PROJECT INCHARGE

PROF. PRASHANT KOTA

PROJECT BY
SHIVENDU CHANDWADKAR
ROLL:- 10 MMS- sem I
NISHAD PANDE
ROLL:- 40 MMS- sem I
STERLING INSTITUTE OF MANAGEMENT
E-COMMERCE

Generally, E-commerce is defined as buying

& selling products and services over the
internet, but there are many more aspects
to it.
ASPECTS OF E-COMMERCE
 Communication: From a communication perspective
electronic commerce is the delivery of information,
products, services or payments via telephone lines,
networks or by any other means.
 Business Process: From a business process perspective,
electronic commerce is the application of technology
towards the automation of business transactions &
workflows.
 Service: From a service perspective, electronic commerce
is a tool that addresses the desire of firms, consumers and
management to cut the service costs while improving the
quality of goods and increasing the speed of service
delivery.
 Online: From an online perspective, electronic commerce
provides the capability of buying & selling products, and
information on the internet and other online services.
THE E-COMMERCE MODEL
 The e-commerce model provides a framework for
business requiring a different operational model.

 E-commerce integrates data, electronic communication

& security services to facilitate business applications.

 There are three E-commerce models based on

transactions as-

1) Business to Consumer model

2) Business to Business model
3) Intra-business model
BUSINESS TO CONSUMER
MODEL
 Business has a web presence.
 Consumer can directly contact original firm rather
than dealer or middleman.
 Detailed information about product.
 Demonstrations, directions, & guidance on the use of
product.
 Rapid response to queries.
 The cost of promotion & advertising deducted from
cost & hence cheaper product.
 Examples-
I. Asian Source Media Group (ASM),
II. Prudential ICICI.
BUSINESS TO BUSINESS MODEL
 Both seller & buyer are businesses.
 Rest everything is similar as in the Business to Consumer Model.
 Example: Global Tradepoint Network
 It is a huge network of business information. This was developed
under Electronic Trade Efficiency Program, which was supported by
UN. It provides information like-
 Market information
 Credit availability
 Import-Export regulations
 Customer requirements
 Options for transportation
 Insurance facilities
 This is done by interfacing with established national databases.
The network also provides a network to facilitate electronic trading
and serves as a meeting place for buyers & sellers.
INTRA-BUSINESS MODEL
 This type of model is used within the business
organization.

 It provides the information system that facilitates

communication within the business organization,
among widely spread departments, divisions, &
regional locations.

 Example- Intranet
Reliance Infocomm uses intranet, this leads to
better communication between managers &
subordinates, training of new employees etc.
BENEFITS OF E-COMMERCE
1) Reduced cost to buyers from increased competition.
2) Reduced errors, time, & overhead costs in information
processing.
3) Reduced time to complete business transactions
particularly from delivery to payment.
4) Easier entry into market for companies of all sizes &
locations.
5) Reduced advertising costs.
6) Equal access to the market.
7) More opportunity for Niche marketing.
8) & Many More…
LEGAL ISSUES
 A contract is entered into when a buyer electronically
issues a purchase order for goods at a set price & a seller
electronically acknowledges the order.
 In legal terms, electronic order is an offer & the electronic
acknowledgement is an acceptance.
 E-commerce throws up several legal issues-
1. Taxation: Where did the sale take place?
No physical form of the place of business, Difficult to
determine the country, city, town from where sales was
concluded. Even advanced countries like USA, Japan,
France & UK have not yet been able to resolve this issue.
2. No paper-work: All the transactions happen electronically
& hence there is a possibility of the transaction being
escaped (kept out of books).
3. Fraud-detection: Danger of electronic crimes & frauds,
detection & prevention of them is an area of great concern.
FUTURE OF E-COMMERCE
In the western countries most of the trade takes place
through E-commerce.
In India E-commerce has yet to spread itself because of
high computer illiteracy among Indians.
We Indians are reluctant to change our mentality.
But now the situation is changing. Computer & internet are
attracting many.
For example concepts like CORE BANKING have already
appeared on the Indian banking scenario, wherein every
customer will be required to do banking through computers,
telephones & ATMs only. No customer will be allowed to
enter into bank.
Such advancements will lead to faster spread of E-
commerce.