Professional Documents
Culture Documents
E-Business
Chapter 1
E-Business
E-Business
Learning Objectives
To understand The objectives of e-business Transition from traditional business to e-business Role of e-commerce, e-business and difference between them Features and advantages of e-business technology Establishing e-business, different types of e-business models Knowledge perspective of e-business
Oxford University Press 2012. All rights reserved.
E-Business
Introduction
Traditionally, business is exchange of articles, goods and food items, a need based.. Further, a businessman travelling to places for selling goods / individuals going to shops to buy any item Later, many layers / middlemen came in to play
Cont..
Oxford University Press 2012. All rights reserved.
E-Business
Introduction Cont..
It reduced the pace of the transactions, loss of information and gap between the demand and supply Production limitations - Simple production processes, relatively simple technologies and low production volume Led to - numerous manufacturing companies, small in size, unspecialized Distributed and diffused markets, lack of transportation & communication facilities, lot of information inefficiencies Led to - distribution within a small locality, difficult to balance supply and demand
Oxford University Press 2012. All rights reserved.
E-Business
Introduction Cont..
Economic, technological growth, new transport, communication means changed the business scenario Advent of internet & its use in business changed the overall business E-commerce, e-business where end-to-end business is empowered by electronic communication technologies, revolutionized the business Made ways & means available to do business with pace and eliminate few middle layers in transaction
E-Business
05-02-2013
Objectives of e-business
E-business objectives can be listed as Primary objective : to use internet and electronic communication system to deliver business value by its effective use in business transactions Information analysis and access Penetration Addressing particular customer segment Improving user satisfaction Knowledge augmentation and its business use to increase stakeholders wealth.
Oxford University Press 2012. All rights reserved.
E-Business
E-Business Layers
Business model sits on top of layers Technical layers include performance, availability and security related issues Two layers interact with each other through application development layer The business model and business processes are tested against business objectives and that drives application development Every layers needs to be considered while moving ahead with legacy system to e-business
Oxford University Press 2012. All rights reserved.
E-Business
E-Business
E-Business
05-02-2013
E-Business
Deals with all aspects of business and not More about monetary limited to just business transactions transactions, buying & selling Internal processes such as production, inventory management, product development, risk management, finance, etc., are also part of e-business Focuses on the outward facing processes and not related to internal processes
Other aspects of business like contacting Does not include other the customer on-line, educating him, business aspects like in eproviding services, and product related business information, that all constitute e-business
Oxford University Press 2012. All rights reserved.
E-Business
E-business Framework
E-business Framework
E-Business
E-Business
05-02-2013
E-Business
Advantages of E-business
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Provides flexibility No need for physical presence Cost reduction Transparency Personalization End-to-end information flow Integrated solution Saves time Improved communication with customers, suppliers Online publishing
Oxford University Press 2012. All rights reserved.
E-Business
Establishing E-business
Establishing e-business can be transformation from traditional business or a completely new business Apart from the traditional parameters, other strategic aspects that need to be considered while establishing ebusiness are E-business frameworks and standards E-content interoperability Inclusive solutions Trusted frameworks Support for interoperable reference implementations
Oxford University Press 2012. All rights reserved.
E-Business
05-02-2013
E-Business Models
E-business model A framework with all business components to create value and meet business objectives A set of business processes through planned activities to achieve business objectives Aim to leverage unique properties and the strength of e component of technology to optimize business objectives Create new ways of creating, capturing, and delivering value to customers Various e-businesses models are distinguished by the nature of market relationship & the nature of transactions
Oxford University Press 2012. All rights reserved.
E-Business
E-Business
E-Business
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B2B Transactions
E-Business
B2C Transactions
E-Business
E-Business
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C2C Transactions
E-Business
Cont..
E-Business
Strengths Cont..
5. E-business is easily expandable compared to traditional businesses 6. Allows prices to respond according to demand (direct marketing 7. Help in increasing the yield maximize revenue 8. Lowers the cost of stocks and personnel 9. Minimizes dependence on physical resources 10.Available 24 hours a day
Opportunities
Creates opportunities for businesses like 1. use of gimmicks for promotional activities on line 2. Allows dealing with wholesale trade companies as theres a connectivity between various companies 3. Promote brands and take those brands to global level 4. Selling well-known brands very easily, as the customers cannot see the actual product, they prefer branded 5. Operate in niche markets at global level 6. Allows organization to improve decision efficiencies because of integration and availability of information
Oxford University Press 2012. All rights reserved.
E-Business
E-Business
05-02-2013
Opportunities Cont..
7. Ability to connect and integrate with other organizations allowing to sell complete range of products by using partnerships 8. Allows to sell product and the related services together 9. Help in building efficient market, as the increase in transparency due to electronic communication means 10. Delivers different kinds of services for different prices
Oxford University Press 2012. All rights reserved.
E-Business