E-Commerce and

ERP: A
Comprehensive
Overview
EXPLORING THE DIGITAL MARKETPLACE AND ITS TECHNOLOGICAL FOUNDATIONS

Introduction to E-Commerce
E-commerce, or electronic commerce, encompasses all activities related to the buying and
selling of goods and services over the internet. It involves a comprehensive range of data,
systems, and tools utilized by both online buyers and sellers. E-commerce is not limited to
desktop computers; it also extends to mobile shopping and employs encryption technologies
to secure online payments.

Types of E-Commerce
Business-to-Business (B2B): This type of e-commerce involves transactions between
businesses. For example, a car manufacturer may purchase tires from a tire producer.
B2B sales typically involve larger quantities and longer sales cycles compared to B2C
transactions.
Business-to-Consumer (B2C): This refers to transactions between businesses and
individual consumers. It is the most common form of e-commerce and includes online
retail stores where consumers purchase products directly from sellers. Examples include
Amazon and Walmart’s online stores.
Consumer-to-Business (C2B): In this model, individuals sell products or services to
businesses. For instance, freelancers offering their services, such as web design or
content writing, to companies fall under this category.
Consumer-to-Consumer (C2C): This model involves transactions between individual
consumers, often facilitated by a third-party platform. Online marketplaces like eBay or
Etsy are prime examples where individuals can sell goods directly to other consumers.

Advantages of E-Commerce
Convenience: E-commerce platforms allow consumers to shop at any time and from any
location, offering unparalleled convenience compared to traditional brick-and-mortar
stores.
Variety: Online shopping provides access to a vast array of products and services that
may not be available locally.
Cost-Effective: Operating online can reduce costs associated with physical storefronts,
such as rent and utilities, allowing businesses to offer competitive pricing.
 Global Reach: Businesses can expand their customer base internationally, reaching
consumers across the globe without the need for physical presence.

Disadvantages of E-Commerce
Security Concerns: The risk of data breaches and online fraud remains a significant
challenge for e-commerce businesses, necessitating robust security measures.
Lack of Personal Interaction: Online shopping lacks the personal touch and customer
service experience available in physical stores, which can be a drawback for some
consumers.
Dependence on Technology: Reliable internet access and technology are essential for e-
commerce operations, and any disruption can impact sales and customer satisfaction.
Logistics Issues: Managing delivery and shipping can be complex, with potential delays
and additional costs impacting customer satisfaction.

Application Areas of E-Commerce

Retail and Wholesale: E-commerce has revolutionized the retail and wholesale sectors,
enabling businesses to offer a wide range of products through online platforms.
Finance: Online banking and payment services are integral parts of e-commerce,
facilitating secure and efficient financial transactions.
Manufacturing: E-commerce supports e-procurement and supply chain management,
streamlining manufacturing processes.
Education: E-learning platforms and online courses make educational resources
accessible to a broader audience.

E-Commerce Framework
An e-commerce framework refers to the architecture of a business's online operations,
encompassing payment processing, customer service, product management, and data
analytics. It provides the necessary infrastructure to support seamless online transactions
and customer interactions.

Introduction to M-Commerce
M-commerce, or mobile commerce, involves conducting transactions using mobile devices
such as smartphones and tablets. It extends the capabilities of e-commerce to mobile
platforms, offering increased convenience and accessibility for users who are on the move.

Internet and Network Security

E-Commerce and the Internet
The internet serves as the backbone for e-commerce, enabling online transactions and
communication between businesses and consumers. Key components include:

IP Address: Each device connected to the internet is assigned a unique IP address, which
acts as an identifier.
DNS (Domain Name System): This system translates user-friendly domain names into IP
addresses that computers use to identify each other on the network.
ISP (Internet Service Provider): ISPs offer internet access to users, providing the
necessary infrastructure for online connectivity.
URL (Uniform Resource Locator): URLs specify the address of a resource on the internet,
allowing users to locate web pages and other online content.

Modes of Internet Connectivity

Broadband: Offers high-speed internet connectivity through various technologies such
as cable and DSL.
DSL (Digital Subscriber Line): Provides internet access using telephone lines, offering a
cost-effective option for home users.
Fiber-Optic: Utilizes fiber-optic cables to deliver extremely high-speed internet, ideal for
businesses and heavy internet users.
Satellite: Enables internet access in remote areas where traditional broadband options
may not be available, using satellite technology.

Web Architecture and VPN

Web Architecture: Involves the design and structure of web applications, ensuring
efficient data flow and optimal user experience.
VPN (Virtual Private Network): A VPN provides secure internet connectivity by
encrypting data and masking IP addresses, enhancing online privacy and security.

Electronic Payment Methods and

Digital Currencies
Differences Between Traditional and Electronic Payment
Methods
Traditional Methods: Include cash, checks, and credit cards, typically involving physical
transactions.
Electronic Methods: Encompass digital wallets, online banking, and cryptocurrencies,
facilitating seamless and instant online transactions.

Types of Electronic Payment Methods

 Credit/Debit Cards: Widely used for online transactions, offering convenience and
security.
Digital Wallets: Platforms like PayPal, Apple Pay, and Google Wallet allow users to store
payment information and make transactions quickly.
Cryptocurrencies: Digital currencies like Bitcoin offer an alternative payment method
with decentralized control.
Electronic Checks and Bank Transfers: Enable secure electronic fund transfers between
banks.

E-Commerce Secure Payment Systems

Digital Certificate and Digital Signature: Used to ensure secure and authenticated
transactions by verifying the identity of parties involved.
SSL (Secure Sockets Layer): Encrypts data exchanged between users and websites,
safeguarding sensitive information.
SET (Secure Electronic Transaction): A protocol designed to secure credit card
transactions over the internet.
Cyber Cash Model and Digicash: Early models of electronic payment systems that paved
the way for modern digital payments.
Smart Card: A card embedded with a microchip, enabling secure and convenient
transactions.
EDI (Electronic Data Interchange): Facilitates the electronic exchange of business
information, streamlining operations.

Introduction to MIS and ERP

Management Information Systems (MIS)
Definition: MIS are systems designed to manage and process information, supporting
decision-making within organizations.
Working: Integrates data from various sources to generate reports and insights, aiding
strategic planning and operational management.
Application: Employed in diverse business operations, from resource management to
performance monitoring.
DSS (Decision Support System): A component of MIS that helps in making informed
decisions by analyzing data.
Data Processing: Involves the collection, storage, and management of data to produce
meaningful information.
End-user Computing: Refers to the direct use of computer systems by individuals to
perform tasks and make decisions.

Introduction to ERP and ERP Systems

ERP (Enterprise Resource Planning): Comprehensive software systems that integrate all
aspects of a business, including finance, HR, and supply chain.
 ERP Functional Modules: Cover various business functions such as finance, human
resources, manufacturing, and logistics.
ERP Selection Issues: Considerations include cost, scalability, and compatibility with
existing business systems.

Information System Perspective

of ERP
Introduction to OLAP and OLTP
OLAP (Online Analytical Processing): Tools used for analyzing data stored in databases,
supporting complex queries and data analysis.
OLTP (Online Transaction Processing): Supports routine transaction processing, ensuring
efficient handling of day-to-day business operations.

Knowledge Base System

A knowledge base system utilizes a database of knowledge and rules to solve problems and
provide insights, supporting decision-making processes.

MRP and Supply Chain Management

MRP (Material Requirements Planning): Ensures that materials and products are
available for production when needed, optimizing inventory management.
Supply Chain Management:
Definition: The management of the flow of goods and services from suppliers to
consumers.
Components: Include suppliers, manufacturers, logistics providers, and customers.
Process: Involves planning, sourcing, making, delivering, and returning goods and
services.

Customer Relationship Management (CRM)

Definition: Strategies and technologies used to manage interactions with current and
potential customers.
Objectives: To improve customer service, increase customer retention, and drive sales
growth.
Benefits: Include enhanced customer satisfaction, loyalty, and personalized marketing
efforts.
Process: Involves collecting and analyzing customer data to improve engagement and
relationships.

Business Process Reengineering

Definition: The fundamental rethinking and redesign of business processes to achieve
significant improvements in performance.
Advantages: Include increased efficiency, cost reduction, and improved quality of
products and services.
Process: Involves identifying, analyzing, and redesigning core business processes to
achieve desired outcomes.