Professional Documents
Culture Documents
UNIT 1
Introduction to E-Commerce:
E- Commerce refers to electronic transactions such as buying; selling, information flow and
funds transfer over the internet. E-commerce broadly encompasses all business activities taking
place over the internet. It consists of electronic retailing, electronic data interchange and
electronic fund transfer. The main goal of e-commerce is:
Reduce cost
Lower product cycle time
Faster customer response
Improved service quality
Electronic commerce is an emerging concept describes the process of buying and selling or
exchanging of products, services and information via computer network including the internet.
E-Commerce is a modern business methodology that addresses the needs of organization
merchant and consumers to cut cost while improving the quality of goods and services and
increasing the speed of service delivery. E-commerce is associated with buying and selling of
information products and services over computer communication network. E- Commerce is
refers to the paperless exchange of business information using electronic data interchange,
electronic mail etc.
It can be defined as a technology mediated exchange of digital information between various
individuals and organization as well as the electronically based intra or inter organizational
activities that facilitates such exchange over network channels.
Electronic Document interchange
Information sharing,
corporate digital library,
collaborative work
E- Commerce
Marketing, Advertising
electronic publishing
Sales, Customer support
Electronic Messaging
KARISHMA SIROHI 2
Features of E- Commerce:
1. Payment: enabling credit card, smart card, e-money and other payments along with
electronic funds transfer.
2. Service Availability: It automates the conduct of business among enterprises, customers,
suppliers and employers anytime, anywhere.
3. Advertising and marketing: publicizing and advertising product and services.
4. Sales: generating orders for the product.
5. Fulfillment: processing the order and delivering product.
6. Support: providing pre and post sale assistant to generate more sales.
7. Inventory Mgt: maintaining and reporting inventory status.
8. Secure communication: fast efficient, reliable communication with customers and
partners.
9. E commerce allows you to gather information from customers while delivering a
marketing and sales pith through a website.
10. E commerce can be a fully integrated solution or a technical front end to a business that
otherwise isnt wired.
Main activities of E commerce
Reduce cost
Reduced product cycle time
Attract more customer
Faster customer response
Improve service quality
Benefits of E- commerce:
1. Benefits to organization:
E- commerce decreases the cost of creating, processing, distributing, storing and
retrieving paper based information.
E commerce reduces the time
Improved Image
Improved customer service
New found business partners.
2. Benefits to consumer:
Customer can do transaction 24 hr a day
It provides customers with more choices
KARISHMA SIROHI 3
Transaction
Capabilities
Service Mgt.
Functions
Process mgt.
Communication
Function
KARISHMA SIROHI 4
Economic Forces
Market Forces
Technology Forces
Categories of E commerce:
Business to Business
Business to Consumer
Consumer to Consumer
Consumer to Business
Business to Government
Government to Business
Government to Citizen
1. B2B:
Business to business web sites sell the product to the intermediate buyer who takes the
products to the final consumer. In this type of web sites a wholesaler places an order through
the companies web sites and then sells the supplies to the final consumer as shown in the
diagram:
Business
Org.
Supplies
Order
processing
Wholesaler
Order
Website
Sell
Customer
2. B2C:
Business to consumer is a website where all transaction take place between a business
organization and the final consumer. In this type of websites customer login to the
organizations website and place an order to buy the goods after receiving the order the
organization would complete the order and sends the goods to the customer and the customer
would receive the ordered goods.
KARISHMA SIROHI 5
Website
Process
Order
Receives Goods
Orgn.
Business
Customer
3. C2C:
In this category consumers sell directly to consumer. If an individual have something to sell,
then he get it listed at an auction site, and others can bid for it.
For example: at an auction site, customer located in India and in Washington can register. A
customer form India places an advertisement on the website. A customer from Washington,
while surfing, looks at the advertisement and decides to purchase the product. Thus, the deal
is finalized through the web site without an actual meeting.
Places an advertisement
Advertisement
Wants to
sell Wants to buy
Receives Products
Customer in India Customer in
Washington
Receives Money
4. C2B:
In such sites, the consumer places an estimate of the amount of money he is willing to spend
for a particular service. Businesses that can offer this service within the customers specified
limit get back to him with the offer. Such sites depend on proper estimate by consumer.
Websites
Processes Places Money for a
Order particular service
Receives Products
Orgn.
Business
Customer
Receives Money
KARISHMA SIROHI 6
5. B2G:
It is a website used by the govt. to exchange information and trade with various organization
across the world.
Government
Business Orgn.
Website
7. G2C:
A G2C website is an attempt by the govt. to reach out to people in general. The govt.
regularly conducts auctions and sales of vehicles, machinery and other material. These
auctions are high valued and are visited by customers. These websites also provides access to
application forms.
Government
People/ Customer
Website
Disadvantages of E commerce:
Security
Training and Maintenance
Hardware and Software problem
Online Purchasing security
KARISHMA SIROHI 7
Infrastructure of E- Commerce:
Here are seven important infrastructure decisions that ecommerce businesses face.
1. Marketing: Of all the infrastructure elements, marketing may be the most important. To
succeed, your website must be found. Once visitors are on your site, you need to keep them there
and compel them to buy from you. Thats the job of your marketing team. Whether its website
design, social media, search marketing, merchandising, email, or other forms of advertising, its
all about marketing. To effectively manage marketing activities in-house is very challenging.
Most small ecommerce businesses outsource some element of marketing.
2. Facilities: A key competitive advantage that ecommerce businesses have over brick-and-
mortar stores is the investment in their physical offices and warehouses. In many cases, you can
host your business out of a home office and your basement or garage. If you drop ship or
outsource fulfillment, you may be able to do that for a long period of time. Even when you grow
to have many employees, you can set up your offices in class B or C space, as you have no need
for a fancy store in the right location. A word of advice is to keep your options flexible. Try to
find an office park that has a wide variety of spaces in different sizes. You may be able to start in
a smaller space and move up to a larger one without penalty, as your needs change.
3. Customer Service: There are many choices today for delivering high-quality customer
service. You can manage those activities in-house or outsource to a third party. Basic customer
service for sales and post-sales activities can be handled using email, and by providing an 800
number for more extensive phone support. A customer-management system will make those
activities easier, but for smaller companies it is not a requirement. Live chat will impact your
operations as someone needs to be available during specified hours of operation. Be sure to
gauge the impact of that on your organization, if you decide to handle those activities in house.
4. Information Technology: Choosing the right ecommerce platform is one of the most
important decisions you will make in your business. Do you want to build and host your own
system, outsource the development and then manage the system going forward, or use a hosted,
software-as-a-service platform that is more turnkey and externally managed? If you build and
host your own system, you may need more cash upfront and skilled administrators and
developers on your staff. By using a SaaS platform, you will not need to host or manage the
system in-house, but you may still need web developers on staff. Choosing to outsource the
development and hosting will reduce your staffing costs, but you will incur higher costs for any
future enhancements or changes to your websites. There are pros and cons to any approach. Just
be sure to think through the impacts on both your staffing and your cash flow and bottom line
before you move forward.
5. Fulfillment: Another key decision is whether you will manage your own inventory or
outsource those activities to a fulfillment house or through drop shipping arrangements with your
suppliers. Managing your own inventory will provide you with a high level of control, but you
will tie up your cash in inventory, warehouse space, and your own fulfillment staff. In some
KARISHMA SIROHI 8
industries like the jewelry supply industry that my previous business was in managing
your own inventory was the most logical choice. We had no alternative for drop shipping, and
most items were purchased in bulk and were very small. We did not trust preparation and
fulfillment to an outside service. Select the best fulfillment option to meet your needs. Be sure to
understand the costs involved and analyze the other options before moving forward.
6. Finance and Administration: As with other business operations, you will need to decide
if you want to manage your finance and administration activities in-house, outsource, or a hybrid
of the two. If your ecommerce platform is tightly integrated to your accounting system, you may
have very little need for an in-house bookkeeper. If you use separate systems for your website,
order management and accounting, you may need more help for data entry and making sure that
the information is properly managed Many ecommerce companies use outside services for
vendor payments, payroll, and other basic accounting activities. They decide to focus on the
sales, marketing, and customer service. This allows them to maintain a focus on growing their
businesses, instead of paying an internal accountant or doing that work yourself as the
business owner. On the administration side, you need a leadership team and provide direction to
them. Good communication is important, whether you have 3 or 100 employees. Whether you
choose to be more authoritative or democratic in your management style is up to you. But choose
a style and stay consistent. Be sure that everyone understands their roles, as well as the overall
business strategies. You may need to adjust your approach as your business evolves.
7. Human Resources: Many small-business owners avoid the human resources function.
Recruiting, setting up compensation, maintaining compliance and other HR activities are
specialized and time consuming. You may choose to bring the resources in-house to manage
those activities, but also evaluate outsourcing them. There are many individuals and agencies
well equipped to take on your HR activities.
Or
Media
Technical
Human Resource
Capital
Public Policy
Scope of E Commerce:
1. Linking with D & R
2. Interface with customer
3. Enterprise Management
4. Linking with supplier
5. Global e commerce infrastructure
KARISHMA SIROHI 9
Public
Policy
Technical
Standard
Technical
Infrasturcture
Business Model
Business Services
Multimedia Content
Electronic Document
EFI EDI
Interchange
Marketing
Info. Advertisement
Sharing
Corporate Digital
Library E-Commerce E-Publishing
Collaborative
work
Sales, customer support
The application services layer of e commerce will be comprised of existing and future
application build on a innate architecture. Three distinct classes of e-commerce application can
be distinguished as:
The architecture is made up of three primary entities: client server, web server, and third party
services. The client browser usually interacts with the WWW server, which acts as an
intermediary in the interaction with third party services. The client browser resides on the users
PC or workstation and provides an interface to the various types of content. For instance, if the
user retrieves a graphics file from a web server, the browser automatically starts up the graphics
file are available-JPEG, GIF, TIFF, BMP, among others. The browser has to be smart enough to
understand what file it is downloading and what browser extension it needs to activate to display
the file. Browsers are also capable of manipulating local files. Web server functions can be
categorized into information retrieval, data and transaction management, and security. The third
party service could be other web servers that make up the digital library, information processing
tools, and electronic payment systems.
E-Commerce and Internet
Internet as a Network Infrastructure:
The internet is the most well known component of information superhighway network
infrastructure. Today, the internet is an information distribution system spelling several
continents. In very general infrastructure targets not only one electronic commerce applications
such as video on demand or home shopping but a wide range of computer based services such as
e-mails, EDI, information publishing, information retrieval and video conferencing.
Network making up Internet:
KARISHMA SIROHI 13
This diagram captures the distinction between Academic and Business Internet. Academic
Internet consists of various government network, regional networks, campus network, and some
international networks. These include NSFNET the premier group of research IP networks in the
United States; EBONE the European group of IP networks; and more recently, private IP
network run by for profit organizations.
The business internet consists of on line services, value added networks, and other e mail only
services. The academic and business networks can talk to each other through language
translators, called gateways, stationed at the network border. In the past, because only mail
gateways were widely implemented and deployed, the most interoperable application or the least
common denominator for the entire internet was electronic mail.
6 stages of Internet Growth:
The incredible growth of the internet can be divided into 6 stages:
1. Experimental networking (ARPANET, 1965)
2. Discipline specific research (CSNET, MILNET, 1981-85)
3. General research networking ( early NSFNET 1985-1991)
4. Privatization and commercialization ( present NSFNET)
5. Restricted public data networks for research and education ( NREN)
6. National information infrastructure ( I-Way)
The first stage, experimental networking, covers the early years under the aegis of the DOD
ARPA and the province of a relatively small technical community. That group developed not
only the technology but the cooperative mechanism that made it possible to scale and allow
further innovation to occur.
The second stage, discipline specific research (1980-1985), grew out of the more general
ARPANET and began to build international online communities. CSNET, for instance, linked
computer science researchers from all over the world.
The third stage, general research networking (1985-1991) and called the NSFNET program,
unfolded following the explosive growth in the mid 1980s. the NSFNET program was
established chiefly to allow exchange of information and access to remote resources within the
research and education community. Since the backbone network was launched, its traffic has
doubled each year and its transmission capacity has increased more than thirtyfold to 45 million
bits per second.
The fourth stage, privatization and commercialization( 1991-present), involves removing
government subsidies to regional networks and dismantling the barriers imposed by restricted
acceptable usage policies. The network extends far beyond the research community and today
supports not only the expanding backbone services, but also commercial transactions and
extensive connections for commercial organizations. The fourth stage recognizes the changing
nature of the networking marketplace.
KARISHMA SIROHI 14
Computing
Accounting
Personnel
Marketing
Distribution.
Electronic payment system:
EPS are becoming central to online business process innovation as companies look for ways to
serve customers faster and at lower cost.
The most important function of e-commerce over the I way. As e-commerce involves the
exchange of some form of money for goods and services, payment system are integral part of
electronic commerce system. Because of the online transactions in electronic commerce, there is
a rising concern for the security of these systems.
KARISHMA SIROHI 15
EPS is also known as EFT, which is defines as any transfer of funds initiated through an
electronic terminal, telephone instrument, computer or even magnetic tape to order, instruct or
authorized a financial institution to debit or credit of an account. Work on EFT can be
categorized on three broad categories:
Category
Banking and Financial Retailing Payment Online electronic
Payment Debit Card commerce payment
Large scale or wholesale payment Credit Card Token Based Payment system
Small scale or retail payment Charge Card ---e-cash
Home payment --e-checks
--smart card and debit cards
Credit Card Payment System
----encrypted credit card
---third party authorization
numbers
Electronic checks: e-checks are another form of electronic token. They are designed to
accommodate the many individuals and entities that might prefer to pay on credit or
through some mechanism other than cash. In e-check buyer must register with a third
party account server before they are able to write electronic checks. The account server
also acts as a billing service. The registration procedure can vary depending on the
particular account server and may require a credit card or a bank account to back the
checks. Once registered, a buyer can then contact sellers of goods and services. To
complete a transaction, the buyer sends a check to the seller for a certain amount of
money. These checks may be sent using e mail when deposited. The check authorizes the
transfer of account balances from the account against which the check was drawn to the
account to which the check was deposited.
Smart cards and EPS: in the meantime, thousands of would be sellers of electronic
commerce services have to pay one another and are actively looking for payment
substitutes. One such substitutes is the smart card.
Smart cards have been in existence since the early 1980s and hold promise for secure
transactions using existing infrastructure.
Smart cards are credit and debit cards and other card products enhanced with
microprocessors capable of holding more information than the traditional magnetic stripe.
Relationship based products are expected to offer consumers far greater options,
including the following:
Access to multiple accounts, such as debit, credit, investments or stored value for
e-cash, on one card or an electronic device.
A variety of functions, such as cash access, bill payment, balance inquiry, or
funds transfer for selected accounts.
KARISHMA SIROHI 18
Multiple access options at multiple locations using multiple device types, such as
an automated teller machine, a screen phone, a personal computer, a personal
digital assistant.
Credit card and EPS: to avoid the complexity associated with digital cash and
electronic checks, consumers and vendors are also looking at credit card payments
on the internet as one possible time tested alternative. There is nothing new in the
basic process. If consumers want to purchase a product or service, they simply send
their credit card details to the service provider involved and the credit card
organization will handle this payment like any other.
We can break credit card payment on online networks into three basic categories:
Payments using plain credit card detail: the easiest method of payment is
the exchange of unencrypted credit cards over a public network such as
telephone lines or the internet. The low level of security inherent in the
design of the internet makes this method problematic. Authentication is also
a significant problem, and the vendor is usually responsible to ensure that the
person using the credit card is its owner. Without encryption there in so way
to do this.
Payments using encrypted credit card details: it would make sense to
encrypt your credit card details before sending them out, but even then there
are certain factors to consider. One would be the cost of a credit card
transaction itself. Such cost would prohibit low value payments by adding
costs to the transactions.
Payments using third party verification: one solution to security and
verification problems is the introduction of a third party: a company that
collects and approves payments from one client to another. After a certain
period of time, one credit card transaction for the total accumulated amount
is completed.
Encryption and credit cards: encryption is simply when credit card information is
entered into a browser or other electronic commerce device and sent securely over
the network form buyer to seller as an encrypted message. To make a credit card
transaction truly secure and nonrefutable, the following sequence of steps must occur
before actual goods, services, or funds below:
1. A customer presents his or her card information securely to the merchant.
2. The merchant validates the customers identity as the owner of the credit card
account.
3. The merchant relays the credit card charge information and signature to its
bank or online credit card processors.
4. The bank or processing party relays the information to the customers bank
for authorization approval.
KARISHMA SIROHI 19
5. The customers bank returns the credit card data, charge authentication, and
authorization to the merchant.
Third party processor and credit cards: in third party processing, consumers
register with a third party on the internet to verify electronic micro transactions.
Verification mechanism can be designed with many of the attributes of electronic
tokens, including anonymity. They differ from electronic token systems in that (1)
they depend on existing financial instruments and (2) they require the online
involvement of at least one additional party and, in some cases, multiple parties to
ensure extra security. OTPPs have created a six step process that they believe will be
a fast and efficient way to buy information online:
1. The consumer acquires an OTPP account number by filling out a registration
form. This will give the OTPP a customer information profile that is backed
by a traditional financial instrument such as a credit card.
2. To purchase an article, software, or other information online, the consumer
requests the items from the merchant by quoting her OTP account number.
The purchase can take place in one of two ways: the consumer can
automatically authorize the merchant via browser setting to access her OTPP
account and bill her, or she can type in the account information.
3. The merchant contacts the OTPP payment server with the customers account
number.
4. The OTPP payment server verifies the customers account number for the
vendor and checks for sufficient funds.
KARISHMA SIROHI 20
5. The OTPP payment server sends an electronic message to the buyer. This
message could be an automatic WWW form that is sent by the OTPP server
or could be a simple e mail. The buyer responds to the form or e mail in one
of three ways: yes, I agree to pay; no I will not pay; or fraud, I never asked
for this.
6. If the OTPP payment server gets a YES from the customer, the merchant is
informed and the customer is allowed to download the material immediately.
KARISHMA SIROHI 21
UNIT 2
E Commerce and Banking:
The role of e-commerce in banking is multifaceted impacted by changes in technology. Rapid
deregulation of the emergence of new banking institution and basic economic restructuring.
Many banks feel that in order to be a profitable they need to reduce operating expenses and
maintain strict cost control. This philosophy is evident in many mergers and acquisition
occurring in the banking industry. So, the challenge behind bank restructuring lies in adequately
operationalizing the motion of cost control.
Changing dynamics in Banking Industry:
There are 5 distinct factors contribute to the new competitive environment:
1. Changing consumer needs driven by online commerce.
2. Optimization of branch networks in order to reduce cost.
3. Changing demographic trends and potential new consumer market.
4. Cross industry competition caused by de-regulation.
5. New online financial products.
their traditional banking overhead structures, as well as their existing retail strategies.
Providing online financial services can address both these needs.
3. Demographic Trends
Consumers are increasingly careful about their personal finances. Social demographic
and economic changes have altered the way value their time and money. People spend
more time working than ever before, and therefore place a higher premium on their
leisure time. Thus, they are a very receptive audience for time saving products and
services. In addition, the reduced level of job security and the need to plan for the future
has heightened concern over personal debt, retirement planning, tax planning , and saving
for college.
The companies that take advantage of this opportunity by targeting the appropriate
customers with appropriate products and services will have a lasting competitive
advantage. As it prov8ides convenience and the ability to customize products and
services on a mass level electronic delivery of these products and services will be one of
the key means of achieving this advantage.
4. Regulatory Reform
Banks occupy a unique strategic position as they act as intermediaries in redistributing
capital from areas of excess to areas of scarcity. This role has made financial services a
closely watched and regulated industry as government is intersted in the control and
stability of this redistribution. Recent years have brought about far reaching regulatory
changes that have removed many of the competitive protections banks enjoyed for a long
time. The ability to provide complete financial services is necessary if commercial banks
are to survive increasing competitive from mutula funds, brokerage firms, and insurance
companies.
5. Technology based financial Services Products
The growing importance of computer technology is another factor complicating
predictions about the future structure of baking. Some observers believe that additional
development of electronic cash, such as smart cards, could stimulate further baking
consolidation. They point to the fact that the start-up costs associated with electronic
payments technology cab be high in part because electronic cash requires large
investments in computer software and other resources to establish a network of secure
electronic transaction.
The development of electronic banking might actually increase competition in banking
markets and lower bank operating costs. Electronic banking offers an inexpensive
alternative to branching to expand a bank's customer base and many banks are using
electronic banking to increase service to their customers. Many banks have started web
sites on the internet, and many plan to offer banking services over the internet. Some
banks are laready offering certain banking services over the telephone. Smart cards and
other forms of electronic cash could be the key to consumer acceptance of home banking,
eventually allowing banks to reduce the number of their physical branches.
KARISHMA SIROHI 23
Financial institutions work interested in turning the home banking concept into reality as early as
1970. Many banks invested million of dollars in R&D in Oct. 1981. The American banker had a
set of articles promoting the virtue of home banking. In 1980s cable television was considered
as possible medium of home banking and telephones was considered in 1970s.
Success of home banking:
There are several factors that lead to believe that home banking has a good chance of success
these time.
1. Consumers up the learning curve.
2. Increasing consumer awareness.
3. The alternative is too expensive.
4. Huge competition.
There are several factors that lead us to believe that home banking has a good chance at success
this time.
without a large enough sample of potential users, there was no urgency for financial
institutions to provide sen-ices. Conversely, without a wide array of services, there was
little consumer in- terest. This problem is resolving itself. Today there are more than 30
million PCs in American homes, and, for the first time in history, consumers are now
spending more on PCs than TV sets. Modem penetration into house- holds is a key issue
for home banking, as online services require a modem. Clearly the technology exists to
make home banking a reality. "lether'it will happen via the Intemet, a proprietary service,
or both is yet to be deter- mined, but the home banking infrastructure is in place.
electronic cash or electronic checks, they need software products to manage these
electronic transactions and reconcile them with other off-line transactions. In the future,
an increasing number of paper-based, manual financial tasks may be performed electroni-
cally on machines such as PCs, handheld digital computing devices, inter- active
televisions, and interactive telephones, and the banking software must have the
capabilities to facilitate these tasks.
E- Commerce and Retailing:
Retailing is expected to change with a rapid development of new online sales and distribution
channels that literally used from anywhere, anytime from work, school and a hostel, car or
airplane.
These developments should base impact resulting as much as the catalogue retailing and T.V.
based home shopping at most every retailer is re evaluating every aspect of its operations from
customer service to adversely merchandising to store designing and logistics to order fulfillment.
However, retailer needs to consider the following issues and developing a business order.
1. Product
2. Software interface issue
3. Process
4. Payment issues
5. Market penetration issues.
Changing retail industry dynamics:
So, the important factors affected retail industry:
1. Over building and excess supply
2. Change in consumer demographics.
3. Change in consumer behavior
4. Technology improvement.
Online retailing success stories:
1. PEA PODs experience
2. CVC international
3. Web based travel agencies.
Business problem
Solution
Requirement
Benefits.
Open Vs Closed Model:
An open system such as web offers two additional key benefits:
KARISHMA SIROHI 26
negotiation of terms
placement of terms
placement of order
authorization of payment
receipt of product
customer service
KARISHMA SIROHI 27
UNIT 3
KARISHMA SIROHI 28
UNIT 4
Intranet and corporate finance:
The competitive business environment is forcing firms to re-engineering financial management
process. General ledger system and spread sheets (traditional method) prove inadequate when
data is voluminous and worldwide, when corporate structure change because of mergers and
acquisition and when timely and reliable consolidation, budgets and forecasts are essential.
In this section, we provide the setting by elaborating on what financial information system are
intended to accomplish.
What exactly is financial system:
a financial system encompasses business process, procedure, control and data dedicated to
operations and maintenance of corporate financial objectives.
It incorporates the following tasks:
Report and analyses the financial data
Simply the budgeting and forecasting process.
Enabling better planning
Control the financial consolidation of actual results.
Answer at ad hoc requests efficiently.
Improve cost control and performance measurement.
Financial accounting activities:
It includes:
1. Processing, maintaining, collecting, transmitting and reporting data about financial event.
2. Supporting financial plan and preparing budget
3. Supporting the preparation of financial statement.
Management accounting activities:
It includes:
1. Reporting historical transaction to external parties.
2. Accumulating and reporting false information.
3. Safeguarding the asset of company.
4. Providing insight with respect to the value of future transaction.
Financial intranet:
Accounting software provided a way to enter transactions and manage those transaction in the
form of an accounting trial. Today there is a lot more that the business managers need from the
information lock inside the accounting databases. The information is there but it is very difficult
to obtain. Intranet can play a big role in solving this problem because this will allow the
KARISHMA SIROHI 29
integration necessary to provide accounting information that the manager needs in the specific
form they need, when they need it and where they need it.
Business problem:
1. Managing information about monthly progress towards annual goals of an organization.
2. Allowing managers to spend time in manipulating not gathering the data.
Intranet solutions:
Create a central database of measurement information using the web.
Requirement
use the web for end user interface.
Give user easy to use form for query information.
Use a data warehouse to store information
Generic modules in a financial information system/ understanding the different software
models:
It includes:
1. General ledger
2. Accounts payable
3. Accounts receivables
4. Asset management
5. Costing
6. Billing and invoicing
Intranet and transaction accounting:
Intranet offer companies new tools that harness the power of network computer. For the
transaction accounting purposes. This includes:
1. Efficient transaction entry
2. Common transaction processes
3. Consistent internal controls
4. Audit trials
Payment system/ management:
Todays competitive world demands operational efficiency with strong management control tight
integration of purchasing, payables and receivables is necessary to eliminate paper work
redundant data entry. The goal is to use automatic price order creation, automatic text with
holding and automated voice and payment processing to improve operational efficiency. In this
process, the company is linked with supplier and distributor so, the payment can be send and
received through e-commerce. This allows customer order to be build after shipment with
invoice printed and inventory, sales and accounting information maintain automatically.
KARISHMA SIROHI 30
Transfer of funds
support system. It includes a repository of information that is built using data from the
far-flung and often departmentally isolated systems.
Making a business case for a document library:
This section highlights the role that documents plays in todays organization and explores how
businesses can better meet their customers need by improving document management support.
R&D
engineering customer human
stakeholder resources
documentation
manual and suppliers
records
indexing and retrieval are entered during scanning. The problem with the imaging
approach is that the output contains only images, not encoded text. Consequently,
searching the text of a documents image is possible only using the keywords that
categorize that document.
The following imaging standards are prominently used:
TIFF (tag image file format)- format for interchange of bit-mapped images. It
was developed through an industry effort initiated by Aldus Corporation and has
achieved de facto standard status.
ITU-TSS (international telecommunication union- telecommunication
standardization sector)- group Corporate digital library as a core of
documentation .6 Facsimile. This standard is used for compression and exchange
of bit mapped files.
2. Structured documents: it apply database structuring capabilities to individual
documents and documents collections to allow tools to manipulate document content just
like fields within database tables. A large array of standards and products are available to
help create and manage structured documents, depending on the goal and task at hand. If
document interchange between platform and fidelity to document format is the main
concern, a compound document architecture may suffice.
Standard generalized markup language (SGML)
Office document architecture (ODA)
Compound document architecture (CDA)
Rich text format (RTF)
3. Hypertext documents: hypertext is a way of making document based information more
mobile. Mobility of information is necessary for the following reasons:
Information in enterprise is seldom located on one node or server but is
distributed throughout the organization.
Accessing and retrieving large monolithic documents is time consuming.
Reuse of document fragments for composing new documents is more effective
when information stored on individual systems and servers across an enterprise
can be accessed from remote locations.
4. Active documents: it represents what is known as document oriented computing. Active
documents provide and interactive interface where all documents, applications, and data
related to a particular task are assembled, arranged, and interlinked in such a manner that
the user can focus on the task at hand and be shielded from nontask related issues like
access, storage, data formats, location, computing or delivery mechanism.
Intelligent Agent:
KARISHMA SIROHI 34
UNIT 5
E-Commerce scenario in Indian corporate:
India has an internet user base of about 354 million as of June 2015. Despite being third
largest user base in world, the penetration of e-commerce is low compared to markets
like the United States, United Kingdom or France but is growing much faster, adding
around 6 million new entrants every month.
In India, cash on delivery is the most preferred payment method, accumulating 75% of
the e-retail activities.
As of Q1 2015, seven Indian e-commerce companies have managed to achieve billion-
dollar valuation. Namely, Flipkart, Snapdeal, InMobi, Quikr, Amazon India, OlaCabs,
and Paytm.
Key driver:
Large percentage of population subscribed to broadband Internet, burgeoning 3G internet
users, and a recent introduction of 4G across the country.
Explosive growth of Smartphone users, soon to be world's second largest smart phone
user base.
Rising standards of living as result of fast decline in poverty rate.
Availability of much wider product range
Usage and advantages:
Global Trade
Virtual Businesses
Lower search costs
Increased power of downstream players
No Standing in Queues or Being Placed on Hold Forever
Easier to Compare Prices
Lots of Choices
Infrastructure problems:
Payment Collection: When get paid by net banking, one has to end up giving a
significant share of revenue (4% or more) even with a business of thin margin.
Logistics: Businesses have to deliver the product, safe and secure, in the hands of the
right guy in right time frame.
KARISHMA SIROHI 35
Taxation
Cyber crime in E Commerce
Consumers attitude: