Applications in E-Commerce

Explain types of Net marketplaces.

The four main types of “pure” Net marketplaces are:

1. Electronic distributors are independently owned intermediaries who provide a single source for industrial customers to purchase or maintain indirect products and make repairs. Electronic distributors operate in the horizontal market and serve a variety of industries with products from different vendors.
2. Electronic contracting companies are independently owned intermediaries that connect with hundreds of online vendors who provide millions of maintenance, repair and labor products to commercial companies that pay fees to enter the market. Electronic procurement companies operate in the horizontal market, where long-term contract purchases are used to purchase indirect goods.
3. Exchanges are independently owned online marketplaces that connect hundreds of sellers with thousands of potential buyers in a dynamic, real-time environment. They are usually vertical markets in which direct inputs (goods and services) can be purchased directly. Exchanges create money by putting a charge for every transaction.
4. Industry consortia are industry-owned vertical marketplaces which can make lengthy deal purchases of straight contributions from a limited pool of invited members. The consortium works to decrease supply chain effectiveness by incorporating the industry supply chain throughout an ordinary system and computing stage.

Net marketplaces can also be categorized as:

1. Buy-centric Markets: These marketplaces are organized by large and influential buyers in a place where small and retailers sell their products, such as freemarkets.com.
2. Sell-centric Markets: These markets are organized by large and influential sellers as a place where small and fragmented buyers can buy. The organizers of these markets derive revenue from advertisements, commission on sales etc. e.g., grainger.com
3. Neutral Exchanges: These markets appear when both the buyers and sellers are fragmented. These markets are organized by a third party who creates a neutral exchange and performs the transactions through a bid system. e.g., Arbinet.

Online Education or E-Learning is a kind of education where students have a computer or a phone with an internet connection and can learn from tutors or from recorded videos online.

Advantages of online education or e-learning to students and universities

• Accessibility: Students can attend online classes anywhere. They can attend classes completely based on their convenience and they are able to accomplish their courses completely via the Internet including all the administrative aspects.
• Choices: Students can enroll for courses in different subjects. The selection of courses is much broader than traditional courses.
• Flexibility: There is much more flexibility in online learning and online courses. Rather than attending the same classes at the same time on the same days of the week, online courses are structured in that way that allow students to complete work at their own pace. For students who need to work while they are earning a degree or have families at home, the ability to work around schedules is often the most important advantage of online education.
• Communication: Students can interact and interact with students from all over the country or the world.
• High Quality: The quality of education received in the virtual classroom is just as good as or better than in standard classroom settings.
• Cost: Online education is not as expensive as traditional education. The cost to attend online universities and earn one of the many online bachelor degrees is quite cost effective.
• Time: Time is not a factor, as students can attend lectures, complete assignments and take exams in their spare time. They can make a program that suits them.
• Availability: Documents, copies, live discussions, and training materials are archived, recorded, read, downloaded, and printed via email or school website. Tutors are also present at suitable period and offer fast feedback through email.
• Faster awarding of degrees: Because they are so flexible, students can complete degree requirements at faster rates than at other universities. Online degree programs use this flexibility to create accelerated degree programs. With more streamlined and pertinent courses and students working at their own pace according to their own schedules, it is possible to graduate from an online college in considerably less time than from the local university.
• Good Faculty: Contrary to what some people might think, online colleges have some of the best faculty in the country. Online schools strive to recruit the best and brightest people in their field for a professorship. Teachers at online schools tend to have more direct experience working in their industry than academics working at other universities. Online universities only hire professors with the best academic credentials and real life experience to back that up.

Disadvantages of e-learning to students and universities

• Employment: Not all business sectors recognize online degrees.
• Oral Communication: Due to email or text chat interactions, people may not have the opportunity to improve their verbal communication skills.
• Lack of interaction: Although students communicate with their teachers through an online learning system, questions and discussions from other students are not asked during the conference.
• Fraud: Many online degrees are not valid or accredited.
• Limited Courses: Not all courses are available online.
• Difficult to manage: Sometimes managing education online can be very difficult. Lack of time is one of the reasons a student is making changes to online learning. You find it complicated to balance work time and college. But even when they study online, they should have time to earn grades and pass the syllabus. Students have a pre-defined schedule in college and school. At the same time, they must plan for themselves during online studies, otherwise all their effort will be wasted. 
• Lack of technical skills: One of the main drawbacks of online education is the lack of technical skills required for online graduation. Most people are still not technically advanced enough to deal with the methods used to improve online education. Even many teachers and administrative staff have difficulty implementing teaching programs or supervising students. Teachers, in particular, have earned their certification through traditional means and, for the most part, are not well versed in the team.
• Limited reach of information technology: One of the most important things to teach online is the computer and the Internet connection. However, people in regional and remote areas still cannot access this product. Buying them a computer is very expensive. In addition, online education helps students from various fields to meet and learn together, but at the same time make it difficult for students cannot ask someone else or face a technical problem with her. But you can’t discuss it, because you might not get anything in the study group from your area.
• Inappropriate course design: Online course designers can sometimes expect the rise of computer technology. This led to the development of training courses for implementation of computers that were expected to be available in the future but was not available.
• High Net Cost: The cost of graduating online is not always as low as students think. Due to the cost of accessories and multimedia materials included in the course, some titles may be more expensive than traditional ones. These costs may exceed accommodation and travel costs related to local education.

What is E-banking?

E-banking or Internet banking indicates any person with an individual computer or a mobile phone and a browser with an internet connection can easily joined to his/her bank’s website, application, or portal to carry out any of the virtual banking roles. With the help of E-banking or internet banking people can handles their banking services easily from any place. They can easily transfer funds, operate their bank accounts, investments, cards, loans, insurances, and many more with banks with the help of e-banking. To operate internet banking customer needs to register himself/herself with the bank to avail the services of internet banking and then the user needs to set up a password and other details to verify the user. People can also use some third-party apps to accept or receive payments from bank accounts like Paytm, PhonePe, Google Pay, PayPal, etc. It encourages paperless or cashless transactions. In internet banking or e-banking method, every bank has integrated records that are web-enabled. All the services that the bank has allowed on the internet are shown on the Menu of the bank’s portals or applications. Any service can be picked and then the interaction as stated by the type of service.

Types of E-Banking services

1. Internet Banking
2. ATM
3. Mobile Banking
4. Credit Card
5. Debit Card
6. Point of Sale (POS)
7. Electronic Data Interchange (EDI)
8. Electronic Fund Transfer (EFT)

Benefits of Internet Banking

• It provides 24/7 banking services to users.
• Users are up to date with their bank accounts.
• It is convenient and easy for the users as they don’t have to go to banks all time.
• It is a secure way because users can avail their services with the PIN or an OTP which user received on their registered mobile number.
• Consumers can easily pay their bills and recharge their phones easily without waiting in queues.

How is E-commerce facilitating Online Travel and Banking Services? E-commerce is facilitating online travel and banking services which are explained below:-

E-commerce is facilitating online travel and tourism

Travel and tourism have emerged as the largest service sold over the Internet. Online travel and tourism services provide the same connectivity on the World Wide Web (www) so that customers can search, select, and then book appropriate flights and fares. It comprises online travel & tour agents, airlines, conventional tour agents, and reservation methods.

The air travel industry is well appropriate to evaluate the outcomes of product separation. The basic commodity characteristics, i.e., airline tickets, are sufficiently standardized and have a good sense of detail, which allows them to clearly distinguish the benefits of online travel services.

Benefits of online travel services

• Low overhead costs: The cost of providing online travel services to a wide range of customers over the world is very low. The tickets can be delivered online without any physical contact with the customer.
• No commuting time or traffic jams: The customer can avail the services sitting at home, throughout the day. He need not commute to acquire the services thereby avoiding traffic jams.
• Ease of set up: Establishing online travel business is easy. As more and more people use the Internet, the services have a broader customer base.
• Information sharing: The customers benefit from the large amount of free information available on the Internet which can be accessed anytime.
• Cost savings: With disintermediation in the channel of distribution, the customers benefit from the reduced costs.
• Online Travel offers a one-stop shop, business and leisure travel experience where customers can find content, community, commerce and customer service.

E-commerce is facilitating banking services

Electronic banking saves time and money for users. This provides a cheaper alternative to bank branches and allows remote customers to join banks.

Benefits of online banking services

• User can easily check the balance in his account and also can set up his account to pay off his credit card dues automatically every month.
• User can pay his bills through online banking. The cost of paying bills electronically is less than the cost of postage of sending a large number of payments each month.
•  User can transfer money between accounts without waiting in queues and without filling the deposit slips.
• User can receive additional services such as phone banking.
• Online banking can also help in international capital raising, cash management, trades and services, foreign exchange, risk management investments, merchant services and special services for international traders.

What are the features of an online service sector? What are the major online service companies?

Online Service sector helps in offering different services to the people, consumers, businesses and government with the help of internet. There are many kinds of services which have been offered to the public over the internet like financial services, banking services. travel, insurance, education and many more. Nowadays, the technology is so advanced that you can handle your bank accounts from your home and can easily transfer and accepts payments from anywhere in the world. It saves the time and efforts of people so that they can do their work with the ease.

Features of online services

The service sector is the biggest and quickest developing division of the economy of progressed industrialized countries. Service industries are industries that offer services to customers, businesses, governments, and any other organizations.

The major groups in the service industry are FIRE, occupational services, and health services. Within these service industry sets, companies can be divided as marketable mediators and suppliers of “processing” services. The service sector is generally considered knowledge and information-intensive industry, with some expectations. Because of this reason, a lot of services are particularly appropriate for e-commerce and the ease of the Internet. The quick growth of e-commerce services in finance, as well as insurance, real estate, travel, and employment, is demonstrated by the perspective of these companies:

• Gather, store and distribute high-significance information,
• Giving quick and consistent connectivity,
• Personalization and customization of services or service components.

E-commerce offers exceptional opportunities to improve turnover efficiency in an industry where productivity has not been significantly affected by the explosion of information technology.

Major Online service sector companies are

• On-line financial services
• On-line banking services
• On-line travel services
• On-line career services
• On-line insurance services
• On-line insurance companies
• On-line stock trading

Some examples of Online service companies are

• Inter Active Corp.
• Real Networks
• Yahoo!
• Amazon
• Google
• Ebay

What Factors Should be Considered While Implementing Online Retailing Initiatives?

Online Retailing is a process in which people or consumers can easily search, explore and buy products and services over the internet. It is the easiest way to buy any good or services. Consumers can reach globally from one place only and can purchase any product from anywhere.

While Implementing Online Retailing Initiatives One Must Consider the Following Factors

• Business is able to provide excellent customer service, otherwise the company’s sales may reflect the lack of planning.
• Human interaction is an extremely important element of a successful website. If a customer encounters any problem or has questions, the ability to interact with a live service representative makes the on-line shopping experience much more productive.
• Website is easy to access and navigate and is visually appealing.
• Business should be innovative enough to challenge the current way of doing things. Customers appreciate an environment that is fun and interactive and may be more inclined to buy.
• Referrals are still the best way to find new customers. If the e-business is able to meet or exceed the customer’s expectations, they will disclose this fact to their friends and relatives. The customer is the key to succeeding in on-line trading.
• Security on the web is paramount. It is not recommended that customers submit their credit card information on the web unless security is ensured. Security can be a barrier to sales growth.
• The value of the web data generated by a single sale is greater than the sales because it can lead to a long and profitable relationship with those customers. Each visit to a retail store generates important data on customer behavior, whether it is sold or not.
• The order of each visitor is a digital gesture that shows practices, preferences and trends.

Explain the key strategic factors to analyze the economic viability of an online firm.

A strategic analysis of the economic viability of an online firm focuses on the industry and the company as a whole.

Key industry strategic factors:

• Barriers to entry – Can you prevent new investors from entering an industry with a high cost of capital?
• Power of suppliers – Can suppliers charge higher prices for the industry or can they effectively negotiate lower prices? Do companies get enough coverage to negotiate lower prices with suppliers?
• Power of customers – Can consumers choose from many competing suppliers and challenge higher prices and higher margins?
• Existence of substitute products – Can the goods or service role be attained during substitute guides or opposing products in diverse industries?
• Industry value chain – Does the industry’s production and distribution chain change the company’s profit or loss?
• Nature of intra-industry competition – Is the source of competition in the industry stands on diverse goods and services, cost, range of offers, or concentration of offers? How is the personality of competition varying?

The key strategic factors to analyze the economic viability of an online firm include:

1. Firm’s Value Chain. It should be evaluated to determine if the company has adopted business systems that allow it to operate with maximum efficiency and if there are technical changes that force the company to change its operations or methods.
2. Core Competencies.  These refer to unique skills that a firm has that cannot be easily duplicated. When analyzing a firm’s financial viability, it is important to consider whether technological changes can invalidate these institutions.
3. Synergies. Refers to the availability of the assets and capabilities of the relevant company or its strategic partnership.
4. Firm’s current technology. It has proprietary strategies that balance on demand and must be estimated to decide if customer relationships, sourcing, supply chain management, and human resource systems are growing.
5. The social and legal challenges. The business must consider consumer trust issues, such as privacy and protection of personal information, and determine whether the business is subject to legal challenges.

What is the difference between Intranet Extranet and Internet?

Based on their scope in an organization, the networks can be classified into Intranet, Extranet, and Internet.

1. Intranet. A network, that connects the various computer systems and other networks within an organization, is called the Intranet. It uses the same hardware and software that is used on the Internet for networking. The intranet provides networking facilities only to internal employees and customers. It makes use of the software called a firewall to stop unauthorized consumers from using network resources. It uses browsers, TCP/IP protocols as well as client-server architecture for accessing the network and for communication. It enables an organization to provide basic services of the Internet to its employees and business partners and it enables them to communicate effectively and quickly, share information, software, and other computing resources. Intranet is widely used in organizations because it uses the same software as the Internet which is used by most computer systems worldwide. Besides, a low development and maintenance cost is one of its important advantages. It also enables fast and easy dissemination of information.
2. Extranet. Extranets are the extended networks that enable users in an organization to share information with its business partners through the internet. It is a mixture of the public internet and the secured intranet. It extends the organization’s intranet to the outsiders such as merchants, business partners, and suppliers. But they do not have access to the internal parts of its intranet. It allows only significant customers and the top suppliers to access the internal information of the organization. It allows faster time to market, higher customer loyalty, and improved communication with the business partners.
3. Internet. The Internet is known as the global structure of computer networks. It is a network of networks that lets users share information on connected computers. The term “Internet” is composed of two words: interconnection and network. It comprises various separately administrated networks having various sizes and types. Each of these networks contains dozens of computers. In addition, the total number of Internet users is known to be millions. With a high level of online communication, there is a high level of communication, sharing of resources, and access to information.

What is an intranet? What are the applications that rely on it for efficient and effective productivity?

Intranet: 

Electronic commerce within organizations is possible through the Intranet. It is a networked environment that specifies the type of information exchange “within the company”. The users of the intranet are employees of the same company that uses TCP / IP protocol. It is limited to internal employees and customers, and firewalls are installed to keep non-employees out. Change the role of email to forward messages within the company, acceptance and acceptance of orders, and other forms of correspondence.

In an intranet, there is no true payment process. Money transfers or fees against budget accounts are a pure accounting transaction as part of the exchange of information and services between sections or sections of a large company.

Different departments that have different personal computers or local networks can communicate over the Intranet. The benefits of intranet include low development and maintenance costs, it is environmentally friendly because of its company-specific availability and sharing of correspondence, timely and current information, and quick and easy dissemination of information.

Some of the applications that rely on an intranet for efficient and effective productivity are:

• Workgroup communications. These apps allow managers to communicate with employees via email, video conferencing, and bulletin boards. The goal is to use technology to increase the dissemination of information, leading to better-informed business owners.
• Collaborative publishing. These apps allow companies to organize, publish and publish human resources, manuals, production specifications and meeting minutes using tools such as the World Wide Web. Online publishing not only results in better strategic and tactical decision making throughout the firm, but also shows immediate and clear benefits, i.e., reduced costs for printing and distributing, documentation, fast delivery of information and reduction of outdated information.
• Sales force productivity. These apps improve the flow of information between production and sales forces and between companies and consumers. Better integration of sales forces with other parts of the organization can have greater access to market intelligence and competitor information, which can be funneled into better strategy.