INFORMATION TECHNOLOGY FOR BUSINESS

MODULE 1
E-COMMERCE
Definition
E commerce is defined as the practice of buying and selling products and
services through the internet , or any transaction involving the transfer of
ownership or rights to use goods or services over a computer media network
without the use of paper
Business is conducted using computers , telephones , fax machines , barcode
readers , credit cards , ATM , or other electronic devices.
FEATURES OF ECOMMERCE
Ubiquity:ecommerce is available everywhere and at all times by using the
internet and WiFi hotspots .
Global reach: e commerce technology seamlessly stretches across traditional ,
cultural , and national boundaries and enables worldwide access to internet.
Universal standards:the technical standards of internet are shared by all
nations of the world.
Richness:an individual can see information richness on a company’s blog
related to a product that allows him to purchase that product .
Social technology:e commerce technology has tied up with social media
networking application to provide the best source of content sharing
technology.
Personilasation:technology within ecommerce allows personalization and
customization of marketing messages.
Interactivity:ecommerce technology allows two way communication between
the merchant and the consumer.
Advantages of ecommerce
To business To consumers To society
Lower overall cost Availability of Work from home
 Setup cost information
 Paper cost
 Inventory cost
 Telecommunication
cost
Target marketing Wide range of goods Availability at rural
and services areas
Faster access to Convenience of Availability of public
information shopping at home services
 Improved customer Increased choice of
service vendors and products
Creating customer
database

Difference between traditional commerce and ecommerce

Point of difference ecommerce Traditional commerce
Cost effective Cost of middlemen is The cost of middlemen
eliminated(direct should incurred
contact between
merchant and consumer.
Time Time saving Time consuming
Physical inspection of Not possible possible
goods
Introduction of new Simple to present a Requires lot of effort
product product and money
Customer interaction Online mode Offline mode
Information sharing Low reliance on Great reliance on
information shared information shared
Accessibility Simple to expand the Difficult to expand the
market market
Business relationship End to end Vertical and linear
relationship
Strategy Simple to establish and Difficult to establish and
maintain maintain
Fraud Presence of cyber scams Lower rate of fraud

COMPONENTS OF ECOMMERCE
1. Business to business B2B
It refers to the business that is conducted between companies .for
example,transaction between wholesalers and manufacturers.
advantages Disadvantages
Increased productivity Limited market
Closer business Lengthy decision
relationship
Instant purchases Inverted structure

2. Business to consumer B2C

It means selling directly to the end consumer or selling to an individual.
 Advantages Disadvantages
Access to remote locations Huge competition
Lower cost of goods and services Technology problem result in losing
customers
Access to variety of goods and Catalogue inflexibility
services
Lower transaction cost for businesses Limited market place
Access to global markets High sales cycle(lots of phone calls
and emails)

3. Consumer to consumer C2C

It is the electronically facilitated transaction between individuals often through
a third party.
for eg,online auction,Ebay,OLX etc.
Advantages Disadvantages
Always available to consumers No guarantee of payment
Low transaction cost Possibility of theft as scammers
Regular updating of website Lack of controlling quality of goods
Higher profitability

4. Consumer to business C2B

In this model individual consumers offer to sell products and services to
companies who are prepared to purchase them.
Advantages Disadvantages
Creates employment opportunities Issues related to responsiveness,
delay in delivery
New source of revenue Loss of privacy or information
Direct reach out to business

E GOVERNANCE
E governance is the application of ICT to the process of govt functioning for
good governance
It aims at improving information and service delivery , encourage citizen
participation in decision making , and making government more accountable ,
transparent, and efficient.
Stages of e governance
One way communication – (execution of laws and policies by govt)
Two way communication – (request and response)
Service and financial transaction
Inter government and intra governmental integration
Political participation through online voting,online public forum etc.

EGOVERNANCE INTERACTIONS
G2C (GOVT TO CITIZENS) - efficient delivery of public services, improving the
quality of govt services, making the govt citizen friendly.
G2B (GOVT TO BUSINESS) – it aims at lowering operational costs, to cut red
tapism ,for services such as licensing , procurement , permits , and revenue
collection.
G2G (GOVT TO GOVT) – interactions between various departments and
agencies of government, interactions between state govt and central govt.
G2E( GOVT TO EMPLOYEES) – using ICT tools to make employees efficient and
increases the satisfaction level of employees.

INFORMATION TECHNOLOGY ACT , 2000

It provides legal approval for transactions made using electronic data
interchange and other electronic communication means.
It provides legal recognition to the transaction done via electronic exchange of
data.
Objectives of the act:
 Granting legal recognition to all transactions done using electronic media
 Legal recognition given to digital signatures
 Facilitating electronic filing of documents
 Facilitating electronic storage of data
 Giving legal sanction of funds between banks and other financial
institution.

COMPANIES ACT , 2013

This Act governs company.
Company law is the law pertaining to the many concerns of the firms right from
registration of the winding up of the company.
Objectives of the Act:
 To promote good corporate governance standards
 Encourage entrepreneurial efficiency
 Establishing an institutional structure
  To take tougher measures against fraud
 Initiating practices to safeguard the interests of stakeholders of company
GST 2017
GST is a tax on goods and services with a comprehensive and continuous
clearing chain down to the dealer level.
Features:
 Supply as the base: applicable on supply of goods and services
 Destination based tax: it follows destination based consumption
taxation.
 Dual GST: CGST AND SGST
 Interstate supply: integrated GST is levied on inter sate supply of goods
and services.
 Central taxes subsumed : central excise duty ,additional duties of excise ,
additional duties of customs etc.
 State tax subsumed: state VAT, central sales tax , purchase tax , luxury tax
, entry tax , entertainment tax etc.
FOREIGN EXCHANGE MANAGEMENT ACT 1999
The main objective of FEMA was to help facilitate external trade and
payments in india.
It defines the procedures , formalities, dealings of all foreign exchange
transactions in india.
FEATURES:
 Gives power to the central govt to regulate the flow of payments
outside the country.
 All financial transactions concerning foreign securities carried out
with the approval of FEMA
 Empowers RBI to place restrictions on transactions from capital
account
 Govt of india can restrict an authorized individual from carrying out
foreign exchange deals
CONSUMER PROTECTION ACT
This ACT safeguards and encourages consumers to speak against insufficiency
and flaws in goods and services.
This protection act covers all goods and services of all public , private , or
cooperative sectors except those exempted by central government.
Consumer rights :
 Right to safety
  Right to choose
 Right to be informed
 Right to consumer education
 Right to be heard
 Right to seek compensation
E PAYMENT SYSTEM
E payment is a subset of e commerce which include electronic payment for
buying and selling of goods and services presented through the internet.
It includes all financial transactions using electronic devices such as
computers , tablets , smartphones etc.
It can also be made using debit and credit cards.
Benefits Disadvantages
Reaching at more clients Lack of anonymity
Effective and efficient transactions Need for internet access
Convenience Restrictions on amount of
Lower transaction cost transactions
Effective security and anti fraud tools

TYPES OF EPAYMENT SYSTEM

1. UPI (UNIFIED PAYMENT INTERFACE)
UPI is a payment system that culminates numerous bank accounts into a single
application, allowing the transfer of money easily between any two parties.
2. IMPS (IMMEDIATE PAYMENT SERVICE)
It is a money transfer mechanism made available by the financial institution of
the country , the RBI and the national payments corporation of india (NPCI)
It is mode of money transfer from one bank account to another.
3. E WALLET/DIGITAL WALLET
A digital wallet refers to software , an electronic device or an online service
that allows people or corporations to make transactions electronically.
Some of the popular wallets are pay TM , mobikwik, phone pay
4. AADHAR ENABLED PAYMENT SYSTEM
It is a sort of payment system that is based on the unique identification
numbers and permits aadhar card holders to seamlessly make financial
transactions through aadhar based authentication.
5. QR CODE PAYMENT
QR stands for quick response and is a sort of barcode that can be scanned using
an app and the smartphone’s camera
to make a payment simply scan the QR code with the wallet app.
 6. RTGS (REAL TIME GROSS SETTLEMENT)
RTFS is one of the fastest method of transferring interbank funds via online
banking in india.
Transfer of funds take place between two accounts in 30 minutes.
7. NET BANKING
It is also called web banking , is an advanced technique to direct a scope of
monetary exchanges by means of internet.
8. PLASTIC MONEY
Plastic money is a thin plastic card that is used instead of the actual banknotes.
The card involves identification information such as signatures and pictures and
cardholders can request purchases and services from the cardholder’s account.