ASSIGNMENT

E-BUSINESS

INSTITUTE OF MANAGEMENT EDUCATION

SAHIBABAD, GHAZIABAD

SUBMITTED TO: SUBMITTED BY:

PROF. Manoranjan GUNJAN KUM AR
Roll No. 9040
ABOUT DELOITTE

"Deloitte” is the brand under which tens of thousands of dedicated professionals in independent
firms throughout the world collaborate to provide audit, consulting, financial advisory, risk
management, and tax services to selected clients. These firms are members of Deloitte Touche
Tohmatsu Limited (DTTL), a UK private company limited by guarantee. Each member firm
provides services in a particular geographic area and is subject to the laws and professional
regulations of the particular country or countries in which it operates. DTTL does not itself
provide services to clients. DTTL and each DTTL member firm are separate and distinct legal
entities, which cannot obligate each other. DTTL and each DTTL member firm are liable only
for their own acts or omissions and not those of each other. Each DTTL member firm is
structured differently in accordance with national laws, regulations, customary practice, and
other factors, and may secure the provision of professional services in its territory through
subsidiaries, affiliates, and/or other entities.

In India
In India, we offer a range of Audit & Enterprise risk, Tax, Consulting and Financial
advisory services across thirteen cities.

Our existence for over a century in the Indian professional arena supplements the technical
proficiency of the client service teams to create powerful business solution tailored to the client's
need.

We focus on clients. We take pride in our ability to provide quality services - whether they are an
owner-managed business or a large multinational corporation. We are a multi-skilled, multi-
disciplined firm, offering clients a wide range of industry-focused business solutions.

We recruit the brightest and the best - whatever their specialization. We combine the dynamism
and fluid-thinking of the young graduate, with the business knowledge and insight of the
seasoned executive. Investing in our people means our clients get world-class expertise to solve
their complex business problems.
Services
We bring a unique combination of business, functional and technical expertise that allow our
clients to better align their business objectives and strategies with the need of today’s
competitive market.  We serve Indian business houses, multinational corporations and the public
sector and provide assistance to global clients seeking to develop local businesses and expand
into emerging markets such as India. Our edge lies in our ability to draw upon a well-equipped
global network and teaming this with customized services of a local office. Our integrated
approach combines insight and innovation from multiple disciplines with business and industry
knowledge to help our clients excel anywhere irrespective of geographical boundaries.

We offer a broad range of fully integrated services in the following areas:

Audit and Enterprise risk services: Our Audit and Enterprise Risk

Service professionals  provide a range of audit and advisory services to
assist clients in achieving their business objectives, managing their risk
and improving their business performance.
   
Consulting: Our consulting group works closely with you to deliver
measurable/ quantifiable improvement in business performance; drive
shareholder value and create sustainable competitive advantage.
                                                                                                         
 
                                       
Financial advisory: Our FA practice takes on an industry vertical
approach. It draws upon its pool of experts both in India and abroad
specializing in various industries.
   
Tax: Our tax professionals will keep you aware of developments that
may affect your business, and also help you interpret their significance
and integrate a plan into your business strategy. 
 

Industries
We deliver knowledge and expertise that help our clients to understand complex issues and make
better strategic decisions. Our solutions are based on experience in specific industries and
business environments.

The primary industries we focus on are:

Consumer Business & Transportation: Our experience across all

segments of the consumer business industry allows us to understand the  
issues and trends our clients face.
     
Energy & Resources: we have an established Energy & Resources
industry vertical which covers individual industry groups focusing on
Oil and Gas, Power, Mining, Renewable and Nuclear Energy.
                                                                                                          
                               
Manufacturing: Our professionals have worked with manufacturing
companies in different functions and therefore bring practical insights.  
We serve clients in a number of sub-sectors in manufacturing such as
automotive, auto-components, industrial products, process chemicals,
textile, apparel, leather products, etc.
   
Technology, Media & Telecommunications: Our TMT Group
has deep industry knowledge of TMT companies and is a resource with
tremendous potential dedicated to helping clients and prospects in the
TMT sectors evaluate complex issues, resolve problems and implement
practical solutions.
 

Search Engine Marketing

By: Deloitte

Advantages of SEM
Search engine marketing has proved to be a very powerful tool for generating revenues for the
marketer. Reasons why a marketer employs search engine marketing techniques can be listed
below:

1. Visibility: Search engine marketing helps in creating awareness and enhancing visibility
of the marketer amongst competitors and alternators of the marketer. This visibility is not
restricted to domestic market only but extends to international market as well. It is, therefore
especially suited to SMEs.

2. Quicker turnaround time: An online Internet user will click on an advertisement usually
when he/she is looking out for that particular service/ product. Thus the marketer can get better
leads from here, which can be converted into customers if dealt with a good sales pitch.

3. Effective outreach: Search engine marketing helps in reaching out the target audience in a
more effective manner. The advertisement appears only when the user types in a query for the
desired product/service. Thus the reach of the advertisement is more concentrated and more
confined to the people who have a need for it in the near future.
4. High ROI: A marketer is charged only for the advertisements, which are clicked. They have
to buy out the keywords and it is upto them what number of keywords are bought by him, thus
reducing their marketing expenses, which in turn increases the ROI.

5. Competitors inaction - your opportunity: Nearly 46% of marketers surveyed by Cyber Atlas
Research allocate less than 0.5% of their annual marketing budgets on search engine Marketing
(SEM) services. Only 10 percent spend more than 25% of their marketing budgets on increasing
their visibility on the Web.)

6. People use search engines - a lot

The majority of Web users search the web every day (57%). The only thing done online more
often than using search engines is checking email - 81% check email every day

7. Billions of pages. Millions of searches

There are more than 320 million searches are made through search engines and directories each
day. Google alone had over 55 billion searches during 2002. The exponential growth of the Web
means there are now billions of web pages and consequently this has increased peoples reliance
on search engines as a way of locating information online.

8.) Qualified traffic ready to buy

Traffic search engines and directories deliver to websites is highly qualified because users are
actively searching for the information. This is the major difference to traffic delivered by banner
advertising.

9.More Effective Than Banners

There are 5 – 6 times more online purchases made from traffic delivered by search engines
compared to banner advertising. The cost for online marketing campaigns using search engines is
significantly lower than that for banner advertising. Not only are search engines highly effective
online marketing tools – they’re also cost efficient.

Competitors
PRICEWATERHOUSE COOPER LTD
Imagine the power of 160,000 people with a common purpose — building relationships that
create value for you and your business. This is PwC. Every day, our people work with you to
build the value you are looking for.

PWC start by getting to know people. People do the talking, They do the listening. Our tailored
solutions will help you meet the challenges and opportunities of doing business in the US
market, and beyond.

We bring a global perspective along with in-depth knowledge of local, state and US issues. In
1998, Price Waterhouse and Coopers & Lybrand merged to create PricewaterhouseCoopers. We
have a long history of delivering value-added professional services to our clients. Our accounting
practice originated in London during the mid-1800's.

PwC focuses on audit and assurance, tax and advisory services. Additionally, in the US, PwC
concentrates on 16 key industries and provides targeted services that include — but are not
limited to — human resources, deals, forensics, and consulting services. We help resolve
complex issues and identify opportunities.

Our reputation lies in building lasting relationships with our clients and a focus on delivering
value in all we do. We share our knowledge and expertise to help you reach the goals you set for
your business.

KPMG

KPMG is one of the largest professional services firms in the world and one of the Big Four
auditors, along with Deloitte, Ernst & Young (EY) and PwC. Its global headquarters is located
in Amstelveen, Netherlands.
KPMG employs 138,000 people and has three lines of services: audit, tax, and advisory.
The firm was established in 1870 when William Barclay Peat formed an accounting firm
in London. In 1877 accountancy firm Thomson McLintock opened an office in Glasgow[4] and in
1911 William Barclay Peat & Co. and Marwick Mitchell & Co. merged to form Peat Marwick
Mitchell & Co, later known as Peat Marwick.
Each national KPMG firm is an independent legal entity and is a member of KPMG International
Cooperative, a Swiss entity registered in the Swiss Canton of Zug. KPMG International changed
its legal structure from a Swiss Verein to a co-operative under Swiss law in 2003.

ERNST & YOUNG

Ernst & Young (EY) is one of the largest professional services firms in the world and one of
the Big Four auditors, along with Deloitte, KPMG and PricewaterhouseCoopers (PwC).
Ernst & Young is a global organization of member firms in more than 140 countries,
headquartered in London, UK. It was ranked by Forbes magazine as the 9th largest private
company in the United States in 2010.
Ernst & Young is the result of a series of mergers of ancestor organizations. The oldest
originating partnership was founded in 1849 in England as Harding & Pullein. In that year the
firm was joined by Frederick Whinney. He was made a partner in 1859 and with his sons in the
business it was renamed Whinney Smith & Whinney in 1894.

EY is the most globally managed of the Big Four firms. EY Global sets global standards and
oversees global policy and consistency of service, with client work being performed by its
member firms. Each EY member country is organised as part of one of four areas:[12]

 EMEIA: Europe, Middle East, India and Africa
 Americas
 Asia-Pacific
 Japan
Each area has an identical business structure and one management team that is led by an Area
Managing Partner is part of the Global Executive board.
E-BUSINESS STRATEGIES

Supply chain management: effective management of the supply chain can be handled with the
help of e-business strategies, which will ensure better coordination between the wholesalers and
the retailers of various products. Better integration of the supply chain right from the source till
the final delivery of the product can be effectively implemented using e-business strategy. This
also brings us to the point of e- commerce where a parallel network of buying and selling can be
observed using dissemination of information over the Internet. Everything ranging from
automobiles to electronic gizmos can be bought over the Internet in a hassle free manner under
the aegis of sound supply chain management. 

Customer service and customer relationship management: effective e-business strategies

would involve better customer service and customer relationship management ensuring the
highest level of consumer satisfaction. E business is targeted at providing the customer-friendly
services, which would include the timely delivery of goods right at the doorstep of the consumer.

Inventory and service management integration: e business strategies can also help in better
inventory and service management integration through formulating specific plans for inventory
accumulation and purchasing machinery and equipment which will avoid unnecessary purchases
which can lead to higher expenditures entailing different tax implications.

Tactical operations alignment: tactical operations directed towards short-term goals as opposed

to strategic planning aimed at long term goals can be better coordinated implementing the e-
business strategies. 

E-business diverges from the traditional sphere of business by speeding up the business activities
and giving a totally new dimension and definition to businesses worldwide be it whether
partnerships, joint ventures or large corporations. The internet, intranet, cellular networks and
other forms of digital technology have created a niche value chain among clients, employees,
suppliers, stakeholders and traders coordinated in the world of web marketing. The tools and
pillars of e-business strategies include acceptance of payments over the Internet, online
advertising, on-line trading and auction deals over the Internet. E-business strategies will also
differ for small and medium-sized businesses. Apart from regular sources, e-business strategies
can generate revenue from maintenance of current channel integrity, revenue made from paid
marketing alliances, revenues derived from franchisees and subscriptions.
m-commerce (mobile commerce)
Mobile Commerce refers to wireless electronic commerce used for conducting commerce or
business through a handy device like cellular phone or Personal Digital Assistant (PDAs). It is
also said that it is the next generation wireless e-commerce that needs no wire and plug-in
devices. Mobile commerce is usually called as ‘m-Commerce' in which user can do any sort of
transaction including buying and selling of the goods, asking any services, transferring the
ownership or rights, transacting and transferring the money by accessing wireless internet service
on the mobile handset itself. 

The next generation of commerce would most probably be mobile commerce or m-commerce.
Presuming its wide potential reach all major mobile handset manufacturing companies are
making WAP enabled smart phones and providing the maximum wireless internet and web
facilities covering personal, official and commerce requirement to pave the way of m-commerce
that would later be very fruitful for them.

Advantage of m-Commerce

M-commerce has several major advantages over its fixed counterparts because of its specific
inbuilt characteristics such as ubiquity, personalization, flexibility, and distribution, mobile
commerce promises exceptional business market potential, greater efficiency and higher
fruitfulness.

Thus it is not surprising that mobile commerce is emerging much faster than its fixed
counterpart. M-commerce is more personalized than e-commerce and thus needs a gentle
approach to appraise m-commerce applications.

Areas / Uses of m-commerce

In the current commerce industry, mobile commerce or M-Commerce has been entered in
finance, services, retails, tele-communication and information technology services. In these
sectors, M-Commerce is not only being widely accepted but also it is being more used as a
popular way of business/ commerce.

Finance Sectors

Mobile Commerce works vastly in finance sector including all big and major financial institutes,
banks, stock market and share brokers. Whenever any user needs money or wants any sort of
banking and finance related services, he/she can access the services or register services via voice
calling or via Short Message Services (SMS) services. WAP based mobile handsets allow the
user to access the official website of the institute.

User can transact money or transfer money, or pay the bill from its bank account using mobile
commerce facilities. Banks also provide round the clock customer care services, which can be
used any time through voice calling. Some customer care services are also provides non-voice
services on mobile that is known as insta-alert facility.
While in the stock market, the user can access the stock market quotes and get in live touch with
current trading status on its mobile in two forms either voice (customer assistance) or non-voice
(sms alerts) or both.

The share broker sends market trends and tips of trading on their clients' mobile. Also broker can
suggest the appropriate stock for intra-day trading to their users.

Telecommunication Sectors

Mobile has played a giant role in communication technology through its versatility and
superiority. The ubiquity and easy usage has further made it extremely popular across the globe.
It has already surpassed the fixed phone in the world. Software platform is essential for operating
any mobile and this tool has revolutionized the communication world because of its functioning
as a small computer.

The booming popularity has forced the corporate world to develop a new commerce platform
that can reach to masses. Mobile commerce has attracted massive traffic because of its unique
characteristics. The user can change the service of any financial institute or banks if gets better
product and service or user is unsatisfied with the service of the subscribing company.

Besides this several bills can be paid using mobile and user can also check the available balance,
the status of cheques, the status of requested processing and customer care support.

Several dealings can be handled through mobile phones.

Service / Retail sectors

Service and Retail sectors are also among the leading sectors, which have nurtured most from
mobile commerce. M-Commerce has proved a major boon for these sectors. Several business
dealings no matter how big or small are being finalized on the mobile phone. Customer would be
able to book the order, can hire carrier/courier services and above all could also pay the dues
related to it through mobile.

Information Sector

After the bursting of dotcom bubble, e-commerce has gone downwards to hell. But the evolution
of mobile commerce has again worked as ambrosia for them. A separate sector has been evolved
to exercise on this field for the IT experts. The webmasters have skilfully exploited this new area
of IT-enabled commerce.

In the IT field, mobile commerce has been used massively to deliver financial news, stock
updates, sports figures and traffic updates and many more onto a single handheld device
‘mobile'.
History of m-commerce

Despite of huge popularity of mobile commerce, it is yet in the initial stage and can be further
expand in to all the fields, which affect the human life. The assumption of mobile commerce is
not so young as it mushroomed so early from adopting this technology.

It initially begins with the use of wireless POS (Point Of Sale) swipe terminals and has since
then made its way into cellular phones and PDA's (Personal Digital Assistants). The first
enabling m-commerce technologies were presented through Wireless Application Protocol
(WAP) and i-mode mobile Internet service. WAP builds on digital phone technology and first
emerged on 2.5 G phone technology that allowed users to browse the Internet. This technology
cemented the way of m-commerce, which has strongly developed on 3G-phone technology.
Nokia has first introduced m-commerce application software Nokia toolkit version 4.0.

The future of m-Commerce seems extremely bright because several experiments are going on to
introduce the upgraded version of mobile likely to emerged with the evolution of 4G mobile
technology.

m-commerce in India

In India, Mobile Commerce is still in the development phase as the use of mobile phones for
carrying out transactions is very limited. However, the development is taking place at a nice
speed and in the coming years, Mobile Commerce is most likely to make its presence feel as
companies and businesses have started understanding the benefits of Mobile Commerce.

Some of the companies have even incorporated this technology. Airtel, ICICI, Reliance are some
of the companies/businesses that are using this technology as their users are allowed to make
limited purchases from their phones. For now, the users are mainly allowed to pay phone bills,
utility bills, book movie tickets, book travel tickets with their cell phones. However, more
services will be introduced in coming years. Security is one of the main concerns of Mobile
Commerce as it’s very important to offer secure transactions and this is the reason why Mobile
Commerce is still in the development phase in India.

For now, users are mainly allowed to do Mobile Banking i.e. to access the bank account with a
cell phone in order to pay the utility bills. With the current rate of development, users will be
soon allowed to purchase products, advertise, to take part in auctions and pay bills with the help
of a cell phone, while they are on the move.

The essentials for the success of m-commerce in India

Even as we were marveling at the way Internet has changed our lifestyles, the increasing
popularity of the mobile phone and developments in mobile technology have heralded a new era
in mass communication and commerce for the masses. Touted as the next generation of e-
commerce, mobile commerce (m-commerce) enables users to access the Internet without the
need to find a place to plug in. A vast segment of the population who neither had a landline nor a
bank account (unbanked) against their name have made a generation leap and not only do they
own a mobile handset, but are now well poised to transact on their mobile phone.  And this is a
reality today, thanks to a progressive regulatory regime, huge capitals outlays for network
expansion by telcos, reduced tariffs and consistent reduction in the cost of mobile handsets.

Having said this, should one write the fate of m-commerce on the lines of e-commerce which is
used by only 5% of the total Indian population for transactions? Will m-commerce too burst after
a rapid boom? Not really. The mobile penetration is at ten times of the PC penetration and is
expected to become 1 bn by 2014. The mobile channel has provided a rare opportunity not only
to leapfrog years of poor infrastructure development but also in bypassing geographical
constraints to bring massive benefits and lifestyle changes to millions of under-served people
across India. The average Indian does not own a PC, but the chaiwala, the taxiwala, the farmer,
the housewife, the kabadiwala, just about everyone, has a monthly budget to keep their mobile
phone alive. .
  
There is this school of thought that the existence of a huge unbanked population and the lack of
credit card penetration will hinder the growth of m-commerce in India. I don't subscribe to this
school. And my reasoning stems out of my interactions with various global m-commerce players,
over these years.  Let us take markets like Vietnam and even Cambodia, for instance, which are
much poorer economies as compared to India and have much lesser credit card population and
yet, m-commerce has already evolved in these countries.   
Given the above, can we then say m-commerce will be a definite success in India?  Well, a
straightforward answer will be difficult and the reason being-the industry is in its nascent stage
and is evolving every passing day. So, it will be difficult for anyone to conclude on the success
or failure, as yet, of m-commerce in India. Well, if one were to draw a 'menu card' of what could
make or lead to the success of m-commerce in India then each one of the stakeholders in the
ecosystem viz, content developers, telcos, regulators, banks & financial institutions, users
(consumers) and even the media has a definitive role to play.

Growth of Mobile Commerce in India

Mobile Commerce services are evolving rapidly in India due to the coming together of mobile
service providers, banks and payment service providers to offer more products and secure
transactions through mobile networks.

While eCommerce is limited to PC users only, Mobile Commerce is open to almost everyone
with a cellphone and mobile connection. Mobile Commerce is expected to grow because the
mobile usage and ownership penetration is more than 4 to 5 times than a PC and growing at a
very fast rate.

With mobile commerce offerings expanding, customers in India have the hand-held convenience
of using their mobile phones for making payments for taxi fares and recharging prepaid phone
cards.

Emerging Services of Mobile Commerce in India

1. Increased mobile penetration and use of GPRS on handsets has resulted in the digital
downloads market to cross Rs.2.55 Billion by end of March 2008.
2. Monetary transfers or transactions through mobile phones are found to be much cheaper
than traditional bank transfers as the transaction costs are much lower in the former.
3. Innovative solutions for daily use such as payment of auto or taxi fares
4. Inter-bank transfers services are also on the anvil. ICICI Bank Ltd, India’s largest private
bank, has already started offering all its services through mobile phones (called mobile
banking) since January 2008. Standard Chartered bank has launched a service that enables
money transfer from any ATM to any mobile phone across the country. The recipient
receives a pin number on his or her mobile phone and the sender has to convey the order
number to the recipient. Using these two the recipient can withdraw money from the bank’s
ATM’s.
5. Feasibility studies are being conducted to offer mobile commerce to microfinance firms
to enable them collect payments from remote areas.

Challenges faced by Mobile Commerce in India

1. Security of transactions through Mobile Commerce: The biggest challenge to Mobile

Commerce is the security of payment through mobiles. Mobile Commerce Services like the
mobile wallet which helps make payments at retail outlets through text messages have been
hindered by the guidelines issued by the Reserve Bank of India due to security concerns.
Mobile Payment Service Providers like Obopay Inc and mChek India Payment Systems Pvt. Ltd
are planning on services that would work within the RBI prescribed guidelines like bank
account-linked services and mobile debit cards.
2. The other challenges faced by Mobile Commerce are – the speed of GPRS and user interfaces.

m-payment
M-payment (mobile payment) is a point-of-sale payment made through a mobile device, such as
a cellular telephone, a smartphone, or a personal digital assistant (PDA). Using m-payment, a
person with a wireless device could pay for items in a store or settle a restaurant bill without
interacting with any staff member. So, for example, if a restaurant patron wanted to pay quickly
and leave the restaurant on time to get to an appointment, the bill could be paid directly from the
table - without waiting for a server to bring the check. The patron would simply connect to the
cash register with a wireless device, punch in the table number and bank personal identification
number (PIN), and authorize payment. According to Orange Mobile Payment (a Danish
company), the entire transaction should take no more than 10 seconds.
The earliest m-payment trials were based

on the wide area network (WAN) used for cellular phones. That meant, however, that users had
to pay cell phone charges to make a payment, and also had to punch in long sequences of digits
each time. Other technologies tested enable less cumbersome procedures. Palm and Verifone will
use infrared (IR) data transmission for their initial trials. Among the other technologies being
used are Bluetooth, WiFi, and RFID, a short-range transmission system. Public key infrastructure
(PKI) encryption - considered to be necessary for secure m-commerce in general - is currently
being incorporated into digital wireless networks and into an increasing number of wireless
devices, a trend that is likely to increase consumer confidence in m-payment's security.
M-payment is already being used in some parts of the world, including Europe and Asia. In
North America, a series of trials are scheduled for late 2001. Commerce Systems, a company
based in Kingston, New York, and Nokia jointly developed a cellular phone m-payment system
that is being tested in a trial with two United States restaurant chains. One small complication
hindering wide-spread acceptance of m-payment is the distinction that credit card companies
make between transactions where the card is physically present at the point of sale and those
where it is absent - for example, when you use your credit card for transactions over the
telephone or your computer's Internet connection. For payments in what are considered "card not
present" situations, credit card companies charge the merchant a higher transaction fee. Whether
m-payment would qualify as a "card present" situation or not has not yet been determined; that
decision may depend on the degree of confidence credit card companies have in the security of
m-payment.