Introductiontoe Businessunit i 090816074152 Phpapp01

7/29/2019 Introductiontoe Businessunit i 090816074152 Phpapp01

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The objective of the course is to make the student understand the

latest trends in electronic business and the information technologyinvolved in running e-business

Unit1Introduction to E-Business Definitions Types of E-Business, Benefits of Business Limitations of E-Business Impact of E-Commerce Electronic Market

Structure

Business Model of Electronic Marketing

Procedure for Internet Shopping: Consumer PerspectiveAiding Comparison Shopping


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The Cycle of Electronic Commerce

Electronic Business includes the tasks that

support the buying and selling of goods and

services, and interactions among these tasks


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Definition of Electronic Commerce

Electronic Business is defined as the

conducting of business transactions over

electronic networks instead of paper,

telephones, couriers, tracks, planes and other

means of moving products and information.


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Definitions of E-Commerce

According to Lou Gerster, IBMs CEO E

Business is all about cycle time, speed,

globalization, enhanced productivity,

reaching new customers and sharing

knowledge across institutions for competitive

advantage.


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Why E-Business

Lack of time at public or Consumers

Flexibility in timings

Easy delivery at door steps Planning for payment

Safe Transactions


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Introduction to Electronic Business

According to Albert Gore Jr. We are on the verge ofa revolution that is just as profound as the change in

the economy that came with the industrialrevolution. Soon electronic networks will allowpeople to transcend the barriers of time and distanceand take advantage of global markets and businessopportunities not even imaginable today, opening upa new world of economic possibility and progress.


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Introduction to Electronic Business

Electronic commerce describes the manner in whichtransactions take place over networks, mostly the Internet.

It is the process of electronically buying and selling goods,services, and information. Certain Electronic commerceapplications, such as buying and selling stocks or books onthe internet, are growing at a rate of several hundredpercent every year.

Electronic Commerce could have an impact on significantportion of the world on businesses, professions, and ofcourse on people.

However, the impact of Electronic Commerce is not just thecreation of web-based corporations. It is the building of newIndustrial order.


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Components of Electronic BusinessElectronic Business

Networks

Corporate

Internet

Commercial

Institutions

Government

MerchantsManufactures

Suppliers

Consumers

Processes

Marketing

Sales

Payment

Fulfillment

Support


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The cycle of Electronic Business

Access

Follow on sales

Customer Online Ads Online order

Standard order

Distribution

Electronic customer

Support


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Disintermediation and Reintermediation by Electronic

Business

Eliminations of traditional intermediation is called

disintermediation. Incorporation of new electronic

intermediaries (such as Electronic-malls,electronic-

catalogues/directory, search engine services and product

selection agents) are called reintermediation


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Disintermediation and Reintermediation by Electronic Business

Manufacturer

Electronic

Intermediaries

On the Internet

consumer

Reintermediation


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Elements of E-Business

Direct to Consumer from Manufacturer

Electronic payment system

Negotiation at online Flexibility in Delivery of the product

Saving the time and cost


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Disadvantages of E-Business

Can not test the product

Disadvantage in Price and quality

Legal Problems and jurisdiction


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Manufacture

Disintermediation

Consumer


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Manufactures

Wholesaler

Distributor

Retailer

Consumer

Traditional

Intermediation


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Components of Electronic Business

Electronic Business can facilitate Internal department

interactions, improve customer relations and

eliminate the constraints of time and place.

A significant synergy has formed between the use ofdigital information, computerized business practices

and the Internet. This synergy is what enables

electronic commerce more efficient and effective


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Types of E-Business

a common Classification of E-Commerce is by the nature of transaction.

Business-to-consumers (B2C)

Business-to-business (B2B)

Consumer-to-consumer (C2C) Consumer to Business (C2B)

Non-Business EC

Intrabusiness (organizational) EC


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Types of EB (Continued)

Mobile Commerce (m-commerce)

refers to e-commerce that is conducted

in a wireless environment. i.e. using cell

phone to shop over the Internet Business model is the method by which

a company generates revenue to sustain

itself.


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Classification of Electronic Business Applications

Types of interorganizationalsystems.

Electronic Data Interchange (EDI), whichprovides secured B2B connection over Value-added-networks (VANs)

Extranets, which provide secured B2Bconnection over the Internet

Electronic funds transfer Electronic forms


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Types of Interorganisational systems

Integrated messaging delivery of e-mail and faxdocuments through a single electronic transmissionsystem that can combine EDI, e-mail, and electronicforms

Shared databasesinformation stored in repositoriesis shared between trading partners and is accessible toall.

Supply Chain Managementcooperation between a

company and its suppliers and/or customers regardingdemand forecasting, inventory management andorders fulfillment can reduce inventories, speedshipments, and enable just-in-time manufacturing.


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Interorganizational Systems (IOS)An IOS involves information flow among two or

more organizations. Its major objective is efficienttransaction processing. Such as transmitting orders,

bills, and payments using Electronic Data Interchange(EDI) or extranets.

Interorganizational systems are used exclusivelyfor Business to Business (B2B) applications, whereas

electronic markets exist in both the B2B and Businessto Consumer (B2C) cases.


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Interorganisational system

A typical IOS will include a company and its

suppliers and/or customers. Through IOS,

buyers and sellers arrange routine business

transactions. Information is exchanged overcommunications networks using prearranged

formats.


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What is internet, intranet and extranet?1. Computers connected to a global networked environment

known as the Internet.

1. Computers connected to a global networked environment

and its counterpart within organizations, called an intranet.An intranet is a corporate network that functions withInternet technologies, such as browsers, using Internet

protocols.

1. An extranet, a network that links the intranets of businesspartners over the Internet.


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Classification of Electronic Commerce Applications

Electronic Markets

Electronic Market is a network-based location where business

interactions occurs. Where information, products, services, and payments

are exchanged. The Electronic Market is place where shoppers and

sellers meet. The Electronic Market handles all the necessary

transactions, including the transfer of money between banks. In

Electronic Markets the principal participants are transaction handlers,

buyers, brokers, and sellers.


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Application of EC are divided into 3 categories

1. Buying and selling goods and services. These are usually

referred to as Electronic Markets

2. Facilitating Inter and Intra-organization flow of information.Communication and collaboration. These are sometimesreferred to as Interorganizational Systems (IOS).

3. Providing customer services.


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Business-to-Consumers (B2C)These are retailing transactions with

individual shopper. The typical shopper atAmazon.com is a consumer, or customer.

Woolworths of Australia with home shopping

site (www.woolworths.com.au) is designedwith freshness in mind and all the fresh foodis available for delivery.
http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/


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Business-to-Consumers (B2C) cont

Electronic Storefront has its own URL at which

buyers can place orders.

Electronic Malls (Cybermall or e-mall) is a collection

of individual shops under one Internet address.

Referral malls in which you are transferred to a

participating storefront

Electronic shopping cartenables you to gatheritems from various vendors and pay for them in

one transaction.


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Business-to-business (B2B)

Most of Electronic Business

today is of this type. It includes the IOS transactions(An IOS involves information flow among two or more organizations.Its major objective is efficient transaction processing, such astransmitting order, bills and payments using Electronic Data Interchange

(EDI) and Electronic Market transactions between organizations.) Sell-side marketplaces are where organizations attempt to

sell their products or services to other organizationselectronically from their own private e-marketplace.

Buy-side marketplaces are where organizations attempt to

buy needed products or services from other organizationselectronically.


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Business-to-business (B2B) cont

E-Procurement is using electronic support to

purchase goods and materials, sourcing,negotiating with suppliers, paying for goods

and making delivery arrangements.

Group purchasing is when the orders of

many buyers are combined so that they

constitute a large volume.


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Consumer-to-Consumer (C2C)

In this category consumer sells directly to consumers.

Examples are individuals selling in classified ads(www.classified2000.com) and selling residential

property, cars and so on. Advertising personal services

on the Internet and selling knowledge and expertise is

an other example of C2C
http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/


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Consumer to Business (C2B)

This category includes individuals who sell

products or services to organizations, as well

as individuals who seek sellers, interact with

them and conclude a transaction.


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Non-business Electronic Business

An increased number of non-businessinstitutions such as academic institutions,

non-profit organizations, religious

organizations, social organizations and

government agencies are using various types

of Electronic Commerce to reduce their

expenses. e.g. improve purchasing or to

improve their operations and customerservices


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Intrabusiness (organizational) EC

In this category we include all internal

organizational activities, usually performed

on intranets, that involve exchange of goods,

services or information. Activities can range

from selling corporate products to

employees to online training and cost-

reduction activities.


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BENEFITS OF ELECTRONIC Business

The global nature of the Technology, low cost,opportunity to reach hundreds of millions of people,interactive nature, variety of possibilities, andresourcefulness and rapid growth of the supporting

infrastructures (especially the web) result in manypotential benefits to:

1) Organizations

2) Consumers3) Society


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BENEFITS OF ELECTRONIC Business

Benefits to organizations

1) Provide opportunity to expends the marketplace tonational and international markets. With minimalcapital outlay, a company can easily and quicklylocate more customers, the best suppliers and most

suitable business partners worldwide.

1) Decreases the operating cost. EC decreases the costof creating, processing, distributing, storing, andretrieving paper-based information. For example, byintroducing an electronic procurement system,companies can cut the purchasing administrativecosts by as much as 85 per cent.


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BENEFITS OF ELECTRONIC BUSINESS

Benefits to organizations

Provide new platform for specialized business. Forexample, dog toys which can be purchased only in petshops or discount stores in the physical world, are soldnow in a specialized www.dogtoys.com

Reduces inventories and overhead by facilitating pulltype Supply Chain Management (SCM). In this system the

process starts from customer orders and uses Just-in-timemanufacturing. The pull-type processing enables

expensive customization of products and services whichprovides competitive advantage to its implementers. Aclass example is DELL Computer Corporation.
http://www.dogtoys.com/http://www.dogtoys.com/http://www.dogtoys.com/http://www.dogtoys.com/http://www.dogtoys.com/http://www.dogtoys.com/


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BENEFITS OF ELECTRONIC BUSINESS Benefits to organizations

Reduces the time between the outlay of capital and the receipt

of products and services.

Initiates business processes reengineering projects. By

changing processes productivity of salespeople, knowledge

workers and administrators can increase 100% or more.

Improved image, customer services, new-found business

partners, simplified processes, compressed cycle and delivery

time, increased productivity, eliminating paper, expediting

access to information, reduced transportation costs and

increased flexibility.


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BENEFITS OF ELECTRONIC BUSINESS Benefits to

consumers

1. No restriction on shopping time. EC enables customers toshop or do other transactions 24 hours a day, thought-out theyear and from almost any location.

2. Increased choices, EC provides customers with more choices:

they can select from many vendors and from move products.

3. Easy to get less expensive product or services. EC frequentlyprovides with less expensive products and services by

allowing them to shop in many places and conduct quickcomparisons.


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BENEFITS OF ELECTRONIC BUSINESS Benefits to

consumers

4. EC provides quick delivery of products (in case of digitized products)

5. Transformation of information from

manufacture or services provider to

customers in seconds of time, rather thandays or weeks.


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Benefits to Consumer

6. Provides customers to participate in virtualauctions.

7. Customers can interact with other customersin electronic communities and exchange ideasas well as compare experiences.

8. Facilities competition, which results insubstantial discounts.

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