CA Intermediate Exam > CA Intermediate Notes > Financial Management & Strategic Management for CA Intermediate > E-Commerce, M-Commerce & Emerging Technologies: Notes (Part - 1)
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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
Read More
FAQs on E-Commerce, M-Commerce & Emerging Technologies: Notes (Part - 1) - Financial Management & Strategic Management for CA Intermediate
| 1. What is the difference between e-commerce and m-commerce? |  |
Ans. E-commerce refers to the buying and selling of goods and services over the internet, typically using a computer. On the other hand, m-commerce refers to the buying and selling of goods and services through mobile devices, such as smartphones and tablets. The key difference between the two is the device used for the transactions.
| 2. What are some examples of emerging technologies in e-commerce and m-commerce? | |
Ans. Some examples of emerging technologies in e-commerce and m-commerce include virtual reality (VR) and augmented reality (AR) for enhanced shopping experiences, artificial intelligence (AI) for personalized recommendations and chatbots for customer service, blockchain for secure and transparent transactions, and voice recognition technology for voice-activated purchases.
| 3. How has e-commerce and m-commerce impacted traditional brick-and-mortar businesses? | |
Ans. E-commerce and m-commerce have significantly impacted traditional brick-and-mortar businesses. With the rise of online shopping, many customers now prefer the convenience of shopping from their homes or on-the-go, leading to a decline in foot traffic and sales for physical stores. To compete, traditional businesses have had to adapt by establishing their online presence or integrating mobile commerce into their operations.
| 4. What are the advantages and disadvantages of e-commerce and m-commerce? | |
Ans. The advantages of e-commerce and m-commerce include convenience, accessibility, a wide range of products and services, cost savings, and personalized shopping experiences. However, there are also disadvantages such as security concerns, potential for fraud, lack of physical interaction, reliance on technology, and limited internet access in certain regions.
| 5. How can businesses ensure the success of their e-commerce and m-commerce initiatives? | |
Ans. To ensure the success of e-commerce and m-commerce initiatives, businesses should focus on user experience by creating intuitive and mobile-friendly websites or applications, optimizing page load speeds, and providing secure payment gateways. They should also invest in digital marketing strategies such as search engine optimization (SEO), social media advertising, and email marketing to drive traffic and increase conversions. Regularly analyzing data and customer feedback can help identify areas for improvement and tailor offerings to meet customer needs.
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