuss the applications and its features B2B:

www.amazon.com www.half.ebay.com www.store.nike.com www.bizrate.com C2B: www.priceline.com C2C: www.eBay.com

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B2C:

www.tpn.com www.sunbeltnetwork.com www.forcesestate.com www.sialkotbusiness.com www.amztrade.com

Other Applications

To learn about some other application of e-commerce on the

Web are: Government-to-customer Business-to-Government Applications in Education Applications in Finance

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G2C Applications

The use of Internet Technology in general and e-commerce in particular to deliver information about public services to citizens Web site is an attempt by the government to reach out to people in general. The government regularly conducts auctions and sell of vehicles, machinery, and other material. These auctions are high valued and are visited by customers. Apart from information on auction and sales, these Web sites also provide access to various official records and application forms, such as for birth, marriage, and death certificates.

Government

Web

People / Customer

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G2C Applications

(Contd)

www.consumer.gov

A citizen of America is customer of the government of America; hence, G-to-C site.

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B2G Applications

Government exchange information and trade with various business houses across the world. Utilized mostly in the USA A Business-to-Government E-Commerce Web site would: Be accredited by the government List all the rules & regulation pertaining to the specific industry Provide access to applications and other documentations required by the government Provide the medium for the submission for forms and applications

Provide access to information such as amendment on laws pertaining to business Provide access to information on variable sales tax across different states

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B2G Application

(Contd)

www.business.gov
Business.gov is an official site of the U.S. Government Business.gov helps small businesses understand their legal requirements, and locate government services supporting the small business community.

Business Center

WEB

Government

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Applications of E-Commerce in Education

The business of online learning

Application in Education can be classified into:

E-learning

Online University, and

E-books

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Applications of E-Commerce in Education

(Contd)

E-learning

Use technology to assist students to understand difficult concepts Web-based training and education give the world access to continuing education from their home Many colleges and universities offer distance learning programs online Offer monitoring programs through chat sessions or other elearning programs.
www.Click2learn.com www.pern.edu.pk www.vu.edu.pk www.aiou.edu.pk

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Application of E-Commerce in Education

(Contd)

University

Online universities provide information about the various courses offered, the procedure for admission, information about the results, and access to professor and students Also offer feedback and evaluation on assignments and projects from professors www.kardan.edu.af www.upesh.edu.pk www.pu.edu.pk www.aup.edu.pk

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Application of E-Commerce in Education

(Contd)

E-books Web sites offering online books services for a fee or for free.

www.amazon.com Varsitybooks.com downloadslide.blogspot.com (Free Slide and E-Books)

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Application of E-Commerce in Finance

It refers to E-Commerce providing financial services. Contain sensitive data, such as financial records and residential addresses of their customers. It is necessary for Financial Organization to define its policy for online transaction that assure its customers that it would:

Not sell or share personal information of its customers Maintain safeguards to protect customer information

Plane to manage information with business partners

Spell out situations under which info can be disclosed Maintain accurate and update account information Insure credit card transaction
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Application of E-Commerce in Finance

(Contd)

Application of E-Commerce in Finance offer the following services:

Banking services

Insurance services

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Banking Services

Various banks offer online banking services including online banking, account access, balance enquires, money transfer, loan processing, investment, and wealth management.
www.bbt.com www.bankofamerica.com

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Banking Services

Online banking can be of two types: Internet banking

It refers to banking transactions taking places on private networks such a Automatic Teller Machine. Cyberbanking involves conducting, banking activities from home, a place of business, or on the road instead of at a physical bank location.

Electronic banking

It is conducted through a Web site

www.ing.com

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Insurance Services

Insurance service provide the means to insure various products such as electronic items, vehicles, houses, and life of individual member as well as organizations. Web site offering online insurance would require you to register and fill up a form asking for details of the product that you are getting insured. www.statelife.com.pk www.igi.com.pk

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Insurance Services

(Contd)

Life insurance

You can insure your own life or buy a family insurance You can insure your car or any other vehicle You can insure your house against a fire, an earthquake or any other natural disaster You can insure expensive household articles

Car and Auto insurance

House insurance

Consumer goods insurance

Jewelry and antiques insurance

You can insure expensive family heirlooms

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E-COMMERCE TECHNOLOGIES

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E-COMMERCE TECHNOLOGIES
Technologies for B2C Applications

Improvements for online sales New channels for customer service Collection of clickstream metrics and personal data from Web site users A Clickstream is the recording of what a computer user clicks on while Web browsing or using another software application Acceptance of Web cookies stored on users hard drive to enable customization of Web sites Web browser improvements with multimedia documents

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E-COMMERCE TECHNOLOGIES
Technologies for B2B Applications

Most important technological advance for B2B applications XML markup language Electronic data interchange (EDI)

Web forms using XML and extranet applications Now have accepted standards

Electronic Data Interchange (EDI) for e-commerce within companies EDI refers to the business communication between business partners and clients. Used by Businesses to transmit data from one business to another electronic messaging technologies:
E-mails, faxes and newsletters is a part of EDI

Proprietary applications for communicating with trading partners based on agreed-upon standards for business document transmission

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E-COMMERCE TECHNOLOGIES
Technologies for B2B Applications

EDI Benefits:

Reduced cycle times for doing business Cost savings for automated transaction handling and elimination of paper documents Improved interfirm coordination and reduced interfirm coordination costs

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E-COMMERCE TECHNOLOGIES
Security

Constraint to e-commerce: lack of security for Internet transactions Issues:

How to control access to a computer that is physically networked to the Internet

How to ensure that security of a given communication is not violated

Use of a firewall devices that sit between the Internet and an organizations internal network to block intrusions from unauthorized users and hackers

Encryption based on two decoding keys and mathematical principles, where one key codes a message and the other decodes it

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M-Commerce

Applications

M-commerce refers to e-commerce that is conducted in a wireless environment. or M-Commerce is E-Commerce over wireless communications and typically to smaller handheld devices.
Can be both B2B and B2C Have a growing importance in the future of e-commerce applications

Ufone (Ufone Menu) Payment via Credit Card, UTrack TCS, UBANK@MCB, U Book & Shaheen etc Mobilink, Jazz Karobar
E.g. E-tickets

Will introduce completely new forms of electronic commerce

The development of such applications faces some of the greatest challenges in the security area to secure the trust of consumers
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Mobile Commerce Applications

Will introduce completely new forms of electronic commerce

E.g. E-tickets

The development of such applications faces some of the greatest challenges in the security area to secure the trust of consumers

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