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IT for Decision makers
eCommerce Overview
By
Yunus PM
HSSTDept.of Commerce
Nochat HSS, Nochad
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E Commerce
Technology driven market
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E commerce for you
E-commerce is enabling or achievingyour business objectives by using
information technology to enhance or
transform your business processes.Kami, 2000
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What it means
Any form of business transactionin which the parties interact
electronically rather than by physicalexchanges or direct physical contact.
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Definitions
Commerce conducted via the Internet-Webster
Maintaining business relationships andselling information, services, andcommodities by means of computertelecommunications networks.
-Encyclopdia Britannica
http://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-networkhttp://www.britannica.com/EBchecked/topic/585829/telecommunications-network8/2/2019 Ecommerce Overview Blocked
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WTO on E commerce
E commerce as the production,distribution, marketing, sales or deliveryof goods and services through electronic
means
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Commerce and E commerce
.
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Six main instruments of
E commerce - WTO
1. Telephone
2. Fax
3. TV
4. Electronic payment, money transfersystem (EFT)
5. Electronic Data Interchange (EDI)
6. Internet
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E commerce Past, Present
and Future
video
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Driving forces of E commerce
Go through video
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E commerce and sales turn
over in US
Growing sales turn over
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ecommerce
Business to business (B2B)
automating supply
increasing business efficiency
Business to Consumer (B2C)
Retail Sales
Customer Support
Consumer to Consumer (C2C)
Online Auctions
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What is working in E commerce?
Pornography
Travel / Tourism
Retail - items that dont need personal touch -objectivity in product quality and performancemusic, books, gifts, Computers, electronic items
Auctions
Real Estate - houses and investment properties.
Customer support services
More efficient and effective processes betweenbusinesses (B 2 B)
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What is not working?
Items which require touch and trial
Luxury goods
Clothes -
Groceries - it works for some people butmarket is restricted
Note: Many OFF line factors determinesuccess of Online service. Eg. Transportnetwork, customer profiles,
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InformationCollection, Privacy
and Data Protection
Domain NameSystem
Authentication,
Certificates, DigitalSignatures
Intellectual Property
(Copyright, Patents,Trademarks)
CyberCrime,
Network Security,Law Enforcement
Illegal and HarmfulContent
Taxation On-Line
Jurisdiction
Technical Standards
ISP Liability
Global issues in E commerce
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SECURITY ISSUES
SECURING E COMMERCE TRANSACTIONS
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Security Risks
$$The Internet:
open
Your network: data!virus
Hackers and crackers
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E-Commerce Problems
UnreliableMerchant
Unknowncustomer
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E-Commerce: Challenges
Trusting others electronically
E-Commerce infrastructure
Security threats the real threats and theperceptions
Network connectivity and availability issues
Better architecture and planning
Global economy issues
Flexible solutions
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E-Commerce: Challenges
Trusting others electronically
Authentication
Handling of private information
Message integrity
Digital signatures and non-repudiation
Access to timely information
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E-Commerce: Challenges
Trusting Others
Trusting the medium
Am I connected to the correct web site?
Is the right person using the othercomputer?
Did the appropriate party send the last
email?Did the last message get there in time,
correctly?
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E-Commerce: Solutions
Trusting Others
Public-Key Infrastructure (PKI)
Distribute key pairs to all interested entities
Certify public keys in a trusted fashion
The Certificate Authority
Secure protocols between entitiesDigital Signatures, trusted records and non-
repudiation
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E-Commerce: Challenges
Security Threats
Authentication problems
Impersonation attacks
Privacy problems
Hacking and similar attacks
Integrity problems
Repudiation problems
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The Main Security Risks
Data being stolen
Electronic mail can be intercepted and read
Customers credit card numbers may be read
Login/password and other access information
stolen
Operating system shutdown
Filesystem corruption
User login information can be captured
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Success story of E commerce
in India
Success story of a goldsmith
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THANKING U ALL
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PART II
An ecommerce strategy for a Small
Business
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Objectives?
Why get online?
Promote awareness of your Organization
Sell a productCustomer support
Information and contact page
NetworkingEveryone else has a web page
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Plan
What is your product?Electronic, Services or physical
Portable and inexpensive to deliver
Tourism
Who is your market?Overseas Fish buyers
Upper income art collectors
Budget travellers / Up market
Obstacles, Implementation and deadlines.
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Getting Online
Hosting Your WebsiteFast Access
Cost, Support, Space and Services
Choosing a Domain Name (web address)
www.myname.com / .nu / .to / .tv / .fj /Calling Card
Choose name that relates to productReflects on organization
Easy to remember
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Design Issues
Often Simple Is Better
E.g. National PNG, Yahoo
Complexity depends on your websiteobjectives
Planning content
How do you keep content fresh and relevant
Who Develops your website?Professional Services
Do it Yourself
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Web Site Software
Web-site CreationCommon Software Tools.
Image Editing
Adobe PhotoshopJasc.com
Web Page Development
Paintshop Microsoft Front page - $150
Dream Weaver - $150 200Netscape Communicator-Free
Note: There are a lot of cheaper software online.
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Managing your Web Site
Managing your website can take TIME!
Adapting Business processes
Good Samaritan Inn exampleLook at employee time
Customer expectations
Limitations of the medium (non face to face)
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Transactions
1. Getting paid online is very difficult in the Pacific. Manybanks will need a large deposit or a strong relationshipto allow a SME to open a merchant / credit cardprocessing account at a bank.
Alternatives include:
Bank transfer / wire
Credit Cards
Merchant account Manual / Automated processing
Third party processing paypal.com
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Delivery
Delivering an artifact after online purchase orattracting visitors to an eco tourism resort -managing expectations is essential
People are used to guaranteed delivery but more importantly,communicate reality so expectations are realistic.
E.g. Implement a 2 week guarantee for goods
Ensure online advertisement meets expectations
Use a reliable delivery service (TNT, FedEx)
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Marketing Web site
How do people find your website?
ONLINE Strategy
Links from related and / or popular websites
Search Engines
Online AdvertisementsInformed by other users
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Marketing Your Website
OFFLINE Strategy - Show Your URL
www.MYCOMPANY.com
StationaryAdvertising on conventional media
Trade shows