Other related areas:
EDI: Electronic data interchange
SET: Secure electronic transactions
Companies discovered that EC is where the business is, but getting there require careful planning differentiating a web site from competitors, attracting customers by offering added service and managing the systems and of all E-Business called for special skills.
Portal: It offers user powerful web access tools as well as integrated package of contents and services as e-mail, calendars, shopping and more all in one place.
E-Tailor: On-line retail stores often called e-tailor. Customers can log on to internet and check the inventory of the vendor to place an order.
Content provider: They distribute information contents such as digital news, photos, video etc over the web.
Transaction broker: Sites that process transactions for consumers normally by phone or mail are transaction brokers. Ex: Financial services, bank services, job placement services etc.
Various electronic payment systems:
I. Digital cash: Digital cash was one of the first forms of alternative payment systems developed for e-commerce. The name digital cash is infact something of a misnames. Recall our original definition of cash; legal trader created by national authorities i.e. instantly convertible to other forms of value without the intermediation of any third party. Instead of this digital cash is taking some interesting form of value storage and value exchange that have limited convertibility into the other forms of value and that too require intermediaries to convert.
Process of using digital cash:
- Customer has to establish an account at a bank that was using the digital cash system.
- Then customers should download digital wallet software on to his or her computer hardware and request a transfer of digital cash.
- Once digital wallet had cash, the consumer could spend that cash at merchants who are willing to accept it.
- The software would deduct the cash at digital wallet and transfer the cash back to the bank to confirm that it has not been spent again, or double spent.
- The bank would then control the cancel the coins and credit the merchant accounts at the bank.
II. Credit cards: It is a small plastic card which has the name and account number of the holder embossed on it. Generally a bank enters into an agreement with its customer and issues the customer a credit card. A card holder is also given the list of shops and establishment in cash city where the cards will be accepted in line of cash, there was a limit for the usage of customer against cash.
The most common way of paying for electronic commerce transactions is with a credit card. The customer types the card number, expiry date and tilling address on the order form and the vendor can verify the details and be confident of payment credit card used in a conventional retail application are recorded on the transaction slip and verified by the use of a signature. In addition to this banks also allow customers CNP transaction (Customer Not Present).
Processing a credit card invoice involves some expenses and they are also charges levied on the vendor by the banks. So through credit card small amount of transactions do not make any sense. If a credit card is being provided by a bank, also allows withdrawals of cash and charges service fee ranging from 24% to 36% per annum.
III. Debit cards: Debit cards or cash cards can be used for e-commerce transactions in much the same way as a credit card. Very few sites offer the facility to use the debit cards, and it is also not appropriate for very small transaction and does not effort anonymity.
IV. Stored value cards: This is the most common forms of electronic payments, the most wide spread of this technology is making it as a popular payment system in EC.
Ex: Telephone cards, exchange coupons etc.
On a more general scale, there has been a number of scheme s to promote the stored value cards as a replacement for cash.
V. E-Cash: The online equivalent of a stored value card is e-cash or network money. The system operates by the user transferring money from a credit card or through account into e-cash account. E-cash can then be used to make payment for EC transactions. The advantage of this system is that it can be operated cheaply as the whole operation of the system is on the net.
VI. Delayed payments: The final option is to pay off-line. A number of sites seeking to re-assure customers, who are uncertain about the security of on-line payments, will accept credit card details by phone or fax or cheques through post. It causes extra work for the e-vendor and delay for the customer.
VII. E-Shops: E-Shops come in all shapes and sizes. They range from, at the simplest end of the spectrum, a few simple web pages to highly complex sites offering a range of products and services including on-line ordering and payment. The full services is store needs an extensive range of facilities such as follows:
ü Company information.
ü Customer registration.
ü Product data bases.
ü Site indexes.
ü Online order and payment systems.
ü Sophisticated security production after sale service
ü Feedback system.
Online Information:
* is an issue on the internet and it is not likely to go away. One element of such issues is knowing that an EC site is a bonafide trader and not just a scam. Further elements are:
1. A site that gives a professional image.
2. Inclusion of company information on web-site. Company information lets the optional on-line shopper know what sort of outfit the e-shop is.
Customer registration:
E-commerce customers have to give the suppliers details about themselves, if goods are to be delivered.
Site navigation:
Large complex websites can be slow to download and difficult to navigate. Good site design and initiative sites navigation is vital. Site navigation is aided by.
ü Site index
ü Site search engine
ü Logical sequencing of facilities with clear links to the next stage in any process.
An e-commerce site must aim to appeal to the experienced user and to readily accessible to the *.
Product data base:
E-commerce sites sell a variety of products and the layout of products and the layout and technical design can be similarly varied. At its simplest an EC catalogue can be hard coded in HTML. The web site contains a series of product descriptions, prices and possibly a picture of product.
Many e-commerce applications require a more sophisticated provision in the fixed format HTML page. The need for something difficult arises when there is a rapid change to product details, there is a perceived to be a need to use common data source for the e-store in the back-office function and for services that are specifies in response to customer demands.
Online orders:
The most commonly used analog in a website is a shopping basket, which makes the customers to hours round the shop, select goods and put them in basket. Once customer satisfies with the value of goods, the customer proceeds to the check out.
E-Commerce Implementation:
Once the strategy devised then needs to be implemented. The strategy devised implementation into two aspects namely technical implementation and business implementation.
I. Technical implementation:The approach to technical implementation of an e-commerce system depends upon the business objectives, business requirements and technology to be selected. It is noted that many technology to be selected. Ii is noted that many e-commerce systems are patched roughly together rather than designed and that is often apparent. It is important that the process of designing should consider the following:
a) The ease of use of the system by the intended end user; it is an important factor in system design that the end users or consumers are the members of the public with limited computer literacy, and the option to switch to another website is always there if it is not satisfied.
b) The back office systems-customers of online service quite reasonably expect a rapid response, so that the back offices systems need to be able t meet this requirement.
The design of an e-commerce system would be sensible be based on a proto typing life cycle, as the design of the user interface is crucial to the overall success of project.
II. Business implementation:Business implementation as well as building its e-shop, the organization needs to have the following.
ü Put in the business infrastructure to support the new EC facility.
ü Market the new EC facility to the intended users.
Initial implementation may have limited functionality and to limited audiences. Full implementation of EC can have a considerable effect on the shape of the business and the way it does the business.
Electronic data interchange (EDI):
The development of business through use of computer systems has essentially taken place over the last 30yrs. Initially the use of computers was limited, but with the development of technology allowed every small and medium sized entrepreneur to use their business on computers.
The marriage of computers and telecommunication has enabled organizations to network their computers. Right now offices which are using computers depend on LAN or WAN based on their area of operations or geographical area in which they are operating. Many organizations use these networks to integrate there business processes with common customer files, interfaces to the accounting system and the like. It can be simply done by interfacing transactions but it can also involve the set-up of corporate data base for network client systems or servers. The integration of systems has been a factor in improving customer service and customer care, it has also given birth to new products and services, particularly in the new financial industry.
However, this integration of computer systems stopped at the company’s front and back doors. Inside the company the order processing system formulated the replenishment demand, updated the stock file and make a posting to the accounting system and the print the order of paper, then post the order of the supplier with the inventible quota of delays, transcription errors and offer stained documents.
The answer to these difficulties and insufficiencies is the Inter Organization Systems (IOS). The prime technology of IOS is EDI, development of these systems has changed the inter organization business practices in much the same way as the evolution of IT & IS (information science). These developments of business information system can be represented in three categories or three generations.
Development of internet enabled system is the next age in the evolution. The overall impact and implication of the development of the internet on corporate systems is still to be evaluated.
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