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MA’AM MEHWISH KHAN
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Group no 4 Madiha Jabeen (23) Aisha Akram (01) Madiha Latif (24) Fehmida Akram (11) Naveed Qamar (44)
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E-Commerce The advent of this Internet-based electronic commerce has given businesses an unprecedented marketing opportunity. Despite the economic slowdown, this increased e-commerce activity has translated in growing online sales revenue.
E-Commerce We are in the midst of a social, business, and cultural revolution. This revolution was enabled and accelerated by technology change. At the center of this change is the Internet, and, more specifically, e-commerce.
E-Commerce “An electronic transaction is the sale or purchase of goods or services, whether between businesses, households, individuals, governments, and other public or private organizations, conducted over computer mediated networks. The goods and services are ordered over those networks, but the ultimate delivery of the goods or service may be conducted on or off-line.”
Development of e-commerce Factors need to be considered when dealing with e-commerce support/development: c) d) e)
web models the the ttyp ypee o off mer merch chan andi dise se that that is being eing offered the the inf infor orma mati tion on that that will will be made made avai availa labl blee to the user of the e-commerce system and its role in the business model
web models 1.
2.
3.
Pure-w Pure -web eb pl play ay mode modell wher where e EE-co comm mmer erce ce plays only the role of an intermediary between server and buyers. E-co Ecomm mmer erce ce port portal al comb combin ined ed with with thei theirr own delivery system, which can be considered a counterpart to the standard store-chains except that points of sale exist only on the Web. Clic Clickk-an an-m -mor orta tarr busi busine ness ss mode model, l, wher where e the e-commerce presence is developed as an extension to the physical store (-chain) presence.
type of merchandise Physical commodities (cloths, stereo equipments) –
Direct contact with the merchandiser is typically considered as part of the purchasing purch asing process
Virtual commodities (tickets for sporting events) –
No physical contact with the merchandiser is required.
Information • Direct sales related advertising • Indirect advertising • “value-added” information
Amazon.com,
Inc. is an American e-
commerce company in Seattle, Washington.
It is America's largest online retailer.
Founded Started
by Jeff bezos in 1994
as online bookstore.
• Amazon.com sells lots and lots of stuff. • DVD's. music online. video games,
software, home improvement products, and gifts. • Besides its tremendous product range, Amazon makes every possible attempt to customize the buyer experience.
Both retailers and individual sellers utilize the Amazon.com platform to sell goods. Large retailers like Nordstrom and Target use Amazon.com to sell their products in addition to selling them through their own Web sites.
The sales go through Amazon.com and end up at Nordstrom.com, or Target.com for processing and order fulfillment. Amazon essentially leases space to these retailers, who use Amazon.com as a supplemental outlet for their online sales.
E-commerce portals combined with their own delivery systems • Amazon sales channel called Amazon Advantage is a place where people can sell new books, music and movies directly from the Amazon warehouse instead of from their home or store. • Sellers ship a number of units to Amazon, and Amazon handles the entire sales transaction from start to finish.
Amazon has four software development centers worldwide. These units are constantly creating new features for Amazon.com and developing the technology to support them.
Expanded Geographical Reach and Expanded Customer Base •
E-commerce helps organizations to market their goods and services internationally, nationally and locally
Reduction of Marketing and Advertising Costs Reduction in costs of distribution Reduced administration overhead
Costs of creating the product Cost of determining product availability (inventory management). Low costs of storing information and lower telecommunication costs.
Benefits to organizations that use e-Commerce with their business partners i.e. manufacturers and service companies
It minimizes Supply Chain inefficiencies i.e.
reduces inventories reduces delivery delays enables efficient eprocurement.
Benefits to organizations that use eCommerce with…….
• Through EC organizations can build more collaborative and stronger relationships with suppliers. This includes streamlining and automating the
Benefits to organizations that use eCommerce with…….
MAIN AREAS ARE:
selling direct marketing fulfillment procurement replenishment and customer
Consumers can buy when they want from more locations. More choices and when you have more choices you can decide on a product with better features at a more competitive price. Quicker delivery
Customer can receive more information about the product, make a more informed decision. More information also leads to enhanced customer satisfaction because the customer has a better idea how to use us e the product.
• E-commerce can help to realize customer needs and help to provide new and better products or services. • One of the important drivers for an organization to adopt e-commerce is the demand from its supply chain members. • As a result of adopting e-commerce across the supply chain pipeline, organizations are able to create linkages with suppliers, service providers, and customers
• Equipped with richer information about downstream markets, e-business can improve firm’s responsiveness to market dynamics and help to expand sales channels hence enhance revenue opportunity
Government Incentives E-government can take the form of various online transactions such as company registration, taxation, and applications for a variety of employee- and business-related requirement. Government can disseminate information about e-business policies, best practice and obstacles in order to facilitate ecommerce adoption.
Organizations want to adopt e commerce: To improve coordination with Customers To cope with intense global Competition To enter new businesses or market To expand market for existing Products/service For digital convergence
Key issues Low
education level for developing countries Infrastructure bottleneck Legal and regulatory obstacles to private business and international trade
Key issues…………. Organization
inability to utilize net capabilities Lack of Security in financial transaction Lack of trust in virtual sellers
Key issues…………. Low
bandwidth connections
Limited
Internet/computer experience customer fear of personal information being used wrongly
privacy issues
Key issues…………. lack
of trust and user resistance
fear of payment information being unsecure
linguistic
challenges limitations of support services
financial cost
sourcing tech support in foreign
Key issues…………. higher
employee training required to be click and mortar people's resistance to change people not used to faceless / paperless / nonphysical
key inhibitors Organizational Resource Organizational inability to utilize Internet capabilities The lack of experience Management support to motivate staff Insufficient investments Knowledge barriers
key inhibitors…….. Business Environment Security and trust are major impediments for organizations Problems relating to security Consumers concerns
key inhibitors………… Legal Policies: Legal protection for Internet purchase Lack of specific laws governing Internet banking and internet purchases Lack of supporting law about electronic documents as legal evidence
Other Inhibitors……
Lack of
trust/confidence among supply chain members Credit card use in the
country
key inhibitors………….. Culture (resistance to change) Trust Technophobia Internet access still limited
Weaknesses of General E commerce Infrastructure The greatest weakness is, there is no interaction
between Customer database and Supply Module so current customers’ behavior is neglected in existing infrastructure’s resource allocation which is a big question mark. The whole infrastructure is based on current and
historical analysis of customers’ data so minor manipulation attack can wobble the whole infrastructure.
Weaknesses of General E commerce Infrastructure There
should be visitors’ behavior analysis {why he/she didn’t purchase? They were just surfers or just return back / drop the item i tem in registration phase configurations configurations due to security reasons?} Download
delays as it is a major problem in case of digital products due to heavy traffic. Language Improper
problem
handling of customers’ complains
Solutions Concept
of Postponement
Assuring
the database security by using
firewalls Visitors’
Behavior analysis software
Download
accelerator {Region wise division}
Language
converter Software
Email
Management system
CUSTOMER DATABASE 7. Customer data stowing 8. Current data analysis
SYSTEM-MANAGER EXCHANGE MODULE
Regional Language Converter Postponement
CLEANER AGENT
1.INPUT
SUPPLY MODULE 14. Markets scouting
5. Customer data registration
EXPERT SYSTEM
15. Business partner selection 17. Sale strategy generation
6. Data preparation
16. Supply function
PERSONAL AGENT COMODITY DATABASE
2. Customer identification
Visitors Behavior analysis
3. Support strategy selection
10. Commodity and transaction registration 11. Current data analysis
EMS
WAREHOUSE 12. Data archive(s) creation / modification
Download Accelerator for digital products
TRANSACTION MODULE 8. Transaction’s service
13. Data archive analysis 9. Transaction realization
4. OUTPUT
ANY QUESTIONS…...?????
