01. E-Commerce.

E-Business: E-Business is the use of the internet and IT to execute of all the business processes for the firm. E-Business includes E-Commerce, all internal processes and coordination with business partners such as customers and suppliers.

E-Commerce: E-Commerce means buying and selling of goods, services and information across the internet. So ECommerce is the online process of developing, marketing, buying, selling, delivering, servicing and paying for goods, services and information. E-Commerce is the paperless exchange of business information using electronic data interchange (EDI), e-mail, e-bulletin boards and electronic fund transfer. It refers to internet shopping, online storing and bond transaction. The downloading and selling of (soft merchandise) such as software, documents, graphics and music. 02. E-commerce from the different perspective. Electronic commerce is the delivery of the information, products/services or payments over the telephone line, computer network or any other electronic means. Communication: The delivery of goods, services, information or payments electronically. Commercial: The ability to buy and sell products, services, and information electronically. Business process: Completing business process that is replacing physical process with information. Services: Tool for improving the quality of customer service and increasing the speed of service delivery while cutting cost. Learning: Enable online training and education. Community: Community provides a meeting place for members to learn and collaborate. 03. Categories of e-commerce. Category 01. B2C (Business to Customer). 02. B2B (Business to Business). 03. Business process that support buying and selling activities. Description Businesses sell products or services to individual customers. Businesses sell products or services to other businesses. Business and other organizations maintain and use information to identify and evaluate customers, suppliers, and employees. Increasingly, businesses share this information in carefully managed ways with their customers, suppliers, and employees, and business partners. Participant in an online market place can buy and sell goods and products to each other. Because one party is selling and thus acting as a business. Businesses sell products or services to Government and Government agencies. Example Wallmart.com sells merchandise to customers through its website. Grainger.com sells industrial supplies to large or small businesses through its website. Dell computer uses secure internet connections to share current sales and sales forecast information with suppliers. The suppliers can use this information to plan their own production and deliver component parts to Dell in the right quantities at the right time. Eday.com, clickbd.com. Consumers and businesses trade with each other in the online marketplace. Cal-buy portal allows businesses to sell online to the state of California.

04. C2C (Customer to Customer).

05. B2G (Business to Government)

04. Seven unique features of e-commerce technology. 1. Available everywhere, all the time. 2. Offers global reach (across the culture/national boundaries).

3. Operates according to universal standards. 4. Provides information richness (more powerful selling environment). 5. Interactivity (can simulate face to face experience, but on a global scale). 6. Increase information density (amount and quality of information available to all market participants). 7. Permits personalization/customization. 05. Components of e-commerce. 1. People: Seller, buyers, information system specialists, and employees and other participants. 2. Public Policy: Legal and others policy and regulating issues, such as privacy protection and taxation. 3. Marketing and Advertising: Like any other business, e-commerce usually required support of marketing and advertising. 4. Support Service: Many services are needed to support electronic commerce. They range from payments to order delivery and content creation. 5. Business Partnership: Joint venture, e-market place, and partnerships are some of frequently occurring relationship in e-business. 06. Business model. Business model: A set of planned activities designed to get result in a profit in a market place. Business plan: Business plan is a document that describes a firms business model. E-commerce of Business model: A business model that aims to use and leverage the unique quality of the internet and World Wide Web. 07. Key ingredients of business model. 1. Value proposition: Value proposition defines how a companys product or service fulfills the needs of customers. Question Why will customers choose to do business with your company instead of another company? 2. Revenue model: Revenue model describes how the firm will earn revenue, produce a profit, and produce a superior return on invested capital. E-commerce revenue model includes: (a) Advertising revenue model. (b) Subscription revenue model. (c) Transaction fee revenue model. (d) Sales revenue model. (e) Affiliate revenue model. 3. Market opportunity: Market opportunity refers to the companys intended market space and the overall potential, financial opportunities available to the firm in that market space. Market space is the area of actual or potential commercial value in which a company intends to operate. 4. Competitive environment: Competitive environment refers to the others companies operating in the same market place selling similar products. > Influenced by how many competitors are active. > How large are their operation. > How they price their product. > How profitable these firms are. 5. Competitive advantage: Achieved by a firm when it can produce a superior product and/or bring the product to market at a lower price than most or all of its competitors. 6. Market strategy: The plan you put together that details exactly how you intend to enter a new market and attract new customers. 7. Organizational development: Organizational development describes how company will organize the work that needs to be accomplished. Work is typically divided into functional departments. 8. Management team: Employees of the responsible for making business model work. Strong management team gives instant credibility to outside investors.

08. Revenue model. 2. Revenue model: Revenue model describes how the firm will earn revenue, produce a profit, and produce a superior return on invested capital.

Revenue model includes: (a) Advertising revenue model: A company provides a forum for advertisements and receives fees from advertiser. E.g. www.yahoo.com (b) Subscription revenue model: A company offers it users content or service and charge a subscription fee for access to run or all of its offering. E.g. Wall street journal. (c) Transaction fee revenue model: A company receives a fee for enabling or executing a transaction. E.g. eday.com (d) Sales revenue model: A company derives revenue by selling goods, information, or services. E.g. amazon.com, (e) Affiliate revenue model: A company steers business to an affiliate and receives a referral fee or percentage of the revenue from any resulting sales. E.g. mypoints.com 09. Advantages and disadvantages of e-commerce. Advantages of e-commerce. 1. Being able to conduct business 24 X 7 X 365. 2. Access the global market place. 3. Speed. 4. Opportunity to reduce cost. 5. Allowing customers self service and customers outsourcing. Disadvantages of e-commerce. 1. Perishable goods are not perfect of e-commerce. 2. Returning goods. 3. Define services. 4. Size and number of transaction. 10. The scope of the e-commerce technology. The three e-commerce technology areas are: 1. Electronic markets 2. Electronic data interchange (EDI) 3. Internet commerce 1. Electronic markets: Electronic market is an inter organizational information sys tem that allows participating buyers and sellers to exchange information about price and product offerings. E.g. airline ticket booking. The Electronic markets trade cycle

2. Electronic data interchange (EDI): The transfer of structured data by agreed message standard from one computer system to another by electronic means. EDI removes the printed orders and invoices and avoid the delay and errors implicit in paper handling. E.g. the large super market chains and vehicle assemblers which are EDI for transaction with their suppliers. Electronic data interchange trade cycle

3. Internet commerce: The internet commerce be used for all or part of the trade cycle, > Search > Purchase > After sale. This type of e-commerce is typified by the commercial use of the internet. The internet can, for example, be used for the purchase of books that are thus delivery by prost. Internet commerce trade cycle