E-Commerce, M-Commerce & Emerging Technologies: Notes (Part - 1) | Financial Management & Strategic Management for CA Intermediate PDF Download

 Page 1


LEARNING OUTCOMES 
E-COMMERCE, M-COMMERCE 
AND EMERGING 
TECHNOLOGIES 
After reading this chapter, you will be able to - 
? Understand the meaning, components and architecture of E-
commerce.  
? Grasp the knowledge about the process flows in E-
commerce transactions. 
? Comprehend the various aspects of risks and controls in E-
commerce.  
? Recognise applicable laws and guidance governing E-
Commerce. 
?
Acknowledge a basic understanding on the paradigms of 
various Computing Technologies like Cloud Computing, 
Grid Computing, Mobile Computing, Green Computing and 
BYOD etc.
 
CHAPTER 
4 
Page 2


LEARNING OUTCOMES 
E-COMMERCE, M-COMMERCE 
AND EMERGING 
TECHNOLOGIES 
After reading this chapter, you will be able to - 
? Understand the meaning, components and architecture of E-
commerce.  
? Grasp the knowledge about the process flows in E-
commerce transactions. 
? Comprehend the various aspects of risks and controls in E-
commerce.  
? Recognise applicable laws and guidance governing E-
Commerce. 
?
Acknowledge a basic understanding on the paradigms of 
various Computing Technologies like Cloud Computing, 
Grid Computing, Mobile Computing, Green Computing and 
BYOD etc.
 
CHAPTER 
4 
 
 
ENTERPRISE INFORMATION SYSTEMS 
4.2 
 
 
 
 4.1 INTRODUCTION TO E-COMMERCE 
E-Commerce: “Sale / Purchase of goods / services through electronic mode is e-
commerce.” This could include the use of technology in the form of Computers, 
Desktops, Mobile Applications, etc. 
The greatest change due to technology innovations in last five years has been the 
way users perform their daily chores / activity of life. E-Commerce and its related 
technologies are unquestionably the current leading-edge business and finance 
delivery systems.  
The explosion in the application of technologies and the delivery of these 
technologies into the hands of consumers has made the vision, the dream, the 
fantasy of conducting business electronically, anywhere in the global community, 
E-COMMERCE AND M-COMMERCE
Components
Architecture
Process Flow Diagrams
Risks And Controls
Laws And Guidelines
EMERGING TECHNOLOGIES
• Virtualization
• Grid Computing
• Cloud Computing
• Mobile Computing
• Green IT
• BYOD
• Web 3.0
• Internet of Things
• Artificial Intelligence
• Machine Learning
 
Page 3


LEARNING OUTCOMES 
E-COMMERCE, M-COMMERCE 
AND EMERGING 
TECHNOLOGIES 
After reading this chapter, you will be able to - 
? Understand the meaning, components and architecture of E-
commerce.  
? Grasp the knowledge about the process flows in E-
commerce transactions. 
? Comprehend the various aspects of risks and controls in E-
commerce.  
? Recognise applicable laws and guidance governing E-
Commerce. 
?
Acknowledge a basic understanding on the paradigms of 
various Computing Technologies like Cloud Computing, 
Grid Computing, Mobile Computing, Green Computing and 
BYOD etc.
 
CHAPTER 
4 
 
 
ENTERPRISE INFORMATION SYSTEMS 
4.2 
 
 
 
 4.1 INTRODUCTION TO E-COMMERCE 
E-Commerce: “Sale / Purchase of goods / services through electronic mode is e-
commerce.” This could include the use of technology in the form of Computers, 
Desktops, Mobile Applications, etc. 
The greatest change due to technology innovations in last five years has been the 
way users perform their daily chores / activity of life. E-Commerce and its related 
technologies are unquestionably the current leading-edge business and finance 
delivery systems.  
The explosion in the application of technologies and the delivery of these 
technologies into the hands of consumers has made the vision, the dream, the 
fantasy of conducting business electronically, anywhere in the global community, 
E-COMMERCE AND M-COMMERCE
Components
Architecture
Process Flow Diagrams
Risks And Controls
Laws And Guidelines
EMERGING TECHNOLOGIES
• Virtualization
• Grid Computing
• Cloud Computing
• Mobile Computing
• Green IT
• BYOD
• Web 3.0
• Internet of Things
• Artificial Intelligence
• Machine Learning
 
 
 
4.3 
` 
E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES  
 
a reality. E-commerce is no longer just a concept; it is a market force to be 
reckoned with. As more and more organizations launch Internet/World Wide Web 
(WWW) home pages and intranets to disseminate company/product information, 
and expand their customer base, countless yet unnamed companies are just 
beginning to investigate this alternative. These companies are realizing that 
business via the Internet is inevitable that they will not be able to ignore. The lure 
of reaching additional customers, expanding market shares, providing value-
added services, advancing technological presence, and increasing corporate 
profits is just too valuable to disregard, and will eventually attract companies to 
electronic commerce like moths to a flame. 
E-Commerce is the process of doing business electronically. It refers to the use of 
technology to enhance the processing of commercial transactions between a 
company, its customers and its business partners. In e-commerce, the buyers and 
sellers interact electronically using telecommunication networks rather than 
through physical contact or exchange. It is a new way of conducting, managing, 
and executing business transactions using computer and telecommunication 
networks. It involves the automation of a variety of transaction such as Business-
To-Business (B2B) Business-To-Consumer (B2C), Consumer-To-Consumer (C2C) 
and Consumer-To-Business (C2B) etc. through reliable and secure connections. 
Much of the growth in the industry has been triggered by increasing internet and 
smartphone penetration. By 2022, smartphone users are expected to reach 859 
million, whereas e-commerce sector is expected to grow 1,200 percent by 2026. 
4.1.1 Traditional Commerce and E-Commerce 
The greatest change due to technology innovations in last five years has been the 
way users perform their daily chores / activity of life.  
Example 4.1: An illustrative Table 4.1.1 shows how technology has entered every 
aspect of human life. 
Table 4.1.1: Examples of how Technology has entered every aspect of human life 
S. 
No. 
Activity Then  Now 
1 Wake up Alarm clocks with 
snooze buttons. 
Mobile alarms, multiple types.  
Some forcing you to solve 
mathematical quiz before you 
snooze them.  
Ensuring you wake up. 
Page 4


LEARNING OUTCOMES 
E-COMMERCE, M-COMMERCE 
AND EMERGING 
TECHNOLOGIES 
After reading this chapter, you will be able to - 
? Understand the meaning, components and architecture of E-
commerce.  
? Grasp the knowledge about the process flows in E-
commerce transactions. 
? Comprehend the various aspects of risks and controls in E-
commerce.  
? Recognise applicable laws and guidance governing E-
Commerce. 
?
Acknowledge a basic understanding on the paradigms of 
various Computing Technologies like Cloud Computing, 
Grid Computing, Mobile Computing, Green Computing and 
BYOD etc.
 
CHAPTER 
4 
 
 
ENTERPRISE INFORMATION SYSTEMS 
4.2 
 
 
 
 4.1 INTRODUCTION TO E-COMMERCE 
E-Commerce: “Sale / Purchase of goods / services through electronic mode is e-
commerce.” This could include the use of technology in the form of Computers, 
Desktops, Mobile Applications, etc. 
The greatest change due to technology innovations in last five years has been the 
way users perform their daily chores / activity of life. E-Commerce and its related 
technologies are unquestionably the current leading-edge business and finance 
delivery systems.  
The explosion in the application of technologies and the delivery of these 
technologies into the hands of consumers has made the vision, the dream, the 
fantasy of conducting business electronically, anywhere in the global community, 
E-COMMERCE AND M-COMMERCE
Components
Architecture
Process Flow Diagrams
Risks And Controls
Laws And Guidelines
EMERGING TECHNOLOGIES
• Virtualization
• Grid Computing
• Cloud Computing
• Mobile Computing
• Green IT
• BYOD
• Web 3.0
• Internet of Things
• Artificial Intelligence
• Machine Learning
 
 
 
4.3 
` 
E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES  
 
a reality. E-commerce is no longer just a concept; it is a market force to be 
reckoned with. As more and more organizations launch Internet/World Wide Web 
(WWW) home pages and intranets to disseminate company/product information, 
and expand their customer base, countless yet unnamed companies are just 
beginning to investigate this alternative. These companies are realizing that 
business via the Internet is inevitable that they will not be able to ignore. The lure 
of reaching additional customers, expanding market shares, providing value-
added services, advancing technological presence, and increasing corporate 
profits is just too valuable to disregard, and will eventually attract companies to 
electronic commerce like moths to a flame. 
E-Commerce is the process of doing business electronically. It refers to the use of 
technology to enhance the processing of commercial transactions between a 
company, its customers and its business partners. In e-commerce, the buyers and 
sellers interact electronically using telecommunication networks rather than 
through physical contact or exchange. It is a new way of conducting, managing, 
and executing business transactions using computer and telecommunication 
networks. It involves the automation of a variety of transaction such as Business-
To-Business (B2B) Business-To-Consumer (B2C), Consumer-To-Consumer (C2C) 
and Consumer-To-Business (C2B) etc. through reliable and secure connections. 
Much of the growth in the industry has been triggered by increasing internet and 
smartphone penetration. By 2022, smartphone users are expected to reach 859 
million, whereas e-commerce sector is expected to grow 1,200 percent by 2026. 
4.1.1 Traditional Commerce and E-Commerce 
The greatest change due to technology innovations in last five years has been the 
way users perform their daily chores / activity of life.  
Example 4.1: An illustrative Table 4.1.1 shows how technology has entered every 
aspect of human life. 
Table 4.1.1: Examples of how Technology has entered every aspect of human life 
S. 
No. 
Activity Then  Now 
1 Wake up Alarm clocks with 
snooze buttons. 
Mobile alarms, multiple types.  
Some forcing you to solve 
mathematical quiz before you 
snooze them.  
Ensuring you wake up. 
 
 
ENTERPRISE INFORMATION SYSTEMS 
4.4 
2 Morning chores Make / Cook 
Breakfast. 
Multiple home delivery solutions 
available where you can order 
online. For example, Zomato and 
Swiggy. 
3 Going to office In small towns in 
India, there was 
AUTO RICKSHAW. 
Now even in small towns, you have 
a mobile APP through which you 
can call a JUGNOO auto/bike, an 
OLA/UBER/auto /cab. 
4 Office Admin All jobs to be done 
by assigned service 
provider. For 
example: Posts 
need to be sent to 
courier agency. 
Now you book through online 
APP, the courier agency picks up 
POST at designated time and 
place. 
5 Procurements of 
all items: Items 
include 
Electronic, 
Furniture, 
Mobiles, Grocery, 
Cars and Bikes 
etc. all items 
covered here. 
Go shop by shop 
to check price and 
quality. 
Now it is possible to search all 
products online, buyer can 
compare prices and order online. 
Few online sellers are giving 
facility of delivery within 12 
hours of ordering. 
Aforementioned are the ways how consumer/customers are buying 
products/services. The change in technology innovations has forced organization 
to change their product/service delivery channels. The previous product delivery 
channel which was typically defined by the Fig. 4.1.1 has moved to the new 
product delivery model as shown in Fig. 4.1.2.  
Fig. 4.1.1: Old Model 
Value added 
Breaking bulk 
Consolidating supplies 
Holding inventory 
Manufacturer 1 
Manufacturer 2 
 
Whole Seller            
(or Agent 1) 
Retailer 
Whole Seller              
(or Agent 2) 
Manufacturer 3 
 
Products from Other 
Manufactures 
Page 5


LEARNING OUTCOMES 
E-COMMERCE, M-COMMERCE 
AND EMERGING 
TECHNOLOGIES 
After reading this chapter, you will be able to - 
? Understand the meaning, components and architecture of E-
commerce.  
? Grasp the knowledge about the process flows in E-
commerce transactions. 
? Comprehend the various aspects of risks and controls in E-
commerce.  
? Recognise applicable laws and guidance governing E-
Commerce. 
?
Acknowledge a basic understanding on the paradigms of 
various Computing Technologies like Cloud Computing, 
Grid Computing, Mobile Computing, Green Computing and 
BYOD etc.
 
CHAPTER 
4 
 
 
ENTERPRISE INFORMATION SYSTEMS 
4.2 
 
 
 
 4.1 INTRODUCTION TO E-COMMERCE 
E-Commerce: “Sale / Purchase of goods / services through electronic mode is e-
commerce.” This could include the use of technology in the form of Computers, 
Desktops, Mobile Applications, etc. 
The greatest change due to technology innovations in last five years has been the 
way users perform their daily chores / activity of life. E-Commerce and its related 
technologies are unquestionably the current leading-edge business and finance 
delivery systems.  
The explosion in the application of technologies and the delivery of these 
technologies into the hands of consumers has made the vision, the dream, the 
fantasy of conducting business electronically, anywhere in the global community, 
E-COMMERCE AND M-COMMERCE
Components
Architecture
Process Flow Diagrams
Risks And Controls
Laws And Guidelines
EMERGING TECHNOLOGIES
• Virtualization
• Grid Computing
• Cloud Computing
• Mobile Computing
• Green IT
• BYOD
• Web 3.0
• Internet of Things
• Artificial Intelligence
• Machine Learning
 
 
 
4.3 
` 
E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES  
 
a reality. E-commerce is no longer just a concept; it is a market force to be 
reckoned with. As more and more organizations launch Internet/World Wide Web 
(WWW) home pages and intranets to disseminate company/product information, 
and expand their customer base, countless yet unnamed companies are just 
beginning to investigate this alternative. These companies are realizing that 
business via the Internet is inevitable that they will not be able to ignore. The lure 
of reaching additional customers, expanding market shares, providing value-
added services, advancing technological presence, and increasing corporate 
profits is just too valuable to disregard, and will eventually attract companies to 
electronic commerce like moths to a flame. 
E-Commerce is the process of doing business electronically. It refers to the use of 
technology to enhance the processing of commercial transactions between a 
company, its customers and its business partners. In e-commerce, the buyers and 
sellers interact electronically using telecommunication networks rather than 
through physical contact or exchange. It is a new way of conducting, managing, 
and executing business transactions using computer and telecommunication 
networks. It involves the automation of a variety of transaction such as Business-
To-Business (B2B) Business-To-Consumer (B2C), Consumer-To-Consumer (C2C) 
and Consumer-To-Business (C2B) etc. through reliable and secure connections. 
Much of the growth in the industry has been triggered by increasing internet and 
smartphone penetration. By 2022, smartphone users are expected to reach 859 
million, whereas e-commerce sector is expected to grow 1,200 percent by 2026. 
4.1.1 Traditional Commerce and E-Commerce 
The greatest change due to technology innovations in last five years has been the 
way users perform their daily chores / activity of life.  
Example 4.1: An illustrative Table 4.1.1 shows how technology has entered every 
aspect of human life. 
Table 4.1.1: Examples of how Technology has entered every aspect of human life 
S. 
No. 
Activity Then  Now 
1 Wake up Alarm clocks with 
snooze buttons. 
Mobile alarms, multiple types.  
Some forcing you to solve 
mathematical quiz before you 
snooze them.  
Ensuring you wake up. 
 
 
ENTERPRISE INFORMATION SYSTEMS 
4.4 
2 Morning chores Make / Cook 
Breakfast. 
Multiple home delivery solutions 
available where you can order 
online. For example, Zomato and 
Swiggy. 
3 Going to office In small towns in 
India, there was 
AUTO RICKSHAW. 
Now even in small towns, you have 
a mobile APP through which you 
can call a JUGNOO auto/bike, an 
OLA/UBER/auto /cab. 
4 Office Admin All jobs to be done 
by assigned service 
provider. For 
example: Posts 
need to be sent to 
courier agency. 
Now you book through online 
APP, the courier agency picks up 
POST at designated time and 
place. 
5 Procurements of 
all items: Items 
include 
Electronic, 
Furniture, 
Mobiles, Grocery, 
Cars and Bikes 
etc. all items 
covered here. 
Go shop by shop 
to check price and 
quality. 
Now it is possible to search all 
products online, buyer can 
compare prices and order online. 
Few online sellers are giving 
facility of delivery within 12 
hours of ordering. 
Aforementioned are the ways how consumer/customers are buying 
products/services. The change in technology innovations has forced organization 
to change their product/service delivery channels. The previous product delivery 
channel which was typically defined by the Fig. 4.1.1 has moved to the new 
product delivery model as shown in Fig. 4.1.2.  
Fig. 4.1.1: Old Model 
Value added 
Breaking bulk 
Consolidating supplies 
Holding inventory 
Manufacturer 1 
Manufacturer 2 
 
Whole Seller            
(or Agent 1) 
Retailer 
Whole Seller              
(or Agent 2) 
Manufacturer 3 
 
Products from Other 
Manufactures 
4.5 
`
E-COMMERCE, M-COMMERCE AND EMERGING TECHNOLOGIES  
 
Fig. 4.1.1 illustrates the old traditional model of doing business with multiple 
layers before product is finally delivered to customer. Fig. 4.1.2 illustrates the new 
business model enabled by technology. In this model, the link to consumer and 
supplier is virtually direct. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fig. 4.1.2: New Model of E-Commerce 
4.1.2 Difference between Traditional Commerce and E-Commerce  
Table 4.1.2 highlights the differences between Traditional Commerce and E-
Commerce. 
Table 4.1.2: Traditional Commerce Vs E-Commerce 
BASE FOR 
COMPARISON
TRADITIONAL       
COMMERCE
        E-COMMERCE 
Definition Traditional commerce 
includes all those 
activities which 
encourage exchange, of 
goods / services which 
are manual and non-
electronic. 
E-Commerce means carrying out 
commercial transactions or exchange 
of information, electronically on the 
internet. 
Order Placed by User         Shopping Cart     Credit Card is Charged       Order is completed 
 
Shipment 
sent to 
Customer 
Shipping Carrier                     Sent to Warehouse for fulfilment         Email is sent to Customer                       
picks up shipment                   & Merchant