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E – BUSINESS Model
IT
BUSINESSINTERNET
Data processingStorage,
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Sound BIZ model
E BUSINESS
Definition • E-business is the conduct of business on the
Internet, not only buying and selling but also servicing customers and collaborating with business partners.
E BUSINESS
Definition • E-business is the transformation of key
business processes through the use of• Internet technologies.
E BUSINESS
Definition• E-business can broadly be defined as the processes orareas
involved in the running and operation of an organisation that are electronic or digital in nature........... These include
• direct business activities • Such as marketing, sales and human resource management but also
indirect activities • such as business process re-engineering and change management,• which impact on the improvement in efficiency and integration of
business processes and activities.
OLD VS E BUSINESSOLD VS E BUSINESS
OLDOLD• Brick& mortar Brick& mortar • Internally focussedInternally focussed process centricprocess centric• Hierchical Set upsHierchical Set ups• Arm length relationshipsArm length relationships• Customers less informedCustomers less informed
E BIZE BIZ• Click& MortarClick& Mortar• Externally focusse –Externally focusse –
Goal CentricGoal Centric• Cross functional set Cross functional set
upsups• Networked Networked
relationshipsrelationships• Customers more Customers more
informedinformed
RESULTS OF INTEGRATIONRESULTS OF INTEGRATION
E CommerceE CommerceSCMSCMCRMCRMERPERPBPO/KPOBPO/KPOMIS etcMIS etc
IT
BIZ MODELINTERNET
E commerce
Definition Process of buying selling and exchange of
products services and information via computer Network including Internet
E commerce
Definition • Electronic Commerce (EC) is where
business transactions take place via• telecommunications networks, especially
the Internet.
E commerce
E COMMERCE MODELSE COMMERCE MODELS
Ad models -- Search engins portals Ad models -- Search engins portals etcetc
Merchant -- B2C Merchant -- B2C Manufacturer/ wholesaler- B2BManufacturer/ wholesaler- B2B Subscription -- ISP, e JORNALS etcSubscription -- ISP, e JORNALS etc Brokerage/ Market place exchange Brokerage/ Market place exchange
modelmodel Info intermediary model.Info intermediary model.
E COMMERCE -EVOLUTIONE COMMERCE -EVOLUTION
1996-99 11996-99 1STST STAGE- STAGE-
Web presence.Information Web presence.Information services,News ,Cataloguesservices,News ,Catalogues
E COMMERCE -EVOLUTIONE COMMERCE -EVOLUTION
1997-20 2ndSTAGE –1997-20 2ndSTAGE –
Interactive sites- search Interactive sites- search features ,access to features ,access to databases, .,Personalised sites etcdatabases, .,Personalised sites etc
E COMMERCE -EVOLUTIONE COMMERCE -EVOLUTION
1998-2000 3rdSTAGE.1998-2000 3rdSTAGE.
Transaction capability-E Payment Transaction capability-E Payment systems etcsystems etc
E COMMERCE -EVOLUTIONE COMMERCE -EVOLUTION
Beyond 2000-4thSTAGE-Beyond 2000-4thSTAGE-
Integrated enterprises –SCM Integrated enterprises –SCM integration -integration -
E COMMERCE…. Key driversE COMMERCE…. Key drivers
1.Technological factors – The degree 1.Technological factors – The degree of advancement of the of advancement of the telecommunicationstelecommunications
infrastructure which provides access infrastructure which provides access to the new technology for business to the new technology for business and consumers…and consumers…
band width..band width.. Telecom infrastructure 3G,4G,Telecom infrastructure 3G,4G,
E COMMERCE…. Key driversE COMMERCE…. Key drivers
2 2 Political factors – including the Political factors – including the role of government in creating role of government in creating governmentgovernment
E-RedinessE-Rediness E-legislation, E-legislation, E-initiatives and funding to support the E-initiatives and funding to support the
use and development of e-commerce use and development of e-commerce and information technology. etcand information technology. etc
E COMMERCE…. Key driversE COMMERCE…. Key drivers
3 3 Social factors – incorporating the Social factors – incorporating the level and advancement in IT level and advancement in IT educationeducation
Skill level, Skill level, PC penetration,andPC penetration,and Training which will enable both Training which will enable both
potential buyers and the workforce To potential buyers and the workforce To understand and use the new understand and use the new echnology.Technophilia..echnology.Technophilia..
E COMMERCE…. Key driversE COMMERCE…. Key drivers
4 4 Economic factors – including the Economic factors – including the general wealth and commercial general wealth and commercial health health of the nation and the elements of the nation and the elements that contribute to it.that contribute to it.
GDP (India 7%,china 6.9%,pakistan4.1%)GDP (India 7%,china 6.9%,pakistan4.1%) Cost of internet accessCost of internet access Cost of IT tools Cost of IT tools Economic growth etcEconomic growth etc
E COMMERCE…. Key driversE COMMERCE…. Key drivers
5.Organisational culture 5.Organisational culture – – attitudes to research and attitudes to research and
development (R&D);development (R&D);E readyness-willingness to innovate E readyness-willingness to innovate
and use technology to achieve and use technology to achieve objectives.objectives.
E COMMERCE…. Key driversE COMMERCE…. Key drivers
6. 6. Commercial benefits Commercial benefits cost savings cost savings improved efficiencyimproved efficiencyCustomer satisfactionCustomer satisfaction
........that impact on the financial ........that impact on the financial performance of the firm.performance of the firm.
E COMMERCE…. Key driversE COMMERCE…. Key drivers
7.Skilled and committed workforce 7.Skilled and committed workforce – – that understands, that understands, - willing and able to willing and able to implement new implement new
technologies and processes.technologies and processes.
E COMMERCE…. Key driversE COMMERCE…. Key drivers
88 Requirements of customers and Requirements of customers and suppliers – in terms of product and suppliers – in terms of product and serviceservicedemand and supply.demand and supply.
E COMMERCE…. Key driversE COMMERCE…. Key drivers
9.9.Competition – ensuring the Competition – ensuring the organisation stays ahead of or at organisation stays ahead of or at least keepsleast keepsup with competitors and industry up with competitors and industry leaders.leaders.
E COMMERCE…. IT’S IMPACTE COMMERCE…. IT’S IMPACT
1.Marketing – 1.Marketing – Online advertising, Online advertising, Global marketingGlobal marketing marketing strategies -Dis marketing strategies -Dis
intermedation..mass customisationintermedation..mass customisation Consumer behaviour and cultures. Consumer behaviour and cultures.
E COMMERCE…. IT’S IMPACTE COMMERCE…. IT’S IMPACT
2.Production and operations management 2.Production and operations management – –
The impact of on-line processing The impact of on-line processing has led to has led to reduced cycle times. It takes seconds to reduced cycle times. It takes seconds to process orders/ deliver digitized products process orders/ deliver digitized products and services electronically; and services electronically;
E COMMERCE…. IT’S IMPACTE COMMERCE…. IT’S IMPACT
Production and operations management Production and operations management (manufacturing) – (manufacturing) –
moving from moving from mass production(Push type) mass production(Push type) to demand-driven(Pull type), to demand-driven(Pull type),
--
E COMMERCE…. IT’S IMPACTE COMMERCE…. IT’S IMPACT
Production and operations management Production and operations management
E BiddingE Bidding Sourcing through collaboration and Sourcing through collaboration and
coordination(B2B)..Automobile companies coordination(B2B)..Automobile companies for common supplies like tyre ,light etcfor common supplies like tyre ,light etc
E COMMERCE…. IT’S IMPACTE COMMERCE…. IT’S IMPACT
3. Management information systems – 3. Management information systems – analysis, design and implementationanalysis, design and implementationof e-business systems within an of e-business systems within an organisation; issues of integration oforganisation; issues of integration offront-end and back-end front-end and back-end systems.Facilitates information flowssystems.Facilitates information flows
E COMMERCE…. IT’S IMPACTE COMMERCE…. IT’S IMPACT
4.Human resource management – 4.Human resource management – issues of on-line recruiting, issues of on-line recruiting, home working..home working..
E COMMERCE…. IT’S IMPACTE COMMERCE…. IT’S IMPACT
5.5.Business law and ethics – the different Business law and ethics – the different legal and ethical issues that havelegal and ethical issues that havearisen as a result of a global ‘virtual’ arisen as a result of a global ‘virtual’ market. Issues such as ....market. Issues such as ....copyright laws,copyright laws, privacy of customer information,privacy of customer information, legality of electronic contracts,etc..legality of electronic contracts,etc..
TYPES OF E COMMERCETYPES OF E COMMERCE
The major types of e-commerce are :The major types of e-commerce are :1.1. B2C amazon.in.B2C amazon.in.2.2. B2B alibaba.comB2B alibaba.com3.3. C2C e bayC2C e bay4.4. P2P P2P 5.5. B2G sbi.comB2G sbi.com6.6. G2C keala.gov.inG2C keala.gov.in7.7. M-CommerceM-Commerce
B2C E COMMERCEB2C E COMMERCE
CharacteristicsCharacteristics
Between business and consumersBetween business and consumers Large in terms of transactionLarge in terms of transaction Enabled by internetEnabled by internet
B2C E COMMERCEB2C E COMMERCE
B2C : (Business-to-Consumer)B2C : (Business-to-Consumer)Within the B2C category there are many Within the B2C category there are many
different types of business models: portals , different types of business models: portals , online retailers , content providers , transaction online retailers , content providers , transaction brokers , market creators , service providers , brokers , market creators , service providers , and community providers.and community providers.
B2C E commerceB2C E commerce
Management FocusManagement Focus
Managing HitsManaging HitsConnectivityConnectivityDelivering ValueDelivering ValueSecurity issuesSecurity issues
B2C Critical success factorsB2C Critical success factors
COMMUNICATION INFRASTRUCTURECOMMUNICATION INFRASTRUCTURE PROCESS MANAGEMENTPROCESS MANAGEMENT SERVICE MANAGEMENTSERVICE MANAGEMENT TRANSACTION CAPABILITIESTRANSACTION CAPABILITIES
B2C Critical Success Factors
COMMUNICATION INFRASTRUCTURE:
• Technical infrastructure• PC penetration• Processor features
B2C Critical Success Factors
• PROCESS MAANGEMENT• A2A integration• Managing HITS
B2C Critical Success Factors
SERVICE MANAGEMENT
• Good Site Architecture-Catching eye balls• Ethical compliance• Customer value
B2C Critical Success Factors
TRANSACTION CAPABILITIES
• Payment systems– Credit cards,debit cards. Digital cash , COD
Cheque, Draft etc• Security
B2B E COMMERCEB2B E COMMERCE
CharacteristicsCharacteristics
Between business housesBetween business houses Large in terms of valueLarge in terms of value Represent major part of e commerce bizRepresent major part of e commerce biz Enabled by extranet/vpn/internetEnabled by extranet/vpn/internet
B2B E COMMERCEB2B E COMMERCE
B2B MODELB2B MODEL
Between business housesBetween business houses Large in terms of valueLarge in terms of value Enabled by extranet/vpn/internetEnabled by extranet/vpn/internet
B2B E COMMERCEB2B E COMMERCEB2B typesB2B types
BUYER CONTROLLED-Automobile companies join to BUYER CONTROLLED-Automobile companies join to gather to obtain bids for compnantsgather to obtain bids for compnants
SELLER CONTROLLED-Group of sellers for a product join SELLER CONTROLLED-Group of sellers for a product join to gather to reduce price wars offer products –Eg agri to gather to reduce price wars offer products –Eg agri marketingmarketing
THIRD PART CONTROLLED-E commerce provider creates THIRD PART CONTROLLED-E commerce provider creates a platform where buyer and seller meets –alibaba.coma platform where buyer and seller meets –alibaba.com
C2C E COMMERCE C2C E COMMERCE
Consumer-to-Consumer (C-to-C) In this category Consumer-to-Consumer (C-to-C) In this category consumers interact directly-consumers interact directly-
They exchange information such as:They exchange information such as: 1 1 Expert knowledge where one person asks a question Expert knowledge where one person asks a question
about anything and about anything and gets an e-mail reply from the gets an e-mail reply from the community of other individuals, as in the case of the community of other individuals, as in the case of the New New York Times-affiliated abuzz.com website.York Times-affiliated abuzz.com website.
2. 2. Opinions about companies and products, for example Opinions about companies and products, for example epinions.com.epinions.com.
33.Exchange of goods .Exchange of goods between people both with between people both with consumer auction sites such as e-bay.com OR consumer auction sites such as e-bay.com OR Swapitshop.com, where individuals swap goods with each Swapitshop.com, where individuals swap goods with each other without the exchange of moneyother without the exchange of money
C2B E COMMERCE C2B E COMMERCE
Customer to BusinessCustomer to Business
CUSTOMER DRIVENCUSTOMER DRIVEN Bids for requirements..airline tickets..Hotel Bids for requirements..airline tickets..Hotel
accommodationaccommodation
Service providers negotiate and fix the dealService providers negotiate and fix the deal
Price line.com…elance.com..noukari.comPrice line.com…elance.com..noukari.com
G2B E COMMERCE
The exchange of information, services and products between government agencies and business organisations.
• 1. Information, guidance and advice for business on international trading,
• 2. A database of laws, regulations and government policy for industry
• sectors.• 3. On-line application and submission of official forms (such as
company• and value added tax).• 4. On-line payment facilities.
G2C E COMMERCEG2C E COMMERCE
Government-to-Consumer (G-to-B) Government-to-Consumer (G-to-B) (Also known as e-governance). (Also known as e-governance).
Government Government sites offering information, sites offering information, forms and facilities to conduct forms and facilities to conduct transactions for individuals,transactions for individuals,
including paying bills and submitting including paying bills and submitting official forms on-line such as tax returns.official forms on-line such as tax returns.
E COMMERCE positives
• 1.International marketplace. • borderless marketplace • businesses now have access to people all
around the world. • e-commerce businesses have become
virtual multinational corporations.
E COMMERCE positives
• 2.Operational cost savings. The cost of creating, processing, distributing,
• storing and retrieving paper-based information has decreased
E COMMERCE positives
• 3.Mass customisation.• The pull-type processing allows for products
and Introduction• services to be customised to the customer’s
requirements• Example - customers can configure a car
according to their specifications within minutes on-line via the www.ford.com website.
E COMMERCE positives
• 4.Enables reduced inventories and overheads by facilitating ‘pull’-type supply
• chain management – this is based on collecting the customer order and
• then delivering through JIT (just-in-time) manufacturing/networking with supplier
E COMMERCE positives
• 5. Lower telecommunications cost. • The Internet is much cheaper than
traditional communication systems
E COMMERCE positives
6.Digitisation of products and processes. Particularly in the case of software
• and music/video products, which can be downloaded or e-mailed directly
• to customers via the Internet in digital or electronic format.
E COMMERCE positives
7.24/7 working environment-• Any time business model
E COMMERCE positives
8. Level playing ground…….Cyber space will ease size differences
E- COMMERCEE- COMMERCE CHALLENGES CHALLENGES
Shopping style differencesShopping style differences Logistics issuesLogistics issues FraudsFrauds Internet infrastructureInternet infrastructure PC penetrationPC penetration Privacy issuesPrivacy issues
E COMMERCE SECURITYE COMMERCE SECURITY
OBJECTIVESOBJECTIVESReduce system break downReduce system break downAsset safeguardingAsset safeguardingMaintain confidentialityMaintain confidentialityIntegrity and reliabilityIntegrity and reliabilityUn interrupted serviceUn interrupted serviceComply with LawsComply with LawsSystem effectiveness and efficencySystem effectiveness and efficency
E COMMERCE SECURITYE COMMERCE SECURITY
SECURITY THREATSSECURITY THREATS1.EXTERNAL ATTACKS-Denial of Service 1.EXTERNAL ATTACKS-Denial of Service (DOS)(DOS)2.Intrusion.. Gaining accesss-Pass word 2.Intrusion.. Gaining accesss-Pass word hacking/Social engineering..hacking/Social engineering..3.Hacking/ Cracking3.Hacking/ Cracking4.Sniffing networks4.Sniffing networks 5.Introducing Virus5.Introducing Virus
E COMMERCE SECURITYE COMMERCE SECURITY
SECURITY MEASURESSECURITY MEASURES1.Security policies-COVERING HARDWARE/ 1.Security policies-COVERING HARDWARE/ SOFTWARE/ PEOPLESOFTWARE/ PEOPLE2. Acccess control systems-Passwaords/Bio metric 2. Acccess control systems-Passwaords/Bio metric systemssystems3. Fire walls-3. Fire walls-4Authentication-Digital signatures4Authentication-Digital signatures5. Encryption5. Encryption6. Intrusion detection & monitoring software6. Intrusion detection & monitoring software