B.

TECH IV Year I Semester CSE

2023 – 2024
E-COMMERCE (A6682)
(Open Elective) - VCE-R20
UNIT-1
Introduction to E-Business and E-
Commerce
A. Sowmya
Asst
Professor, Dept. of CSE
VAR
DHAMAN COLLEGE OF
ENGINEERING
(AUTO
NOMOUS)
Shams
habad – 501218, Hyderabad, AP
 Course Overview
❖ The tremendous growth of the Internet and World Wide Web is having
great impact on businesses, governments and individuals throughout
the world.
❖ In this course, we will attempt to understand the phenomena,
technological, economic and social, behind these rapid changes, and
how organizations successfully conduct Internet-based activities.
❖ We will also study some of the technology of the Internet.
❖ This course provides an overview of e-commerce from both
technological and managerial perspectives.
❖ It introduces e-commerce frameworks, and technological foundations;
and examines basic concepts such as strategic formulation for e-
commerce enterprises, management of their capital structures and
public policy.
❖ It is particularly important that the student place a great deal of
emphasis in understanding the different E-Commerce system design
principles.

2
 Course Outcomes (Cos)
After the completion of the course, the student will be able to: POs PSOs

A6682.1 Elaborate the components and roles of the E- 1 -

Commerce environment..

A6682.2 Estimate how to sell products and services on the 5 -

web as well as to meet
the needs of website visitors..
Analyze the impact of E-commerce on business 3 -
A6682.3 models and strategy.

A6682.4 Create a portfolio of the steps required to start-up 3 -

an on-line business
A6682.5 Interpret legal and ethical issues related to E-
Commerce and web marketing
approaches.
Bloom’s Taxonomy Level
CO# Remember Understand Apply Analyze Evaluate Creat
(L1) (L2) (L3) (L4) (L5) e
(L6)
A6682.1
 SYLLABUS
UNIT-1: INTRODUCTION TO E-BUSINESS AND E-COMMERCE:
What is the difference between e_x005F_x0002_commerce and e-business, Anatomy
of E-Commerce applications, E-Business risks and barriers to business adoption,
Management responses to E-Commerce and E-Business,
Electronic Commerce-Frame work.

UNIT-2: E-COMMERCE FUNDAMENTALS: Location of trading in the

marketplace, Business models for e-commerce, Focus on auction
business models, Focus on Internet start-up companies.E-BUSINESS
INFRASTRUCTURE: Introduction, Internet technology, Web technology, Internet-
access software applications, Managing e-business infrastructure, Focus on web
services, SaaS and service-oriented Architecture (SOA), Focus on mobile commerce.

UNIT-3: E-ENVIRONMENT: Social and legal factors, Environmental and green issues
related to Internet Usage, Focus on e-commerce and globalization, Political factors.

4
 Syllabus Contd..
E-BUSINESS STRATEGY: What is e-business strategy, Strategic analysis,
Strategic objectives, Strategy definition, Strategy implementation, Focus on
information systems strategy and e-business strategy.
UNIT-4: E-SECURITY- Securing the Business on Internet-Security Policy,
Procedures and Practices, Transaction Security, Cryptology, Digital Signatures,
Security Protocols for Web Commerce.

SUPPLY CHAIN MANAGEMENT: What is supply chain management?

Focus on the value chain, Using e-business to restructure the supply chain,
Supply chain management implementation
UNIT-5: E-PROCUREMENT: What is e-procurement, Drivers of e-procurement,
Focus on estimating e-procurement cost, Implementing e-procurement.

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 BOOKS
TEXT BOOKS:
1. E-Business and E-Commerce Management,
Strategy, Implementation and Practice
Dave Chaffey, 4th Edition, Prentice Hall

REFERENCE BOOKS:
1. Frontiers of electronic commerce –
Ravi Kalakata, Whinston,Pearson

2. E-Commerce fundamentals and applications

Hendry Chan, Raymond Lee, Tharam Dillon, E l l i z a b et h - 2 1 5 -
C h a n g , J o h n W i l ey .

3. E-Commerce
S.Jaiswal, Galgotia.

4. E-Commerce
Efrain Turbon, Jae Lee, David King, H.Michael Chang.

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 UNIT-1 CONTENTS
1. INTRODUCTION TO E-BUSINESS AND E-
COMMERCE
1. What is the difference between e-commerce and e-
business
2. Anatomy of E-Commerce applications,

3. E-business risks and barriers to business adoption

4. Management responses to e-commerce and e-business
5. Electronic Commerce-Frame work

7
8
 1. INTRODUCTION TO E-BUSINESS AND
E-COMMERCE
➢ Organizations have now been applying technologies based on the
Internet, World Wide Web and wireless communications to transform
their businesses.
➢ Deploying these technologies has offered many opportunities for
innovative e-businesses to be created based on new approaches to
business.
➢ Existing businesses have evolved their approaches to e-business
through a series of stages. Innovation in e-business is relentless, with
the continuous introduction of new technologies, new business models
and new communications approaches.
➢ Current opportunities which many businesses are reviewing the
benefits, costs and risks of implementing include:
➢ social networks, virtual worlds, blogs, rich online media, mobile
commerce services
➢ using location-based tracking of goods and inventory as they are
manufactured and transported.

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 E-commerce
➢ Electronic commerce (e-commerce) is often thought simply to refer to
buying and selling using the Internet.
➢ E-commerce is the exchange of information across electronic
networks, at any stage in the supply chain, whether within an
organization, between businesses, between businesses and consumers,
or between the public and private sector, whether paid or unpaid.
➢ Different perspectives for e-commerce:
1) A communications perspective – the delivery of information,
products or services or payment by electronic means.
2) A business process perspective – the application of technology
towards the automation of business transactions and workflows.
3) A service perspective – enabling cost cutting at the same time as
increasing the speed and quality of service delivery.
4) An online perspective – the buying and selling of products and
information online.

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 Buy-side and Sell-side E-commerce
➢ Buy-side e-commerce: E-commerce transactions between a
purchasing organization and its suppliers.
➢ Sell-side e-commerce: E-commerce transactions between a supplier
organization and its customers.
➢ E-commerce transactions between organizations can be considered
from two perspectives:
▪ sell-side from the perspective of the selling organization and
▪ buy-side from the perspective of the buying organization.

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 E-business
➢ Electronic business (e-business): All electronically mediated
information exchanges, both within an organization and with external
stakeholders supporting the range of business processes.
➢ E-Business refers to a broader definition of e-commerce, not just the
buying and selling of goods and services, but also servicing customers,
collaborating with business partners, conducting e-learning, and
processing electronic transactions.
➢ Electronic business methods enable companies to link their internal
and external data processing systems more efficiently and flexibly, to
work more closely with suppliers and partners, and to better satisfy
the needs and expectations of their customers.
➢ There are two types of e-business, which are:
1) Pure-Play: The business which is having an electronic existence
only. Example: Hotels.com
2) Brick and Click: The business model, in which the business exists
both in online i.e. electronic and offline i.e. physical mode.

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1.1 What is the difference between
e-commerce and e-business

13
 E-commerce Vs E-business
Feature E-commerce E-business
1) Definition Involves buying and Includes all kinds of pre-sale
selling of products and and post-sale efforts using the
services over the internet internet

2) Relationship Subset of E-business Superset of E-commerce

3) Approach Extroverted approach that Ambivert approach that covers
covers customers, internal processes such as
suppliers, distributors, production, inventory
etc. management, product
development, risk
management, finance etc, as
well as external processes.

4) Requirement Requires Website or Requires website, CRMs, ERPs

Mobile application for running the business over
the internet.
5) Aims at Aims to improve and Involves new business models
change business processes and the potential to gain or 1
loss the revenue
4
 E-commerce Vs E-business
Feature E-commerce E-business
6) Transactions Commercial transactions Business transactions which
related to money includes monetary as well as
allied activities

7) Network Internet is used to Internet, Intranet and

connect with the rest of Extranet are used for
the world connecting with the parties.

8) Types of 1) B2B - Business to 1. Pure-Play- Only Online

models Business 2. Brick and Click – Both
2) B2C - Business to Online and Offline
Consumer
3) C2B - Consumer to
Business
4) C2C - Consumer to
Consumer

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 Different types of sell-side e-commerce
➢ The four main types of site are:
1) Transactional e-commerce sites enable purchase of products online.
The sites also support the business by providing information for
consumers that prefer to purchase products offline like retail sites,
travel sites and online banking services.
2) Services-oriented relationship-building web sites: Provide detailed
information to help support existing customers to stimulate purchase
and build relationships in their lives at work or at home.
3) Brand-building sites: Provide an experience to support the brand by
developing an online experience. They are typical for low-value, high-
volume fastmoving consumer goods (FMCG brands) for consumers.
4) Portal, publisher or media sites: Provide information, news or
entertainment about a range of topics both on the site and through
links to other sites. Portals have a diversity of options for generating
revenue, including advertising, commission-based sales, sale of
customer data (lists). Social networks can also be considered.

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 E-commerce Models
➢ Electronic commerce encompasses all online marketplaces that
connect buyers and sellers. The internet is used to process all
electronic transactions.
1) B2B – Business to Business
2) B2C – Business to Consumer
3) C2C – Consumer to Consumer
4) C2B – Consumer to Business
5) B2G/A – Business to Government (or Administration)
6) C2G/A– Consumer to Government (or Administration)

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 E-commerce Models Contd..
1) B2B- Business-To-Business Ecommerce: both
the sellers and buyers are business entities. This
model describes the transactions between a
retailer or a wholesaler, or a wholesaler and
manufacturer. Ex: Alibaba, Amazon business,
IBM, Boeing, ExxonMobil Corporation
2) B2C- Business-To-Consumer Ecommerce:
business directly interacts and sells to individual
customers, but business is conducted online as
opposed to in a physical store. Ex: Flipkart,
Amazon, Snapdeal, Alibaba, Walmart, etc
3) C2C- Customer-To-Consumer Ecommerce:
transactions made from a customer to another
consumer. Customers can trade, buy or sell any
of the products through direct or third party
platforms in return for small commissions or
profit. Ex: eBay, Etsy, OLX, Craigslist

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 E-commerce Models Contd..
4) C2B- Consumer-To-Business Ecommerce:
customers selling their services or products to
business. Ex: Google Adsense, Commission
Junction, and Amazon.
5) B2G/A- Business-To-Government / Public
Administration Ecommerce: government and
businesses use central websites to do business
with each other more efficiently than they can
off the web. public sector marketing, tenders
auctions, and application submission. Ex:
Accela, Colorado
6) C2G/A- Consumer-To-Government / Public
Administration Ecommerce: individuals paying
the government for electronic tax filing or
payment of health services, tuition to
universities.

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Business or consumer Models of
e-commerce transactions

20
2. Anatomy of E-Commerce applications
Elements of E-Commerce Applications
 3 E-business risks and barriers to
business adoption
➢ Opportunities have to be balanced against the risks of introducing e-
business services which vary from strategic risks to practical risks. One
of the main strategic risks is making the wrong decision about e-
business investments.
➢ There are also many practical risks to manage which, if ignored, can
lead to bad customer experiences and bad news stories which lead to
damage to the reputation of the company.
➢ Examples of poor online customer includes:
▪ Web sites that fail because of a spike in visitor traffic after a peak-
hour TV advertising campaign.
▪ Hackers penetrating the security of the system and stealing credit
card details.
▪ A company e-mails customers without receiving their permission,
and potentially breaking privacy and data protection laws.
▪ Problems with fulfilment of goods ordered online, go missing or
delayed.
▪ E-mail customer-service enquiries from the web site don’t reach the 21
right person and are ignored.
Stage model for buy-side and
sell-side e-commerce

27
 Drivers of consumer Internet adoption
benefits of online services are summarized
➢ Typical
by the ‘Six Cs’, a simple mnemonic to show different types of
customer value:
1) Content – Relevant rich content is king. This means more detailed,
in-depth information to support the buying process for transactional
or relationship-building sites or branded experiences to encourage
product usage for FMCG brands.
2)Customization – In this case mass customization of content,
whether received as web site pages such as ‘Amazon recommends’ or
e-mail alerts, and commonly known as ‘personalization’.
3)Community – The Internet liberates consumers to discuss
anything they wish through forums, chat-rooms and blog comments.
4)Convenience – This is the ability to select, purchase and in some
cases use products from the desktop at any time: the classic 24 × 7 ×
365 availability of a service.

28
 benefits of online services
‘Six Cs’ Contd..
5)Choice – Web gives a wider choice of products and suppliers
(financial, travel, white goods) with more detailed information than
are physically available in-store.
6)Cost reduction – The Internet is widely perceived as a relatively
low-cost place of purchase as they have lower staff and distribution
costs than a retailer that runs a network of high-street stores. A simple
price differential is a key approach to encouraging usage of online
services.

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 4 Management responses to e-
commerce and e-business
McKinsey 7S strategy framework
➢ McKinsey 7S strategy issues involved with e-business is summarized
in diagrammatic form in Figure and in table form in Table to highlight
some aspects that need to be managed when developing an e-business
strategy.

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 McKinsey 7S framework Contd..
Element of Relevance to Internet Key issues
7S model marketing capability

1) Strategy Contribution of e- • Gaining appropriate budgets and

business and e- annual planning approach
commerce in influencing • Techniques to impact
and supporting organizational and marketing
organizations’ strategy strategy

2) The modification of • Integration of e-commerce/ IT

Structure organizational structure team with other management,
to support e-business marketing and operations staff
• Use of cross-functional teams and
steering groups
• Insourcing vs outsourcing

3) Systems The development of • Managing/sharing customer and

specific processes, supply chain information
31
procedures or • Integration of the web into
information systems to marketing
 McKinsey 7S framework Contd..
Element of Relevance to Internet Key issues
7S model marketing capability

4) Staff Breakdown of staff in • Insourcing vs outsourcing

terms of their • Staff recruitment and retention
background, age and sex • Virtual working
and characteristics • Staff development and training

5) Style Includes both the way in • Relates to role of the e-business

which key managers team in influencing strategy – is it
behave in achieving the dynamic and influential or
organization’s goals and conservative
the cultural style

6) Skills Distinctive capabilities of • Staff skills in specific areas:

key staff supplier selection, project
management, content
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management, specific e-
marketing approaches
5. Electronic Commerce-Frame work
E-Commerce application will be built on the existing technology infrastructure
- a myriad of computers Communication networks Communication software forming information superhighway.
 UNIT- I Question Bank Contd..
# Descriptive Answer Question Course Blooms
Outcomes Level

1) According to Kalakota and Whinston, there exists a A5632.1 Understa

range of four different perspectives for e-commerce. nd (L2)
Explain.
2) Explain in brief the differences betwee E- A5632.1 L2
Commerce and E-Business. n

3) Explain about Different types sell- e- A5632.1 L2

of commerce. side
4) Explain disintermediation and reintermediation A5632.1 L2
using examples. R15-Reg-2021June

5) Distinguish between buy-side and sell-side e- A5632.1 L2

commerce and give an example of the application of
each. R15-Reg-2021June

6) Explain about business models for e-commerce. A5632.1 L2

R15‐Reg‐2021Jun
e 36
 UNIT- I Question Bank Contd..
# Descriptive Answer Question Course Blooms
Outcomes Level

8) Briefly write about the typical benefits of A5632.1 L2

online services summarized by ‘Six Cs’.
9) Write about McKinsey 7S strategy framework. (OR) A5632.1 L2
Management’s response to E-commerce and E-
business are based on the external
environmental factors. Discuss those external
environmental factors. R15‐Sup‐2021Dec

10) Berryman, McDonald and Wilson has identified A5632.1 L2

a useful framework for identifying five different
types of location of trading in the electronic
marketplace. (OR)
Enumerate the locations for trading in
the marketplace in E-business.
R15‐Sup‐2021Dec
11) Explain about Eight key elements of the business A5632.1 L2
model of the organization’s e-business strategy. 37
 UNIT- I Question Bank Contd..
# Descriptive Answer Question Course Blooms
Outcomes Level

12) Describe some alternative revenue models for a A5632.1 L2

web site from a magazine publisher.
13) Explain about auction business models. A5632.1 L2
14) Discuss the challenges of internet based start- A5632.1 L2
up companies.
R15‐Sup‐2021Dec

38
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