E Commerce MLRIT Notes
E Commerce MLRIT Notes
UNIT-1
MLR Institute of Technology
Contents
Introduction
E-Commerce Framework
E-Commerce and Media Convergence
Anatomy of E-Commerce Applications
E-Commerce Organization Applications
Introduction
E-commerce is a modern business methodology
that addresses the need of the organizations,
merchants and consumers to cut costs while
improving the quality of goods and services and
increasing the speed of service delivery.
E-commerce is well suited to facilitate the
current reengineering of business processes
occurring at man firms.
Goals of re-engineering are reduced costs, lower
product cycle times, faster customer response
and improved service quality.
Introduction contd..
Key element of e-commerce is Information
Processing.
Information processing may be between
Transactions between company and consumer
Transactions with trading partners (EDI)
Transactions for market research, managerial decision
making, supply chain management
Transactions for information distribution with
prospective customers including advertising, sales
and marketing.
Electronic Commerce Framework
Building Blocks
Common business services, for facilitating the buying and selling
process.
Messaging and Information Distribution, as means of sending
and retrieving information.
Multimedia content and network publishing, for creating a
product and a means to communicate about it.
The Information Superhighway (I-way) – for providing the
highway system along which all e-commerce must travel.
Pillars
Public Policy, to govern such issues as universal access, privacy,
and information pricing
Technical standards, to dictate the nature of information
publishing, user interfaces and transport in the interest of
compatibility across the entire network.
Technical Standards (Final Pillar not appears in framework
diagrams)
E-commerce framework contd..
E-commerce applications
Supply Chain Management
Video on-demand
Remote banking
Procurement and purchasing
On-line marketing and advertising
Home shopping
E-Commerce and Media
Convergence
Convergence, broadly defined, is the melding of
consumer electronics, television, publishing,
telecommunications, and computers for the
purpose of facilitating new forms of information-
based commerce.
Multimedia Convergence applies to the
conversion of text, voice, data, image and
graphics.
Cross-media convergence refers to the
integration of various industries – entertainment,
publication and communication media.
E-commerce and Media
Convergence contd..
Driving phenomenon of convergence
Convergence of content – books, videos, movies
Convergence of transmission – phone, cable wiring
and some switching techniques
Convergence of information access devices –
computers, televisions, fax machines, modems.
Convergence driven by market conditions
Availability of low-cost, high-performance enabling
component technologies.
Entrepreneurs who are feeding on anticipated end-
user demand for new applications.
Aggressive regulatory actions that are introducing
competition in monopoly markets.
Anatomy of E-commerce
applications
Multimedia content
Multimedia Storage Servers
Client – Server Architecture
Internal Processes of Multimedia Servers
Video Servers
Information Delivery / Transport
Telecom-based
Cable-based
Computer-network based
Wireless
Consumer Access Devices
E-commerce organization
applications
Changing Business Environment
E-commerce and Retail Industry
Marketing and E-Commerce
Inventory Management and Organizational Applications
Just-in-Time Manufacturing
Quick Response Retailing
Supply Chain Management
Supplier Management
Inventory Management
Distribution Management
Channel Management
Payment Management
Financial Management
Sales force productivity
Work Group Collaboration Applications
Thank You
Consumer Oriented
E-Commerce
Introduction
Consumer-oriented Applications
Mercantile Process Models
Mercantile Models from the Consumer’s
Perspective
Mercantile Models from the Merchant’s
Perspective
Introduction
Issues to be addressed
Establishment of standard business processes for
buying and selling products and services in electronic
markets
Development of widespread and easy-to-use
implementations of mercantile protocols for order-
taking, online payment and service delivery
Development of transport and privacy methods that
will allow parties that have no reason to trust one
another to carry on secure commercial exchanges
Consumer oriented applications
A N K Prasanna Anjaneyulu
Asst. Professor – IT Division
Contents
Introduction
Internal Information Systems
Macro forces and Internal Commerce
Work-Flow Automation and Coordination
Customization and Internal Commerce
Supply Chain Management (SCM)
Introduction
Customer-organization, inter organizational and
disconnected internal automation activities should be
integrated for fully effective e-commerce oriented
companies.
Internal commerce is methods and pertinent
technologies for supporting internal business processes
between individuals, departments and collaborating
organizations.
Private commerce is significant because it is closely
related to market orientation toward creating superior
value to customers.
Now a days companies deliver to superior value to
customers through better co-ordination and work-flow
management, product and service customization and
supply chain management.
Work-Flow Management
Product or Service Customization
Customization on two issues
Time-to-market
Flexible operations
Need to cut
Costs drives the need for
Improved technology
Mass customizations, Not Mass production
Customization of Services
Supply Chain Management
SCM is an integrating process based on the
flawless delivery of basic and customized
services.
Characteristics of E-commerce SCM
Ability to source raw material or finished goods from
anywhere in the world
A centralized, global business and management
strategy with flawless local execution
On-line, real-time distributed information processing
to the desktop, providing total supply chain
information visibility
Ability to manage information not only within a
company but across industries and enterprises
Seamless integration of all supply chain
processes and measurements, including third-
party suppliers, information systems, cost
accounting standards and measurement
systems
Development and implementation of
accounting models such as activity-based cost
that link cost to performance
Reconfiguration of supply chain organization
into high-performance teams going from the
shop floor to senior management.
Models of SCM
PUSH based
Manufacturer -> Retail Distribution center ->
Retail store -> Consumers purchase merchandise
PULL based
Consumers purchase merchandise -> Retail Store -
> Retail Distribution Center -> Manufacturer
Both models contains three primary
elements. They are
Primary Elements
Logistics and Distribution (Integrated
Logistics)
Integrated Marketing and Distribution
Agile Manufacturing
Greater product Customization
Rapid introduction of new or modified products
Introduction
Dimensions of internal e-commerce
systems
Making a Business Case for a Document
Library
Types of Digital Documents
Issues Behind Document Infrastructure
Corporate Data warehouses
Introduction
Every e-commerce system concentrates on transaction
data
Totality of the information relevant to a manager can
referred to as “Operational Picture”.
Systems which are helpful for managers to analyse
transaction data
Decision Support Systems (DSS)
Management Support Systems (MSS)
Visual Information Access and Analysis (VIAA)
Data warehouse
Structured document and Imaging databases
Executive Information Systems (EIS)
Business Intelligence Systems (BIS)
OLAP
Multi-dimensional databases (MDD)
Vendors and Industry analysts use above
systems to describe
Digital information infrastructure consisting of
documents and data
Better utilization of information in strategic
and operational decision making
Architecture for implementing decisions
through work-flow automation and business
process integration
Dimensions of Internal e-commerce
systems
Need for enabling technologies
User modeling and interaction layer
Mobile agents
Rich transaction processing
Document and data management
Architecture supporting internal commerce can be
divided into five key areas.
Modeling of users and tasks so that intelligent software can
decide what to search for and how to integrate search results
Developing an efficient technology architecture to utilize
information
Agent and work-flow architecture that acts as a broker in
searching, retrieving and analyzing the information
Navigation and retrieval methods that locate and filter
multimedia information appropriate for a particular user and task
Information infrastructure layer that represents the vast network
of information resources
Making a Business case for a
Document Library
Corporate Digital Library as core of document
management
Human Resources, R & D Engineering, Manufacturing
& Production, Accounting & Finance, Sales &
Marketing, Service & Support, Suppliers, Customers
stake-holders
Digital Document Management
Ad hoc Documents (letters, financial reports,
manuals)
Process-specific documents (invoices, purchase
orders)
Knowledge-oriented documents (technical
documentation, catalogues)
Types of Digital Documents
Document Imaging (microfiche and microfilm)
TIFF (tag image file format)
ITU-TSS (International Telecommunication Union –
telecommunications standardization sector)
Structured Documents
Structured documents apply database structuring capabilities to
individual documents and document collections to allow tools to
manipulate document content.
Document formatting and rendering suits different information
delivery vehicle or media.
Ability to create easily modifiable structures allows more dynamic
documents
Given the right structure and interface, e-documents can be easier
to search and query.
SGML (Standard generalized markup language), ODA (Office
Document Architecture), CDA (Compound Document Architecture)
and RTF (Rich Text File Format)
Hypertext documents
Hypertext is a way of making document-based information more
mobile.
Relations between documents can be represented by using
hyperlinks.
Active Documents
Active/Compound documents represents document-oriented
computing.
It provides an interface to access, storage, data formats,
location and computing mechanism of documents.
These are powerful because they combine notion of composition
of information with the distributed nature of information.
It allows users to create interfaces that are dynamically updated
from remote data and computation objects that may be stored
in document libraries.
Issues behind document
infrastructure
Document constituencies
End users
Developers
Document librarians
Document-oriented processes
Document creation
Document media conversion
Document production and distribution
Document storage and retrieval
Document-based work flows
Document modeling
Transformation
Synthesizing (value added information)
Business modeling
Corporate Data Warehouses
Organizations having characteristics
Information-based approach for decision making
Involvement in highly competitive, rapidly changing markets
with a large
Data stored in many systems and represented differently
Data stored in complex, technical, making conversion for
analysis difficult
Data warehouse functions
Allows existing transaction and legacy systems to continue in
operation
Consolidates data from the various transaction systems into a
coherent set
Allows analysis of vital information about current operations for
decision support.
Types of Data warehouses
Physical Data warehouse
Logical data warehouse
Data Library (Data Mart)
Decision Support Systems (DSS)
Building an End-to-end Data Warehouse
Back End
Preparing data for analysis
Translation, Summarizing, Packaging, Distributing and
Garbage Collection
Front end
User retrieval, Proactive delivery
Consumer Search and
Resource Discovery
A N K Prasanna Anjaneyulu
Asst. Professor – IT Division
Contents
Introduction
Search and Resource Discovery Paradigms
Information Search and Retrieval
Electronic Commerce Catalogs and
Directories
Information Filtering
Consumer-Data Interface: Emerging Tools
Introduction
Fundamental goals of e-commerce are
availability and accessibility
Availability can be done with different
publishing mechanisms
Accessibility needs search challenges
Information Search Challenges
Turnover of information is rapid
Information overload
Human-technology interface
Search and Resource Discovery
Paradigms
Information Search and Retrieval
Challenge is to develop retrieval and search strategies that helps
the native or unfocused user in domains as electronic shopping
Electronic Directories and Catalogs
Information organizing and browsing can be accomplished
through directories
Weakness of organizing is that it is typically done by “someone
else” and it is not easy to change
Information Filtering
Goal of information filtering is to select al and only that
information is relevant
Filters are two types
Local filters work on incoming data to a PC
Remote filters are often software agents that work on behalf of the
user and roam around network from one database to another
Information Search and Retrieval
Multi tasking
Multi threading
Multimedia Storage Technology
Disk Arrays
CD-ROM
High information density
Low unit cost
Read-only medium