Page 23 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

E-Commerce and E-Business

2. Digital Wallet: It is the security software for your Web browser. Digital wallet helps your browser
to encrypt credit card data so that only the bank that authorizes credit card transactions for the
merchant can see it.
3. Secure Electronic Transaction (SET): It helps to encrypt a digital envelope of certificates specifying
the payment details for each transaction. SET is expected to become the dominant standard for
secure electronic transactions over the Internet.
1.7 Summary

• Commerce is defined as an exchange of commodities or all activities involved in transferring
goods from producers to consumers.
• E-Commerce is defined as a process of buying and selling of goods or services using electronic
systems. E-Business is defined as the use of Internet technologies to enhance the key business
processes.
• In the early 1990s, e-commerce emerged with the launch of World Wide Web and Web browsers.
• The three major factors fueling e-commerce are:
(a) Economic factors

(b) Market and customer interaction factors
(c) Technology factors
• The ability of a Web site to offer a wider selection of products and the facility to browse are the
major advantages of e-commerce over traditional commerce.
• Convergence is defined as the merging of consumer electronics, publishing, television, computers,
and telecommunications for the purpose of enabling new forms of information-based commerce.
• The two types of convergence are multimedia convergence and cross-media convergence.
Multimedia convergence refers to the conversion of data, voice, text, image, graphics, and full-
motion video into digital content.
• Cross-media convergence refers to the integration of various industries, such as, entertainment,
publication, and communication media based on multimedia content.

• Multimedia content is considered to be the backbone of electronic commerce applications.
• Some of the commonly used applications of e-commerce are:
(a) E-mail
(b) Online shopping and order tracking
(c) Online banking

(d) Electronic tickets
• Some of the benefits of e-commerce are:
(a) Organizational benefits:
(i) Global reach
(ii) Reduction in paper costs
(iii) Customization of products or services
(iv) Improved customer service

(b) Consumer benefits:
(i) Increased choice of vendors and products
(ii) Convenience of shopping at home

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