Introduction to E- Business

BBA VIII Semester

 E- Business
• the transformation of key business processes through
the use of Internet technologies.
• Electronic business (e-business) can be defined as the
use of the internet to network and empower business
processes, electronic commerce, organizational
communication and collaboration within company and
with its customers, suppliers, and other stakeholders.
• E-businesses utilize the internet, intranets, extranets
and other networks to support their commercial
processes.
 E- commerce
• Electronic commerce
• (e-commerce) is the buying and selling, marketing and servicing of
products and services via computer networks. Since e-business includes
the process of transacting with suppliers and customers there is an
overlap in activities with e-commerce.
• Although the terms ‘e-business’ and ‘e-commerce’ are often used
synonymously, the distinction between them lies in the broader range
of processes in e-business that incorporates internal transactions
within an organization. These include transactions relating to
procurement, logistics, supply chain management, payments, stock
control and order tracking. E-commerce can best be conceived as a subset
of e-business. Where the two concepts overlap is in the buying and selling
of products and services.
 Scope
• the scope of e-business is gigantic. More or less, all
types of business functions such as production, finance,
marketing and personnel administration in addition to
managerial activities like planning, organising and
controlling are carried out through computer networks.
The other way of viewing the scope of e-business is to
scrutinize it in terms of people or parties involved in
electronic transactions. From this perspective, an
organisation's electronic transaction and network can
be visualised as expanding into three directions viz.,
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B2B which is an organization's communication with other
businesses.  It is that business activity in which two firms or
two business units make electronic transaction . The activities
which involves in B2B commerce are:
• Enquiry about goods.
• Placing order.
• Making payments.
B2C i.e., a organization's communication with its customers and
Business tries to reach customers through online shopping .
• They also take care of customers complaints Delivery of
products,  online payments etc.
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Intra-B or an organization's internal processes. Parties
involved in electronic transaction are from within a
business firm.  It is mainly use to interact between 
management departments employees . INTRA B
COMMERCE Parties involved in electronic transaction
are from within a business firm.
 C2C COMMERCE It stand for customers to customers
• Required for those goods: where no established
markets Selling old books ,clothes on cash/barter
system 
 IMPACT
• Technologies have created the so-called ‘new economy’, one
that is based on entrepreneurship in knowledge creation and
sharing, innovation and creativity, and utilizing information
technology for developing and selling new products and
services. The new economy defined the industrial landscape of
the late twentieth century and will be the dominant driver of
economies well into the new millennium.
• The new economy has been boosted by the development of the
infrastructure that supports the internet, ICT and digital
technology. The rollout of high-speed broadband internet access
means more people can connect to the internet at higher speed
and with greater flexibility and scope of activities.
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• The convergence of the internet and television means that interactive
television provides an additional media for facilitating online sales of
products and services. At the business level, organisations are no longer
viewed as individual entities but as part of an integrated network of
organisations where information and communications technologies play a key
role in smoothing transactions and collaborative ventures between partners.
The internet has opened up the possibility of exchanging information,
products and services around the globe without any restraints of time or
distance. This has given rise to the concept of the ‘boundaryless’
organisation.
Information technology has also enabled new forms of management and
control, both within organisations and between organisations. Information
technology makes it possible to simultaneously co-ordinate economic activity
in many different locations and beyond traditional organisational boundaries.
 History OF EBUSiness
• Pre-2000
• As the Internet emerged and gained momentum into the
late 1990s, companies had wild aspirations as to how
rapidly advertising and retail would shift from traditional
brick-and-mortar shops to the web. Aggressive companies
dumped millions of dollars into online banner ads without
little concern for analysis or return on investment metrics.
This dive into unchartered waters met the same concrete
foundation as the dot.com era itself. In a June 1999
"Information Week" study, 81 percent of businesses
indicated they had a website at that time.
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• Early 21st century
• After the bubble burst on the initial enthusiasm for Internet-based companies,
the start of the 21st century saw a more healthy but still rapid growth rate in
Internet usage and business activity. In February 2005, Forrester Research
projected that online retail sales would reach $316 billion by 2010, more than
doubling the sales in 2004. In 2004, online sales accounted for 7 percent of all
retail sales.
• From "Electronic" to "Mobile"
• The latter half of the 21st century's first decade saw the emergence of mobile
commerce, which is the use of mobile devices for business and advertising.
Collectively, e-commerce and m-commerce combined for significant growth in
customer access to promotional messages, shopping platforms and research
information often contributing to in-store purchases. More small-business start-
ups emerged thanks to the ability to set up an online shop through various third-
party providers and offer products out of the home to a global audience.
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• The Current State of E-Business
• Currently, e-business ranges from simple sites providing
corporate information to sites offering goods and services
for sale online. Innovative uses for new voice and video
communication technologies include online language
tutoring. Large commercial information repositories are
growing and use of the Internet for research is now
common. Online sales from web-based storefronts
continue to grow. Sales of digital information, in the form
of eBooks and digital music files, are more recent offerings
by e-businesses like Apple, Amazon, and Barnes & Noble.
 Advantages of E- Business
• Cost-Effective Marketing
• With an e-business, all of your marketing efforts end with one goal to
drive target traffic to your business website. With one central place to
send customers; your e-business website. It allows you to use many
online marketing tactics including email marketing, article marketing,
social media networking and e-newsletters. Most of these online
marketing efforts are very low cost or free, so an e-business allows for
highly cost-effective marketing strategies.
• Flexible Business Hours
• E-business breaks down the time barriers that location-based businesses
encounter, according to ecommerce Education. Because the Internet is
available 24 hours a day, seven days a week, your business never closes.
An e-business can literally be making money while you are fast asleep.
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• Eliminates Geographic Boundaries
An e-business also allows you to broaden your reach. An online business can
reach customers in the four corners of the Earth. As long as someone has an
Internet connection, you may be able to reach and sell your product or
service to these visitors to your business website.
• Reduces Transaction Cost
Running an online business reduces the cost per transaction because it takes
less manpower to complete an online transaction. Once you get your website
up and running, the customer places the order online, which removes the
need for a salesperson. The customer payment goes through your online
payment processing software or system again eliminating the need for a store
clerk. Someone has to download the order and ship it, which is probably you,
but an e-business transaction has less burden of cost on the business, making
each transaction more cost effective than a brick-and-mortar business.
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• Low Overhead Costs
Running an e-business cut back or out most of the costs involved
in running a physical location. E-businesses have less expensive
phone, rent and utility bills than businesses with physical
locations. An e-business also reduces the cost of paying
employees because you do not need someone to your website
during business hours. Some e-businesses do not require any
additional space and can be run out of your home, which you
are already paying rent for or your mortgage payment. Even
housing inventory may not be an issue because you may be able
to establish a drop-shipping situation, where your wholesaler
ships orders for you on behalf of your business.
 Business Model
• B2C
• The business-to-consumer, or B2C, model of e-business sells products directly to
retail consumers online. Amazon.com is an example of a B2C model. The e-business
has only an online identity through which it offers a range of products to
customers. Other B2C enterprises include bestbookbuys.com and gartner.com.
Most B2C models generate revenue from direct sales and processing fees. B2C also
is known as electronic retail or e-tail.
• B2B
• The business-to-business, or B2B, model involves companies using the Internet to
conduct transactions with one other. B2B e-business accounts for more than 90
percent of all electronic commerce, according to the U.S. Census Bureau. The main
reason for this is the complexity of B2B transactions. Unlike B2C transactions that
involve sellers offering products and services and buyers purchasing them, B2B
transactions are multifaceted and often involve multiple transactions at each step
of the supply chain. B2B businesses generate revenue from direct sales.
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• C2B
• Consumer-to-business, or C2B, is a unique e-business model in which consumers
create value and demand for products. Reverse auctions are a common characteristic
of C2B models, in which consumers drive transactions and offer their own prices for
products. The airline ticket website Priceline.com is an example of a C2B e-business
model. The website allows customers to bid for tickets and offer their own prices.
Shopping sites such as cheap.com, gilt.com and ruelala.com also are C2B.
• C2C
• Consumer-to-consumer, or C2C, e-business models enable consumers to behave as
buyers and sellers in third-party-facilitated online marketplaces. Craigslist is an
example of a third-party marketplace. The company brings together disparate buyers
and sellers to conduct business. Other examples of C2C websites include eBay and
PayPal. A C2C model generates revenues in several ways, including personal ad fees,
membership or subscription fees, sales commissions and transaction fees.
Contribution of E business technologies
• Throughout history, innovation and the adoption of new technologies have led to
productivity improvements that generate stronger economic growth and higher
living standards. In business, technological innovation over the past century has
focused on the design and manufacturing processes that are used largely within
individual firms. At the same time, the process of physically moving raw materials,
components and products through a firm’s value chain comprises a significant
portion of the total cost of goods in many industries. Mechanized transportation,
telecommunications networks and integrated information systems have significantly
helped supply chain managers improve their ability to plan, order, monitor, and
evaluate their processes. In particular, new information technologies and e-business
solutions have transformed operations from mass production to mass customization.
In particular, we explore how the implementation of e-business technologies on
supply chain operations has affected prices, employment, economic output, living
standards, and productivity the impact of e-business technologies on supply chain
operations has benefited consumers and the macro-economy in many significant
ways
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• . A national strategy for the advancement of information and communication
technology (ICT) has been worked out, mainly to introduce e-government, e-
commerce, and a digital society. So, all these efforts play a vital role in the
development of economy.
• The world has fewer barriers than its people have ever seen before. There is no
place that seem scary and out of the way to the cameras of international news
agencies. People routinely converse online from locations the world over. A
business trip to an overseas destination is not unheard of. The truth is this has
become common in many quarters. With the explosion of online business there
has been a further fracturing of the idea that there are pronounced borders. A
craftsman in Idaho can sell merchandise to an importer in Hong Kong. A clock
maker in Holland can sell a handmade timepiece to a client in Mexico. Most
online checkouts provide the ability to manage financial exchange rates so there
is little delay in completing an order and submitting the funds.
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• Suddenly there are very few locations in the world where
ecommerce cannot take place. Imagine a gentleman in Jamaica
who has made handcrafted items for tourists for years. He can
now take those one of a kind items and sell them online. He can
provide jobs for some of his family and friends to help fulfill
orders and assemble the materials he needs to complete his
art. Business was once thought of in terms of taking the
physical business to individuals. This has largely meant
developing a physical structure that houses actual merchandise
that can be purchased using real sales associates. Online sales
have made this idea one that deserves a second look. Today
you can take your retail business idea anywhere in the world.