ELECTRONIC BUSINESS(E-Business)

MEANING OF E-BUSINESS
 E-business is just business conducted over
the Internet.

 It is a more generic term than ecommerce

because it refers to not only buying and
selling but also servicing customers and
collaborating with business partners.
DEFINITION OF E-BUSINESS
 The term "e-Business" therefore refers to the
integration, within the company, of tools
based on information and communication
technologies (generally referred to as
business software) to improve their
functioning in order to create value for the
enterprise, its clients, and its partners.
 FACTORS DETERMINIG THE E-BUSINESS
E-business depends on many factors some of which are:
Type of Business - it should be suitable for the Internet

Competition - naturally, the less the competition the better

Customer Base - how many potential customers do you have,

and are they the kind that is willing to pay money or not

Quality of the Website - you need an elegant and friendly

website that is hosted on fast and reliable servers

Quality of the Service - the satisfied customer will come

again and spend more money
Characterization of the e-business
 Performance functions, which represent the core of its activity (core
business), i.e. the production of goods or services. They pertain to
activities of production, stock management, and purchasing.

 The management functions, which cover all strategic functions of

management of the company; they cover general management of
the company, the HR management functions as well as the financial
and accounting management functions;

 The support functions, which support the performance functions to

ensure proper functioning of the enterprise. Support functions
conver all activities related with sales as well as all activities that
are transversal to the organization, such as management of
technological infrastructures
Characterization of the e-Business
 TYPES OF E-BUSINESS

 B To B (Business To Business): it is that business activity

in which 2 firm or business units make electronic transaction in
which 1 can be a producer firm and other are raw material
supplier firm.

 B To C (Business To Consumer) :1 party is the firm

and other party is a customer.

 B To A (Business To Administration,) means a

relationship between a company and the public
sector (tax administration, etc.) based on numerical
exchange mechanisms (teleprocedures, electronic
forms, etc.).

 .
 B To E (Business To Employees) has also emerged to
refer to the relationship between a company and its
employees, in particular through the provision of forms
directed at them for managing their carreer, vacation,
or their relationship with the company committee

 intra B commerce:
under this, the parties involved are 2 persons or
departments of some business unit.

 C to C commerce:
under C to C commerce, both the parties involved are
customers. it is required for buying and selling of those
goods for which there is no established markets are
available.
eBusiness objectives

 improve service
 save time

◦ time taken by customers

◦ elapsed time for processes
 reduce process errors
 reduce the cost of core service provision
 free staff to provide value added services
 improve morale
 give people the tools and time they need
E-Business Functions
 ACCOUNTS/BILLING
 INVENTORY CONTROL
 PROCUREMENT
 HR
 MARKETING
 CRM
 ACCOUNTS/BILLING
Accounts and billing information can be
made available over the internet to customers
and suppliers and orders and payments
generated electronically.

 INVENTORY CONTROL
Systems can be open ended so that both
the supply and demand ends of the supply
chain have a clear view of data. Information
flows more freely, and collaborative
forecasting supports automatic
replenishment processes
 PROCUREMENT
There are two views – e-procurement, a
web-based system for internal purchasing
and procurement and i-procurement, a web-
based system connected to the outside
systems of vendors to automate procurement

 HR
Intranets will give people access to staff
information and web-enabled HR applications
reduce the amount of paperwork previously
required to complete HR functions like
reimbursements.
and payment.
 MARKETING
Marketing departments can be linked to
the web-enabled systems of sales and supply
areas, and with the systems of major partners
and vendors.

 CRM
Customers will provide and keep updated
their own information if there is an e-
business mechanism - like a website - that
acts as an entry point for that information
 Advantages of E-Business

 Worldwide Presence: A firm engaging in e-business can have a

nationwide or a worldwide presence. Example: Amazon.com.

 Cost Effective Marketing and Promotions: Using the web to

market products guarantees worldwide reach at a nominal
price.

 Developing a Competitive Strategy: Firms need to have a

competitive strategy in order to ensure a competitive
advantage. Without an effective strategy, they will find it
impossible to maintain the advantage and earn profits.

 Better Customer Service

Disadvantages of e-business
 Sectoral Limitations:
The main disadvantage of e-business is the lack of
growth in some sectors on account of product or sector
limitations. For example food sector.

Costly E-Business Solutions for Optimization:

Substantial resources are required for redefining
product lines in order to sell online. Upgrading computer
systems, training personnel, and updating websites requires
substantial resources. Moreover, Electronic Data Management
(EDM) and Enterprise Resource Planning (ERP) necessary for
ensuring optimal internal business processes may be looked
upon, by some firms, as one of the disadvantages of e-business.
THANK YOU