E-Commerce Chapter 2

M.
COM part 1
E-Commerce – SEM II
By – Himanshu R Lapashia
Chapter 2 – WORLD WIDE WEB &
E-ENTERPRISE
• English scientist Tim Berners-Lee invented the World Wide
Web in 1989.
• The World Wide Web (WWW) is a system of internet servers
that support specially formatted documents. The documents
are formatted in a markup language called HTML (Hyper Text
Markup Language) that supports links to other documents.
• The documents and other web resources (graphics, audio
files, etc) are identified by Uniform Resource Locators (URLs)
and can be accessed via the internet.
• The terms Internet and World Wide Web are often used
without much distinction. However, the two are not the same.
Reasons for building own website:
• Visibility
• Easy to develop
• Promotion of business
• Online business
• Reflects creativity
• Learning experience
• Competitive advantage
• Corporate image
• Convenience to customers
• Tie-ups
Benefits of website:
• Customer satisfaction
• Corporate image
• Organisational objectives
• Benefits to online sellers
• Customer reviews
• Promotional value
• Customer loyalty
• Tie-ups
• Links
• Cost reduction
Registering a Domain Name:
• Domain name is used to identify IP (Internet Protocol)

address.
• Domain name is used in URL to identify particular Web page.
• It is the unique address of a computer on the internet, which
is made up of three parts:
1) Name of the entity
2) Type of the entity
3) Entity's geographical location.
Procedure for registration of a domain name:
• Domain name
• Identify registrar
• Search for domain name in registrar’s website
• Submission of information to registrar
• Verification by the registrar
• Submit an authority letter
• Registration of domain name
• Payment to the registrar
Role of website in B2C E-Commerce:
• Facilitates Online Trading

• Online Product Reviews
• Online Satisfaction Surveys
• Provides Information
• Builds Customer Loyalty
• Develops Corporate Image
• Gains Competitive Advantage
• Promotion of Products
• Resolves Customer Complaints
Principles of website design:
1) Typography
• Font selection
• Font size
• Spacing
• Line length
• Colour
• Paragraphing
2) Usability
• Adhering to standards
• Think about user tasks
• Graphics
3) Simplicity
4) Visual hierarchy
5) Consistency
6) Accessibility
7) Conventionality
8) Credibility
9) Navigation
10) Test Early, Test Often (TETO principles)
Concept of Electronic Data Interchange (EDI):
• EDI is the computer-to-computer exchange of business

documents between companies.
• It’s a standard format, a process that allows one company to
send information to another company electronically.
• Many businesses choose EDI as its fast, inexpensive and safe
method of sending confidential documents.
Pro’s and Con’s of EDI:
Pro’s/Advantages of EDI:
• Expedites transmission of information

• Automated data entry
• Receipt verification
• Data validation
• Availability of free software
• Lower costs
• Faster processing
• Business growth
• Reduction in errors
• Customer service
Con’s/Disadvantages of EDI:
• Expensive
• System setup is time consuming
• EDI standard changes
• Needs electronic protection
• Staff training cost
• Need for back up
• Limited trading partners
• Too many standards
• Changing standards
• Complex
Related new technologies used in E-Commerce:
• Virtual fitting technology

• Self-check out technology
• Drive-in grocery store
• Drone technology for delivery
• Droid technology
• Augmented reality technology
• Smart refrigerators
• Touch ID technology
• Social networking buttons
• Beacon technology
• Virtual sales force
• Advanced real time analytics
• Chatbots
Concept of E-Enterprise:
Application of E-Commerce and E-Enterprise:
• Retail and wholesale

• Marketing
• Distribution
• Finance
• Manufacturing
• Auctions
• Inventory management
• EDI
• E-Payment
• E-Research and E-Commerce
Application of E-CRM:
• The concept of relationship marketing (RM) was established

by marketing professor Leonard Berry in 1983. Later this
concept was developed into CRM.
• The E-CRM or Electronic-Customer Relationship Management
encompasses all the CRM functions with the use of the
internet environment i.e., intranet, extranet and internet.
• E-CRM can be defined as activities to manage customer
relationships by using the Internet, web browsers or other
electronic touch points. The challenge hereby is to offer
communication and information on the right topic, in the right
amount, and at the right time that fits the customer's specific
needs.
E-Commerce application to CRM:
• Sales force automation

• Marketing automation solutions
• Customer service and support system
• Integrated solutions
• Sales application
• Field service automation
• Personalized Web Pages
• Web Self Service
• Analytics Tools
• Chat Rooms
• Blogs and Wikis
• Discussion Lists
• Web Based Call Centres
Types of E-CRM:
1) Customer facing applications

a) Customer interaction centers/Web based call centres
b) Automate response to E-mail (Auto responder)
c) Sales force automation
d) Field service automation
2) Customer touching application
a) Personalized web pages
b) Web self-service
3) Customer centric intelligence applications
a) Reporting
b) Data warehousing
c) Data mining
4) Online networking applications
a) Forums
b) Chat rooms
c) Usenet groups
d) Blogs and wikis
e) E-mail newsletters
f) Discussion lists
Functional components of E-CRM:
• Operational component
• Analytical component
• Collaborative component
Managing the E-Enterprise:
Features of E-Enterprise:
• Flat organization structure

• Global reach
• Information driven
• Absence of command control
• Process driven
• E-business solutions
• Transformations
• Trading of goods and services
• Management information system (MIS)
Organization of business in E-Enterprise:
• Flat organization structure

• Greater speed of business transaction
• Flexibility in organization structure
• Innovativeness
Benefits of E-Enterprise:
I. Benefits to E-Enterprise/Marketers:
• Global reach
• Cost effective marketing and promotions
• Better service to customers
• Lower investments
• Lower operating costs
• Speed and efficiency
• Customer relationship
II. Benefits to customers
• Convenience in shopping
• Anytime shopping
• Lower prices
• Loyalty incentives
Limitations of E-Enterprise:
• Sectorial limitations
• Costly E-business solutions of optimization
• Data security
• Site upgradation
• Challenges of e-commerce laws in India
• Challenges of low entry barriers to existing firms
• Low penetration on internet in rural areas
• Challenges of customer loyalty
• Problem of payment gateways
• Problem of touch and feel experience

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M.

• Domain name is used to identify IP (Internet Protocol)

• Facilitates Online Trading

• EDI is the computer-to-computer exchange of business

• Expedites transmission of information

• Virtual fitting technology

Application of E-Commerce and E-Enterprise:

• Retail and wholesale

• The concept of relationship marketing (RM) was established

• Sales force automation

1) Customer facing applications

• Flat organization structure

• Flat organization structure

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