Lecture 3

Application of EC:
Home Banking, Shipping in online store and mall buying stocks. Finding a Job, Online auctions and collaborating electronically on research Project.

ORGANIZATIONAL INFRASTRUCTURE (For Execution & Support)

Common business services infrastructure (Security smart card) Authentication Electronic Payment, directories catalogs. Messaging and information distribution Infrastructure (EDI,E-mail, HTTP) Multimedia content and network publishing infrastructure (HTML,JAVA,WWW,VRML) Network Infrastructure (Telecom. Cable TV, Wireless, Internet) (WAN, LAN, Internet, Extranet) Interfacing Infrastructure (Databases, Customer and Applications)

PILLARS FOR IMPLEMENTATIONS: People (Buyers, Sellers, Intermediaries, service, is people and management) Public Policy (Taxes, Legal & Privacy Issues) Technical Standards ( For Documents Security and Network Protocol Payments) Organizations (Partners, Competitors, Associations, Government Services)

Classifications of EC Applications:Electronic Market: What is Market?

A market is a network of Infrastructure & relationships where information, projects, services, and payments are exchanged. In Electronic Market everything is electronic i.e Market Place, Business Center.

INTERORGANIZATIONAL INFORMATION SYSTEM:An IOS involves information flow among two or more Organizations. An IOS is unifies system encompassing several business partners. A typical IOS will include a Company and its suppliers and for customers.

TYPES OF IOS: EDI provides secured B2B Connection over value added networks. Extranets which provides secured B2B connection over the internet. Electronic Fund Transfer. Electronic Forms. Integrated Messaging Delivery of e-mail and Fax documents through a single electronic transmission system that can combine, EDI, E-mail, Electronic, Forms. Shared Database

Supply chain Management:Cooperation between the company & its suppliers and for customers regarding demand forecasting, Inventory, Management and Order fulfillment.

Difference between E.M & IOS:IOS

1. Relationship determined in Advance.

E.M
1. Two types of relationship exist Real Time Pre Decided 2. Typically built around publically access able network. 3. Determine which network medium they will use. 4. No joint guidelines are drawn in advance.

2. IOS may be built around private Networks. 3. Advance arrangements are made for communication Network. 4. Joint guidelines and expectations of each party formulated.

Classification of EC Field by the Nature of the Transaction:

B2B: Most of today EC is B2B.it can include IOS and EM. B2C: These are retaining transactions with individual shoppers.e.g, shopping at
Amzon.com.

C2C: In this category consumer sell directly to consumers. Examples are individual
selling in classified ads. www.classfied2000.com is selling residential properties, Cars etc.

C2B: This category includes individuals who sell Product & Services directly to
organizations.

No Business EC: An increased number of business institutions such as Academic

institution not for profit organizations. Religious organizations, social organizations and government agencies are using various type of EC.

Intrabusiness (Organization) EC: All internal organizational activities i.e.

online training for employees. Selling products to employees.

Benefits to Organization:1. Reduction in cost of creating, processing, destruction storing and retrieving paper based information. The US Federal Government, the cost of issuing a paper check is 43Cent; the cost of electronic payment is 2cent. 2. Ability of creating highly specialized business. 3. Lower telecommunication cost i.e. internet is cheaper. 4. Reduction of time between outlay of capital & Receipt of Product & Services. 5. Expands the size of the market from regional to national or national to international 6. Contract the market. 7. Reach a narrow market. 8. Target market segmentation allows you to focus on a more select group of customers and therefore have a competitive advantage in satisfying them. 9. Decreasing costs
o costs of creating the product o marketing o of promotional material o costs of distribution o eg. Netscape allowing you to download instead of waiting to get the CD by mail

o costs of processing (orders from the customers) o o o o repeat activities and information processing of handling customer phone calls of handling sales inquiries determine product availability (inventory management)

10.

o costs of storing information o lowers telecommunication costs

Provide price quotes - with a web site, you can have the prices listed, and change them - you simply edit the web page - in a printed catalogue you are stuck with the expense of printing a new version if you need to change many of the prices

Benefits to Consumer: 24 hours shopping Facility. Provide more choices to consumer. Frequently provide less expansive product & services by allowing them to shop in many places & to conduct quick comparison. In case of digital product it provides quick delivery. Provision of information in seconds. Facilities competition that results in substantial discounts. Facilities to exchange idea & experience with consumers and online communities.