HSC IT - E-Commerce Part 2
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This document discusses different types of e-commerce including electronic markets, electronic data interchange, and internet commerce. It describes electronic markets as virtual marketplaces that allow buyers and sellers to exchange product and price information. Examples of industries that use electronic markets include airlines, financial services, and commodities. The document also outlines the advantages and disadvantages of electronic markets for both customers and suppliers. It then discusses electronic data interchange, explaining it as the electronic transfer of structured data between computer systems using agreed upon standards to enable efficient transactions between organizations.
HSC IT - E-Commerce Part 2
- 1. PART 2
- 2. SCOPE OF E-COMMERCE E-Commerce uses three technologies: Electronic Markets Electronic Data Interchange (EDI) Internet Commerce:
- 3. ELECTRONIC MARKET An electronic market is an information system (virtual market) that provides facilities for buyers and sellers to exchange information about price and product offerings. Electronic market also tends to be available only to the intermediaries. Electronic Market brings together product, price and service information from many suppliers Electronic Market can thus act as database or catalogue. Electronic market is the virtual representation of physical market. 3
- 5. ELECTRONIC MARKET Electronic markets are used for passenger ticket reservations, an airline booking system and in various financial and commodity markets. These markets give the customer (or the customer's intermediary) easy access to comparative data on price, and other attributes, of the goods or services on offer. Access to this information is advantageous for the consumer but making the information available is not necessarily beneficial to the supplier.
- 6. USAGE OF ELECTRONIC MARKETS Application has been limited to specific sectors Airline Booking Systems Financial and Commodity Markets Study of Share and stock market
- 7. Financial and Commodity Markets Airline Reservation Systems
- 8. ADVANTAGES OF ELECTRONIC MARKET Customer Advantage: Easy access to comparative price/service information. These markets give the customer (or the customer's intermediary) easy access to comparative data on price, and other attributes, of the goods or services on offer. Supplier: For supplier it facilitates easy access to market Lower Search cost: An effective E.-Market increases the efficiency of market. it reduces the search cost for buyers. Assistance to buyers: E-Market is most effective in assisting the buyers
- 9. ADVANTAGES OF ELECTRONIC MARKET Awareness of market: The use of information and communication technologies to provide geographically dispersed traders with the information necessary for the fair operation of the market. Best negotiations: Easy access to information on a range of competing product offerings reduces the search cost of finding the supplier that best meets the purchase requirement.
- 10. DISADVANTAGES OF ELECTRONIC MARKET It becomes difficult for sellers to maintain high price levels, because due to the introduction of an electronic market search cost is reduced for the buyer. And also second disadvantage for seller is buyer can make easy price comparison
- 11. TRADE CYCLE A trade cycle is the series of exchanges, between a customer and supplier that takes place when a commercial exchange is executed.
- 12. TRADE CYCLE Trade cycle has to support: Finding goods or services appropriate to the requirement and agreeing the terms of trade. Placing the order, taking delivery and making payment. After sales activities.
- 13. PHASES OF TRADE CYCLE A general trade cycle consists of following phases: Pre-sales – Finding a supplier and agreeing the terms. It is search and negotiate phase Execution – Selecting goods and taking delivery. It is Order and Delivery phase Settlement – Invoice and payment After-Sales – Following up complaints or providing maintenance. It is a service and warranty phase.
- 14. TRADE CYCLE A general trade cycle consists of following phases: Pre-sales – Finding a supplier and agreeing the terms. It is search and negotiate phase Execution – Selecting goods and taking delivery. It is Order and Delivery phase Settlement – Invoice and payment After-Sales – Following up complaints or providing maintenance. It is a service and warranty phase.
- 16. GENERIC TRADE CYCLE Three generic trade cycles can be identified as: Repeat – Regular repeat transactions between commercial trading partners. Credit – Irregular transactions between commercial trading partners where execution and settlement are separated Cash – Irregular transactions in once-off trading relationships where execution and settlement are combined
- 17. GENERIC TRADE CYCLE Three generic trade cycles can be identified as: Repeat – Regular repeat transactions between commercial trading partners. Credit – Irregular transactions between commercial trading partners where execution and settlement are separated Cash – Irregular transactions in once-off trading relationships where execution and settlement are combined
- 18. ELECTRONIC DATA INTERCHANGE (EDI) EDI is the transfer of structured data, by agreed message standards, from one computer system to another by electronic means. EDI provides for the efficient transaction of recurrent trade exchanges between commercial organizations.
- 19. ELECTRONIC DATA INTERCHANGE (EDI) EDI provides a standardized system for coding trade transactions so that they can be communicated directly from one computer system to another. EDI removes the need for printed orders and invoices and avoids the delays and errors implicit in paper handling. EDI is used by organizations that make a large number of regular transactions. Examples are the large supermarket chains and the vehicle assemblers which use EDI for transactions with their suppliers
- 20. ELECTRONIC DATA INTERCHANGE (EDI) EDI has four elements Structured data Agreed message standards From one computer system to another By electronic means
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