E-Business

E-Business (electronic business) is any process that a business organization conducts

over a computer-mediated network (Web, Internet, intranets, extranets or some
combination)

Electronic business is a broader term that encompasses other common terms such as
e-commerce and e-tailing. As more of companies' sales, marketing and other internal
business processes are conducted digitally, electronic business processes such as
customer relationship management (CRM), enterprise resource planning (ERP), and
content management are becoming increasingly important. This shift has also been
facilitated by improved security measures for online transactions.

Compared to e-business, the definition of e-commerce is clearer. In its basic form, it

involves placing orders and making payments online. E-commerce comes in multiple
forms. In business-to-consumer (B2C) e-commerce, a business sells goods and
services to consumers through its website
In the 21st century, E-Businesses have become the backbone of the economy as most
of the people are shifting to the online platforms for carrying out their daily tasks and
activities and this medium of business also great benefits to both companies and
customers as it has changed the way how people trade and shop and even reduced the
physical connection. Here are some of the key features of e-businesses:

 Minimal advertising and marketing costs

 Eliminates geographical boundaries and offers wider global reach
 Accelerates customer service and facilitates a direct relationship with
customers
 Higher risk in terms of online transactions
 Working hours are flexible
 Lesser set up costs than a traditional business
 24/7 Availability

Components of E-Business
 1. E-Procurement
It is also known as supplier exchange in which business to business, business to
government, business to consumer, and sales of services are made with the help of
the internet. Basically, e-procurement is a way adopted by the companies to reduce
the costs and efforts by sourcing products or services electronically. 

2. Online Stores
It is an electronic sourcing (website or application) for products or services, such
as online shopping stores. Online stores are also known as e-shop, internet shop,
web-store, virtual store, web-shop, m-commerce, and online storefront. The main
purpose of these online stores is to save precious time and money.  

Anyone can buy products or services by making online payments using credit
cards, cash on delivery and other payment methods. The owners of online stores
should host their eCommerce website on the PCI compliant hosting because
Payment Card Industry Security Standards Council (PCI SSC) make it compulsory
for those who are accepting the online payments.

3. Online Marketplace
It is an electronic commerce that connects the buyers and suppliers to the services
or products over the internet. Keep in mind, the operator of an online marketplace
only presents the inventory of other people and provides the transaction facility. 

Moreover, the following are also known as e-business areas:  

4. Online Communities
Online communities (also known as web communities or internet communities) are
the groups of people having the same interests or purposes who use the internet to
communicate with each other. It is used between the individuals and organizations
to prepare transaction decisions.

5. Online Companies
It is electronic business cooperation that connects the individual companies and
forms a virtual business with a common transaction offer.  

Order Fulfillment Process

 1. Product inquiry
You are surfing the website of any well-reputed business brand manufacturing
laptops, desktops, or monitors, and able to view their all products.

2. Sales Quote
Laptop prices, screen size or usage are clearly mentioned on the website for the
sales quotation for customers. 

3. Order Configuration
Once the customers select what he proposed to purchase, the number of products
are easily adjusted or canceled during this phase. 

4. Order Booking
This phase includes the booking of products available on the website, such as
desktops, laptops, or necessary accessories.

5. Order Confirmation
This process ensures the details of the order such as prices and quantities are
accurate. 
 6. Billing
Billing is the process that enables customers to pay for the products by Visa,
cheque, ATM, or other available payment methods.

7. Order Planning
Every customer has different options for delivery, so the order will be delivered
accordingly. 

8. Order Processing 
Once the order is confirmed, the company ensures the right item in the right
quantity, time, place, price, and condition to the right customer. 

9. Shipment 
According to the customers’ requirements, the products will be delivered by means
of an express, Air-to-Sea initiative, and so on.

10. Delivery 
The products will be delivered within a given time slot at the right address.

11. Settlement 
It is the method to settle all the remaining charges, like delivery costs or extra
products’ care expenditure.

12. Returns 
Most of the companies offer the returns option with their particular terms and
conditions. So, any customer who has received the products with any technical or
physical problems of products, they can easily return their products within a
specified period. 
 1. E-business Concept
What is e-business concept and how is it essential for a successful business? It
describes the basic information of the business including goals, vision, products
and offers from which it will earn revenue. The effective concept is based on
market analysis that will identify the customers’ interests to purchase the product
and how much they can pay for it.  

2. Value Proposition
As the name denotes, the value proposition is a value that an organization or
business will provide to its customers. It may include one or more of the following
points: 

Reduced price

Improved service or better functionalities with user-friendliness

Speedy delivery and improved assistance

Products or services that result in greater efficiency and productivity

Access to available inventory having different options for the buyer

Value Delivery With The Help Of Integrations 

Every functional website is based on two parts: frontend for dealing directly with
the customers and backend in order to automate the online operations of the
company without having direct dealing with customers. Order placements using
POS (Point of Sales) systems, product customization, tracking and order
fulfillment are the activities that require integrated systems. 

3. Sources of Revenue
 What does eCommerce mean and how do companies earn revenue? Ecommerce is
also known as Electronic/internet commerce, refers to the buying and selling of
services/products. It also includes the online payment options to the great online
shopping experience. So, e-business will have three, four, or a mix of the following
sources referred to as a revenue model:

Advertisement

Affiliation

Agent/Representative commissions

Licensing

Sales commissions

Sponsorship

Syndication

Use Fees

Subscription

4. Required Activities, Resources, and Capabilities

In order to carry out the mission of the business, different activities are required
and certain resources are needed. For example, professional employees with
specific skills or capabilities can better perform particular business activities. 

Activities
Particular business processes or groups of processes that are required to implement
the business concept are known as activities. The operational business model is
used to identify the costs/expenses and outputs of each activity. 

Resources
Organizations require human, tangible, intangible, and supporting resources in
order to perform the activities in an efficient manner. Tangible resources are also
known as physical and financial including company equipment, case reserves, and
facilities. 

Whereas the intangible resources include the customized software, customers data,
intellectual property and business processes that can be patented. Supporting
resources include the IT and communication processes and organizational
structure.  
 Capabilities
Workers with required skills are vital for every successful business. What is e-
business and Why are the capabilities necessary?  E-business is similar to the
traditional business except internet presence, broader audience and buying facility
without visiting the company’s outlet. First/initial wages are the highest cost for a
business and capable worker may not be available all the time.   

Critical Factors of E-Business Development

e-business application development is based on four critical factors: where the

assets reside (databases), how they are processed (applications), who manages the
processes or applications (IT/Operating Staff) and who is the beneficiary (end-
user).

Important E-Business Drivers

 What is e-business and why do we need its drivers? As you hire a salesman for
your traditional shop to efficiently manage your processes and to increase your
sales. For a similar purpose, there are several processes used to enhance e-business
operations and functionality with the help of different drivers. These drivers
include streamlining physical operating processes, reducing their costs, delivering
rapid response (information) and increasing services to customers as you can see in
the figure given below: 

Product Inquiry Fulfillment Process

Once you have finalized the product availability inquiry in order to make your e-
business application more effective and trustworthy. It is necessary to identify the
information assets and mapping them with the processes that support them. In the
example given in the picture below is the information asset created by the process
“product availability”. 

Advantages & Disadvantages

ADVANTAGES

Easy to set up: electronic business is easy to set up even from home, the only
requirements are software, a device and internet connection.

Flexible Business Hours: There are no time barriers that a location-based business
can encounter since the internet is available to everyone all the time. Your products
and services can be accessed by everyone with an internet connection.
 Cheaper than Traditional Business: Electronic business is less costly than a
traditional business, but it is more expensive to set up. Transactions cost are also
cheaper.

No Geographical Boundaries: The greatest benefit is the possibility of

geographical dispersion. Anyone can order anything from anywhere at any time.   

Government Subsidies: Digitalisation is very encouraged by the government and

they provide the necessary support.

Newmarket entry: It has a great potential to enable an entry to a previously

unknown market that a traditional business could not.[22][23]

Lower levels of inventory: Electronic business enables companies to lower their

level of inventory by digitalizing their assets. (i.e.: Netflix does not sell anymore
physical DVD's but proposes online streaming content instead).

Lower costs of marketing and sales: E-commerce allows the actors of the industry
to advertise for their product/service offer (i.e.: house rental) at generally lower
costs than by promoting physically their business.

DISADVANTAGES

Lack of Personal Touch: The products cannot be examined or felt before the final
purchase.  In the traditional model, we have a more personal customer experience,
while in electronic business that is mostly not the case. Another missing factor of
personal touch could also be in online transactions.

Delivery Time: Traditional business enables instant satisfaction as you obtain the
product the moment you purchase it, while in electronic business that is not
possible. There will always be a waiting period before you receive the product. For
example, Amazon assures one-day delivery. This does not resolve the issue
completely, but it is an improvement.

Security Issues: Scams could be mentioned as a factor for people's distrust in

electronic business. Hackers can easily get customers' financial and personal
details. Some customer still finds it hard to trust electronic businesses because of
the lack of security, reliability and integrity issues.[