An Overview to E-Business Models

Prof Pankaj Roy Gupta
Vice President (Institutional Affairs) University of Petroleum and Energy Studies, Dehradun Head CCE University of Technology and Management, Shillong


‡ To understand the concept of e-business ‡ To understand Markets and e-markets ‡ To understand Intermediation/Dis-intermediation/ Re-intermediation ‡ To understand the concepts of Portals ‡ To understand the concepts of e-business, e-commerce and i-commerce ‡ To understand the perspective of e-commerce and forms of eBusiness ‡ To understand Stovepipe Systems, value chain systems and intranet e-business systems ‡ Q&A


Dis-intermediation Portals

Electronic Markets


Inter-Organisational IS



Forms B2C Supply Chain Support Intra-business Internal Value-Chain Supports Informatics Infrastructure E-commerce Supplier-facing IS Customer Chain Support Customer-facing IS B2B



Definitions and meanings
‡ Intermediation means ------- with a middleman ‡ Dis-intermediation means ----- Removing the middleman. By eliminating the middlemen, companies can sell
their products cheaper and faster. Many people believe that the Internet will revolutionize the way products are bought and sold, and disintermediation is the driving force behind this revolution.

‡ Re-intermediation means ------ Re-emergence of the

traditional middleman the intermediary in new forms. For example, portals such as PetroChemNet bring buyers, sellers, traders, and distributors of chemicals together, and mediate as trusted third-parties between parties that are total strangers to one another.

Company A Business to Customer Commerce (B2C) Customer Invoice Sales Order Customer Shipping Note Customer Chain

Company B Supplier Shipping Note

Business to Business Commerce (B2B)

Supplier Invoice

Purchase Order

Supply Chain

Company C



E-Markets Company A Company B¶s Bank Customer Invoice Electronic Funds Transfer Customer Shipping Note Sales Order Electronic Funds Transfer E-Market (Transaction Handler) Electronic Funds Transfer Payment Approval Payment Authorisation Request Supplier Invoice Purchase Order Supplier Shipping Note Company A¶s Bank Payment Remittance Notice Transaction Handler¶s Bank Company B 6 .

Intermediation/Dis-intermediation/ Re-intermediation Producer Data Wholesaler Data Distributor Data Retailer Data Retailer Traditional Intermediation Goods Retailer Disintermediation Retailer Reintermediation 7 Producer Goods Data Producer Goods Goods Goods Data Goods Electronic Intermediarie s Data Goods .

Portals Internet Portals Vertical Portals Horizontal Portals 8 .

E-business/E-commerce/I-commerce Electronic Business Electronic Commerce Internet Commerce 9 .

Perspectives on E-commerce Human Activity System Business Perspective Service Perspective Information System On-line Perspective Information Technology System Communications Perspective 10 .

Generic Patterns of Commerce Pre-Sale Search Search Negotiate Negotiate Execution Order Order Deliver Deliver Settlement Invoice Invoice Payment Cash Commerce After-Sale Credit Commerce Payment Repeat Commerce After-Sale After-Sale 11 .

Forms of E-Business Electronic Business Electronic Commerce B2B Supplier Organisation B2C Customer Intra-Business 12 .

B2B E-Commerce B2B E-Commerce Invoicing Inventory Procurement 13 .

B2C E-Commerce B2C E-Commerce Advertising Marketing Sales 14 .

Intra-Business E-Business Intra-business E-Business Standard Interfaces Share Knowledge Integrate Information Systems 15 .

IOS and Strategic IS Information Economy Competitor Inter-Organisational Information System Supplier Organisation Customer Strategic Information Systems 16 .

B2C/B2B IOS Organisation Organisation B2C IOS IOS Customer Organisation Customer Organisation B2B IOS IOS Organisation Organisation 17 .

Benefits of E-Commerce Benefits Cost Savings Time Savings Connection Improvements Quality Improvements Strategic Improvements 18 .

Problems of E-Commerce Problems Security and Privacy Re-intermediation Information Rich and Poor Technological Standards Computer-related mistakes/errors 19 .

E-Business Models E-business Models Separate Organisation Semi-autonomous Organisation Fully Integrated Organisation Within Informatics Service Parallel Organisation 20 .

E-Business Environment E-business Environment Commodity Type Dis-Intermediation Globalisation 21 .

E-Business Planning E-business Planning Organisational Analysis Strategic Information Systems E-business Strategy 22 .

E-Business Management E-business Management Informatics Infrastructure Maintenance Content Management 23 .

E-Business Development E-business Development Iterative Development User Involvement Graphic Design Systems Integration 24 .

Summary E-business and e-commerce are features of e-markets. management and development are still critical activities 25 for E-business . B2B and intrabusiness The benefits of e-commerce include cost-savings and time-savings The costs of e-commerce include issues of security and technological standards Planning. An e-market is one in which economic exchanges are conducted using information technology and computer networks Re-intermediation is evident in the rise of Internet portals Three generic forms of commerce can be identified: cash commerce. E-commerce is a superset of I-commerce There are three major forms of E-business: B2C. credit commerce and repeat commerce E-business is a superset of E-commerce.

Catalogue Search Product Identification Product Comparison Purchase CustomerChain Conditions Privacy Authentication Non-repudiability B2C Information Seeking & Communication Security SSL Technologies Stages of Growth Digital Certificates Presence E-Marketing Customer Relationship Management On-line Catalogue On-line Ordering On-line Payment Extranets E-Sales 26 .

B2C E-Commerce Electronic Commerce B2C Organisation Customer 27 .

Customer Chain Organisation Sale Execution Sale Settlement Customer Pre-Sale After-Sale 28 .

B2C Growth Pre-Sale Search Information Seeking Marketing Presence Negotiate On-Line Catalogue Order Execution Deliver On-line Ordering Invoice Settlement Payment On-line Payment After-Sale Cash Commerce After-Sale Credit Commerce CRM B2C Growth 29 .

Information Seeking and Communication WWW Information Seeking E-Mail Organisation 30 .

Marketing Presence Customer Marketing Home Page 31 .

On-Line Catalogue Customer Marketing Home Page On-Line Catalogue Product Data Products 32 .

On-Line Ordering Customer Goods Shipping Note Customer Invoice Payment Marketing & Sales Home Page On-Line Catalogue Order Distribution Accounting System Payment Details Sales Sales Order Processing Customers Stock 33 .

On-Line Payment Customer Goods Shipping Note Marketing & Sales Home Page On-Line Catalogue Order Distribution Payment Details Sales Sales Order Processing Customers Stock Payment Accounting System 34 .

Customer Relationship Management Customer Goods Shipping Note Customer Invoice Marketing/Sales/CRM Home Page On-Line Catalogue Customer Profiling & Preferencing Order Distribution Accounting System Payment Details Sales Sales Order Processing Stock Customers 35 .

Secure Commerce Sites Privacy Authentication Non-Repudiation Security Secure Socket Layer Digital Certificates Solutions 36 .

Digital Certification Customer¶s Public Key + Identity Information Customer Digital Certificate Certification Authority Transaction + Digital Certificate Organisation 37 .

B2C Information Systems Strategic IS Knowledge Management Evaluation Issues 38 .

catalogue search.Summary B2C e-commerce focuses on the IT-enablement of the key processes in the customer chain Customer chain processes include product identification. authentication and non-repudiability B2C systems demand the same disciplines as conventional 39 information systems . on-line catalogue. on-line ordering. on-line payment and customer relationship management Effective B2C e-commerce will involve the re-orientation of the informatics infrastructure around a customer focus A secure environment for B2C e-commerce should ensure privacy. marketing presence. product comparison and purchase We may think of an organisation¶s experience of the B2C ecommerce as moving through a number of distinct stages of increasing complexity including information seeking and communication.

IntraBusiness Intranet Internet Applications Extranet Components Vertical Knowledge Sharing Workflow IS Portal Document Management Horizontal Email Internal Web Software Distribution Hardware Software Communications Data Chat Mail Lists Newsgroups FTP 40 .

Manufacturing Production Scheduling Stovepipe Systems Stock Control Finance Accounts Receivable Accounts Payable Invoicing Sales Order Entry 41 .

Value-Chain Systems 42 .

Intranet and Extranet Internet Extranet Suppliers Firewall Firewall Business Partners Intranet Intranet Organisation Intranet Distributors Remote Employees Intranet Intranet Firewall Firewall 43 .Internet.

Components of an Intranet Web Server Domain Server Web Client Web Client Web Client 44 .

Intranet Applications E-mail Internal Web Mail Lists Newsgroups Chat FTP Applications 45 .

Benefits of Intranets Benefits Better Communication Access to Accurate Information Better Coordination Easy to implement/use Cheap to implement/use Scalable Flexible 46 .

Organisational Activities Knowledge Sharing Group decision-making Software Distribution Document Management IS Portal Activities 47 .

an Intranet and an Extranet can be made in terms of type of user.Summary Intra-business e-business involves re-focusing the information systems architecture around a process model of the organisation The distinction between the Internet. the level of access and the type of information supplied Intranets are used by authorised internal users for specific organisational tasks and to access specific organisational information An Extranet uses Internet technology to connect together a series of dispersed intranets. Extranets are particularly used to establish links between an organisation and key stakeholders such as suppliers On a horizontal level an Intranet comprises a network of client and server machines running client and web server software and storing HTML documents 48 .

Execution Settlement Delivery Order Supplier-oriented B2B Negotiate Pre-Sale Buyer-oriented B2B Intermediary-oriented B2B Search Invoice Payment SupplyChain After-Sale B2B Supporting Technology Extranets XML EDI 49 .

B2B E-Commerce Electronic Commerce B2B Supplier Organisation 50 .

Supply Chain Supplier Search Negotiate Order Deliver Invoice Payment After-Sale Organisation 51 .

B2B Systems Supplier Supplier Invoice Shipping Note Request For Quote Supplier Relationship Management Purchase Order Payment Suppliers Purchase Order Processing Stock Control Procurement Replenishment Order Requisition Purchase Details Accounting 52 .

Pre-Sale Activity Models Supplier-Oriented Buyer-Oriented Intermediary-Oriented E-Malls/Stores Internet Auctions Vertical Portals Models 53 .

Benefits of B2B E-commerce Benefits Lower Purchasing Costs Reduced Inventory Lower Cycle Times 54 .

Enabling Technologies Extranets EDI XML Technologies 55 .

internet auctions or e-malls An extranet is a series of connected intranets between the organisation and important stakeholders such as suppliers.Summary Most discussion of B2B e-commerce is directed at supporting the repeat commerce model. invoices and 56 payments . lower cycle times and reduced inventory EDI or XML can be used as standards for the electronic transmission of documentation such as orders. distributors. Here a company sets up an arrangement with a trusted supplier to deliver goods of a certain specification at regular intervals Pre-sale activity can be conducted using vertical portals. business partners and remote employees The benefits of B2B e-commerce include lower purchase costs.

Q&A 57 .

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