E Business and AccountingLecture Notes4.5 E-BUSINESS AND ACCOUNTINGUNIT 1. e-BUSINESS 10 HoursIntroduction, E-Commerce definition, History of E-commerce, types of E-Commerce B to B etc. Comparison of traditional commerce and e-commerce. E-Commerce business models major B to B, B to C model, Consumer-to-Consumer (C2C), Consumer-to- Business (C2B) model, Peer to-Peer (P2P) model emerging trends. Advantages/ Disadvantages of e-commerce, web auctions, virtual communities, portals, e-business revenue models.

UNIT 2. Hardware and Software for E-Business 05 HoursWeb server hardware and software software for web servers, Website and internet utility programs, Web server hardware, web hosting choices electronic commerce software shopping cart .

Unit 3: Getting started with Tally 05 HoursWhat is Tally? Using Tally Software: introduction and installation, Required Hardware, Preparation for installation of tally software, installation. Items on Tally screen: Menu options, creating a New Company, Basic Currency information, New Company, Other information, Company features and inventory features.

Unit 4: Configuring Tally 10 HoursGeneral, Number symbols, accts/inv info menu, voucher entry, invoice/orders entry and printing, security issue. Working in Tally: Making Ledger Accounts, writing voucher, voucher entry, making different types of voucher, correcting sundry debtors and sundry creditors accounts, preparation of Trail Balance, Accounts books, Cash Book, Bank Books, Ledger Accounts, Group Summary, Sales Register and Purchase Register, Journal Register, Statement of Accounts, & Balance Sheet.

Unit 5: Reports in Tally: 10 HoursOutput reports, basic features of displaying reports, printing reports, other printing options, display account bookstand statements, viewing cash/bank books, configure balance sheet, columnar balance sheet, show fortnightly balance sheet, integrate accounts with inventory, display profit and loss account.

REFERENCE BOOKS1. Kalakota Ravi and A. B. Whinston : Frontiers of Electronic Commerce, Addison Wesley2. Watson R T : Electronic Commerce the strategic perspective. The Dryden press3. Agarwala K.N and Deeksha Ararwala: Business on the Net Whats and Hows of E-Commerce4. Agarwala K. N. and Deeksha Ararwala : Business on the Net Bridge to the online store front, Macmillan, New Delhi.5. Srivatsava: E.R.P, I.K. International Publishers6. Diwan, Prag and Sunil Sharma, Electronic Commerce A manager guide to Ebusiness, Vanity Books International, Delhi7. Tally for Enterprise Solutions 8. C.S.V Murthy- E Commerce, HPH9. P. Diwan / S. Sharma E Commercehttp://www.tutorialspoint.com/e_commerce/index.htm

UNIT 1E-BUSINESSInternetThe Internet is a global system of interconnected computer networks that use the standard Internet protocol suite (TCP/IP) to serve billions of users worldwide. It is anetwork of networksthat consists of millions of private, public, academic, business, and government networks, of local to global scope, that are linked by a broad array of electronic, wireless and optical networking technologies.

E Business:E Business is commonly referred as Electronic business or an internet business. It refers to buying and selling of goods and services through internet. It involves the use of information and communication technologies to facilitate and support processes and activities of business.

E commerceElectronic commerce, commonly known ase-commerce,ecommerce,eCommerceore-comm, refers to the buying and selling ofproductsorservicesover electronic systems such as theInternetand othercomputer networks. Electronic commerce is generally considered to be the sales aspect ofe-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions.

History of E-Commerce Development of EDI: Point and Click Browser: Development of DSL: Napster, online application: Development of E-Commerce:

Types of E-Commerce

B2B:B2B stands for Business to Business. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers. It consists of largest form of Ecommerce. B2B e-commerce is simply defined as e-commerce between companies. This is the type of e-commerce that deals with relationships between and among businesses. It involves the use of web-based technologies to conduct business between two or more companies. Its scope includes not only buying and selling but also services, fulfilling the needs of customers and collaborating with business partners. In a B2B transaction, the interaction is between businesses. For example, a website that is catching for the steel industry might have facility for buyers and sellers to list their requirements and post their products. It helps them in quickly closing the transactions and the buyer can get quality, material and can choose from different suppliers. It facilitates access to the ordering process to only those with whom a concern has a commercial relationship.

This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler.Example, Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products. It is one of the cost effective way to sell out product throughout the world

Benefits: Encourage your businesses online Products import and export Determine buyers and suppliers Position trade guides

B2C:B2C stands for Business to Consumer as the name suggests, it is the model taking businesses and consumers interaction.Online business sells to individuals.The basic concept of this model is to sell the product online to the consumers. It is for the customers to buy stores from the web.

B2c is the indirect trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from suppliers website.

Directly interact with the customers is the main difference with other business model. AsB2B it manages directly relationship with consumers, B2C supply chains normally dealwith business that are related to the customer. B2C e-commerce involves selling of goods and services to consumers or end users. It allows them to browse the product catalogue, select products or services and complete the order online.In a B2C transaction, the interaction is between a consumer and the preferred business. For example, the most popular site is amazon.com, which is the first online bookseller which has proved a potential competitor to the traditional bricks and mortar booksellers such as Barrens and Noble.B2C is the most popular form of e-commerce, wherein the individuals are directly involved in B2C e-commerce, and businesses use the internet for offering their products or services 24 hours a day through global access. The sites Amazon.com and Rediff are among these. These websites spell goods directly to consumers over the Internet. The two way accessibility feature of the internet enables operating companies to ascertain consumer preferences and buying trends directly. C2C:C2C stands for Consumer to Consumer. The interaction is between consumer to consumer. It helps the online dealing of goods or services among people. Though there is no major parties needed but the parties will not fulfill the transactions without the program which is supplied by the online market dealer such as eBay.For example, in sites like e-Buy Bid or Buy.com, Baazi.com which are auction sites, one can virtually sell and buy any goods (either used or new ones).

P2P:It is a discipline that deal itself which assists people to instantly shares related computer files and computer sources without having to interact with central web server.If you are going to implement this model, both sides demand to install the expected software so that they could able to convey on the mutual platform. This kind of e-commerce has very low revenue propagation as from the starting it has been tended to the release of use due to which it sometimes caught involved in cyber laws.

G2G:Government-to-Government(abbreviated G2G) is the online non-commercial interaction between Government organisations, departments, and authorities and other Government organisations, departments, and authorities. Its use is common in theUK, along withG2C, the online non-commercial interaction of local and central Government and private individuals, andG2Bthe online non-commercial interaction of local and central Government and the commercial business sector.

G2B:Government-to-Business(abbreviatedG2B) is theonlinenon-commercial interaction between local and central government and the commercial business sector, rather than private individuals (G2C), with the purpose of providing businesses information and advice one-business'best practices'.

C2B: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 model of e-commerce is the site Price line.Com, which allows prospective airline travellers, tourists in need of hotel reservations etc. to visit its websites and indicate their preferred price for travel between any two cities. If an airline is willing to issue a ticket on the customers offered price, the consumer can then travel to the mentioned destination at his terms.

TRADITIONAL COMMERCE VS E-COMMERCESome major comparisons between the traditional commerce methods and modern E-Commerce are listed below:BasisTraditional CommerceE-Commerce

CostCost is greater due to taxes, advertisement and employees.Average cost is much lower than traditional type.

MarketProduct market is limited because of geo-graphical constraints. Product market is across the world because of non-physical aspects.

AdvertisementIt requires product advertisement on various mediums.Developers of the websites also makes adds on domains.

TimeIt requires more time to go outside, to choose, compare and evaluate product.It takes less time to choose and make comparison between several products.

AccessibilityLess accessible due to time or geo-graphical constraints.Products can be accessed at any time and from almost anywhere.

ReliabilityPeople trust it more because of physical transactions.Due to lake of awareness this is less popular among people.

SupportCustomers support centers support their customers.No physical support centers available.

FeedbackFeedback from customers takes a lot of time.Feedback is immediate by certain website features.

InteractivityFewer customers can be interacting with at a time because of less physical limitations.Websites are especially designed for multi-users.

StrategyIt is difficult to establish and maintain standard practices in traditional commerce.A uniform strategy can be easily established and maintain in e-commerce.

Information SharingHeavy dependency on information exchange from person to person.Information sharing is made easy via electronic communication channels making little dependency on person to person information exchange.

Benefits of E-Commerce

Benefits to Organizations The benefits to organizations are as follows: Electronic commerce expands the market place to national and international market with minimal capital outlay; a company can easily and quickly locate more customers, the best suppliers, and the most suitable business partners worldwide. Electronic commerce decreases the cost of creating, processing, distributing, storing, and retrieving paper-based information. For example, by introducing an electronic procurement system, companies can cut the purchasing administrative costs by as much as 85 percent. Ability for creating highly specialized businesses. For example, dog toys which can be purchased only in pet shops or department and discounts stores in the physical world are sold now in a specialized www.dogtoys.com (also see www.cattoys.com). Electronic commerce allows reduced inventories and overhead by facilitating pull type supply chain management. In a pull-type system the process starts from customer orders and uses just-in-time manufacturing. The pull-type processing enables expensive customization of products and services which provides competitive advantage to its implementers. Electronic commerce reduces the time between the outlay of capital and the receipt of products and services. Electronic commerce initiates business processes reengineering projects by changing processes, productivity of salespeople, knowledge workers, and administrators can increase by 100 percent or more. Electronic commerce lowers telecommunication cost the internet is much cheaper than value added networks. Other benefits include improved image, improved customer service, new found business partners, simplified processes, compressed cycle and delivery time, increased productivity, eliminating paper, expediting access to information, reduced transportation costs, and increased flexibility.

Benefits to Consumers The benefits of E-Commerce to consumers are as follows: Electronic commerce enables customers to shop or do other transactions 24 hours a day, all year round, from almost any location. Electronic commerce provides customer with more choices; they can select from many vendors and from many more products. Electronic commerce frequently provides customers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons. In some cases, especially with digitized products, E-Commerce allows quick delivery. Customers can receive relevant and detailed information in seconds, rather than days or weeks. Electronic commerce makes it possible to participate in virtual auctions. Electronic commerce allows customers to interact with other customers in electronic communities and exchange ideas as well as compare experiences. E-commerce facilitates competition, which results in substantial discounts.

Benefits to Society The benefits of E-Commerce to society are as follows: Electronic commerce enables more individuals to work at home and to do less traveling for shopping, resulting in less traffic on the roads and lower air pollution. Electronic commerce allows some merchandise to be sold at lowest prices, so less affluent people can buy more and increase their standard of living. Electronic commerce enables people in third world countries and rural areas to enjoy products and services that otherwise are not available to them. Electronic commerce facilitates delivery of public services, such as health care, education, and distribution of government social services at a reduced cost and/or improved quality. Health care services, e.g., can reach patients in rural areas.

Disadvantages of E-commerce:

Purchase to Delivery when making a purchase at a brick and mortar business, you get the product when you pay for it. On the web, there may be a time lag from purchase to actually being able to consume. The consumer will have to wait for delivery of physical goods. Inability to Feel the Physical it is nearly impossible to sell things like furniture and tires online. Furniture is something people like to sit on and know the feel. Tires need to be installed once purchased. The old tires also need to be disposed of. In both instances, there is a need for real actions to fulfill the reason for the purchase. Thats why things like food, jewelry, antiques etc. can never turn to E-commerce. Trouble recruiting and retaining employees the company needs well-expert and skilled staff to keep up and create the ecommerce facilities of the company. Many companies favor to outsource their improvement and programming tasks to decrease labor costs. Consumers feel less confident with their credit card numbers most of the consumers are still not confident in providing their credit card numbers for making payments on the website while shopping on the Internet. Not every company can take the benefit some of the small companies may not be able to take the benefit of E-commerce for example the lack of expertise and lack of technology. The legal environment in which E-commerce is conducted is full of unclear and conflicting laws. It should be noted that mostly these disadvantages stem from the newness and rapidly growth of the technology.

Web Auctions:A web auction is an auction which is held over internet. It is also called as online auction. It is a place where people can go to buy or sell goods or services online for a small fee.Eg: www.ebay.com, www.ubid.com, etc

Types of online auctions

English auctionsEnglish auctionsare where bids are announced by either an auctioneer or by the bidders and winners pay what they bid to receive the object. English auctions are claimed to be the most common form of third-party on-line auction format used and is deemed to appear the most simplistic of all the forms. The winner is the highest bidder and the price is the highest bid. The popularity of the English auction is due to the fact that it uses a mechanism that people find familiar and intuitive and therefore reduces transaction costs. It also transcends the boundaries of a traditional English auction where physical presence is required by the bidders, making it increasingly popular even though there is a susceptibility to various forms of cheating.

Dutch auctionsDutch auctionsare the reverse of English auctions whereby the price begins high and is systematically lowered until a buyer accepts the price. However, with actual on-line Dutch auctions where the price is descending, it was found that auctions have on average a 30% higher ending price than first-price auctions with speculation pointing to bidder impatience or the effect of endogenous entry on the Dutch auction.

First-price sealed-bidFirst-price sealed-bidauctions are when a single bid is made by all bidding parties and the single highest bidder wins, and pays what they bid. The main difference between this andEnglish auctionsis that bids are not openly viewable or announced as opposed to the competitive nature which is generated by public bids.

Vickrey auction AVickrey auction, sometimes known as asecond-price sealed-bid auction. However, the highest bidder and winner will only pay what the second highest bidder had bid. The Vickrey auction is suggested to prevent the incentive for buyers to bid strategically, due to the fact it requires them to speak the truth by giving their true value of the item.

Reverse auction Reverse auctionsare where the roles of buyer and seller are reversed. They do not follow the typical auction format in that the buyer can see all the offers and may choose which they would prefer. Reverse auctions are used predominantly in a business context for procurement. The term reverse auction is often confused withunique bid auctions, which are more akin to traditional auctions as there is only one seller and multiple buyers. However, they follow a similar price reduction concept except the lowest unique bid always wins, and each bid is confidential.

Shill BiddingShill bidding is the act of bidding on your own auction against other bidders in order to raise the price at which your item will eventually sell. It is a violation of both eBay rules and federal law.

Virtual CommunitiesAvirtual communityis asocial networkof individuals who interact through specificsocial media, potentially crossing geographical and political boundaries in order to pursue mutual interests or goals.

Types of Virtual Communities

Internet message boards:AnInternet forum, ormessage board, is anonlinediscussion site where people can hold conversations in the form of posted messages. They discuss thoughts or ideas on various topics. A user will start a discussion by making a post on a thread. Other users who choose to respond can follow the discussion by adding their own posts to that thread.

Online chat rooms:A designated area orforumon theWorld Wide Webthat allowsusersto communicate with each other throughinstant messaging. Text is instantly displayed in thechatroom's conversationlogafter a userhitsenter or send. Other users included in the chat session areableto see what another usertypes.

Virtual Worlds:Avirtualworldis acomputer-based simulated environment.The term has become largely synonymous with interactive 3D virtual environments, where the users take the form ofavatarsvisible to others. These avatars can be textual, two or threegraphical representations, or live video avatars with auditory and touch sensations.

Social Networking sites:Asocial networking serviceis a platform to buildsocial networksorsocial relationsamong people who, for example, share interests, activities, backgrounds or real-life connections. Social networking is web-based services that allow individuals to create a public profile, to create a list of users with whom to share connection, and view and cross the connections within the system.

Web PortalsAweb portalis most often one specially-designedWeb pageat awebsitewhich brings information together from diverse sources in a uniform way.

Types of Web portals

Vertical Portals:vertical portal (sometimes called a vortal) is aWeb sitethat provides a gateway orportalto information related to a particular industry. Vortals typically provide news, research and statistics, discussions, newsletters, online tools, and many other services that educate users about a specific industry.

Horizontal Portals:These are web portals which focus on a wide array of interests and topics. They focus on general audience.

Corporate portals:A Corporate Portal is basically asecured website used by employees, manufacturers, alumni and even customers. The portal is the perfect starting point for everyday tasks that usually would consist of using many different types and sourcesof information and tools.

E business Revenue modelsIt describes how the company will earn revenue, generate profits and produce a better return on invested capital.

Different E business revenue models

Advertising revenue model Subscription revenue model Transaction fee revenue model Sales revenue model Affiliate revenue model