The way business is done has undergone fundamental changes during the last decades or so. The manner of conducting business is referred to as “MODES OF BUSINESS” and, the prefix “EMERGING” underlines the fact that these changes r happening here n now and that these trends r likely to continue. In fact ,if one were to list the three strongest trends that are shaping business, these would be:
DIGITIZATION : The conversion of text, sound, images, videos and other content into a series of ones and zeros that can be transmitted electronically
OUTSOURCING : To engage the service of an outside agency to manage and
operate business activities or functions
GLOBALISATION : Integrating the economies of the world and helping in increasing the capital requirements of the business houses around the world..
TRADITIONAL BUSINESS VS. E-BUSINESS Basis Traditional business E-Business
(ii) Physical presence
(iii) Cost of setting up.
(iv) Dealing time
(v) Opportunity for inter personal touch
(vi) Global reach
( vii) Transaction risk
Difficult Necessary High cost involved More More Less less Simple And easy Not required Low as no requirement of physical facilities Less , transaction are settled immediately on internet Less More as cyberspace is without boundaries High due to distance and anonymity of the parties
E-BUSINESS E-business may be defined as conduct of industry, trade commerce using computer networks.
SCOPE OF E-BUSINESS
The scope of e-business is vast and includes all process that a business organization conducts over a computer network .
B2B COMMERCE It is that business activity in which two firms or two business units make electronic transaction .
The activities which involves in B2B commerce are:
Enquiry about goods.
B2C COMMERCE It indicates business to customers .
Business tries to reach customers through online shopping .
They also take care of :
Delivery of products,
online payments etc.
INTRA B COMMERCE Parties involved in electronic transaction are from within a business firm.
It is mainly use to interact between
C2C COMMERCE It stand for customers to customers
Required for those goods:
where no established markets
Selling old books ,clothes
on cash/barter system
E-BUSINESS VERSUS E-COMMERCE E-business E-commerce 1)It has a broader meaning. 2)It includes buying and selling of goods and services and also servicing the customers and collaborating with business partners with electronic means . 1)It has a narrower meaning . 2)Using the internet to order and pay for the product or services. It is a subset of e- business.
HISTORY OF E-COMMERCE
E-COMMERCE BEGAN BEFORE PERSONAL COMPUTERS WERE PREVALENT AND HAS GROWN INTO A MULTI-BILLION DOLLAR INDUSTRY,BUT WHERE DID IT COME FROM? BY LOOKING AT THE EVOLUTION OF E-COMMERCE,IT WIIL BE
EASIER TO JUDGE ITS TRENDS FOR THE FUTURE.
YEAR EVENT 1984 1992 1994 1995 1998 1999 2000 Edi, or electronic data interchange, was standardized through ASC X12. this guaranteed that companies would be able to complete transactions with one another reliably. CompuServe’ offers online retail products to its customers .this gives people the first chance to buy things off their computer Netscape arrived, providing users a simple browser** to surf the internet and a safe online transaction technology called Secure Sockets. Layer.*** Two of the biggest names in e-commerce are launched: Amazon. COM and e-bay. com DSL or Digital Subscribers Line, provides fast, always on internet service to subscribers across California. This prompts people to spend more time and money online Retail spending over the internet reaches $20 billion ,according to Business. COM The U.S government extended the moratorium on internet taxes until at least 2005.
E-COMMERCE BY ELECTRONIC E-COMMERCE IS A COMBINATION OF TWO WORDS i.e. ELECTRONIC AND COMMERCE.IT ALSO MEANS INTERNET COMMERCE.E-COMMERCE IS DEFINED AS TRANSACTIONS THAT INVOLVE THE EXCHANGE OF GOODS AND SERVICES MEANS.
BENEFITS OF E-BUSINESS 1 2 3 4 5 EASE OF FORMATION &INVESTMENT REQUIREMENTS :- e-business IS RELATIVELY EASY TO START. THE BENEFITS OF INTERNET TECHNOLOGY IS SIMILAR TO BIG OR SMALL BUSINESS. CONVINIENCE :- INTERNET OFFERS CONVINIENCE OF 24hours a day,7 days a week and 365 days a year. SPEED ;- CYCLE TIME TAKEN TO COMPLETE THE ORIGINAL DEMAND IS REDUCED DUE TO COMPLETION OF VARIOUS PROCESS SIMULTANEOUSLY. GLOBAL ACCESS ;- THE BOUNDARIES OF e-commerce ARE NOT DEFINED BY GEOGRAPHICAL BORDERS,BUT BY THE COVARAGE OF COMPUITER NETWORKS. MOVEMENT TOWARDS A PAPERLESS SOCIETY ;-USE OF INTERNET HAS SIGNIFICANT REDUCED DEPENDANCE ON PAPERWORK AND REDTAPE.IT ACT 2000 ,ALLOWS USE OF ELECTRONIC SIGNATURE TO ENCOURAGE PAPERLESS WORK.