Introduction to ERP

ERP, which is an abbreviation for Enterprise Resource Planning, is principally an integration of

business management practices and modern technology. Information Technology (IT) integrates
with the core business processes of a corporate house to streamline and accomplish specific
business objectives. Consequently, ERP is an amalgamation of three most important components;
Business Management Practices, Information Technology and Specific Business Objectives.

In simpler words, an ERP is a massive software architecture that supports the streaming and
distribution of geographically scattered enterprise wide information across all the functional units
of a business house. It provides the business management executives with a comprehensive
overview of the complete business execution which in turn influences their decisions in a
productive way.

At the core of ERP is a well-managed centralized data repository which acquires information from
and supply information into the fragmented applications operating on a universal computing
platform.

Information in large business organizations is accumulated on various servers across many

functional units and sometimes separated by geographical boundaries. Such information islands
can possibly service individual organizational units but fail to enhance enterprise wide
performance, speed and competence.

The term ERP originally referred to the way a large organization planned to use its organizational
wide resources. Formerly, ERP systems were used in larger and more industrial types of
companies. However, the use of ERP has changed radically over a period of few years. Today the
term can be applied to any type of company, operating in any kind of field and of any magnitude.

Today’s ERP software architecture can possibly envelop a broad range of enterprise wide functions
and integrate them into a single unified database repository. For instance, functions such as Human
Resources, Supply Chain Management, Customer Relationship Management, Finance,
Manufacturing Warehouse Management and Logistics were all previously stand alone software
applications, generally housed with their own applications, database and network, but today, they
can all work under a single umbrella – the ERP architecture.

In order for a software system to be considered ERP, it must provide a business with wide
collection of functionalities supported by features like flexibility, modularity & openness,
widespread, finest business processes and global focus.
Integration is Key to ERP Systems
Integration is an exceptionally significant ingredient to ERP systems. The integration between
business processes helps develop communication and information distribution, leading to
remarkable increase in productivity, speed and performance.

The key objective of an ERP system is to integrate information and processes from all functional
divisions of an organization and merge it for effortless access and structured workflow. The
integration is typically accomplished by constructing a single database repository that
communicates with multiple software applications providing different divisions of an organization
with various business statistics and information.

Although the perfect configuration would be a single ERP system for an entire organization, but
many larger organizations usually deploy a single functional system and slowly interface it with
other functional divisions. This type of deployment can really be time-consuming and expensive.

The Ideal ERP System

An ERP system would qualify as the best model for enterprise wide solution architecture, if it
chains all the below organizational processes together with a central database repository and a
fused computing platform.

Manufacturing

Engineering, resource & capacity planning, material planning, workflow management, shop floor
management, quality control, bills of material, manufacturing process, etc.

Financials

Accounts payable, accounts receivable, fixed assets, general ledger, cash management, and
billing (contract/service)

Human Resource
Recruitment, benefits, compensations, training, payroll, time and attendance, labour rules, people
management

Supply Chain Management

Inventory management, supply chain planning, supplier scheduling, claim processing, sales order
administration, procurement planning, transportation and distribution

Projects

Costing, billing, activity management, time and expense

Customer Relationship Management

Sales and marketing, service, commissions, customer contact and after sales support

Data Warehouse

Generally, this is an information storehouse that can be accessed by organizations, customers,

suppliers and employees for their learning and orientation

ERP Systems Improve Productivity, Speed and Performance

Prior to evolution of the ERP model, each department in an enterprise had their own isolated
software application which did not interface with any other system. Such isolated framework could
not synchronize the inter-department processes and hence hampered the productivity, speed and
performance of the overall organization. These led to issues such as incompatible exchange
standards, lack of synchronization, incomplete understanding of the enterprise functioning,
unproductive decisions and many more.

For example: The financials could not coordinate with the procurement team to plan out purchases
as per the availability of money.

Hence, deploying a comprehensive ERP system across an organization leads to performance

increase, workflow synchronization, standardized information exchange formats, complete
overview of the enterprise functioning, global decision optimization, speed enhancement and
much more.

Implementation of an ERP System

Implementing an ERP system in an organization is an extremely complex process. It takes lot of
systematic planning, expert consultation and well structured approach. Due to its extensive scope
it may even take years to implement in a large organization. Implementing an ERP system will
eventually necessitate significant changes on staff and work processes. While it may seem practical
for an in-house IT administration to head the project, it is commonly advised that special ERP
implementation experts be consulted, since they are specially trained in deploying these kinds of
systems.

Organizations generally use ERP vendors or consulting companies to implement their customized
ERP system. There are three types of professional services that are provided when implementing
an ERP system, they are Consulting, Customization and Support.

• Consulting Services – are responsible for the initial stages of ERP implementation where
they help an organization go live with their new system, with product training, workflow,
improve ERP’s use in the specific organization, etc.
• Customization Services – work by extending the use of the new ERP system or changing
its use by creating customized interfaces and/or underlying application code. While ERP
systems are made for many core routines, there are still some needs that need to be built
or customized for a particular organization.
• Support Services – include both support and maintenance of ERP systems. For instance,
trouble shooting and assistance with ERP issues.

The ERP implementation process goes through five major stages which are Structured Planning,
Process Assessment, Data Compilation & Cleanup, Education & Testing and Usage &
Evaluation.

1. Structured Planning: is the foremost and the most crucial stage where an capable project
team is selected, present business processes are studied, information flow within and
outside the organization is scrutinized, vital objectives are set and a comprehensive
implementation plan is formulated.
2. Process Assessment: is the next important stage where the prospective software
capabilities are examined, manual business processes are recognized and standard
working procedures are constructed.
3. Data Compilation & Cleanup: helps in identifying data which is to be converted and the
new information that would be needed. The compiled data is then analyzed for accuracy
and completeness, throwing away the worthless/unwanted information.
4. Education & Testing: aids in proofing the system and educating the users with ERP
mechanisms. The complete database is tested and verified by the project team using
multiple testing methods and processes. A broad in-house training is held where all the
concerned users are oriented with the functioning of the new ERP system.
5. Usage & Evaluation: is the final and an ongoing stage for the ERP. The lately
implemented ERP is deployed live within the organization and is regularly checked by
the project team for any flaw or error detection.
Advantages of ERP Systems

There are many advantages of implementing an EPR system. A few of them are listed below:

• A perfectly integrated system chaining all the functional areas together

• The capability to streamline different organizational processes and workflows
• The ability to effortlessly communicate information across various departments
• Improved efficiency, performance and productivity levels
• Enhanced tracking and forecasting
• Improved customer service and satisfaction

ERP systems centralize business data. Benefits of this include:

• Eliminates synchronizing changes between multiple systems—consolidation of finance,

marketing and sales, human resource, and manufacturing applications
• Enables standard product naming/coding.
• Provides comprehensive enterprise view (no "islands of information"). Makes real–time
information available to management anywhere, anytime to make proper decisions.
• Protects sensitive data by consolidating multiple security systems into a single structure.

Scope of ERP in the modern business era

ERP covers a wide range of business and typically it fulfills all the business demand. For
customizing ERP completely, the users have to make some changes in the implemented service
package. Here is a list of most of the services where ERP is vastly in use:

Production Department

Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control,

Cost Management, Manufacturing Process, Manufacturing Projects,Manufacturing Flow

Supply Chain Management

Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier
Scheduling, Inspection of goods, Claim Processing, Commission Calculation

Financials

General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets
Projects

Costing, Billing, Time and Expense, Activity Management

Human Resources

Human Resources, Payroll, Training, Time & Attendance, Benefits

Customer Relationship Management

Sales and Marketing, Commissions, Service, Customer Contact and Call Center support

Data Warehouse

Several Self-Service interfaces for Customers, Suppliers, and Employee

Pitfalls of ERP Systems

While advantages usually outweigh disadvantages for most organizations implementing an ERP
system, here are some of the most common obstacles experienced:

• The scope of customization is limited in several circumstances

• The present business processes have to be rethought to make them synchronize with the
ERP
• ERP systems can be extremely expensive to implement
• There could be lack of continuous technical support
• ERP systems may be too rigid for specific organizations that are either new or want to
move in a new direction in the near future
What is eCommerce&eBusiness?
eCommerce Defined:

eCommerce, which is short for electronic commerce, is the process used to distribute, buy, sell
or market goods and services, and the transfer of funds online, through electronic
communications or networks. Electronic commerce is commonly referred to as Online
commerce, Web commerce, eBusiness, eRetail, eTailing, e-tailing, ecommerce, eCommerce, e-
commerce, ecom or EC.

Beginning & Future of eCommerce:

eCommerce basically began (although debated) in 1994 when Jeff Bezos started Amazon.com
out of his own garage. Well known eCommerce stores include sites like eBay, Dell, Walmart and
many more. Since 1994, businesses of all shapes and sizes have began launching or expanding
their Online presence. At any given time, there are approximately 8 million consumers worldwide
that actively shop and buy through Web based stores or retailers (nearly one tenth of our world
population). Online studies have claimed that online retail revenues will surpass the quarter-
trillion-dollar mark by 2011.

eCommerce Site Features:

Typical business web sites do not usually have the same features as eCommerce enabled web
stores do. In order to effectively distribute, market and sell goods or services Online you will need
certain features only found on eCommerce sites. Features may include a shopping cart, ability to
process credit cards, online product catalog, automated inventory system, databases, bulk email
program, statistics tracking and other non-computer technologies such as product warehousing
and shipping transportation.

What are the Benefits of eCommerce&eBusiness?

The processes involved with conducting business on the Internet and opening an eCommerce
shop to sell from have several benefits to both merchants and the customers who buy from them.
The biggest benefits of conducting business Online include a cheaper upfront cost to the
merchant, it's easier to set up and open the store and it's faster to get an Online business up,
running and making sales.

Helps Create New Relationship Opportunities:

Expanding or opening an eBusiness can create a world of opportunity and helps to establish new
relationships with potential customers, potential business associates and new product
manufacturers. Just by being in an easy to find location that is accessible to users all over the
world, you will be available for others to find and approach you about new opportunities.
Customers who don't know you exist will know about you, product suppliers will request you add
their items and other businesses will approach you about partnership opportunities. Many of
these opportunities would not present themselves without an Online presence or site for them
to discover you on their own.

Open for Business 24x7:

An eCommerce site basically gives you the ability to have unlimited store hours, giving your
customers 24 hours a day, 7 days a week access to shop and buy items from you. Some merchants
choose to limit their hours to 5 days a week, but orders can still be made over the weekend and
customers can still make contact 24/7 via email, phone or fax. In addition, the costs associated
with having your store open 24/7 are much less than maintaining a physical storefront or phone
operator with 247 operation capability. You can literally take orders and let customers shop while
you sleep, take vacations or from remote locations.

Increases Brand or Product Awareness:

Having an Online business means that you can literally reach out to millions of consumers looking
for what you sell anywhere in the world. By reaching out to new markets and displaying your site
prominently in front of them, you will be able to help increase your company/domain brand
name and also increase awareness about your product line. By giving users 24/7 access in an easy
to find location, you will help to create more word of mouth buzz for your eBusiness, in turn
helping to promote your brand name and products. Users who haven't heard of you will discover
you exist and help spread the word about you.

Helps Establish Customer Loyalty:

An eCommerce storefront will help create an easier means for your customers to purchase the
items you sell and offers a unique way to display and describe your products in a informative,
visual and interactive way. The customers you have will become more loyal shoppers each time
they visit, making eCommerce great for improved customer satisfaction and visitor loyalty. Now
that you offer your products for sale Online, consumers will be able to shop from your catalog
more easily, get updates on new items or product discounts and can shop or buy anytime they
wish.

Potential to Increase Overall Business Sales:

An eCommerce store that is an extension of a physical storefront is a great way to boost overall
business sales and potentially increase company profits across the board. Companies who
already do business from a physical location are typically unaware of how much more they could
be making if only they were to expand into their Online marketplaces. Selling Online opens up
many opportunities for businesses both new and old. It's a great way to increase sales, especially
if you already have a physical store.

Potential to Increase Company Profits:

As mentioned above, opening an Online extension of your store or moving your business solely
Online are great ways to boost sales and potentially profits. Remember, just because SALES
increase it does not necessarily mean that company PROFITS will increase also. Online businesses
do have a greater chance of increasing sales and profits by opening up an eCommerce store to
sell the items they offer. Sales and profits are the lifeblood of any company, so it makes sense to
increase them where ever possible and whenever possible throughout the existence of your
company. More sales, more profits, bigger budgets, etc.

Potential to Decrease Some Costs:

In addition to potentially increasing sales and profits, eBusiness owners can also typically reduce
the costs of running their business by moving it or expanding it into the Online world. eCommerce
stores can run with less employees including sales staff, customer service reps, order fulfillment
staff and others. eBusinesses also do not need a physical location in order to stay operational,
which can reduce costs related to building leases, phone bills, utility costs and other costs
associated with running a brick-and-mortar storefront.

Expands Geographical or Customer Reach:

As mentioned, owning an eCommerce business typically means no limits as to who and where
you can sell your products. Some countries outside the United States have additional regulations,
licensing requirements or currency differences, but generally you will not be limited on the
customers you can reach out to. Physical storefronts are limited to the city in which they are
located, Online businesses aren't limited unless you put geographical limits in place. At the very
least, you should consider targeting U.S. buyers, but also consider, Canada, UK, Australia and
others. Sell to anyone, anywhere, anytime!

Allows for Smaller Market or Niche Targeting:

Although your customer reach may expand beyond your local area, you may only wish to target
smaller consumer markets and buyer niches for your eCommerce products. Owning an Online
store gives the merchant much control over who they target and reach out to notify about the
items for sale in their store. Currently, you can target women, men, a generation of users, a
particular race and many more smaller niche markets. This is typically done by placing keywords
that those niche markets use on a regular basis when shopping for the items you offer.

Allows for Easier Delivery of Information:

An Online store and Web brochure are great ways to deliver and display information about your
company and the products you sell. With an Online presence your customers will have direct
access to product information, company information, specials, promotions, real time data and
much more information that they can easily find just by visiting your site day or night. Not only
does it benefit your customers, but it's also generally easier for merchants to update their site
rather than break down an in store display and put up another for the next event. It saves both
your customers and you precious time and can help you to plan more updates or better sales as
it will be much easier for you to update and take down.

What is eCommerceMarketing?

eCommerce Marketing Defined:

eCommerce marketing can be defined in many different ways and can include both Online or
Offline campaign strategies. Most often, it's considered to be the marketing of goods and services
over the Internet or any other electronic network (like a mobile phone or pda). eCommerce
marketing is commonly referred to as ecommerce optimization, online marketing, search engine
marketing, sem, search engine optimization, seo, catalog optimization, catalog seo, product seo,
merchant marketing and many more variations of those terms.

Beginning & Future of eCommerce Marketing:

eCommerce marketing began when the first shopping cart enabled sites started popping up all over
the Net. As competition in major markets such as consumer electronics, gifts, clothing or apparel
and outdoor goods started to grow so did the need for eCommerce marketing. Online retailers who
first began to market through the Internet saw huge potential for success Online and many of them
saw enormous profits all the way up until the dot com boom. Since the dot com boom, eCommerce
marketing has evolved into a whole new mix of strategies and techniques designed to increase
exposure from a multitude of channels to the eCommerce seller. Marketing professionals have
spent countless hours testing, experimenting and reporting on which strategies work and which
seem to have no positive affects. Now there are many different ways to market an eCommerce
enabled site.

Marketing Strategies & Techniques:

eCommerce marketing today is typically made up of several creative or unique mixes of traditional
and new-age marketing strategies that can include techniques related to direct mail, email
marketing, search engine optimization, CPC or sponsored listings, building related links,
establishing brand recognition and social media marketing. There are many other ways to market
an eCommerce store and new ways of reaching out to potential customers are always being
discovered and tested.

What are the Benefits of eCommerceMarketing?

The processes involved with marketing products on the Internet and increasing company or brand
recognition among consumer markets have several benefits to both Online shoppers and merchant
store owners. The biggest benefits of eCommerce marketing include less costs than print
advertising, helps build customer relationships, brand credibility and it costs less to get an
eCommerce marketing campaign running and operational.

Tax Breaks for Conducting Business Online:

It is common knowledge that conducting business Online has certain tax advantages compared to
brick-and-mortar selling. Many eCommerce merchants who qualify for such tax deductions may
find that they can save more in taxes than if they sold using traditional retail or a physical
storefront. Home-based eBusiness can deduct many of the same things traditional businesses can.
Traditional businesses can write-off utility, rent or mortgage bills as costs of doing business and
Online merchants can also write-off certain portions of utilities. Vehicles are another common
deduction along with office equipment and other time spent on setting up or running the business.
Consider the tax benefits you could reap by conducting business through eCommerce.

Cheaper than Print Advertising:

Many traditional businesses are used to more traditional marketing campaigns such as print and
yellow page advertising. Many traditional business owners are not aware that a majority of
eCommerce marketing strategies are far cheaper than any of the best Offline, print advertising
methods that have been used for years. Traditional advertising is still a quality form of marketing,
however it is not always cost effective, especially for small businesses. Print advertising can get
expensive as there may be a need to update regularly, which requires new work be planned and
generated. It is much quicker and more cost effective to update and maintain eCommerce
marketing campaigns, especially as technology continues to improve. By conducting business
Online and using the proven form of eCommerce marketing, merchants have the potential to
generate far more in ROI with less spend than they could ever hope to expect from costly print
advertising campaigns.

Interactive Ads or Marketing Campaigns:

Using advertising that engages potential customers is key in todays fast paced, little time consumer
shopping space. One benefit to eCommerce marketing is the merchants ability to develop and
improve a number of interactive advertising or marketing campaigns designed to reach out and
engage shoppers. Videos, flash, presentations, graphics, moving animations. They can all be used
as interactive devices to help entice shoppers to drop in and shop around for the products or
services offered. Interactive ads and applications on the Web are predicted to reach new heights as
technology improves.

Flexible Ad or Marketing Campaigns:

Many traditional marketing strategies are limited in what they can offer and what kind of flexibility
each initiative has. For instance, with print advertising there's only so much you can do, but with
eCommerce marketing there's literally no cap and no end to the flexibility of nearly any campaign.
Merchants can develop more creative marketing ideas and launch them using the power and
assistance of the Web (for both delivery and functionality). eCommerce marketing initiatives can
be automated and are much more flexible than many of the traditional marketing or advertising
methods.

Builds Lasting Customer Relationships:

The relationships you form with shoppers and existing customers can very well determine the
overall success of any business, Online or off, however eBusinesses have a lot more tools, methods
and means of building long standing customer relationships than traditional businesses do.
Technology and the reach of the Web has made it easier for eCommerce merchants to form long
lasting relationships. That, combined with tools that make customer management and servicing
more efficient, using up less time, has also sparked more creative ways to market to customers
Online. eCommerce marketing and conducting business Online can have a direct influence on how
customers view the overall brand or product. If done correctly, it will help build lasting customer
relationships, which in itself has benefits.

Helps Build Brand Credibility:

In many of the same ways eCommerce marketing helps to engage and get to know customers, it
also has benefits which may increase brand awareness and credibility among shoppers looking for
what you sell. With the ever expanding list of Online marketing channels, it's getting easier for
eCommerce merchants to spread the word and saturate certain areas of the Web with their products
and brand. As shoppers scour the Web for information about a product that interests them they
notice the companies and brands that they see, many take note and store them away for next time.
By utilizing the proper marketing channels in your niche, you may very well find yourself building
long standing credibility and brand awareness among shoppers and existing customers. Better
brand awareness and credibility also helps to increase word of mouth buzz.

Gather Feedback from Customers:

Having a website that displays and offers products for sale is a great way to attract customers,
make money and grow a business, however many eCommerce merchants fail to see all the
additional benefits of running an eCommerce business like their ability to gather feedback about
the site, brand or products directly from customers or shoppers. eCommerce marketing initiatives
aren't always about a promotion or selling the product, some are meant to gather information or
feedback from customers about how the business can improve. Conducting business Online and
offering polls, questionnaires and feedback forms is a great way to get direct input from existing
customers and even shoppers who haven't yet purchased.

Conduct Cheap Market Research:

Many eCommerce merchants use their site, customers and competitors as a way to conduct market
research surrounding a particular product or one in which they hope to introduce in the future. It's
much easier to catch a glimpse into a particular selling market using the resources and data from
Online businesses, including your own. Trying to conduct market research for a brick and mortar
store can be difficult and may take much time to plan and execute. With the availability of data on
the Web and through the use of new technologies offered on the Web, eCommerce merchants are
able to conduct market or product research quickly, efficiently and without hassle.

Lower Startup Costs Increase Efficiency:

Many times it is much cheaper and takes less startup capital to open up an eCommerce business
compared to a retail store location or chain. Online business does not require as many of the
ingredients needed in business as a traditional business does. There's typically no permits, fewer
licenses, no lease to pay on, smaller utility bill, less or no employees to hire and no inventory to
stock or manage on shelves. By starting out the business with less investment capital or startup
funds, it can help to increase efficiency and leaves more funds available for actually marketing the
brand or products.

Lower Startup Costs Increase Profitability:

As mentioned, it cost far less to startup an eCommerce business than a traditional retail business.
For many of the same reason that lower startup costs help to increase efficiency, they also help
eCommerce merchants to potentially increase profitability. Obviously, if it takes less of the bottom
line to get things up and running it will take less in return to generate a profit off of the eCommerce
marketing tactics you choose to use. As mentioned, eCommerce marketing is cheaper than
traditional advertising, so if it costs less to conduct business Online and costs less to market Online,
than it will take less in return to actually turn a profit, helping anyones chances for increased
profitability.

Increases Growth or Opportunity Potential:

Marketing Online has the potential to increase store growth at a much quicker rate than traditional
marketing or retail business. eCommerce marketing can also generate more opportunities for any
business no matter the products you sell and potentially at a much quicker rate. Major media
networks may pick up on you via Online channels and report your business to consumers, while
you may not have ended up on their radar had you only sold offline. That's just one example; there
are many more opportunities and a much higher chance of early growth through conducting and
marketing an eCommerce business. The Online market offers a much fairer playing field and opens
up doors that otherwise might be closed off to a retailer. It allows nearly any business, no matter
their size to grow and have the same potential opportunities as larger sellers do.

Global Market Reach:

The World Wide Web spans across and reaches exactly that, the world. With the reach and
technology offered through eCommerce, merchants have the ability to target consumers anywhere
in the world, even smaller sections or local regions. eCommerce marketing initiatives can be
deployed in a variety of ways, but the reach may span globally, rather than only within a certain
city or region. having this type of reach opens up the possibility that customers can find the
business from anywhere they reside and buy from them without having to travel to another
location. having global market reach means potentially having customers world wide, without the
limitations of traditional media or geographic boundaries.

Potential to Market Any Product:

The internet constantly has millions of users searching for a vast number of different products or
services. If it exists, chances are there's at least a few people searching for it Online. eCommerce
marketing and selling Online allows merchants to target and reach these audiences, even on a
limited budget. This creates the potential for anyone to sell anything Online (assuming it's legal to
sell). Merchants can now offer niche items and market those items to the right individuals using
creative and innovative eCommerce marketing ideas.

Flexible Schedule or More Personal Time:

Running an Online business can be as time demanding and require just as much attention as a
traditional business, however it does give merchants the ability to maintain a flexible schedule and
can possibly even allow them more time away from the business to spend doing other things they
love. Having a schedule we control and personal time is something everyone desires. Conducting
business Online and marketing through the different channels the Internet provides finally gives
more of us the freedom we desire. As mentioned, it typically takes far less time to startup and
launch an Online business, however that doesn't necessarily mean it will take less time to manage.
The time you save can be used however you please.

Ability for Multiple Revenue Streams:

Once you have successfully launched and marketed one Online business you may wish to do it
again with another eCommerce business, or maybe you already have a full-time job and you run a
successful eBusiness on the side. Either way, by conducting business Online you open up all kinda
of potential for multiple revenue streams. May merchants have been able to successfully maintain
their Online stores while still working their 9 to 5 job. Others have opened a chain or multiple
Online stores in order to generate multiple streams of revenue. eCommerce marketing makes it
easier to own and operate more than one business or entity Online.

Streamlines Sales Process & Ad Copy:

eCommerce marketing and offering products for sale over the Internet can help businesses
streamline sales processes and advertising copy used within marketing campaigns. With more
customers and a greater reach it is easier for merchants to gain insights and feedback as to how
marketing initiatives are performing and whether or not each one is generating the desired ROI.
Testing, experimenting and rotating campaigns or ad copy can help businesses to improve and
streamline many processes within the store, from processes related to customers, sales or
marketing.

Helps Promote Brick-and-Mortar Businesses:

So, what if you own a brick-and-mortar business already and you are thinking of expanding into
eCommerce? Don't think long, it's a great idea and the timing couldn't be more perfect. Many
traditional business owners are finding that by expanding their business model and marketing plans
into the Online space that they in turn get more exposure to their physical stores. eCommerce
marketing initiatives work great for promoting an offline business, however you still need an
Online location for customers to reference on the Web. In a perfect world all brick-and-mortars
would also have a presence Online, but it's simply not the case as of yet. Jumping into eCommerce
and using the power of Online marketing is a great way to promote and help grow a retail brick-
and-mortar location.

Internet marketing, also referred to as online marketing is the fastest growing medium that
is being adopted by businesses worldwide as an effective website promotion tool. In the
current economic scenario marketing plans need to delivery higher returns more than ever
before. Considering this, optimized performance marketing has emerged as the way to go.

A rigorous exercise is needed in terms of:

• Business Analysis
• Goal assessment
• Geographical Research
• Targeted Advertisement
• Keyword Bunching
• Associating keywords with Ads
• Budget Capping
• Intensive Analysis of campaign through client center as well as Analytics for getting the
best Return on Investment (ROI)

• E-commerce is the use of Internet and the web to transact business but when we focus on
digitally enabled commercial transactions between and among organizations and
individuals involving information systems under the control of the firm it takes the form
of e-business. Nowadays, 'e' is gaining momentum and most of the things if not everything
is getting digitally enabled. Thus, it becomes very important to clearly draw the line
between different types of commerce or business integrated with the 'e' factor.

There are mainly five types of e-commerce models:

1. Business to Consumer (B2C) - As the name suggests, it is the model involving

businesses and consumers. This is the most common e-commerce segment. In this model,
online businesses sell to individual consumers. When B2C started, it had a small share in
the market but after 1995 its growth was exponential. The basic concept behind this type
is that the online retailers and marketers can sell their products to the online consumer by
using crystal clear data which is made available via various online marketing tools. E.g.
An online pharmacy giving free medical consultation and selling medicines to patients is
following B2C model.

• 2. Business to Business (B2B) - It is the largest form of e-commerce involving business

of trillions of dollars. In this form, the buyers and sellers are both business entities and do
not involve an individual consumer. It is like the manufacturer supplying goods to the
retailer or wholesaler. E.g. Dell sells computers and other related accessories online but it
 is does not manufacture all those products. So, in order to sell those products, it first
purchases them from different businesses i.e. the manufacturers of those products.

• 3. Consumer to Consumer (C2C) - It facilitates the online transaction of goods or services

between two people. Though there is no visible intermediary involved but the parties
cannot carry out the transactions without the platform which is provided by the online
market maker such as eBay.

• 4. Peer to Peer (P2P) - Though it is an e-commerce model but it is more than that. It is a
technology in itself which helps people to directly share computer files and computer
resources without having to go through a central web server. To use this, both sides need
to install the required software so that they can communicate on the common platform.
This type of e-commerce has quite low revenue generation as from the beginning it has
been inclined to the free usage due to which it sometimes got entangled in cyber laws.

• 5. m-Commerce - It refers to the use of mobile devices for conducting the transactions.
The mobile device holders can contact each other and can conduct the business. Even the
web design and development companies optimize the websites to be viewed correctly on
mobile devices.

6. C2B - Consumer to Business

A consumer posts his project with a set budget online and within hours companies review
the consumer's requirements and bid on the project. The consumer reviews the bids and
selects the company that will complete the project. Elance empowers consumers around
the world by providing the meeting ground and platform for such transactions
C2B is a rather peculiar Internet phenomenon. An example of C2B e-commerce could be
the following. A student wants to fly from London to New York, but has only £200 ($320)
in the bank to pay for this round trip. They put up an ad in an Internet C2B site, seeking
airlines that are willing to offer the transatlantic round trip for £200 or less. The beauty
of the Internet is that it brings together a large number of customers to create a
marketplace that a number of airlines (that will have to otherwise fly with empty seats)
will be interested in.
Many analysts state that C2B and C2C e-commerce will thrive in the near future. It is a
challenging task, however, to construct these e-commerce systems because of their
diverse nature. The existing EC construction tools, which usually focus on B2B and B2C e-
commerce schemes, were designed for constructing specific e-commerce systems,
making them unsuitable for developing consumer-initiated e-commerce systems. In this
paper, we propose a trading model that supports C2B and C2C e-commerce through the
use of digital media called “vouchers” and the trading system “VTS”. We show how the
introduction of vouchers simplifies the procedures of C2B and C2C e-commerce, and show
that vouchers, together with VTS, can be utilized to form a trading framework that
uniformly realizes the delivery/payment phase. We demonstrate that a wide range of
 matching phase implementations, in which the characteristics of specific e-commerce
systems such as market coordination are implemented, can be integrated into this
framework.

There are other types of e-commerce business models too like Business to Employee
(B2E), Government to Business (G2B) and Government to Citizen (G2C) but in essence
they are similar to the above mentioned types. Moreover, it is not necessary that these
models are dedicatedly followed in all the online business types. It may be the case that a
business is using all the models or only one of them or some of them as per its needs.

SERQUAL or RATER is a service quality framework. SERVQUAL was developed in the mid-
eighties by Zeithaml, Parasuraman& Berry.

Concept
SERVQUAL was originally measured on 10 aspects of service quality: reliability,
responsiveness, competence, access, courtesy, communication, credibility, security,
understanding the customer and tangibles. It measures the gap between customer expectations
and experience.

By the early nineties the authors had refined the model to the useful acronym RATER:

• Reliability
• Assurance
• Tangibles
• Empathy, and
• Responsiveness

SERVQUAL has its detractors and is considered overly complex, subjective and statistically
unreliable. The simplified RATER model however is a simple and useful model for qualitatively
exploring and assessing customers' service experiences and has been used widely by service
delivery organizations. It is an efficient model in helping an organization shape up their efforts in
bridging the gap between perceived and expected service.

Nyeck, Morales, Ladhari, and Pons (2002) stated the SERVQUAL measuring tool “remains the
most complete attempt to conceptualize and measure service quality” (p. 101). The main benefit
to the SERVQUAL measuring tool is the ability of researchers to examine numerous service
industries such as healthcare, banking, financial services, and education (Nyeck, Morales,
Ladhari, & Pons, 2002). The fact that SERVQUAL has critics does not render the measuring tool
moot. Rather, the criticism received concerning SERVQUAL measuring tool may have more to
do with how researchers use the tool. Nyeck, Morales, Ladhari, and Pons (2002) reviewed 40
articles that made use of the SERVQUAL measuring tool and discovered “that few researchers
concern themselves with the validation of the measuring tool”
IT Policy and Ethics

Internet censorship

Internet censorship is control or suppression of the publishing or accessing of information on the

Internet. The legal issues are similar to offline censorship.

One difference is that national borders are more permeable online: residents of a country that
bans certain information can find it on websites hosted outside the country. A government can
try to prevent its citizens from viewing these even if it has no control over the websites
themselves. Filtering can be based on a blacklist or be dynamic. In the case of a blacklist, that list
is usually not published. The list may be produced manually or automatically.

Barring total control over Internet-connected computers, such as in North Korea, total censorship
of information on the Internet is very difficult (or impossible) to achieve due to the underlying
distributed technology of the Internet. Pseudonymity and data havens (such as Freenet) allow
unconditional free speech, as the technology guarantees that material cannot be removed and
the author of any information is impossible to link to a physical identity or organization.

In some cases, Internet censorship may involve deceit. In such cases the censoring authority may
block content while leading the public to believe that censorship has not been applied. This may
be done by having the ISP provide a fake "Not Found" error message upon the request of an
Internet page that is actually found but blocked (see 404 errors for details).

Copyright

Copyright is a set of exclusive rights granted to the author or creator of an original work, including
the right to copy, distribute and adapt the work. Copyright does not protect ideas, only their
expression. In most jurisdictions copyright arises upon fixation and does not need to be registered.
Copyright owners have the exclusive statutory right to exercise control over copying and other
exploitation of the works for a specific period of time, after which the work is said to enter the
public domain. Uses covered under limitations and exceptions to copyright, such as fair use, do
not require permission from the copyright owner. All other uses require permission. Copyright
owners can license or permanently transfer or assign their exclusive rights to others.

Initially copyright law only applied to the copying of books. Over time other uses such as
translations and derivative works were made subject to copyright. Copyright now covers a wide
range of works, including maps, sheet music, dramatic works, paintings, photographs, sound
recordings, motion pictures and computer programs.

Privacy law is the area of law concerned with the protection and preservation of the privacy
rights of individuals. Increasingly, governments and other public as well as private organizations
collect vast amounts of personal information about individuals for a variety of purposes. The law
of privacy regulates the type of information which may be collected and how this information
may be used and stored.

The scope of applicability of privacy laws is called expectation of privacy.

Privacy laws can be broadly classified into two categories: General and Specific

General privacy laws have an overall bearing on the personal information of individuals and
affect the policies that govern many different areas of information.

And Specific privacy laws

These laws are designed to regulate specific types of information. Some examples include:

• Health privacy laws

• Financial privacy laws
• Online privacy laws
• Communication privacy laws
• Information privacy laws
• Privacy in one's home

Hacking Commercialization

Hacking is the process of achieving access to a computer or computer network without legal
authorization. It is the most common activity amongst teenagers and young adults. Many hackers
are keen to learn about computers and consider hacking as an art. They want to build programs
to display their problem solving skills and not to harm others.

A hacker first tries their skills on easy targets and then after successful professional attacks on
more secured sites. Their goal is to have complete access on any computer so that they can
delete, edit or comply any files or directory and also can install any program.

Computer hackers are employed by many companies to get complete access on the computer so
that they can delete, edit, copy any file or install as their technical staff. These hackers use their
skills to find faults in company’s security system so that it can be repaired quickly. Sometimes
hacking also prevents serious identity related crimes.
It is an offence if hackers steal private information or changes some financial or personal data.
All the types of unauthorized access can lead the hacker towards the prison for 20 years.

One way of hacking is to get a copy of password file which stores all usernames and password in
encrypted form or they can also use brute-force attack trying all the possible combinations of
letters. Hacking is also done by emailing a program to anyone that runs automatically when
clicked on some link or attachment. In this way you can install a program on a computer that can
give you access of that computer. Another method of hacking is IP spoofing. IP spoofing is the
creation of internet protocol packets with the fake IP address in order to conceal the identity of
the sender.

To protect your computer from hacking, you should install firewalls or other antivirus programs
on the computer and also check for the updating of the machine at regular intervals.