IT for Decision makers

e Commerce Overview
By Yunus PM HSST
Dept.of Commerce Nochat HSS, Nochad

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E Commerce
Technology driven market

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E commerce for you

E-commerce is enabling or achieving

your business objectives by using information technology to enhance or transform your business processes.
Kami, 2000

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What it means

Any form of business transaction

in which the parties interact electronically rather than by physical exchanges or direct physical contact.
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Definitions
Commerce conducted via the Internet
-Webster

Maintaining business relationships and selling information, services, and commodities by means of computer telecommunications networks.
-Encyclopdia Britannica

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WTO on E commerce

E commerce as the production, distribution, marketing, sales or delivery of goods and services through electronic means

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Commerce and E commerce

.

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Six main instruments of E commerce - WTO

Telephone Fax TV Electronic payment, money transfer system (EFT) 5. Electronic Data Interchange (EDI) 6. Internet 3/21/2012 yunuspba@gmail.com

1. 2. 3. 4.

E commerce Past, Present and Future

video

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Driving forces of E commerce

Go through video

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E commerce and sales turn over in US

Growing sales turn over

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e commerce
Business to business (B2B)
automating supply increasing business efficiency

Business to Consumer (B2C)

Retail Sales Customer Support

Consumer to Consumer (C2C)

Online Auctions
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What is working in E commerce?

Pornography Travel / Tourism Retail - items that dont need personal touch objectivity in product quality and performance music, books, gifts, Computers, electronic items Auctions Real Estate - houses and investment properties. Customer support services
More efficient and effective processes between businesses (B 2 B)
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What is not working?

Items which require touch and trial
Luxury goods Clothes -

Groceries - it works for some people but market is restricted Note: Many OFF line factors determine success of Online service. Eg. Transport
network, customer profiles,
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Global issues in E commerce

Illegal and Harmful Content

Jurisdiction Domain Name System

Technical Standards

Authentication, Certificates, Digital Signatures

Intellectual Property (Copyright, Patents, Trademarks)

CyberCrime, Network Security, Law Enforcement ISP Liability Information Collection, Privacy and Data Protection

Taxation On-Line

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SECURITY ISSUES

SECURING E COMMERCE TRANSACTIONS

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Security Risks
Hackers and crackers

The Internet: open

$$

Your network: data! virus

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E-Commerce Problems
Unknown customer Unreliable Merchant

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E-Commerce: Challenges
Trusting others electronically
E-Commerce infrastructure

Security threats the real threats and the perceptions

Network connectivity and availability issues

Better architecture and planning

Global economy issues

Flexible solutions
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E-Commerce: Challenges
Trusting others electronically
Authentication
Handling of private information

Message integrity
Digital signatures and non-repudiation Access to timely information
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E-Commerce: Challenges Trusting Others

Trusting the medium
Am I connected to the correct web site? Is the right person using the other computer?

Did the appropriate party send the last email?

Did the last message get there in time, correctly?
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E-Commerce: Solutions Trusting Others

Public-Key Infrastructure (PKI)
Distribute key pairs to all interested entities
Certify public keys in a trusted fashion
The Certificate Authority

Secure protocols between entities Digital Signatures, trusted records and non-

repudiation
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E-Commerce: Challenges Security Threats

Authentication problems
Impersonation attacks

Privacy problems
Hacking and similar attacks

Integrity problems

Repudiation problems
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The Main Security Risks

Data being stolen
Electronic mail can be intercepted and read Customers credit card numbers may be read

Login/password and other access information stolen Operating system shutdown Filesystem corruption User login information can be captured
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Success story of E commerce in India

Success story of a goldsmith

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THANKING U ALL

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PART II
An ecommerce strategy for a Small Business

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Objectives?
Why get online?
Promote awareness of your Organization Sell a product Customer support Information and contact page Networking Everyone else has a web page

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Plan
What is your product?
Electronic, Services or physical Portable and inexpensive to deliver Tourism

Who is your market?

Overseas Fish buyers Upper income art collectors Budget travellers / Up market

Obstacles, Implementation and deadlines.

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Getting Online
Hosting Your Website
Fast Access Cost, Support, Space and Services

Choosing a Domain Name (web address) www.myname.com / .nu / .to / .tv / .fj /
Calling Card Choose name that relates to product Reflects on organization Easy to remember
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Design Issues
Often Simple Is Better E.g. National PNG, Yahoo Complexity depends on your website objectives Planning content How do you keep content fresh and relevant Who Develops your website? Professional Services Do it Yourself
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Web Site Software

Web-site Creation
Common Software Tools. Image Editing Adobe Photoshop Jasc.com Web Page Development Paintshop Microsoft Front page - $150 Dream Weaver - $150 200 Netscape Communicator-Free Note: There are a lot of cheaper software online.
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Managing your Web Site

Managing your website can take TIME! Adapting Business processes
Good Samaritan Inn example Look at employee time Customer expectations Limitations of the medium (non face to face)

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Transactions
1. Getting paid online is very difficult in the Pacific. Many banks will need a large deposit or a strong relationship to allow a SME to open a merchant / credit card processing account at a bank. Alternatives include:

Bank transfer / wire Credit Cards

Merchant account Manual / Automated processing Third party processing
paypal.com
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Delivery
Delivering an artifact after online purchase or attracting visitors to an eco tourism resort managing expectations is essential
People are used to guaranteed delivery but more importantly, communicate reality so expectations are realistic. E.g. Implement a 2 week guarantee for goods Ensure online advertisement meets expectations

Use a reliable delivery service (TNT, FedEx)

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Marketing Web site

How do people find your website?

ONLINE Strategy
Links from related and / or popular web sites Search Engines Online Advertisements Informed by other users

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Marketing Your Website

OFFLINE Strategy - Show Your URL www.MYCOMPANY.com
Stationary Advertising on conventional media Trade shows

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