AN INTRODUCTION

          Electronic commerce or ‘eCommerce’ is the use of the internet for a range of business purposes, including:

• marketing and publicity
• online sales via the web
• communication
• business to business transactions

MARKETING AND PUBLICITY

            The web is an ideal media for marketing and publicity because of it’s potential to reach a global audience and it’s capacity to support the use of images, animation, and audio/video. Many websites will carry advertisements for the web sites of sponsoring companies, which through the hyperlink system can be accessed simply by clicking on the advertisement.

ONLINE SALES VIA THE WEB

            Improvements in security are leading to an increasing number of web-based services now being available for the buying and selling of goods. Most major high-street brands now have a website with facilities for ordering goods online. In addition, a number of companies have been established to trade solely via the web.

COMMUNICATION

            Many companies now rely on the internet for communication, both within the company and with customer. While this is typically through email, other facilities such as chat, instant messaging, web telephony and audio/videoconferencing are also being used.

BUSINESS TO BUSINESS TRANSACTIONS

            Business to business (B2B) transactions involves the direct trade between two companies, rather than between a company and a customer, for example exchanging information or transactions with a supplier. This may be through the use of an “extranet” (area of a website restricted to authorized people who logon with a password) which allows access to ordering, product or accounting information specific to that company.

CONCEPTS

            Electronic commerce (e-commerce) is the use of telecommunications and data processing technology to improve the quality of transactions between business partners. It has existed in some form since the invention of the telegraph and early automated data processing equipment but its use has greatly increased. E-Commerce improves organizational efficiencies by leveraging data processing, database storage, and data communications technologies. Existing network facilities can be utilized to achieve great savings in labour costs and the reduction of paper storage and handling facilities. It has enabled firms to be more effective in improving the quality of standard goods and services and to offer a variety of new services of new services. The global marketplace has become larger and wider than ever because of the expansion of e-commerce activity.

            The growth of electronic commerce has been fueled by the availability of world wide telecommunication networks along with enhanced information delivery techniques utilizing the various multimedia technologies Client-server architecture allows systems with different hardware and software platforms to interact in an open system computing environment.

TECHNOLOGY IN E-COMMERCE

Introduction

            In any E-C0mmerce systems implementation, integration between business processes with in companies is very important for a successful implementation. Within a company integration needs include interfacing with legacy systems, communicating with third party products, and integrating business processes across distributed E-Commerce systems. The two most commonly deployed technologies for this type of integration are ALE (Application Link and Enabling) and (Electronic Data Interchange) technologies, which make use of the popular Idoc (Intermediate Document) interface for exchanging data. EDI provides business process integration across companies by exchanging business documents such as purchase order. Invoices, and shipment notices in electronic form using industry standard formats such as ANSIX.12 (American National Standard’s Institute) and EDIFACT (Electronic Data Interchange For Administration, Commerce, and Transport).

            ALE, Which is SAP’s proprietary technology for integrating distributed business processes within a company, has been available in SAP since release 3.0 ALE was designed to link one SAP system to another SAP system, but the ALE architecture lent itself to being used in linking SAP system to non-SAP system without any modification. The flexibility of ALE technology has proliferated into several application areas, and today most third-party products use it to exchange data with SAP. ALE technology is also the basis for SAP’s Business Framework architecture, introduced in release 4.0.

            The underlying architecture of the ALE and EDI technologies are quit similar Both make use SAP’s proprietary Idoc interface, which defines the format and structure of the data that is exchanged between two systems. Although ALE and EDI are the two biggest users of the Idoc interface, this interface can also be used by any two applications that need to exchange data. For example, it can be readily used to integrate SAP with Web applications. As cross-application technologies. ALE and EDI are used in various modules of SAP such as SD (Sales and Distribution). MM (Materials Management) and FI (Financials). The wide-ranging application of these technologies has created and ever-in-creasing need for ALE. EDI, and Idoc skills. Mastery of these skills is a necessity for anyone involved in the technical or functional side of an SAP implementation

Internet & E-business

            Electronic commerce can be viewed from two business application perspectives. One perspective on e-commerce in business is to look at those businesses engaged in providing electronic commerce technology to help enable other businesses. Internet Service Providers (ISP) and private Commercial Network Providers help the companies into wide area networks (WAN) for use in e-commerce activity. They may offer additional features such as protocol conversion and are they described as Value-Added Network (VAN). Other types of firms specialize in helping organization build electronic commercial sites. Software firms sell data encryption and other types of security-related technologies, user interface programs and other types of software used to implement e-commerce. Other firms specialize in consulting and designing e-commerce applications such as World Wide Web sites.

            Another perspective on e-commerce is to examine the application uses to which a business uses such technologies. Linkages between business partners may be tightened through improvements in Just In Time (JIT) supply logistics overall improvement in supply chain management. Consumer marketing and sales techniques like shopping kiosks and home shopping techniques have removed barriers of distance and increased product awareness. Electronic publishing services, financial news and remote banking services are now available over networks. Commercial databases and library services provide general information resources. On line job placement services are numerous, and distance education and job training services can assist in career development. A wide variety of recreational and entertainment services are currently available and such services will expand dramatically in the near future.

Internet & E-business

            Electronic commerce can be viewed from two business application perspectives. One perspective on e-commerce in business is to look at those businesses engaged in providing electronic commerce technology to help enable other businesses. Internet Service Providers (ISP) and private Commercial Network Providers help the companies into wide area networks (WAN) for use in e-commerce activity. They may offer additional features such as protocol conversion and are they described as Value – Added Network (VAN). Other types of firms specialize in helping organization build electronic commercial sites. Software firms sell data encryption and other types of security-related technologies, user interface programs and other types of software used to implement e-commerce. Other interface programs and other types of software used to implement e-commerce. Other firms specialize in consulting and designing e-commerce applications such as World Wide web sites.

            Another perspective on e-commerce is to examine the application uses to which a business uses such technologies. Linkages between business partners may be tightened through improvements in Just In Time (JIT) supply logistics overall improvement in supply chain management. Consumer marketing and sales techniques like shopping kiosks and home shopping techniques have removed barriers of distance and increased product awareness. Electronic publishing services, financial news and remote banking services are now available over networks. Commercial databases and library services provide general information resources. On line job placement services are numerous, and distance education and job training services can assist in career development. A wide variety of recreational and entertainment services are currently available and such services will expand dramatically in the near future.

Advantages of E-Commerce

            The increased computerization of our society is triggering major changes in the organization of work. Paper driven processes are being reengineered to capture the benefits of doing business electronically. Businesses are implementing electronic commerce (EC or E-Commerce) to meet the imperatives of an increasingly competitive world.

            Electronic Commerce is the business environment in which information for the buying selling, and transportation of goods and services moves electronically. Electronic Commerce (EC) includes any technology that enables a company to do business electronically. Some of the direct benefits of Electronic Commerce are:

• Improved Productivity
• Cost Savings
  • Streamlined Business Processes
• Better Customer Service
  • Opportunities for New businesses

Improved Productivity:

            Using electronic commerce, the time required to create transfer and process a business transaction between trading partners is significantly reduced. Furthermore, human errors and other problems like duplications of records are largely eliminated with the reduction of data-entry and re-entry in the process. This improvement in speed and accuracy plus the easier access to document and information, will result in increase in productivity.

Cost Savings:

            Based on the experience of a wide variety of early adopters of electronic commerce. Forrester Research has estimated that doing business on the Internet can result in cost savings of about 5% to 10% of sales. This cost savings steam from efficient communication quicker turnaround time and closer access to markets.

Streamlined Business Processes:

            Cost savings are amplified when businesses go a step further and adapt their internal processes and back-end legacy systems to take advantage of electronic commerce. Inventories can be shaved if businesses use the Internet to share such information as promotional plans, point – of – sale data, and sales forecasts. Business processes can also be a made more efficient with automation.

Better Customer Service:

            With electronic commerce, there is better is better and more efficient communication with customers. In addition, customers can also enjoy the convenience of shopping at any hour, anywhere in the world.

Opportunities for New Businesses:

            Business over the Internet has a global customer reach. There are endless possibilities for businesses to exploit and expand their customer base.

APPLICATIONS, FEASIBILITY & VARIOUS CONSTRAINS:

            The latter half of the 1990’s has seen an explosion in the use of the Internet/Intranet and its accessibility to individuals, corporations, and educational institutions. This revolution has dramatically changed the way organizations conduct business with its consumers and with each other. The geographic boundaries, that offer limited access to goods and services, are crumbling and companies of all sizes are busy building commerce solutions and adapting to new ways of doing business. The internet/Internet with inherent features like easy access, real-time information, and low cost, is a natural driver for commerce solutions. Further, companies enticed with the promise of the following competitive advantage as are undertaking electronic commerce projects.

• Broader market reach
• Increased efficiency and accuracy and accuracy through automated order-processing, inventory control billing, shipping, and so forth.
• Better customer service and support
• Instant communication with consumers and trading partners.
• Improved profit margins through automated supply chain management,
• Better forecasting of customer needs for goods and services
• Reduced labor costs
• Lower overall costs

Electronic commerce is often misunderstood to be limited to buying and selling of goods and services over the Internet. Actually, commerce solutions are a lot more than just the handling of business transactions and fund transfers over the Internet. It defines new forms of doing business. In addition to providing buying and selling services, commerce solutions can provide a complete system of services built into an organization’s digital nervous system so it supports the sales processes and provides total account management.