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E-Business
Nijaz NLecturer -ISMS
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E Commerce Describes the process of buying, selling,
transferring, or exchanging products,
services, and/or information via computer
networks, including the Internet
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E BUSINESS Broader definition of e-commerce
Not just the buying and selling of goods and
services, but also servicing customers,
conducting e-learning, and processing
electronic transactions.
IBMFirst company to use the term (1972).
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Who Uses E BusinessOnline
Cataloguesthat lists
products/price
s
71%
Pay for
products &Services
69%
Place Orders
for products &
services
65%
Receivepayments for
products &
Services
51%
Take orders
for products &services
45%
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Features of E business Anytime ,anywhere services
Cost Effective
Online Marketing
Way of information
Effective Advertisement
Instant services
No need for middleman
World level expansion
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Functions of E Business
Available at anywhere any time
Competitive rates
Better Customer Services
Availability of large sellers
Quick Services
Purchasing at home
Easy interaction
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Functions of E Business
Customers are self created
Middleman disappears
Cost Effective
Opportunities for new business
Customization of products and services
Search for potential business partners
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Functions of E Business
Availability of information about products
Online Payment
Saving of time
Helpful for developed countries
Helpful in safeguarding environment.
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Limitations of E Business1.Costly
New innovationsChanging technology
2.Lack of Information about customers habits
interest and aptitudeNo personal contact between buyers and sellers
Lack of information about customer habits interest andaptitudes.
3.Lack of faithRising frauds and crimes in cyber world
Buyer does not trust sellers
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Limitations of E Business4.Insecurity of customersDue to cyber fraud
Customers wont give their credit card numbers
5.Cyber lawsCyber laws announced by Govt. of India are not clear
Insufficient for the growth of e-commerce
6.Competition among sellersNo of website increasing
Entry barrier for new entrants
7.Change in technologyNew Innovations
Enterprises investing more in R&D
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Limitations of E Business8.Lack of top management support
No top priority for E-Commerce
Management has to make changes at top level
Allocate money for adopting IT tools and
building internal system
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How E Business Works?
Online Transaction Server
ProcessingNetwork
Acquiring Merchant
Bank Issuing Consumer Bank
Internet
Merchant
WebsiteOnline Customer
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MODELS / TYPES of E BUSINESS Business to Business (B2B)
Buying and selling goods between twoorganizations.
refers to the full spectrum of e-commerce thatcan occur between two organizations.
includes purchasing and procurement, suppliermanagement, inventory management, channelmanagement, sales activities, paymentmanagement, and service and support.
Eg : Dell Computers sell computers & relatedaccessories online; however it does not produceall the products.
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MODELS / TYPES of E BUSINESS Business to Customer (B2C)
Exchange between businessesand consumers.
Eg : Amazone.com
Marketers & Retailers can selltheir merchandise to consumer
online.
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MODELS / TYPES of E BUSINESS
Consumer-to-Consumer (C2C)
Consumer-to-Consumer exchanges
involve transactions between
and among consumers.
The consumers directly dealwith other consumers
Eg:-Matrimonial Sites, Auction
Sites etc.
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MODELS / TYPES of E BUSINESSPeer to Peer(P2P)
People with commonality develop
their own network system.
Users are connected directly
to each other over internetUsed for sharing files/programs
over a network(internet/privatenetwork) illegally
Users download directly fromother persons computer rather
than from a central server.
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MODELS / TYPES of E BUSINESSMobile Commerce (m-Commerce)Commerce transacted with the help of mobile
phones.
Latest in e-commerce.
Done through direct contact, SMS, GRPS
facilities.
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MODELS / TYPES of E BUSINESSOther types include :
Government to Business (G2B)
Government to Citizen (G2C)
Business to Employee (B2E)
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E Business Application Areas
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E Business Application AreasIt includes : Customer Relationship Management
Enterprise Resource Planning
Supply Chain Management.
Business Intelligence (BI)
Product Life Cycle Management (PLM)
Data warehousing
Data Mining
On-line Analytical Processing (OLAP)
Business Process Reengineering (BPR)
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Customer Relationship Management Customer relationship management (CRM):A customer
service approach that focuses on building long-term and
sustainable customer relationships that add value both
for the customer and the company.
Is an information technology industry term for the
methodologies, strategies, software, and other web-based
capabilities used to help an enterprise organize and
manage customer relationships.
Also known as e-CRM
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Customer Relationship Management CRM captures, analyzes, and distributes all relevant data
from customer and prospect interactions to everyone in the
organization.
This distribution of information helps an organization bettermeet customer, product, and service needs.
CRM emphasizes customer retention over customer
acquisition.
The idea of CRM is that it helps businesses use technology
and human resources to gain insight into the behavior of
customersand the value of those customers
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Uses of CRM Customer services can be improved by:
1. Providing on-line access to product information and technicalassistance around the clock
2. Identifying the customers and devising appropriate servicestrategies for each customer
3. Providing mechanisms for managing and scheduling follow-upsales calls
4. Tracking all contacts with a customer
5. Identifyingpotential problems before they occur
6. Providing a user-friendly mechanism for registering customercomplaints
7. Providing a mechanism for handling problems and complaints
8. Providing a mechanism for correcting service deficiencies9. Storing customer interests in order to target customers
selectively
10.Providing mechanisms for managing and schedulingmaintenance, repair and ongoing support
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Enterprise Resource Planning The techniques and concepts for integrated management of
businesses as a whole from the viewpoint of the effective use
of resources to improve the efficiency of enterprise.
ERPintegratesall business functions into a single, integrated
software program that runs on a single database so that the
various departments can more easily share information and
communicate with each other.
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An Enterprise where all departments know what others are doing
Central
Database
R&D
Sales &
Distribution
Marketing
Production
Fiance
Production
Planning
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Advantages of ERP Business integration - ERP packages integrates the information processing and
automates data updating (automatic data exchange among applications) between related
business components.
Flexibility- Diverse multinational environments such as language, currency, accounting
standards, etc. are covered in one system, which makes the ERP systems very flexible.
Better analysis and planning capabilitiesERP systems enables the comprehensive and
unified management of related businesses and its data. This unification makes it possible
to fully utilize many types of decision support systems and simulation functions.
Use of latest technology - ERP vendors uses the latest developments in the field of
information technology. This technology adoption benefits the organizations using the
packages as they get better products and with better capabilities.
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Disadvantages of ERP Systems Customization in many situations is limited
The need to reengineer business processes
Technical support can be shoddy
ERP's may be too rigid for specific
organizations that are either new or want to
move in a new direction in the near future
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SUPPLY CHAIN MANAGEMENT Also referred to as the logistics network Also referred to as e-SCM
Suppliers, manufacturers, warehouses, distributioncenters and retail outletsfacilities
and the
Raw materials
Work-in-process (WIP) inventory Finished products
that flow between the facilities
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Suppliers Manufacturers Warehouses &
Distribution Centers
Customers
Material Costs
Transportation
CostsTransportation
CostsTransportation
CostsInventory CostsManufacturing Costs
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SUPPLY CHAIN MANAGEMENT A set of approaches used to efficiently integrate
Suppliers
Manufacturers
Warehouses Distribution centers
So that the product is produced and distributed
In the right quantities
To the right locations
And at the right time
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Advantages of e SCM
Real Time advantages :Global trading capabilities.Knowledge can be exchange globally.
Enterprise-to-Enterprise connectivity.
Provision of a specific marketplace. Strategic advantages :It supports the exchange of information through
trading communities such as employees,customers, suppliers distributors & manufactures
It acts as an interface with any third partysoftware.
It is a fully integrated system
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Introduction Internet is a network of networks that links
computer systems around the world.
It allows communication across networks.
This allows people to have access to information
from websites, various locations & machines.
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History of Internet Mapped with timing of mass awareness about the
concept.
Dotcom 1.0 1985 - 1995
Huge traffic of net searchers /net surfers.
Can be termed as Eyeball Era, because the evaluation ofpopularity or valuation of equity.
Emergences of Google ,Yahoo etc.
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History of Internet Dotcom 2.0
1995 -2005
Created shopping experience different than physical
shopping. Sticky subscribers ,scaled up customer base.
Termed as Fire Sale Era.
Customers logged in, bought repeatedly but left little profit
for the seller.
Emergence of Amazon ,Ebay etc.
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History of Internet Dotcom 3.0
Since 2005 ---to extend up to 2020.
Focus on day-to-day engagement aspects of customerson net.
Emergences of Facebook, twitter etc.
Concept of community connection, emotion,
entertainment etc.
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Connecting to the Internet
Two options for connecting to the internet :Direct Connection
Through Internet Service Providers (ISP).
DIRECT Connection :
A machine is directly connected to the internetbackbone and act as a gateway.
Provides complete access to all internet servicesExpensive.
Suitable only for large organizations.
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Through Internet Service Provider Connect to your ISP using two methods
1. Remote Dial-Up connection: Enables you to connect to your ISP using a modem. ModemConverts Digital Signal (Computer Signal) to
analog signal that a phone line can transmit. Regular phone lines are used.
Not of good quality.
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2.Permanent Dedicated Connection Dedicated phone line for getting dedicated
internet connection.
Often connected using leased line .
These lines are preferred because they are always
open for communication traffic.This lines are called ISDN (Integrated Services
Digital Networks).
This lines allows transmission of data, voice, videoand graphics at very high speed.
Usual speed is 1.28 Mbps
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INTERNET PROTOCOLS
It enable the transfer of data over internet. It sets rules for reliable communication between
various device over internet.
Most commonly used protocols are :
Transmission Control Protocol/ Internet Protocol(TCP/IP).
Hypertext Transfer Protocol (HTTP).
File Transfer ProtocolTelnet
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TCP/IP
Specially designed to provide a reliable end-to-endbyte stream over an unreliable internetwork.
Describes a set of general design guidelines to enable
computers to communicate over a network.
The TCP/IP model is maintained by the InternetEngineering Task Force IETF).
IETF- It is an open standards organization, with noformal membership or membership requirements.
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TCP/IP - Working
Divides the message into smaller packets &transmitted over the internet.
Packets will be forwarded to the designation
device through various device depending the
traffic condition on the internet.
These packets are reassembles into the original
order after reaching.
Otherwise an error message is reported.
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TCP/IP Four Layered ModelApplication Layer
Application layer lets applications access the services of the other layersand defines the protocols that applications use to exchange data.
Transport LayerProvides the Application layer with session and datagram
communication services.
Internet LayerHandles addressing, packaging, and routing functions
Network Interface LayerHandles placing TCP/IP packets on the network medium and
receiving TCP/IP packets off the network medium.
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Hypertext Transfer Protocol HTTP). Helps to transfer files like image, text, video, sound etc.
Makes the foundation of internet.
Is based on Client-Server Architecture.
Specifies the actions that Web Browsers & Web Servers
must engage in while responding to the issued command.
Web Browser as Client
Web Server as Server