The changes brought by information and communication technology, ICT, in India have affected its economy and its growth as a nation profoundly. This very growth, however, the spread of use by businesses, students and individuals has raised serious security concerns. Much of the growth in ICT has been driven by the availability of broadband Internet access, but data networks, especially wireless ones - WiFi, WiMAX - present significant security risks, making the security of India’s data an issue of paramount importance. . Businesses and ICT Small and medium businesses, SMBs, in India are cognizant of the need for ICT solutions to help them grow, achieve operational efficiencies and become globally competitive. Most SMBs are looking for an ICT solution that is scalable, flexible and provides good outside support. They are also looking for technology solutions that can help integrate local offices, bring them closer to customers and help plan the future capacities and investments required to sustain growth. Another aspect of ICT solutions for SMBs involves the supply chain management system; rather than provide a one-size-fits-all solution, vendors must be able to customize solutions for the individual business. Whether it’s a computer, printer and scanner for a home office, a server for a small business or end-to-end IT architecture for a medium-sized firm, the SMB segment is eager to integrate IT into the conduct of its business. This sector is technologically savvy, and prefers to have the latest technology at its service to facilitate quick access to information and efficient decision-making. The SMB sector, which is growing at 15-20 per cent annually, therefore presents a growth opportunity for IT vendors to become partners, rather than mere sellers of technology. Vendors must be able to partner with SMBs to understand their growth plans and provide solutions with the lifecycle to meet these plans. In the process, it will also lead to widespread and even adoption of ICT by corporate India. Security issues The growth and popularization of ICT - whether it’s a networking solution for the SMB firms, high-speed Internet connectivity, or the adoption of personal computing by individuals and firms - creates new security concerns. For instance, the spread of broadband connections means a greater number of users than before can access high-speed, always-on Internet. Data downloading becomes faster and easier, but wireless networks are especially vulnerable to interception or disruption. Unauthorized access to a wireless network can not only reduce bandwidth speed, but opens the door for security breeches and the loss of data. Today’s business users are looking for notebooks and PCs that pack in the latest features. Reliability features such as hard drive protection, panel protection, spill resistant keyboards and tough casing are top priorities for business executives who want their devices to withstand daily use. They also desire easy-to-use, one-touch access to the device’s various high-tech features. Most importantly, users are looking for security features that go beyond physical protection. They want to have peace of mind, and to know that the data stored in their notebooks is protected from unauthorized access. Given this scenario, it is not surprising that India’s ICT security industry is poised to enjoy the same kind of growth witnessed in the IT industry in the 1990s. India is one of the fastest-growing ICT security markets in the Asia-Pacific region. Indian enterprises are keen to establish or upgrade their existing security infrastructures. It is well recognized that ICT can lead economic growth - India’s success story is a case in point. The eagerness with which the SMB segment is adopting ICT shows the trend will continue. Government agencies have also been quick to adopt IT architecture to run internal networks and for e-governance. ICT is a development tool, and these technologies can help meet the educational, health, governance, employment and commercial needs of the country. However, with the growth in Internet and PC penetration, the issue of information security has become a critical concern. Therefore, one of the most pressing challenges ahead is to make the country’s ICT base secure. This can be done through consumer education and awareness on the one hand, and government commitment to developing cyber laws on the other.
WHAT IS MOBILE TECHNOLOGY?
Mobile technology is exactly what the name implies - technology that is portable. Examples of mobile IT devices include:
• laptop and netbook computers
• palmtop computers or personal digital assistants
• mobile phones and 'smart phones'
• global positioning system (GPS) devices
• wireless debit/credit card payment terminals
Mobile devices can be enabled to use a variety of communications technologies such as:
• wireless fidelity (WiFi) - a type of wireless local area network technology
• Bluetooth - connects mobile devices wirelessly
• 'third generation' (3G), global system for mobile communications (GSM) and general packet radio service (GPRS) data services - data networking services for mobile phones
• dial-up services - data networking services using modems and telephone lines
• virtual private networks - secure access to a private network
It is therefore possible to network the mobile device to a home office or the internet while traveling.
MOBILE COMMUNICATION 'INTEGRATED INTO OUR CULTURE'
According to Zara Rabinowicz, technology journalist ,
“Mobile Communication is something that many brands are only just beginning to consider, but consumers have already embraced mobile technology, the rise of apps is helping to drive the ever-tighter integration of mobile technology into our culture. The fact that the UK tops the polls in terms of using mobile technology demonstrates the extent that mobile communication has become integrated into our culture.
Apps are helping to ensure "seamless delivery of content to the source", noting that maps and shopping are two areas where both the physical and online journey of the user can be enhanced by the use of apps.The news comes just weeks after a study by 2ergo found that retailers in the UK are failing to respond to consumers' phone habits.
ABOUT TIGERTEXT:Tiger Text is the next generation of mobile communication. Members, who join the Tiger Text network by downloading a smart phone application, can send text messages or images that delete off both the sender’s and receiver’s phone after a selected period. Once a sender selects the message lifespan (from 1 minute up to 30 days), expired messages not only delete from both phones, but are not stored on any server and they cannot be retrieved once expired. The sender can also choose other options that do not exist with current texting technology such as deleting the history of the conversation or making a text message “Delete on Read,” meaning the message will disappear 60 seconds after the recipient opens the message, or receive notification of message status and get detailed analytics of their mobile communication.
MOBILE COMMUNICATIONS FOR SOCIAL CHANGE
The FINANCIAL -- On November 25
The magazine writes about International Conference, which was held in Baku initiated by TeliaSonera. The main focus of the conference was “Mobile Communocations for Social Change” and the goal of the operators under TeliaSonera Eurasia group was to inform mass media about their socal responsibility projects. On the conference Georgia was represented by Geocell. Corporate Social Responsibility is especially important factor for Geocell. In this direction the company runs long term social projects, which is positively reflected on the country’s welfare. Every innovation offered by the company is created first of all on the basis of customers’ needs. Taking care of cultural heritage, supporting education and sport, active involvement in integration of people with disability – is the main priority for Geocell. A considerable part of the project of the century has already been accomplished. Today, the Ikalto monastery complex looks almost like it did centuries ago. There is no more danger that a temple will collapse or that the rain will damage it. The Ikalto monastery complex was considerably damaged during the invasions of Tamerlane and Shah Abbas. Later, during the annexation of Georgia by Russia, the temples were painted with lime. At the end of the 19th century, a fence was added to the complex. Now, when the temple was recovered from the old acts of vandalism, it returned its face typical for Georgian architecture as well as the colorful gamma that is so characteristic for Georgian monuments. Archeologists have summed up the results of the two-year work. The discoveries were far beyond expectations.
The specialists opt five of the most important discoveries at the Ikalto monastery complex. First of all it was the Deity Temple, the monument of the 10th century, which needed a restoration. The digs began from this place. The damage was so significant that it became necessary to consolidate the foundation.
1. The initial structure of the church was revealed. Receptacles and an alter were discovered to the South, which have to be late extensions and date to approximately 11-12th centuries. These digs also revealed initial proportions. When an architect constructs a church, s/he does it according to the style of the epoch. Before the digs at the Deity Church begun, it was obvious that the building was far from its initial proportions and it seemed like inappropriate for its epoch. Since after the surface was dug 1.5 meter deep, the proportions were entirely revealed. Now we no longer have to imagine how Ikalto looked like because we can actually see it.
2. Inside the temple, the late brick flooring was removed, which was laid in the 19th century. Yet these were only fragments but still, the remains of the old church were revealed. It has to be supposed that we are dealing with a three-nave or three-church basilica. It became necessary to dig a canopy in front of the diaconate in the southeast corner of the church. According to a legend, under the place where the canopy was erected the founder of the monastery St. Zenon and the greatest Georgian public figure, a confessor of David Agmashenebeli and the founder of the academy – Arsen from Ikalto were buried. Two burial grounds were discovered at the exact locations, which were described in historical sources.
3. During the digs, to the east of the church, in the yard, an apse chapel was revealed. Nothing was visible at this place before. One more church was discovered to the Northeast. To the Northeast of the Small Trinity Church, we discovered a single-nave church. The first impression was that it dates back to the 11-12th centuries. Additionally, on the southern wall of this church another attached church was discovered. There also a wine cellar was found, which was not visible before. In fact, the inner yard became filled with building. Until recently it was supposed thought that the yard of Ikalto was a park-like. As it turned out, there were several churches under the ground.
4. Archeological digs helped to discover many examples of building ceramics. Furrow framed and flat tiles of various colors - blue, red, sky-blue – were found as well as the ware of the late and developed Middle Ages.
5. 80 coins were discovered as a result of archeological digs. 12 of them were found in broken ware. These are Ilkhanid or Mongolian coins. After the study, it was determined that these coins were cut out in Tbilisi during the governing of Abu Sa'eed. These also were important discoveries. As it seems, the coins were hidden during an invasion of Tamerlane.
3G MOBILE TECHNOLOGIES AND ECONOMIC GROWTH,
The Swedish survey will be implemented in September and will be overseen by the department of technology management and economics at Chalmers University of Technology, with co-supervision of Swedish PhD students by Professor Madden. According to Curtin Business School in Western Australia, there’s indications of a direct link between the timely adoption of 3G mobile technologies and economic growth, and the school’s Professor Gary Madden says that Thailand has lagged in the adoption of 3G technology, Sweden has adopted some 3G, while Japan’s take up of 3G has been comprehensive.Professor Madden, director of Curtin’s communication economics and electronic markets (CEEM) research centre, says that, while investment in 3G technologies can have a positive impact on economic growth, “government policies that delay the investment process can cause substantial economic loss.”Professor Madden today announced that Curtin was involved in a five-year multi-million dollar research project to study the benefits of third-generation (3G) mobile technology adoption.
The research, to be conducted in conjunction with prominent universities in Thailand, Sweden and Japan, with funding from various telecommunications organisations in those countries - and led by Professor Madden - will analyse current 3G mobile usage and subscription intentions using consumer data from Thailand, Sweden and Japan.Professor Madden said the research results would produce a unique insight into the potential for economic development from adopting 3G technology in a country like Thailand, and the project would be discussed at the International Telecommunications Society’s fourth Africa-Asia-Australasia regional conference to be held at Curtin’s Bentley campus from the 16th to 18th of August this year.The Swedish survey will be implemented in September and will be overseen by the department of technology management and economics at Chalmers University of Technology, with co-supervision of Swedish PhD students by Professor Madden. Professor Madden says the final survey component will be led by the Graduate School of Information and Telecommunications Studies at Waseda University, Japan and funded by Japanese mobile telephone provider NTT DoCoMo.Professor Madden also said that at the August telecommunications conference in Perth, links would be established through the signing of Memorandums of Understanding between Curtin’s Communication Economics and Electronic Markets research centre, International Cooperation Study Centre (Thammasat University, Thailand), the National Institute for Development Administration,
RAVI SWAMINATHAN argue that India's greatest problem is population growth. So runs the argument in most text books on the Indian economy. If you have a map of the findings of the 2001 Census in front of you, you will notice the following. Let's leave out places like Delhi, where population growth is significantly affected by migratin. (Perhaps this is true of Haryana and Chandigarh as well.) Let's also leave out States like Arunachal Pradesh, Meghalaya, Nagaland, Manipur, Mizoram and Sikkim, as they belong to special categories and the bases are low. Among major States it then transpires that there isn't a major problem in Kerala, Tamil Nadu, karnataka, Andhra Pradesh, Orissa, West Bengal or Himachal Pradesh. (The deteriorating sex ratio, especially in the 0-6 age group, is a separate issue.) The population growth there is slowing down. Chhattisgarh, Uttaranchal, Punjab and Assam also don't provide much cause for worry. But population rates of growth are high in Gujarat, Maharashtra and Jharkhand, higher in Madhya pradesh and Rajasthan and Bihar, apart from Jammu & Kashmir. That indeed is the point. There is not all-India based population problems any more and there is almost a North-South divide. There are significant inter-State and inter-regional differences, with differences not only amog States, but also among districts within the same State. We do not yet have district wise figures from the provisional population totals, but they will eventually be available. To the extent that population policy is important, it thus needs to concentrate on specific States and within these States, on specific districts.The poor and backward States of India have conventionally been referred to as the BIMARU (Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh), with a pun on the word Bihar. Bihar now has Jharkhand, Madhya Pradesh now has Chhattisgarh and Uttar Pradesh now has Uttaranchal. As the earlier identification indicates, the population growth problem is a serious one in the undivided BIMARU States and in Gujarat, Maharashtra and Haryana
According to Curtin Business School in Western Australia, there’s indications of a direct link between the timely adoption of 3G mobile technologies and economic growth, and the school’s Professor Gary Madden says that Thailand has lagged in the adoption of 3G technology, Sweden has adopted some 3G, while Japan’s take up of 3G has been comprehensive.
Benefits
Mobile computing can improve the service you offer your customers. For example, when meeting with customers you could access your customer relationship management system - over the internet - allowing you to update customer details whilst away from the office. Alternatively, you can enable customers to pay for services or goods without having to go to the till. For example, by using a wireless payment terminal diners can pay for their meal without leaving their table.
More powerful solutions can link you directly into the office network while working off site, for instance to access your database or accounting systems. For example, you could:
• set up a new customer's account
• check prices and stock availability
• place an order online
This leads to great flexibility in working - for example, enabling home working, or working while travelling. Increasingly, networking 'hot spots' are being provided in public areas that allow connection back to the office network or the internet. The growth of cloud computing has also impacted positively on the use of mobile devices, supporting more flexible working practices by providing services over the internet. For more information see our guide on cloud counting.
Drawbacks
There are costs involved in setting up the equipment and training required to make use of mobile devices. Mobile IT devices can expose valuable data to unauthorized people if the proper precautions are not taken to ensure that the devices, and the data they can access, are kept safe. See our guide on securing wireless system..
CONCLUSION-
The perfect example is how special tariffs to a certain group of people, became the start of a big and important social initiative, which later ended up with the integration of people with disabilities into society. The company offered an unprecedented service package - an SMS with the lowest tariff for it. The need for supporting these people had its logical reasons, as the most difficult moment for hearing impaired persons is having no communication with the rest of the world: it was clear how important it is for people with hearing and speaking difficulties to integrate in society. It was obvious, that a solution had to be found and the best way for integration of these people was their employment. By this time, there are six hearing impaired persons employed at different premises of the company and this is another logical development of the project
“We Hear You”
Which, started with offering a special SMS service to this group of people to this type of unemployed person
Monday, January 3, 2011
DRAWBACKS AND ADVANTAGES OF E-COMMERCE
Abstract
The Internet is now a flourishing industry. With the technology advancing at a fast rate, more and more people are open to computers and internet. Increasingly they are learning to utilize the Internet for their day to day needs. Here Ecommerce websites take a front seat, moving out to the millions of people searching for your kind of product or services online.In the last decade, many startup e-commerce companies have rapidly stolen market share from traditional retailers and service providers, pressuring these established. The Internet has created a new economic ecosystem, the e-commerce marketplace, and it has become the virtual main street of the world. Providing a quick and convenient way of exchanging goods and services both regionally and globally, e-commerce has boomedAt a macro level, overall economic activity ,total retail spending and change in consumer life style are in general are key drivers to the growth of e-commerce. At a micro level, for instance, rising oil prices and gasoline costs could benefit e-commerce players, e.g., it is more expensive driving to the offline retail store than shopping online. The recession beginning in 2008 has slowed e-commerce, but overall sales are still growing. US online retail sales grew 11% in Q1 2008 compared to a growth of 16.9% in Q1 2007. Ecommerce templates combine the look and feel of a Website template with the functionality of a complete ecommerce site with shopping cart software and much more. Owners want their stores to have a unique, attractive appearance. Web site templates designed to work with Dreamweaver, FrontPage, Go Live, or generic CSS come with many different looks and navigation schemes and can be customized for your site. E-commerce is the pre-eminent buzzword of the online business revolution. It captures the excitement and focus of this fast emerging market. But it is more than a slogan or glib party line. At its core it embodies a concept for doing business online. Electronic commerce is the paperless exchange of business information using electronic data interchange (EDI), e-mail, electronic bulletin boards, fax transmissions, and electronic funds transfer. It refers to Internet shopping, online stock and bond transactions, the downloading and selling of “soft merchandise” (software, documents, graphics, music, etc.), and business-to-business transactions. There are still many things that need to be done. one of those things is allowing templates for each part of the checkout page. You can do a lot of things in CSS and possibly hacking the module files but as we all know drupal developers prefer us not to hack module files. as ecommerce store owners we get pretty picky about how things look and work once we begin to understand why customers are not completing the checkout. Just as a brick-and-mortar
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The consumer market is huge and expanding. It is not only growing by sheer population growth but also because the improving economy is producing a growing class of people with disposable income. Furthermore this potential market is relatively untouched. It is only in the past few years that many consumer products have become available in India.. The potential is to get involved early in the e-commerce boom. As of now there are only a handful of companies involved. The potential is limited for the next year or two. There are some serious obstacles in the way. Few people are used to the idea of mail order. It may take one or two years for the trust to be established between the customer and the company. Also the middle class is 50-70 million but only about 1 million have direct access to the Internet, only 1 in 36 Indians have a phone and most don't have a credit card
2.DEFINITION OF ECOMMERCE.
2.1 Ecommerce is selling products online. Start with free or inexpensive shopping cart software and ecommerce
2.2 E-commerce, or electronic commerce is the conduct of a financial transactions by electronic means. With the huge success of commerce on the Internet, ecommerce usually refers to shopping at online stores on the World Wide Web, also known as ecommerce Web sites. Ecommerce can be business to business (B to B) or business to consumer (B to C). Putting it simply, Ecommerce or Electronic Commerce means buying and selling of goods and services on the Internet. Before making any decision in business, it is worth taking into consideration the benefits, the company would reap on implementation of the new strategy of Ecommerce.
2.3 .E-commerce means The conducting of commerce by companies, government agencies, and institutions with one another over the Internet A transaction conducted between two businesses over the Internet. For example, a publisher may sell books to a retailer, ship them to him/her, and receive payment online without meeting representatives from the retailer.
3. E-COMMERCE EXAMPLES
There is right to access the digital archived copy is an e-commerce service transaction. Examples of e-commerce transactions are:
• An individual purchases a book on the Internet.
• A government employee reserves a hotel room over the Internet.
• A business calls a toll free number and orders a computer using the seller's interactive telephone system.
• A business buys office supplies on-line or through an electronic auction.
• A retailer orders merchandise using an EDI network or a supplier's extranet.
• A manufacturing plant orders electronic components from another plant within the company using the company's intranet.
• An individual withdraws funds from an automatic teller machine (ATM).
• Not an e-commerce transaction because agreement to transfer ownership did not occur over computer-mediated network; neither telephone was computer-enabled.
• .In contrast, the purchase of a pre-packaged music CD from a computerized kiosk would not be considered an e-commerce transaction. If the kiosk was network linked, the digital music was downloaded, and the CD was mastered within the kiosk this would be an e-commerce transaction.
4. DRAWBACKS OF E-COMMERCE-
There are some disadvantages of e-commerce which you should be aware of before starting to trade online.
4.1 DRAWBACKS FOR END-USERS:
4.1.1). Need to be computer tech/ Internet savvy
4.1.2). Security problems: Privacy, Authorisation, Authentication, Integrity, Non-repudiation (PA2IN)
4.1.3) Bandwidth problem
4.1.4) Information overload
4.1.5). Web pages compatability and file format support
4.1.6.) Interoperability of e-commerce systems/ payment transfers
4.1.7). High shipping costs
4.1.8). Fraud and cybercrimes, e.g. identity thief
4.1.9). Currency exchange issue
4.1.10) Poor consumer protection - consumer must consent to use of electronic records of confidential information
4.1.11). Misleading factual compilations
4.2 DRAWBACKS FOR ORGANISATIONS:
4.2.1.Losing the bargaining power of products and/or services to buyers
4.2.2. Legal and Intellectual Property Rights issues
4.2.3. Webpages translation - 43% of Internet users are non-English speakers
4.2.4. Low barriers of entry for new competitors
4.2.5. Greater need for technical employees in organisation
4.2.6. Greater reliance on ASPs (Application Service Providers) and outsourcing
4.2.7. Theft of proprietary information by insiders and outsiders
4.2.8. Denial of service
4.2.9. Fast "Burn Rate" - the speed at which dot-coms spend investors' money.
4.2.10. High "Churn Rate" - The proportion of customers (typically subscribers) that no longer purchase a company's products in a time period.
Now the main drawbacks are discussed below:
*GLOBAL COMPETITION-Whilst e-commerce opens your doors to a global audience, it also gives you direct global competition. So your little niche product that might go down a storm at your local trade fair, may well be completely competitive when competing with thousands of exporters. . It is possible to visit a local music store and walk out with a compact disc, or a bookstore and leave with a book. E-commerce is often used to buy goods that are not available locally from businesses all over the world, meaning that physical goods need to be delivered, which takes time and costs money. In some cases there are ways around this, for example, with electronic files of the music or books being accessed across the Internet, but then these are not physical goods.
*THIRD PARTYVENTURE-Any e-commerce venture is also heavily dependent on third-party firms such as Google, your webmaster or who ever is in charge of managing your website and also your web host. If Google makes you drop a few rankings on one of your key pages, it could mean the difference between taking a salary and not - a risk outside of your control? Yes and no, good search engine optimization is key to doing well at Google.
*.ONLY ONLINE TRANSACTON-Online you don't have the presence you get offline - your customer can come and leave much easier than if they are actually in your shop. Visitors are merely a click away from leaving your site. See something they don't like - bam; they're gone.
*ADVANCE PAYMENT NOT SURE-Furthermore, you may find that you are too successful online. If you sell handmade rocking horses and your website gets picked up by say, a large regional newspaper and you suddenly find one thousand orders placed - what do you do? It's unlikely, but you simply must be prepared for anything in such a fluid environment as the internet. E-commerce is most often conducted using credit card facilities for payments, and as a result very small and very large transactions tend not to be conducted online. The size of transactions is also impacted by the economics of transporting physical goods. For example, any benefits or conveniences of buying a box of pens online from a US-based business tend to be eclipsed by the cost of having to pay for them to be delivered to you in Australia. The delivery costs also mean that buying individual items from a range of different overseas businesses is significantly more expensive than buying all of the goods from one overseas business because the goods can be packaged and shipped together.
*MANAGING RISK -Managing the risks, growing steadily and building relationships with your customers are the core to successful e-commerce. When you walk out of a shop with an item, it’s yours. You have it; you know what it is, where it is and how it looks. In some respects e-commerce purchases are made on trust. This is because, firstly, not having had physical access to the product, a purchase is made on an expectation of what that product is and its condition. Secondly, because supplying businesses can be conducted across the world, it can be uncertain whether or not they are legitimate businesses and are not just going to take your money. It’s pretty hard to knock on their door to complain or seek legal recourse! Thirdly, even if the item is sent, it is easy to start wondering whether or not it will ever arrive.
*.NOT USEFUL FOR PERISHBLE GOODS-Though specialised or refrigerated transport can be used, goods bought and sold via the Internet tend to be durable and non-perishable: they need to survive the trip from the supplier to the purchasing business or consumer. This shifts the bias for perishable and/or non-durable goods back towards traditional supply chain arrangements, or towards relatively more local e-commerce-based purchases, sales and distribution. In contrast, durable goods can be traded from almost anyone to almost anyone else, sparking competition for lower prices. In some cases this leads to intermediary people and businesses which are bypassed by consumers and by other businesses that are seeking to purchase more directly from manufacturers.
*.SENSORY INFORMATION -The Internet is an effective conduit for visual and auditory information: seeing pictures, hearing sounds and reading text. However it does not allow full scope for our senses: we can see pictures of the flowers, but not smell their fragrance; we can see pictures of a hammer, but not feel its weight or balance. Further, when we pick up and inspect something, we choose what we look at and how we look at it. This is not the case on the Internet. If we were looking at buying a car on the Internet, we would see the pictures the seller had chosen for us to see but not the things we might look for if we were able to see it in person. And, taking into account our other senses, we can’t test the car to hear the sound of the engine as it changes gears or sense the smell and feel of the leather seats. There are many ways in which the Internet does not convey the richness of experiences of the world. This lack of sensory information means that people are often much more comfortable buying via the Internet generic goods – things that they have seen or experienced before and about which there is little ambiguity, rather than unique or complex things.
* RETURN THE PURCHASED GOODS-. Returning goods online can be an area of difficulty. The uncertainties surrounding the initial payment and delivery of goods can be exacerbated in this process. Will the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be left with nothing? How long will it take? Contrast this with the offline experience of returning goods to a shop. . E-commerce is an effective means for managing the transaction of known and established services, that is, things that are everyday. It is not suitable for dealing with the new or unexpected. For example, a transport company used to dealing with simple packages being asked if it can transport a hippopotamus, or a customer asking for a book order to be wrapped in blue and white polka dot paper with a bow. Such requests need human intervention to investigate and resolve
* PRIVECY AND SECURITY OF TRANSACTIONS-. Many issues arise – privacy of information, security of that information and payment details, whether or not payment details (eg credit card details) will be misused, identity theft, contract, and, whether we have one or not, what laws and legal jurisdiction apply.
* UNEXPECTED SERVICES_Although some human interaction can be facilitated via the web, e-commerce can not provide the richness of interaction provided by personal service. For most businesses, e-commerce methods provide the equivalent of an information-rich counter attendant rather than a salesperson. This also means that feedback about how people react to product and service offerings also tends to be more granular or perhaps lost using e-commerce approaches. If your only feedback is that people are (or are not) buying your products or services online, this is inadequate for evaluating how to change or improve your e-commerce strategies and/or product and service offerings. Successful business use of e-commerce typically involves strategies for gaining and applying customer feedback. This helps businesses to understand, anticipate and meet changing online customer needs and preferences, which is critical because of the comparatively rapid rate of ongoing Internet-based change.
Business and communication have become effortless over the past few years and things have changed for the better-E-commerce offered many advantages to companies and customers
5.ADVANTAGES OF E-COMMERCE-
5.1 ADVANTAGES FOR END-USERS:
5.1.1. Many choice and alternatives
5.1.2. Reduce search cost
5.1.3. Convenience
5.1.4. More complete information of the material facts about the product beforehand
5.1.5. Low switching costs between different sellers
5.2 ADVANTAGES FOR ORGANISATIONS:
5.2.1. Availability of business - 24x7x365
5.2..2. Cost reduction in operation
5.2.3. Reduce transaction costs
5.2.4. Improve customer service and communication
5.2.5. Competitive advantage
5.2.6. Increased sales from new online sales leads giving rise to increase revenue
5.2.7. Able to identify potential new partners easier
5.2.8. A faster opportunity for products/ service branding
5.2.9. Disintermediation - cutting out the middlemen
5.2.10. Faster possibility of stock output
These are some main advantages discussed below:
*.TIME CONSUMING-Time is one of the crucial factors in our lives now-a-days. A customer may find it difficult to visit your store physically every time. On the other hand, if you have your store put on view on the Internet, anyone can pay a visit to your online store at their convenient time. Your store shuts down at some point of time. But your e-store works 24X7 for you to bring in customers. Moreover, with all your product images and descriptions provided on your e-store, the customer gets a detailed idea about your product and you do not have to squander time briefing the same thing to each and every visitor to your store. It further saves time per transaction. Any sales executive will definitely take some time to illustrate your product to each customer. Your ecommerce website does the same task to hundreds and thousands of your likely customers at the same time. As all the information about your product are made available earlier to your customer's visit, much less time is required to convey the benefits of your product to them, thereby making it easier to close the deal. Thus, many number of transactions can take place within a day. Presenting your Product through Demonstrations and illustrations, depicts a clear and thorough idea about your product without the effort of hiring and training personnel to do so
*ALWAYS PROFIT-whether you have an existing business or launching a brand new business, whether the volume of your business is large or small, you can always generate profit by demonstrating your products or services online, thereby acquiring a large amount of viewer exposure. In a nutshell, just any selling/buying business can profit by the ecommerce method.
*. LESS EXPENSIVE-whether you have an existing business or launching a brand new business, whether the volume of your business is large or small, you can always generate profit by demonstrating your products or services online, thereby acquiring a large amount of viewer exposure.. Web advertisement expenses are also less compared to print or other audio-visual medias, like radio or TV.In an ecommerce website all that you need is a top-notch website design, that have a look and feel equally promising as your competitor, Search Engine Optimization to rank your website with your other competitors, and the annual hosting charges.Largely speaking, there are no major hindrance of Ecommerce websites.
* MORE VIEWERS-Your products showcased on your website, provides a huge exposure to the millions of visitors on the web. For example, if you have a computer showroom in a city, the visitors that you would get, will only be people from the city itself and possibly some from in and around the city.Once in a while there will be visitors from places outside your city. Thus your product exposure is limited. On the contrary, if your products are demonstrated on a website, it connects you to the plentifull people who access the internet and looking for similar product as that of yours.
5. SUGGESTION-
Regardless of what happens to the user, if they fall off the site or they go to Pay Pal and decide to cancel that payment option and then come back to the site or if they hit the back button on their browser while in the checkout process, the products need to remain in the cart - until they finish checkout. There are many forum post on eCommerce just on this subject alone, about sessions being dropped or the cart being empty due to the user being moved off the site from a nonsecure to a secure environment or vice versa.
6 CONCLUSION-
There are still many things that need to be done. one of those things is allowing templates for each part of the checkout page. You can do a lot of things in CSS and possibly hacking the module files but as we all know drupal developers prefer us not to hack module files. as ecommerce store owners we get pretty picky about how things look and work once we begin to understand why customers are not completing the checkout. Just as a brick-and-mortar store the owner will change things around the entrance or paint the walls a different color or tidy up the outside by adding flowers etc. just to make the whole experience good. It's the same thing for online shoppers. In all honesty, if a website that is not design wellone should not even bother creating an account. If he/she get into an online store and it created an account and he/she began going through the checkout and funny things start happening in the checkout There is precious opportunity to export in India by E-commerce. There are plenty of things that can be purchased and exported. One young man has sought out unusual coffee and spices and now has an e-commerce site where he sells these items through the mail. Perhaps it is not even necessary to purchase and warehouse anything. Partnering and establishing joint ventures with Indian companies would give you the opportunity to handle a variety of products without the risk and cost. You could simply create a website that sells the products. This is not much different than Amazon.com. Do you realize they don't publish books? They just sell other's. Often they have the book sent to the customer directly from the publisher eliminating the shipping and storage.
REFERENCES
1 “BUSINESS OPPORTUNITIES IN INDIA”-IDEAS AND TEAPS
2 “E-COMMERCE DEVELOPMENT”
3 BUSINESS OPPORTUNITIES IN INDIA
www.ecommercepartners.net
www.referenceforbusiness.com
The Internet is now a flourishing industry. With the technology advancing at a fast rate, more and more people are open to computers and internet. Increasingly they are learning to utilize the Internet for their day to day needs. Here Ecommerce websites take a front seat, moving out to the millions of people searching for your kind of product or services online.In the last decade, many startup e-commerce companies have rapidly stolen market share from traditional retailers and service providers, pressuring these established. The Internet has created a new economic ecosystem, the e-commerce marketplace, and it has become the virtual main street of the world. Providing a quick and convenient way of exchanging goods and services both regionally and globally, e-commerce has boomedAt a macro level, overall economic activity ,total retail spending and change in consumer life style are in general are key drivers to the growth of e-commerce. At a micro level, for instance, rising oil prices and gasoline costs could benefit e-commerce players, e.g., it is more expensive driving to the offline retail store than shopping online. The recession beginning in 2008 has slowed e-commerce, but overall sales are still growing. US online retail sales grew 11% in Q1 2008 compared to a growth of 16.9% in Q1 2007. Ecommerce templates combine the look and feel of a Website template with the functionality of a complete ecommerce site with shopping cart software and much more. Owners want their stores to have a unique, attractive appearance. Web site templates designed to work with Dreamweaver, FrontPage, Go Live, or generic CSS come with many different looks and navigation schemes and can be customized for your site. E-commerce is the pre-eminent buzzword of the online business revolution. It captures the excitement and focus of this fast emerging market. But it is more than a slogan or glib party line. At its core it embodies a concept for doing business online. Electronic commerce is the paperless exchange of business information using electronic data interchange (EDI), e-mail, electronic bulletin boards, fax transmissions, and electronic funds transfer. It refers to Internet shopping, online stock and bond transactions, the downloading and selling of “soft merchandise” (software, documents, graphics, music, etc.), and business-to-business transactions. There are still many things that need to be done. one of those things is allowing templates for each part of the checkout page. You can do a lot of things in CSS and possibly hacking the module files but as we all know drupal developers prefer us not to hack module files. as ecommerce store owners we get pretty picky about how things look and work once we begin to understand why customers are not completing the checkout. Just as a brick-and-mortar
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The consumer market is huge and expanding. It is not only growing by sheer population growth but also because the improving economy is producing a growing class of people with disposable income. Furthermore this potential market is relatively untouched. It is only in the past few years that many consumer products have become available in India.. The potential is to get involved early in the e-commerce boom. As of now there are only a handful of companies involved. The potential is limited for the next year or two. There are some serious obstacles in the way. Few people are used to the idea of mail order. It may take one or two years for the trust to be established between the customer and the company. Also the middle class is 50-70 million but only about 1 million have direct access to the Internet, only 1 in 36 Indians have a phone and most don't have a credit card
2.DEFINITION OF ECOMMERCE.
2.1 Ecommerce is selling products online. Start with free or inexpensive shopping cart software and ecommerce
2.2 E-commerce, or electronic commerce is the conduct of a financial transactions by electronic means. With the huge success of commerce on the Internet, ecommerce usually refers to shopping at online stores on the World Wide Web, also known as ecommerce Web sites. Ecommerce can be business to business (B to B) or business to consumer (B to C). Putting it simply, Ecommerce or Electronic Commerce means buying and selling of goods and services on the Internet. Before making any decision in business, it is worth taking into consideration the benefits, the company would reap on implementation of the new strategy of Ecommerce.
2.3 .E-commerce means The conducting of commerce by companies, government agencies, and institutions with one another over the Internet A transaction conducted between two businesses over the Internet. For example, a publisher may sell books to a retailer, ship them to him/her, and receive payment online without meeting representatives from the retailer.
3. E-COMMERCE EXAMPLES
There is right to access the digital archived copy is an e-commerce service transaction. Examples of e-commerce transactions are:
• An individual purchases a book on the Internet.
• A government employee reserves a hotel room over the Internet.
• A business calls a toll free number and orders a computer using the seller's interactive telephone system.
• A business buys office supplies on-line or through an electronic auction.
• A retailer orders merchandise using an EDI network or a supplier's extranet.
• A manufacturing plant orders electronic components from another plant within the company using the company's intranet.
• An individual withdraws funds from an automatic teller machine (ATM).
• Not an e-commerce transaction because agreement to transfer ownership did not occur over computer-mediated network; neither telephone was computer-enabled.
• .In contrast, the purchase of a pre-packaged music CD from a computerized kiosk would not be considered an e-commerce transaction. If the kiosk was network linked, the digital music was downloaded, and the CD was mastered within the kiosk this would be an e-commerce transaction.
4. DRAWBACKS OF E-COMMERCE-
There are some disadvantages of e-commerce which you should be aware of before starting to trade online.
4.1 DRAWBACKS FOR END-USERS:
4.1.1). Need to be computer tech/ Internet savvy
4.1.2). Security problems: Privacy, Authorisation, Authentication, Integrity, Non-repudiation (PA2IN)
4.1.3) Bandwidth problem
4.1.4) Information overload
4.1.5). Web pages compatability and file format support
4.1.6.) Interoperability of e-commerce systems/ payment transfers
4.1.7). High shipping costs
4.1.8). Fraud and cybercrimes, e.g. identity thief
4.1.9). Currency exchange issue
4.1.10) Poor consumer protection - consumer must consent to use of electronic records of confidential information
4.1.11). Misleading factual compilations
4.2 DRAWBACKS FOR ORGANISATIONS:
4.2.1.Losing the bargaining power of products and/or services to buyers
4.2.2. Legal and Intellectual Property Rights issues
4.2.3. Webpages translation - 43% of Internet users are non-English speakers
4.2.4. Low barriers of entry for new competitors
4.2.5. Greater need for technical employees in organisation
4.2.6. Greater reliance on ASPs (Application Service Providers) and outsourcing
4.2.7. Theft of proprietary information by insiders and outsiders
4.2.8. Denial of service
4.2.9. Fast "Burn Rate" - the speed at which dot-coms spend investors' money.
4.2.10. High "Churn Rate" - The proportion of customers (typically subscribers) that no longer purchase a company's products in a time period.
Now the main drawbacks are discussed below:
*GLOBAL COMPETITION-Whilst e-commerce opens your doors to a global audience, it also gives you direct global competition. So your little niche product that might go down a storm at your local trade fair, may well be completely competitive when competing with thousands of exporters. . It is possible to visit a local music store and walk out with a compact disc, or a bookstore and leave with a book. E-commerce is often used to buy goods that are not available locally from businesses all over the world, meaning that physical goods need to be delivered, which takes time and costs money. In some cases there are ways around this, for example, with electronic files of the music or books being accessed across the Internet, but then these are not physical goods.
*THIRD PARTYVENTURE-Any e-commerce venture is also heavily dependent on third-party firms such as Google, your webmaster or who ever is in charge of managing your website and also your web host. If Google makes you drop a few rankings on one of your key pages, it could mean the difference between taking a salary and not - a risk outside of your control? Yes and no, good search engine optimization is key to doing well at Google.
*.ONLY ONLINE TRANSACTON-Online you don't have the presence you get offline - your customer can come and leave much easier than if they are actually in your shop. Visitors are merely a click away from leaving your site. See something they don't like - bam; they're gone.
*ADVANCE PAYMENT NOT SURE-Furthermore, you may find that you are too successful online. If you sell handmade rocking horses and your website gets picked up by say, a large regional newspaper and you suddenly find one thousand orders placed - what do you do? It's unlikely, but you simply must be prepared for anything in such a fluid environment as the internet. E-commerce is most often conducted using credit card facilities for payments, and as a result very small and very large transactions tend not to be conducted online. The size of transactions is also impacted by the economics of transporting physical goods. For example, any benefits or conveniences of buying a box of pens online from a US-based business tend to be eclipsed by the cost of having to pay for them to be delivered to you in Australia. The delivery costs also mean that buying individual items from a range of different overseas businesses is significantly more expensive than buying all of the goods from one overseas business because the goods can be packaged and shipped together.
*MANAGING RISK -Managing the risks, growing steadily and building relationships with your customers are the core to successful e-commerce. When you walk out of a shop with an item, it’s yours. You have it; you know what it is, where it is and how it looks. In some respects e-commerce purchases are made on trust. This is because, firstly, not having had physical access to the product, a purchase is made on an expectation of what that product is and its condition. Secondly, because supplying businesses can be conducted across the world, it can be uncertain whether or not they are legitimate businesses and are not just going to take your money. It’s pretty hard to knock on their door to complain or seek legal recourse! Thirdly, even if the item is sent, it is easy to start wondering whether or not it will ever arrive.
*.NOT USEFUL FOR PERISHBLE GOODS-Though specialised or refrigerated transport can be used, goods bought and sold via the Internet tend to be durable and non-perishable: they need to survive the trip from the supplier to the purchasing business or consumer. This shifts the bias for perishable and/or non-durable goods back towards traditional supply chain arrangements, or towards relatively more local e-commerce-based purchases, sales and distribution. In contrast, durable goods can be traded from almost anyone to almost anyone else, sparking competition for lower prices. In some cases this leads to intermediary people and businesses which are bypassed by consumers and by other businesses that are seeking to purchase more directly from manufacturers.
*.SENSORY INFORMATION -The Internet is an effective conduit for visual and auditory information: seeing pictures, hearing sounds and reading text. However it does not allow full scope for our senses: we can see pictures of the flowers, but not smell their fragrance; we can see pictures of a hammer, but not feel its weight or balance. Further, when we pick up and inspect something, we choose what we look at and how we look at it. This is not the case on the Internet. If we were looking at buying a car on the Internet, we would see the pictures the seller had chosen for us to see but not the things we might look for if we were able to see it in person. And, taking into account our other senses, we can’t test the car to hear the sound of the engine as it changes gears or sense the smell and feel of the leather seats. There are many ways in which the Internet does not convey the richness of experiences of the world. This lack of sensory information means that people are often much more comfortable buying via the Internet generic goods – things that they have seen or experienced before and about which there is little ambiguity, rather than unique or complex things.
* RETURN THE PURCHASED GOODS-. Returning goods online can be an area of difficulty. The uncertainties surrounding the initial payment and delivery of goods can be exacerbated in this process. Will the goods get back to their source? Who pays for the return postage? Will the refund be paid? Will I be left with nothing? How long will it take? Contrast this with the offline experience of returning goods to a shop. . E-commerce is an effective means for managing the transaction of known and established services, that is, things that are everyday. It is not suitable for dealing with the new or unexpected. For example, a transport company used to dealing with simple packages being asked if it can transport a hippopotamus, or a customer asking for a book order to be wrapped in blue and white polka dot paper with a bow. Such requests need human intervention to investigate and resolve
* PRIVECY AND SECURITY OF TRANSACTIONS-. Many issues arise – privacy of information, security of that information and payment details, whether or not payment details (eg credit card details) will be misused, identity theft, contract, and, whether we have one or not, what laws and legal jurisdiction apply.
* UNEXPECTED SERVICES_Although some human interaction can be facilitated via the web, e-commerce can not provide the richness of interaction provided by personal service. For most businesses, e-commerce methods provide the equivalent of an information-rich counter attendant rather than a salesperson. This also means that feedback about how people react to product and service offerings also tends to be more granular or perhaps lost using e-commerce approaches. If your only feedback is that people are (or are not) buying your products or services online, this is inadequate for evaluating how to change or improve your e-commerce strategies and/or product and service offerings. Successful business use of e-commerce typically involves strategies for gaining and applying customer feedback. This helps businesses to understand, anticipate and meet changing online customer needs and preferences, which is critical because of the comparatively rapid rate of ongoing Internet-based change.
Business and communication have become effortless over the past few years and things have changed for the better-E-commerce offered many advantages to companies and customers
5.ADVANTAGES OF E-COMMERCE-
5.1 ADVANTAGES FOR END-USERS:
5.1.1. Many choice and alternatives
5.1.2. Reduce search cost
5.1.3. Convenience
5.1.4. More complete information of the material facts about the product beforehand
5.1.5. Low switching costs between different sellers
5.2 ADVANTAGES FOR ORGANISATIONS:
5.2.1. Availability of business - 24x7x365
5.2..2. Cost reduction in operation
5.2.3. Reduce transaction costs
5.2.4. Improve customer service and communication
5.2.5. Competitive advantage
5.2.6. Increased sales from new online sales leads giving rise to increase revenue
5.2.7. Able to identify potential new partners easier
5.2.8. A faster opportunity for products/ service branding
5.2.9. Disintermediation - cutting out the middlemen
5.2.10. Faster possibility of stock output
These are some main advantages discussed below:
*.TIME CONSUMING-Time is one of the crucial factors in our lives now-a-days. A customer may find it difficult to visit your store physically every time. On the other hand, if you have your store put on view on the Internet, anyone can pay a visit to your online store at their convenient time. Your store shuts down at some point of time. But your e-store works 24X7 for you to bring in customers. Moreover, with all your product images and descriptions provided on your e-store, the customer gets a detailed idea about your product and you do not have to squander time briefing the same thing to each and every visitor to your store. It further saves time per transaction. Any sales executive will definitely take some time to illustrate your product to each customer. Your ecommerce website does the same task to hundreds and thousands of your likely customers at the same time. As all the information about your product are made available earlier to your customer's visit, much less time is required to convey the benefits of your product to them, thereby making it easier to close the deal. Thus, many number of transactions can take place within a day. Presenting your Product through Demonstrations and illustrations, depicts a clear and thorough idea about your product without the effort of hiring and training personnel to do so
*ALWAYS PROFIT-whether you have an existing business or launching a brand new business, whether the volume of your business is large or small, you can always generate profit by demonstrating your products or services online, thereby acquiring a large amount of viewer exposure. In a nutshell, just any selling/buying business can profit by the ecommerce method.
*. LESS EXPENSIVE-whether you have an existing business or launching a brand new business, whether the volume of your business is large or small, you can always generate profit by demonstrating your products or services online, thereby acquiring a large amount of viewer exposure.. Web advertisement expenses are also less compared to print or other audio-visual medias, like radio or TV.In an ecommerce website all that you need is a top-notch website design, that have a look and feel equally promising as your competitor, Search Engine Optimization to rank your website with your other competitors, and the annual hosting charges.Largely speaking, there are no major hindrance of Ecommerce websites.
* MORE VIEWERS-Your products showcased on your website, provides a huge exposure to the millions of visitors on the web. For example, if you have a computer showroom in a city, the visitors that you would get, will only be people from the city itself and possibly some from in and around the city.Once in a while there will be visitors from places outside your city. Thus your product exposure is limited. On the contrary, if your products are demonstrated on a website, it connects you to the plentifull people who access the internet and looking for similar product as that of yours.
5. SUGGESTION-
Regardless of what happens to the user, if they fall off the site or they go to Pay Pal and decide to cancel that payment option and then come back to the site or if they hit the back button on their browser while in the checkout process, the products need to remain in the cart - until they finish checkout. There are many forum post on eCommerce just on this subject alone, about sessions being dropped or the cart being empty due to the user being moved off the site from a nonsecure to a secure environment or vice versa.
6 CONCLUSION-
There are still many things that need to be done. one of those things is allowing templates for each part of the checkout page. You can do a lot of things in CSS and possibly hacking the module files but as we all know drupal developers prefer us not to hack module files. as ecommerce store owners we get pretty picky about how things look and work once we begin to understand why customers are not completing the checkout. Just as a brick-and-mortar store the owner will change things around the entrance or paint the walls a different color or tidy up the outside by adding flowers etc. just to make the whole experience good. It's the same thing for online shoppers. In all honesty, if a website that is not design wellone should not even bother creating an account. If he/she get into an online store and it created an account and he/she began going through the checkout and funny things start happening in the checkout There is precious opportunity to export in India by E-commerce. There are plenty of things that can be purchased and exported. One young man has sought out unusual coffee and spices and now has an e-commerce site where he sells these items through the mail. Perhaps it is not even necessary to purchase and warehouse anything. Partnering and establishing joint ventures with Indian companies would give you the opportunity to handle a variety of products without the risk and cost. You could simply create a website that sells the products. This is not much different than Amazon.com. Do you realize they don't publish books? They just sell other's. Often they have the book sent to the customer directly from the publisher eliminating the shipping and storage.
REFERENCES
1 “BUSINESS OPPORTUNITIES IN INDIA”-IDEAS AND TEAPS
2 “E-COMMERCE DEVELOPMENT”
3 BUSINESS OPPORTUNITIES IN INDIA
www.ecommercepartners.net
www.referenceforbusiness.com
DAIRY INDUSTRY AND LABOURS
Dairy India 2007, the sixth edition of Dairy India, has a lead paper by the former President of India, Dr APJ Abdul Kalama, who shares his vision on the contribution of agriculture, food and the processing industry. A commentary on Dr V kurien, the father of the white revolution who brought India on the world dairy map, and a tribute to P R Gupta, who founded the Dairy India Publications Group, They covers and includes trends in consumption and market size of milk and milk products, WTO challenges and export potential, management of dairy plants and farms, health care, clean milk production, food safety and quality standards. In addition, there is a special section devoted to technological innovations and organized production of TIMP (Pannier, Gulab jamun, Rassogolla, Shrikhand, etc), a potentially lucrative segment ignored so far by the industry. In response to the unprecedented developments in Asian countries, a special section titled ‘Dairy Asia’, researched and edited by the eminent expert Dr R S Khanna, has been introduced in this edition.
2. DAIRY AND GLOBLISATION-
Globalization has set in motion changes that have dramatically altered the perceptions of food by consumers. The quest for new exotic foods is driving food technologists today, and Dairy India 2007 provides answers to many of their questions. It is an indispensable compendium that will be an asset to individuals, professionals and scientists associated with the dairy industry in particular, and the food industry in general. They will greatly benefit from the enormous technical and economic information, which combines the wisdom of the past with the scientific knowledge base of today The impact was phenomenal. The organized dairy sector initially launched many western products: baby food, milk powders of various grades, butter, cheese, ice-cream and packaged liquid milk. Later branded sweet were also included in the product profile of cooperative dairies like AMUL Brand and SUGAM Brand and others. While this innovation process was on, dairy technologists worked on developing process technologies for the computerization and large-scale manufacture of Traditional Indian Milk Products (TIMP). At several institutions including NDDB ANAND, NDRI KARNAL, CFTRI MYSORE etc, a number of processes were developed and pilot plants were erected for scale-up, which helped in establishing commercial scale process technologies for the manufacture of Indian milk delicacies and instant mixes. The essential information provides to companies, Indian milk products manufacturers, dairy plants, veterinary and pharmaceutical organizations, government organizations, equipment manufacturers and consultants that there are six aspects:
1. Survey,
2. quality
3. Management,
4. Research
5. Directory and
6. Who’s Who.
They are the six aspects which Aspects control, watch, and give infrastructure such as food safety regulations,
* analytical tests,
* labeling information,
* quality systems, and
* Sanitary and phyto-sanitary (SPS) requirements
These have been well maintain to help entrepreneurs understand the intricacies of manufacturing milk products for the global market using world class technology.Operation Flood modernized the dairy sector of India by organizing the infrastructure for milk procurement, processing and marketing. The ensuring of remunerative prices to milk producers and the organization of an efficient supply chain management system had a snowballing impact on milk production. Operation Flood also gave stimulus to continuously develop and upgrade dairy processing technology, which formed the basis of a high-tech dairy industry. The impact was phenomenal. The organized dairy sector initially launched many western products: baby food, milk powders of various grades, butter, cheese, ice-cream and packaged liquid milk. Later branded SWEETS were also included in the product profile of cooperative dairies like AMUL, SUGAM and others. While this innovation process was on, dairy technologists worked on developing process technologies for the mechanization and large-scale manufacture of traditional Indian milk products (TIMP). At several institutions including NDDB ANAND, NDRI KARNAL , CFTRI MYSORE etc, a number of processes were developed and pilot plants were erected for scale-up, which helped in establishing commercial scale process technologies for the manufacture of Indian milk delicacies also instant mix.
3. CONCEPT OF DAIRY TECHNOLOLGY-AND LABOURS-
Dairy India is a databank-cum-guide-cum-directory, which contains over 120 in-depth articles, and 260 statistical tables and charts. The directory section lists 7000 organizations including dairy plants and farms, equipment and consumable manufacturers, cattle feed and veterinary pharmaceutical manufacturers, chemicals and food additives, project consultants, breeding and fodder-seed farms, analytical and disease-diagnostic laboratories, cooperative institutions and government agencies. It is well known that India is the world’s largest milk producer. In 2006-2007, it celebrated reaching the magical figure of 100 million tonnes (mt). Since the inception of the Operation Flood programme (1971-1996) by the National Dairy Development Board (NDDB) ANAND the average annual growth rate of milk production has been over 5 percent. In 2005, the size of India’s dairy sector was estimated at Rs 2300 billion, with a production of 95 mt. Dairy India 2007 estimates that by 2011 the value of the dairy industry will more than double, reaching Rs 5200 billion, with annual milk production estimated at 120 Million Tonnes.A treasure trove of information, this 864-page publication offers the most comprehensive and up-to-date picture about the world’s numerous uno dairying nation. It presents an in-depth profile of the emerging dairy situation by identifying new trends, market opportunities and investment prospects, and expounding new insights, analyses and ideas-
4. TECHNOLOGY UP GRADATION FOR SUSTAINABLE DAIRY DEVELOPMENT-
Unemployment is increasing over the years. It is a matter of concern and it is a big challenge faced by the nation. The rate of employment growth fell from 2.70% to 1.07% per annum between 1993-94 and 1999-2000 despite the positive growth rate in Gross Domestic Products (GDP), which increased from 5.02% to 6.70% during the same period (National Sample Survey Organisation). The agriculture, including allied sectors, is a major employment generating sector till date, but it stopped absorbing more people (employment elasticity was 0.70 in 1993-94 and reduced to 0.01 in 1999-2000, Planning Commission Report, 2002).The possible reasons are:Frequent droughts and variations in agricultural growthSlow growth in labour intensive sectors of agriculture Migration of agricultural cultivators/ labour to urban areas or to non-farm sector Slowdown in investment in agriculture and allied activities However, given an appropriate policy, it has the potential to grow Among the agriculture and allied activities, animal husbandry, specially dairy, contributes significantly to GDP (5.9% of total GDP is from animal husbandry). It is a well-known fact that for generations dairying is playing an important role in a farmer's life by providing supplementary income. In the past, dairy farming had been done by most of the farmers for household consumption or to supplement the income rather than a primary source of income. However, because of Operation Flood and the cooperative movement, dairy farming has been seen as a business by most of the farmers. Apart from these, the government has introduced different schemes for breeding, disease prevention and also various incentives.
Due to all these measures, there is a remarkable progress and India has become number one in milk production, from 74 million tonnes per annum in 1998-99 to 100 million tonnes at present, surpassing even the US. Further, it is one of the major activities opted by farmers in poverty alleviation programmes. Dairy sector occupies first position with 35-40% of beneficiaries availing assistance under poverty alleviation programmes, like the Integrated Rural Development Programme (IRDP), and now under the Swarnajayanthi Gram Swarojgar Yojana (SGSY) scheme.
5. EMPLOYMENT GENERATION OPPORTUNITIES-—
5.1 Livestock sector provides employment to 18 million people (1993-94) and nearly 70% of them are women. Further, dairy sector is the major source of income for an estimated 27.6 million people (Subbarama Naidu, 2004). Among these, 65 to 70% are small, marginal farmers and landless labourers. The dairy sector supports around 1.23 crore members/farmers through 1.13 lakh cooperative societies existing in the country. Apart from employment generated by rearing of animals, the procurement of milk and its processing also provides substantial employment. For example in Punjab, Milk Federation (Milkfed), with its network of over 5,000 village Milk Producers' Cooperative Societies, supports over 3 lakh milk producers. Further, Milkfed and its units have a work force of about 5,000 employees and gives employment to another 10,000 workers who are engaged in milk procurement and technical input supply, etc. (website of Milkfed). A similar number of workforce is employed in almost all the milk federations.Under SGSY, the only self-employment programme for rural areas, about 35% swarojgaries opted for dairy farming as an income-generating activity. The incremental employment generated was 11 man-days per month and the incremental net income generated was Rs 865 per month per person (Nationwide Study on SGSY, National Institute of Rural Development, 2005).
5.2 The annual rate of growth in milk production is about 5%. As per the estimates, the demand for milk is likely to be 126 to 180 million tonnes by 2020 (Praduman Kumar 1998).With these growth rates, the additional employment generated is calculated as:
Milk production at present: about 100 million tonnes.Estimated rate of growth in milk production: 5%.Estimated increase in milk production per annum: 4.4 million tonnes.
Estimated number of animals required for production of 4.4 million tonnes of milk:20lakh milch animals (@ 6 litre per animal/day).Estimated generation of employment for rearing of 20 lakh milch animals : about 2 lakh people (@ one person for rearing of 10 animals).
In addition to the above, the procurement, processing and marketing of milk and veterinary services also generate additional employment.
6. CHALLENGES AHEAD AND REMEDIAL MEASURES-
The per capita availability of milk is increased from 43 kg per annum in the year 1983 to 73.5 kg per annum in the year 2000. Further, the new dairy plant capacity approved under the Milk & Milk Products Order (MMPO) has exceeded 100 million litres per day. Though India is producing 15% of total milk production in the world, the share of exports is less than 1% due to lack of proper quality measures and unhygienic conditions prevailing at milking, storage, transportation and general handling of milk. Further, the milk procurement agencies are procuring milk and making payment based on only Fat and Solids-Not-Fat (SNF) with no incentive/disincentive for bacteriological quality, off - flavors, chemical contaminants, etc.The Indian dairy industry is facing challenges from consumers who have awareness about the quality and safety of the products consumed by them. The consumers are also willing to pay premium for the quality. Even on the exports front, India is lagging behind due to lack of quality measures resulting in the product with the presence of high bacterial count/pathogenic bacteria and hazardous effects of residual pesticides. Training of extension officers in the scientific management practices of dairy farming, record keeping and economics.Training of farmers in animal health, feeding practices, clean milking routines, record keeping by extension officers of Union.Arranging film shows on management of animals and surroundings, clean milk production and their benefits.Arranging for filed visits to Dairy Cooperative Society (DCS) which are already implementing these programmes. Farmers are encouraged to go for dairy farms with good shed, feed racks, partitions, water pails, animals identified with ear tags.
Union has established community milking parlors with milking machine at selected DCS. All the member farmers are bringing all the animals to the milking parlour and milk the animal with the help of machines. All the hygienic practices (washing animal, washing udder, teat dip, washing machine and other equipment, etc.) are followed by the farmers under the supervision of the extension officer of the union initially and later under the supervision of the DCS secretary. So far around 66 community milk parlours are established. The cost of the machine (milking 6 animal; at a time) is Rs 1.48 lakh and the cost of the open shed is around Rs 36,000 (12x6 sft for 6 animals with asbestos roof @ Rs 100/sq. ft).The other Milk Unions/Procurement agencies/private dairies can avail funds for such projects under the Central Sector Scheme "Dairy/ Poultry Venture Capital Fund" of Department of Animal Husbandry & Dairying, Ministry of Agriculture, Government of India, routed through the National Bank for Agriculture and Rural Development (NABARD) and also under the Central Sector Scheme for "Development/Strengthening of Agricultural Marketing Infrastructure, Grading, Standardization" of Directorate of Marketing & Inspection, Ministry of Agriculture, Government of India, routed through NABARD as per the guidelines applicable from time to time.
7.CONCLUSION
The milk production in India was 88 million tons in 2003. (over 100 million tonnes in 2006). Though India is producing 15 per cent of total world milk production, its share of exports is less than one per cent. The growing milk production (@ 5 per cent per annum) will generate an estimated employment for about 2 lakh people. But, to sustain this growth in milk production, up-gradation of technology for producing quality milk or milk products is the need of the hour. So, technology up-gradation in the dairy sector plays important role in sustainability of dairy and also sustainable employment and incomes in rural India. The authors wish to express their sincere thanks to the officials of milk cooperative societies and Kolar Milk Union for extending all the cooperation and provide the required data on clean milk production programme under implementation in the district.
REFERENCES-
1 www.indiaagronet.com/indiaagronet/ Dairy
2Dr.k.g.karmakar&g.d.banergee(2010)” Opportunities and challenges to dairy industries”
2. DAIRY AND GLOBLISATION-
Globalization has set in motion changes that have dramatically altered the perceptions of food by consumers. The quest for new exotic foods is driving food technologists today, and Dairy India 2007 provides answers to many of their questions. It is an indispensable compendium that will be an asset to individuals, professionals and scientists associated with the dairy industry in particular, and the food industry in general. They will greatly benefit from the enormous technical and economic information, which combines the wisdom of the past with the scientific knowledge base of today The impact was phenomenal. The organized dairy sector initially launched many western products: baby food, milk powders of various grades, butter, cheese, ice-cream and packaged liquid milk. Later branded sweet were also included in the product profile of cooperative dairies like AMUL Brand and SUGAM Brand and others. While this innovation process was on, dairy technologists worked on developing process technologies for the computerization and large-scale manufacture of Traditional Indian Milk Products (TIMP). At several institutions including NDDB ANAND, NDRI KARNAL, CFTRI MYSORE etc, a number of processes were developed and pilot plants were erected for scale-up, which helped in establishing commercial scale process technologies for the manufacture of Indian milk delicacies and instant mixes. The essential information provides to companies, Indian milk products manufacturers, dairy plants, veterinary and pharmaceutical organizations, government organizations, equipment manufacturers and consultants that there are six aspects:
1. Survey,
2. quality
3. Management,
4. Research
5. Directory and
6. Who’s Who.
They are the six aspects which Aspects control, watch, and give infrastructure such as food safety regulations,
* analytical tests,
* labeling information,
* quality systems, and
* Sanitary and phyto-sanitary (SPS) requirements
These have been well maintain to help entrepreneurs understand the intricacies of manufacturing milk products for the global market using world class technology.Operation Flood modernized the dairy sector of India by organizing the infrastructure for milk procurement, processing and marketing. The ensuring of remunerative prices to milk producers and the organization of an efficient supply chain management system had a snowballing impact on milk production. Operation Flood also gave stimulus to continuously develop and upgrade dairy processing technology, which formed the basis of a high-tech dairy industry. The impact was phenomenal. The organized dairy sector initially launched many western products: baby food, milk powders of various grades, butter, cheese, ice-cream and packaged liquid milk. Later branded SWEETS were also included in the product profile of cooperative dairies like AMUL, SUGAM and others. While this innovation process was on, dairy technologists worked on developing process technologies for the mechanization and large-scale manufacture of traditional Indian milk products (TIMP). At several institutions including NDDB ANAND, NDRI KARNAL , CFTRI MYSORE etc, a number of processes were developed and pilot plants were erected for scale-up, which helped in establishing commercial scale process technologies for the manufacture of Indian milk delicacies also instant mix.
3. CONCEPT OF DAIRY TECHNOLOLGY-AND LABOURS-
Dairy India is a databank-cum-guide-cum-directory, which contains over 120 in-depth articles, and 260 statistical tables and charts. The directory section lists 7000 organizations including dairy plants and farms, equipment and consumable manufacturers, cattle feed and veterinary pharmaceutical manufacturers, chemicals and food additives, project consultants, breeding and fodder-seed farms, analytical and disease-diagnostic laboratories, cooperative institutions and government agencies. It is well known that India is the world’s largest milk producer. In 2006-2007, it celebrated reaching the magical figure of 100 million tonnes (mt). Since the inception of the Operation Flood programme (1971-1996) by the National Dairy Development Board (NDDB) ANAND the average annual growth rate of milk production has been over 5 percent. In 2005, the size of India’s dairy sector was estimated at Rs 2300 billion, with a production of 95 mt. Dairy India 2007 estimates that by 2011 the value of the dairy industry will more than double, reaching Rs 5200 billion, with annual milk production estimated at 120 Million Tonnes.A treasure trove of information, this 864-page publication offers the most comprehensive and up-to-date picture about the world’s numerous uno dairying nation. It presents an in-depth profile of the emerging dairy situation by identifying new trends, market opportunities and investment prospects, and expounding new insights, analyses and ideas-
4. TECHNOLOGY UP GRADATION FOR SUSTAINABLE DAIRY DEVELOPMENT-
Unemployment is increasing over the years. It is a matter of concern and it is a big challenge faced by the nation. The rate of employment growth fell from 2.70% to 1.07% per annum between 1993-94 and 1999-2000 despite the positive growth rate in Gross Domestic Products (GDP), which increased from 5.02% to 6.70% during the same period (National Sample Survey Organisation). The agriculture, including allied sectors, is a major employment generating sector till date, but it stopped absorbing more people (employment elasticity was 0.70 in 1993-94 and reduced to 0.01 in 1999-2000, Planning Commission Report, 2002).The possible reasons are:Frequent droughts and variations in agricultural growthSlow growth in labour intensive sectors of agriculture Migration of agricultural cultivators/ labour to urban areas or to non-farm sector Slowdown in investment in agriculture and allied activities However, given an appropriate policy, it has the potential to grow Among the agriculture and allied activities, animal husbandry, specially dairy, contributes significantly to GDP (5.9% of total GDP is from animal husbandry). It is a well-known fact that for generations dairying is playing an important role in a farmer's life by providing supplementary income. In the past, dairy farming had been done by most of the farmers for household consumption or to supplement the income rather than a primary source of income. However, because of Operation Flood and the cooperative movement, dairy farming has been seen as a business by most of the farmers. Apart from these, the government has introduced different schemes for breeding, disease prevention and also various incentives.
Due to all these measures, there is a remarkable progress and India has become number one in milk production, from 74 million tonnes per annum in 1998-99 to 100 million tonnes at present, surpassing even the US. Further, it is one of the major activities opted by farmers in poverty alleviation programmes. Dairy sector occupies first position with 35-40% of beneficiaries availing assistance under poverty alleviation programmes, like the Integrated Rural Development Programme (IRDP), and now under the Swarnajayanthi Gram Swarojgar Yojana (SGSY) scheme.
5. EMPLOYMENT GENERATION OPPORTUNITIES-—
5.1 Livestock sector provides employment to 18 million people (1993-94) and nearly 70% of them are women. Further, dairy sector is the major source of income for an estimated 27.6 million people (Subbarama Naidu, 2004). Among these, 65 to 70% are small, marginal farmers and landless labourers. The dairy sector supports around 1.23 crore members/farmers through 1.13 lakh cooperative societies existing in the country. Apart from employment generated by rearing of animals, the procurement of milk and its processing also provides substantial employment. For example in Punjab, Milk Federation (Milkfed), with its network of over 5,000 village Milk Producers' Cooperative Societies, supports over 3 lakh milk producers. Further, Milkfed and its units have a work force of about 5,000 employees and gives employment to another 10,000 workers who are engaged in milk procurement and technical input supply, etc. (website of Milkfed). A similar number of workforce is employed in almost all the milk federations.Under SGSY, the only self-employment programme for rural areas, about 35% swarojgaries opted for dairy farming as an income-generating activity. The incremental employment generated was 11 man-days per month and the incremental net income generated was Rs 865 per month per person (Nationwide Study on SGSY, National Institute of Rural Development, 2005).
5.2 The annual rate of growth in milk production is about 5%. As per the estimates, the demand for milk is likely to be 126 to 180 million tonnes by 2020 (Praduman Kumar 1998).With these growth rates, the additional employment generated is calculated as:
Milk production at present: about 100 million tonnes.Estimated rate of growth in milk production: 5%.Estimated increase in milk production per annum: 4.4 million tonnes.
Estimated number of animals required for production of 4.4 million tonnes of milk:20lakh milch animals (@ 6 litre per animal/day).Estimated generation of employment for rearing of 20 lakh milch animals : about 2 lakh people (@ one person for rearing of 10 animals).
In addition to the above, the procurement, processing and marketing of milk and veterinary services also generate additional employment.
6. CHALLENGES AHEAD AND REMEDIAL MEASURES-
The per capita availability of milk is increased from 43 kg per annum in the year 1983 to 73.5 kg per annum in the year 2000. Further, the new dairy plant capacity approved under the Milk & Milk Products Order (MMPO) has exceeded 100 million litres per day. Though India is producing 15% of total milk production in the world, the share of exports is less than 1% due to lack of proper quality measures and unhygienic conditions prevailing at milking, storage, transportation and general handling of milk. Further, the milk procurement agencies are procuring milk and making payment based on only Fat and Solids-Not-Fat (SNF) with no incentive/disincentive for bacteriological quality, off - flavors, chemical contaminants, etc.The Indian dairy industry is facing challenges from consumers who have awareness about the quality and safety of the products consumed by them. The consumers are also willing to pay premium for the quality. Even on the exports front, India is lagging behind due to lack of quality measures resulting in the product with the presence of high bacterial count/pathogenic bacteria and hazardous effects of residual pesticides. Training of extension officers in the scientific management practices of dairy farming, record keeping and economics.Training of farmers in animal health, feeding practices, clean milking routines, record keeping by extension officers of Union.Arranging film shows on management of animals and surroundings, clean milk production and their benefits.Arranging for filed visits to Dairy Cooperative Society (DCS) which are already implementing these programmes. Farmers are encouraged to go for dairy farms with good shed, feed racks, partitions, water pails, animals identified with ear tags.
Union has established community milking parlors with milking machine at selected DCS. All the member farmers are bringing all the animals to the milking parlour and milk the animal with the help of machines. All the hygienic practices (washing animal, washing udder, teat dip, washing machine and other equipment, etc.) are followed by the farmers under the supervision of the extension officer of the union initially and later under the supervision of the DCS secretary. So far around 66 community milk parlours are established. The cost of the machine (milking 6 animal; at a time) is Rs 1.48 lakh and the cost of the open shed is around Rs 36,000 (12x6 sft for 6 animals with asbestos roof @ Rs 100/sq. ft).The other Milk Unions/Procurement agencies/private dairies can avail funds for such projects under the Central Sector Scheme "Dairy/ Poultry Venture Capital Fund" of Department of Animal Husbandry & Dairying, Ministry of Agriculture, Government of India, routed through the National Bank for Agriculture and Rural Development (NABARD) and also under the Central Sector Scheme for "Development/Strengthening of Agricultural Marketing Infrastructure, Grading, Standardization" of Directorate of Marketing & Inspection, Ministry of Agriculture, Government of India, routed through NABARD as per the guidelines applicable from time to time.
7.CONCLUSION
The milk production in India was 88 million tons in 2003. (over 100 million tonnes in 2006). Though India is producing 15 per cent of total world milk production, its share of exports is less than one per cent. The growing milk production (@ 5 per cent per annum) will generate an estimated employment for about 2 lakh people. But, to sustain this growth in milk production, up-gradation of technology for producing quality milk or milk products is the need of the hour. So, technology up-gradation in the dairy sector plays important role in sustainability of dairy and also sustainable employment and incomes in rural India. The authors wish to express their sincere thanks to the officials of milk cooperative societies and Kolar Milk Union for extending all the cooperation and provide the required data on clean milk production programme under implementation in the district.
REFERENCES-
1 www.indiaagronet.com/indiaagronet/ Dairy
2Dr.k.g.karmakar&g.d.banergee(2010)” Opportunities and challenges to dairy industries”
RURAL BANKING IN GUJARAT
Rural banking started since the establishment of banking sector in India. Rural Banks in those days mainly focused upon the agro sector. Regional rural banks penetrated every corner of the country and extended a helping hand in the growth process of the country. Today, branches are the primary delivery channel in rural areas. Though there are 32,000 commercial bank branches in India, they cover less than 7% of total villages. Opening more branches is not necessarily profitable as many pockets of rural areas do not have business enough to justify an expensive branch channel. Rural banking having committed 75% of their branches network to serving rural and semi-urban population, public sector banks have to adopt a financial emerging approach to rural banking.
Improve access in rural areas
To improve access in rural areas, banks need to modify existing channels, introduce new channels and identify innovative ways to integrate there are two ways---
1) Modify Existing Channels
Fortunately there are a variety of options available for banks looking to modify their existing channels. To reduce the costs imposed by branches, banks should consider the option of sharing their branch
Infrastructure. This would not be too dissimilar to the example of the
Telecom industry sharing network infrastructure or the fast food industry sharing food courts in urban areas.
2) Introduce New Channels
The RBI allows banks to appoint business correspondents and facilitators to be used as intermediaries in providing banking services. NGOs, MFIs, Societies, Section 25 companies, registered NBFCs not accepting public deposits, and Post Offices can be appointed as Business Correspondents. Business Correspondents can provide several services which are not currently offered by SHGs and MFIs, including:
(i) identification of borrowers and fitment of activities;
(ii) collection and preliminary processing of loan applications including verification of primary information/data;
(iii) creating awareness about savings and other products and education and advice on managing money and debt counseling;
(iv) processing and submission of applications to banks;
(v) promotion and nurturing Self Help Groups/Joint Liability Groups;
(vi) post-sanction monitoring;
(vii) monitoring and handholding of Self Help Groups/Joint Liability
SOME CHALLENGES BEFORE RURAL BANKING-
Challenges facing rural banking --The main challenges facing by banking are the role of financial instrumentation in different phases of the business cycle, the emerging compulsions of the new prudential norms and benchmarking the financial system against international standards and best practices. The need for introduction of new technology in the banking and the importance of skill building and intellectual capital formation in the banking industry are also equal important.
1) Financial intermediation Till recently the role of banks in the economy was perceived to be 'catalysts' of mobilizing resource requirement for growth. This view has undergone a change and banks are no longer viewed as passive mobilizer of funds, Efficiency in the financial intermediation is the ability of the financial institution to intermediate between savers and investors, to set economic prices for capital and allocate resources among completing demands is now emphasized. In the wake of the recent emphasized in the economy the intermediation role assumes even greater relevance. By virtue of their experience and superior credit assessment of the investment proposals banks should play a significant role in identifying nurturing growth impulse in the commodity and service producing sector in the economy.
2) Market discipline Transparency and disclosure norms are assuming greater importance in the emerging their notes to balance sheet. Efforts are on to set up a credit information bureau to collect and share information on borrowers and improve the credit appraisal of banks and financial institutions.
3) Adopting International Standards The fallout of Asian crisis and the impetus given to the strengthening of domestic financial systems has resulted in a more by the regulators to set up universally acceptable standards and codes for benchmarking financial systems. RBI has also set-up an advisory group to draw a road map for implementation of appropriate standards and codes in light of existing levels of compliance, cross country experience and the existing legal and institutional infrastructure. In view of the vast diversity in the size, an asset liability profiles of the banks it becomes very difficult for a few of them to meet the new benchmark of global standards. Each bank has to draw it own strategy to move towards this direction. 4)Technology Banking Innovation in technology and world-wide revolution in information and communication technology are perceived to be the catalyst of productivity growth. The relationship between IT and Banking is fundamentally symbiotic. It is expected to reduce costs, increase volumes and facilitate customized products. Technology adoption is a dire necessity for the public sector banks to complete with new generation private sector and foreign banks. It is a `compulsion' rather than a `choice'. Retention of existing customer is the primary concern of majority of the banks today.
The major challenge for banks is to fall in line with the emerging scenario and adopting the require technology to provide stake-of-the-art services to the customers. Introduction of on-line, inter-connected automatic teller machines (ATM), telephone banking, on-line bill payment and Internet banking are some of the high tech facilities. Banks have to provide in order to survive in the competitive scenario. Technology should ultimate results in better customer service, low cost and quick delivery.
The introduction of Business Correspondents may face some challenges from
* labor unions. However, Diamond believes that there may be some options to address the concerns of the current workforce while using Business Correspondents to capture more value from rural customers.
*. The lottery network and distributes government benefits. To increase the access of its services opened about 2.8 million new accounts and estimates that 40% of its banking transactions are handled through the banking correspondent channel.
* Satellite offices are a cost-effective alternative to branches. These
Offices can be established at fixed premises in villages and are controlled and operated from a base branch located at a block headquarters. All types of banking transactions may be conducted at these offices.
* Banks have, however, not used this channel actively, despite the argument that this channel is relatively less expensive, as it can draw personnel from the main branch and can remain open for just two days a week. This channel, therefore, is appropriate in blocks and districts which are densely populated. In the urban areas, most I banks opt for an extension counter where the business does not justify a full-fl edged branch.
* Similarly, satellite branches can cater to rural areas which do not justify a large branch. Where banks do not find it economical to open full-fl edged branches of satellite offices, mobile offices may be more appropriate. Mobile offices extend banking facilities through a well-protected truck or van. The mobile unit visits villages on specified days/ hours. The mobile office would be affiliated with a branch of the bank, and serve areas which have a large concentration of villages. This will not be dissimilar to the mobile ATMs implemented by some of the banks in the urban areas.
Determine the Combination of Channels
There is no one right channel or solution to improve access in rural
areas. Banks have to evaluate the trade-offs between those channels
Branches and Satellite Branches— In addition to providing regular
banking operations, providing backend support to manage and audit
the operations of business correspondents.
• A low-cost, custom-made ATM— Managed by a business
Correspondent to bring down the operating cost and scale the channel.
• An e-kiosk—Managed by a business correspondent with internet
banking, ATM and POS terminal in relatively large rural areas.
• A business correspondent—Using manual ledgers or POS/Palmtop to act as deposit collector and remitting agent in smaller rural areas
Financial System is the most important institutional and functional vehicle for economic transformation of any country. Banking sector is reckoned as a hub and barometer of the financial system. As a pillar of the economy, this sector plays a predominant role in the economic development of the country. The geographical pervasiveness of the bank coupled with the range and depth of their services make the system an indispensable medium in every day transactions. The virtual monopoly of banks in `Payment Mechanism' touches the lives of millions of people every day and every where. Thus the banking sector has been playing a significant role as growth facilitator.
The changing paradigm of Banking Change is the only constant factor in this dynamic world and banking is not an exception. The changes staring in the face of bankers relates to the fundamental way of banking-which is undergoing rapid transformation in the world of today, in response to the forces of completion productivity and efficiency of operations, reduced operating margins better asset/liability management, risk management, any time and any where banking. The major challenge faced by banks today is to protect the falling margins due to the impact of competition. Another significant impact of banks today is the technology issue. There is an imperative need for not mere technology up gradation but also its integration with the general way of functioning of banks to give them an edge in respect of services provided to optimizing the use of funds and building up MIS for decision making and better management of assets and liabilities and risk assumed which in turns have a direct impact on the balance sheet of banks as a whole. Word over, technology has demonstrated potential to change methods of selling marketing, advertising, designing, pricing and distributing financial products of an electronic, self-service product delivery channel. All these changes call for a new, more dynamic, aggressive and challenging work culture to meet the demands of customer relationships, product differentiation, brand values, reputation, corporate governance and regulatory prescriptions
Human resource development in banks --The core function of HRD in the banking industry is to facilitate performance improvement, measured not only in terms of certain financial indicators of operational efficiency but also in terms of quality of financial services provided. The skill level, attitude and knowledge of the personnel play an important role in determining the competitiveness of a bank. Banks have to understand that the capital and technology-considered to be the most important pillars of banking -are replicable, but not human capital, which needs to be viewed as a valuable resource for the achievement of competitive advantage. The primary concern of the bank should be to bring in proper integration of human resource management strategies with the business strategies. It should faster cohesive team work and create commitment to improve the efficiency of its human capital. More than operational skills today's banking call for these `soft skills' to attend the needs and requirement of the customers at the counter. The need to adopt global best practices to financial sector regulation and supervision and adopt them to the domestic environment, places a premium skills and expertise of the bank human resources.
Conclusions
The Indian banking industry is facing newer challenges in terms of narrowing spreads, new banking products and players and mergers and acquisitions. Adoption of risk management tools and new information technology is now no more a choice but a business compulsion. Technology product innovation, sophisticated risk management systems, generation of new income streams, Building business volumes and cost efficiency will be the key to success of the banks in the new era.
REFERENCES-
1)www.rediff.com Gujarat villages to bank on pocket-sized ATMs
2)www.emagister.in/banking_financial_services_courses
3) Dr. Sudhindra Bhat-Managing Challenges in Banking Industry
Improve access in rural areas
To improve access in rural areas, banks need to modify existing channels, introduce new channels and identify innovative ways to integrate there are two ways---
1) Modify Existing Channels
Fortunately there are a variety of options available for banks looking to modify their existing channels. To reduce the costs imposed by branches, banks should consider the option of sharing their branch
Infrastructure. This would not be too dissimilar to the example of the
Telecom industry sharing network infrastructure or the fast food industry sharing food courts in urban areas.
2) Introduce New Channels
The RBI allows banks to appoint business correspondents and facilitators to be used as intermediaries in providing banking services. NGOs, MFIs, Societies, Section 25 companies, registered NBFCs not accepting public deposits, and Post Offices can be appointed as Business Correspondents. Business Correspondents can provide several services which are not currently offered by SHGs and MFIs, including:
(i) identification of borrowers and fitment of activities;
(ii) collection and preliminary processing of loan applications including verification of primary information/data;
(iii) creating awareness about savings and other products and education and advice on managing money and debt counseling;
(iv) processing and submission of applications to banks;
(v) promotion and nurturing Self Help Groups/Joint Liability Groups;
(vi) post-sanction monitoring;
(vii) monitoring and handholding of Self Help Groups/Joint Liability
SOME CHALLENGES BEFORE RURAL BANKING-
Challenges facing rural banking --The main challenges facing by banking are the role of financial instrumentation in different phases of the business cycle, the emerging compulsions of the new prudential norms and benchmarking the financial system against international standards and best practices. The need for introduction of new technology in the banking and the importance of skill building and intellectual capital formation in the banking industry are also equal important.
1) Financial intermediation Till recently the role of banks in the economy was perceived to be 'catalysts' of mobilizing resource requirement for growth. This view has undergone a change and banks are no longer viewed as passive mobilizer of funds, Efficiency in the financial intermediation is the ability of the financial institution to intermediate between savers and investors, to set economic prices for capital and allocate resources among completing demands is now emphasized. In the wake of the recent emphasized in the economy the intermediation role assumes even greater relevance. By virtue of their experience and superior credit assessment of the investment proposals banks should play a significant role in identifying nurturing growth impulse in the commodity and service producing sector in the economy.
2) Market discipline Transparency and disclosure norms are assuming greater importance in the emerging their notes to balance sheet. Efforts are on to set up a credit information bureau to collect and share information on borrowers and improve the credit appraisal of banks and financial institutions.
3) Adopting International Standards The fallout of Asian crisis and the impetus given to the strengthening of domestic financial systems has resulted in a more by the regulators to set up universally acceptable standards and codes for benchmarking financial systems. RBI has also set-up an advisory group to draw a road map for implementation of appropriate standards and codes in light of existing levels of compliance, cross country experience and the existing legal and institutional infrastructure. In view of the vast diversity in the size, an asset liability profiles of the banks it becomes very difficult for a few of them to meet the new benchmark of global standards. Each bank has to draw it own strategy to move towards this direction. 4)Technology Banking Innovation in technology and world-wide revolution in information and communication technology are perceived to be the catalyst of productivity growth. The relationship between IT and Banking is fundamentally symbiotic. It is expected to reduce costs, increase volumes and facilitate customized products. Technology adoption is a dire necessity for the public sector banks to complete with new generation private sector and foreign banks. It is a `compulsion' rather than a `choice'. Retention of existing customer is the primary concern of majority of the banks today.
The major challenge for banks is to fall in line with the emerging scenario and adopting the require technology to provide stake-of-the-art services to the customers. Introduction of on-line, inter-connected automatic teller machines (ATM), telephone banking, on-line bill payment and Internet banking are some of the high tech facilities. Banks have to provide in order to survive in the competitive scenario. Technology should ultimate results in better customer service, low cost and quick delivery.
The introduction of Business Correspondents may face some challenges from
* labor unions. However, Diamond believes that there may be some options to address the concerns of the current workforce while using Business Correspondents to capture more value from rural customers.
*. The lottery network and distributes government benefits. To increase the access of its services opened about 2.8 million new accounts and estimates that 40% of its banking transactions are handled through the banking correspondent channel.
* Satellite offices are a cost-effective alternative to branches. These
Offices can be established at fixed premises in villages and are controlled and operated from a base branch located at a block headquarters. All types of banking transactions may be conducted at these offices.
* Banks have, however, not used this channel actively, despite the argument that this channel is relatively less expensive, as it can draw personnel from the main branch and can remain open for just two days a week. This channel, therefore, is appropriate in blocks and districts which are densely populated. In the urban areas, most I banks opt for an extension counter where the business does not justify a full-fl edged branch.
* Similarly, satellite branches can cater to rural areas which do not justify a large branch. Where banks do not find it economical to open full-fl edged branches of satellite offices, mobile offices may be more appropriate. Mobile offices extend banking facilities through a well-protected truck or van. The mobile unit visits villages on specified days/ hours. The mobile office would be affiliated with a branch of the bank, and serve areas which have a large concentration of villages. This will not be dissimilar to the mobile ATMs implemented by some of the banks in the urban areas.
Determine the Combination of Channels
There is no one right channel or solution to improve access in rural
areas. Banks have to evaluate the trade-offs between those channels
Branches and Satellite Branches— In addition to providing regular
banking operations, providing backend support to manage and audit
the operations of business correspondents.
• A low-cost, custom-made ATM— Managed by a business
Correspondent to bring down the operating cost and scale the channel.
• An e-kiosk—Managed by a business correspondent with internet
banking, ATM and POS terminal in relatively large rural areas.
• A business correspondent—Using manual ledgers or POS/Palmtop to act as deposit collector and remitting agent in smaller rural areas
Financial System is the most important institutional and functional vehicle for economic transformation of any country. Banking sector is reckoned as a hub and barometer of the financial system. As a pillar of the economy, this sector plays a predominant role in the economic development of the country. The geographical pervasiveness of the bank coupled with the range and depth of their services make the system an indispensable medium in every day transactions. The virtual monopoly of banks in `Payment Mechanism' touches the lives of millions of people every day and every where. Thus the banking sector has been playing a significant role as growth facilitator.
The changing paradigm of Banking Change is the only constant factor in this dynamic world and banking is not an exception. The changes staring in the face of bankers relates to the fundamental way of banking-which is undergoing rapid transformation in the world of today, in response to the forces of completion productivity and efficiency of operations, reduced operating margins better asset/liability management, risk management, any time and any where banking. The major challenge faced by banks today is to protect the falling margins due to the impact of competition. Another significant impact of banks today is the technology issue. There is an imperative need for not mere technology up gradation but also its integration with the general way of functioning of banks to give them an edge in respect of services provided to optimizing the use of funds and building up MIS for decision making and better management of assets and liabilities and risk assumed which in turns have a direct impact on the balance sheet of banks as a whole. Word over, technology has demonstrated potential to change methods of selling marketing, advertising, designing, pricing and distributing financial products of an electronic, self-service product delivery channel. All these changes call for a new, more dynamic, aggressive and challenging work culture to meet the demands of customer relationships, product differentiation, brand values, reputation, corporate governance and regulatory prescriptions
Human resource development in banks --The core function of HRD in the banking industry is to facilitate performance improvement, measured not only in terms of certain financial indicators of operational efficiency but also in terms of quality of financial services provided. The skill level, attitude and knowledge of the personnel play an important role in determining the competitiveness of a bank. Banks have to understand that the capital and technology-considered to be the most important pillars of banking -are replicable, but not human capital, which needs to be viewed as a valuable resource for the achievement of competitive advantage. The primary concern of the bank should be to bring in proper integration of human resource management strategies with the business strategies. It should faster cohesive team work and create commitment to improve the efficiency of its human capital. More than operational skills today's banking call for these `soft skills' to attend the needs and requirement of the customers at the counter. The need to adopt global best practices to financial sector regulation and supervision and adopt them to the domestic environment, places a premium skills and expertise of the bank human resources.
Conclusions
The Indian banking industry is facing newer challenges in terms of narrowing spreads, new banking products and players and mergers and acquisitions. Adoption of risk management tools and new information technology is now no more a choice but a business compulsion. Technology product innovation, sophisticated risk management systems, generation of new income streams, Building business volumes and cost efficiency will be the key to success of the banks in the new era.
REFERENCES-
1)www.rediff.com Gujarat villages to bank on pocket-sized ATMs
2)www.emagister.in/banking_financial_services_courses
3) Dr. Sudhindra Bhat-Managing Challenges in Banking Industry
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