M.B.A. II SEMESTER Course No. 208 Paper No.

XVI E-Business

Dr.N.C.Dhande

Unit I
Introduction, background and current status
Digital economy,
Principles of e-business,
e-business models,
Technological supports Infrastructure and Resources.

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

Introduction
Origin of the Concept: IBM 1972 First successful
transaction took place between USA and EU
The term derived from e-mail, i.e. doing business
using the electronic mail.
Definition: According to IBM; A safe, secure, flexible
and integrated way of doing the business with
electronic means.
Doing the business on net.

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

Background
Competition: Pharmacy to Hospital direct order
processing
Globalization: Expansion of business globally
Mass Customer base: World wide customers for products
Greater interaction among the Businesses: On line
Speed, Accuracy, Efficiency and Performance: Key
business factors
Redundancy reduction, Paperless work: Need of the hour
Automated systems: Person, place & practice
independent working

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

Current status
Increasing Computerization worldwide
Increasing Automation in Business worldwide
Increasing www, internet, intranet
More safety, security legal protection to e-business
Growth in internet users in rural parts
Growth in web service providers
Growth in facilities like gadgets, systems, softwares etc.
More & more user-friendly systems available
Switch over from traditional to e-business is phenomenal
( Resulting.) Economy depends on IT usage

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

Digital Economy
Need causes Business, Business causes Exchange, Exchange leads
to Commerce, Commerce forms Economy ( Rich-Poor) . Support
of Digital technology to Commerce leads to Digital Economy.
(Digital money, Digital product, Digital exchange, Digital O/P)
Exchange (Money)

Buyer ( Goods/Service)

Activity ( Dig. Form)

Exchange ( Dig.Form)

Seller

Out come ( Dig.Form)

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

e-Commerce

Open System
Less Secured
Uses Internet
EDI Not Mandatory
Commerce Transactions
Small & Large transactions
Amazon.com, Baazar.com
Direct Marketing
On line Sell
Isolated Functions
Links Customer & Business

Dr.N.C.Dhande

e-Business

Closed System
More Secured
Uses Intranet + Internet
EDI is Mandatory
Business Transactions
Bulky transactions
e-trade.com, e-buciness.com
ERP; CRM; Supply Chain
Mgmt.
Integrated Functions
Links Mfg.; Assemblers;
Vendors; Market and
Customers.

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

e-business Models

B2B - Supply Chain Management

B2C - Direct Marketing
C2C - On line Portals Auctions
B2G - VAT; I_Tax; Service Tax
C2G- Railway Tickets; e-returns; SETU
C2B - Banks; Books; CD; Downloads
G2C- Social Services; G.R.; Information

Dr.N.C.Dhande

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

e-business Models (Market Models)

1.
2.
3.

Controlled by Sellers : 1 to many

Controlled by Buyers : Many to 1
Controlled by third party intermediators: Many to Many

e-business - Neutral market places; limits the traditional mediators

1. Store front Model: Individual Products on Offer.
2. Mall Model: Products from many business on offer.
3. Image building Model: Reputed products on offer.
4. Customer Service model: After Sales service on offer
5. AD Model: Free contents & Ads. On offer
6. Access Charge Model: Charged Services & products on offer
7. Commission Model : Paid transactional services on offer
8. User Database Model: Paid information contents on offer

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

e-business Models (Market Models) cont..

9. Virtual Community Model: Free; social services on offer
10. Referral Model: Paid one site to another site service on offer
Alternative B2B Models
11. Transaction Based: Single Co. with Std. system with ALL
12. Process Based: Two Co. with common business process
13. Strategic Relationship Based: 2 or more Co. with major
transactions like CRM, ERP, SCM
14. Electronic Procurement: On Internet B2B
15. Open Buying: Transactions among partners; Vendors
16. Purpose based Models: Aggregators ( Central Virtual agency )
Auctions, Contents( Subscriptions;memberships; registrations)
Community ( High value integration without hierarchy) Hubs
(Process integration facility)

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

Technological supports Infrastructure and Resources.

1.
Hard ware: System Configuration, support features
2.
Software: O/S, N/W, Application S/W, Front/Back End
3.
Standards/Protocols:
TCP/IP:
SLIP:
PPP:
FTP:
Telnet:
SMTP:

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

4.
a.

Dr.N.C.Dhande

Infrastructure:
Bandwidth: No. of Bits/ sec

b. Catalogue Technology: Product features & Rates display

c. Electronic Fund Transfer: Funds transfer on electronic account
d. E-Pay: Resource for payment on Net
e. Extranet: Link to external servers
f. Host: web service provider
g. Intranet: Link within the network

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

Infrastructure
h. Virtual Private N/W: Highly secure data N/W on internet
i. Regulatory & Legal Framework:
EDI
Cryptography
Hacking
I.P. Spoofing
N/W packet Sniffers
Digital Signature
Intellectual Property Law
Cyber Law

Further Study .. Till to date????

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

Statistics from the IITF Report The Emerging Digital Economy *

To reach to a market of 50 Million People :

Radio took 38 years
TV took 13 years
Once it was open to the General Public, The Internet made to
the 50 million person audience mark in just 4 years!!!
The new model of any Cell phone handset takes simply :
11 Months.
The new CPU or Computer Operating System takes: 4 Months.

*Delivered to the President and the U.S. Public on April 15, 1998 by Bill Daley, Secretary of
Commerce and Chairman of the Information Infrastructure Task Force

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business Dr.N.C.Dhande

Domain Name RegistrationJan. 89 - Jul. 97

April 2001: 31,000,000 Domain Names!!!

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business Dr.N.C.Dhande

Trends in internet growth

1977: 111 hosts on Internet

1981: 213 hosts
1983: 562 hosts
1984: 1,000 hosts
1986: 5,000 hosts
1987: 10,000 hosts
1989: 100,000 hosts
1992: 1,000,000 hosts
2001: 150 175 million hosts
2002: over 200 million hosts
By 2010, about 80% of the planet will be on the Internet

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business Dr.N.C.Dhande

. of Participating Hosts Oct. 90 - Apr. 98

No

March 2001
Over 115 Million Hosts
(As of Jan. 2001)
Over 407 Million Users
(As of Nov. 2000)
218 of 246 Countries
(As of Jan. 2000)
> 31 Million Domain Names
About 100 TB of Data
Dr. Vint Cerf presents in Chicago
at the Drake Hotel on March 2001
The event was a fund-raiser for the ITRC
Digital Photo March 2001 by William F. Slater, III, Chicago, IL, USA

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business

Dr.N.C.Dhande

By September 2002 The Internet Reached Two Important Milestones:

Netsizer.com from Telcordia

M.B.A. II SEMESTER Course No. 208 Paper No. XVI E-Business Dr.N.C.Dhande

Growth of Internet Hosts *

Sept. 1969 - Sept. 2002
250,000,000

Sept. 1, 2002

No. of Hosts

200,000,000

150,000,000

100,000,000

Dot-Com Bust Begins

50,000,000

9/
69
01
/7
1
01
/7
3
01
/7
4
01
/7
6
01
/7
9
08
/8
1
08
/8
3
10
/8
5
11
/8
6
07
/8
8
01
/8
9
10
/8
9
01
/9
1
10
/9
1
04
/9
2
10
/9
2
04
/9
3
10
/9
3
07
/9
4
01
/9
5
01
/9
6
01
/9
7
01
/9
8
01
/9
9
01
/0
1
08
/0
2

Chart by William F. Slater, III

Time Period

The Internet was not known as "The Internet" until January 1984, at which time
there were 1000 hosts that were all converted over to using TCP/IP.
Copyright 2002, William F. Slater, III, Chicago, IL, USA