05-02-20131© Oxford University Press 2012. All rights reserved. E-BusinessE-Business© Oxford University Press 2012. All ri...
05-02-20132© Oxford University Press 2012. All rights reserved. E-BusinessObjectives of e-business• E-business objectives ...
05-02-20133© Oxford University Press 2012. All rights reserved. E-BusinessE- Business and E-Commerce• e-business, not limi...
05-02-20134© Oxford University Press 2012. All rights reserved. E-BusinessFeatures of E-Business Technology• E-business fe...
05-02-20135© Oxford University Press 2012. All rights reserved. E-BusinessE-Business ModelsE-business model –• A framework...
05-02-20136© Oxford University Press 2012. All rights reserved. E-BusinessB2B e-business Models• Most common type of busin...
05-02-20137© Oxford University Press 2012. All rights reserved. E-BusinessC2C e-business model• About individuals doing bu...
05-02-20138© Oxford University Press 2012. All rights reserved. E-BusinessOpportunities Cont..7. Ability to connect and in...
Upcoming SlideShare
Loading in...5
×

422 33 powerpoint-slides_chapter-1-electronic-business--understanding-new-internet-economy-business_chapter_1

394

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
394
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
22
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

422 33 powerpoint-slides_chapter-1-electronic-business--understanding-new-internet-economy-business_chapter_1

  1. 1. 05-02-20131© Oxford University Press 2012. All rights reserved. E-BusinessE-Business© Oxford University Press 2012. All rights reserved. E-BusinessChapter 1Electronic Business –Understanding new interneteconomy and business© Oxford University Press 2012. All rights reserved. E-BusinessLearning ObjectivesTo understand –• The objectives of e-business• Transition from traditional business to e-business• Role of e-commerce, e-business and differencebetween them• Features and advantages of e-business technology• Establishing e-business, different types of e-businessmodels• Knowledge perspective of e-business© Oxford University Press 2012. All rights reserved.Introduction• Traditionally, business isexchange of articles, goods andfood items, a need based..• Further, a businessman travellingto places for selling goods /individuals going to shops to buyany item• Later, many layers / middlemencame in to playCont..E-Business© Oxford University Press 2012. All rights reserved. E-BusinessIntroduction Cont..• It reduced the pace of the transactions, loss of informationand gap between the demand and supply• Production limitations - Simple production processes,relatively simple technologies and low production volume• Led to - numerous manufacturing companies, small insize, unspecialized• Distributed and diffused markets, lack of transportation &communication facilities, lot of information inefficiencies• Led to - distribution within a small locality, difficult tobalance supply and demand© Oxford University Press 2012. All rights reserved. E-BusinessIntroduction Cont..• Economic, technological growth, new transport,communication means changed the business scenario• Advent of internet & its use in business changed theoverall business• E-commerce, e-business where end-to-end business isempowered by electronic communicationtechnologies, revolutionized the business• Made ways & means available to do business withpace and eliminate few middle layers in transaction
  2. 2. 05-02-20132© Oxford University Press 2012. All rights reserved. E-BusinessObjectives of e-business• E-business objectives can be listed as –– Primary objective : to use internet and electroniccommunication system to deliver business value byits effective use in business transactions– Information analysis and access– Penetration– Addressing particular customer segment– Improving user satisfaction– Knowledge augmentation and its business use toincrease stakeholders’ wealth.© Oxford University Press 2012. All rights reserved.Traditional Business to e-business• Steps for transition ofexisting traditional businessto e-business are -• Document existing businessprocess• Consider competitivebusiness advantage, ROI andother key benefits• Select technology to supportbusiness process• Roll out deployment planE-Business© Oxford University Press 2012. All rights reserved. E-BusinessE-Business Layers• Business model sits on top of layers• Technical layers includeperformance, availability and securityrelated issues• Two layers interact with each otherthrough application development layer• The business model and businessprocesses are tested against businessobjectives and that drives applicationdevelopment• Every layers needs to be consideredwhile moving ahead with legacysystem to e-business© Oxford University Press 2012. All rights reserved. E-BusinessForces Driving transformation to e-business• Different forces drive the transformation from legacysystems to e-business• Some of these forces are – Market forces Technology forces Economic forces Social forces© Oxford University Press 2012. All rights reserved. E-BusinessContributors for e-Business’ success• The contributors of successful e-business can be –– Website– Knowledge about the use– Skilled manpower– Acceptance from society– Robust infrastructure– Appropriate pricing structure– Smooth internal and external information flow– Connectivity– Mass communication– Network production© Oxford University Press 2012. All rights reserved. E-BusinessHigher Level Contributors for E-businessSuccess
  3. 3. 05-02-20133© Oxford University Press 2012. All rights reserved. E-BusinessE- Business and E-Commerce• e-business, not limited to mere monetary and outwardbusiness transactions• Involves internal and external communication to improvepace, efficiency, performance, customer satisfaction andallows a faster and more open process, with customershaving greater control• e-commerce, function of creating financial exchange withthe use of digital medium• Instruments and methods like, credit cards, electronicfund transfer etc. have become commonplace© Oxford University Press 2012. All rights reserved. E-BusinessE- Business and E-Commerce Cont..• The broadest definition of e-commerce is ‘theconduct of transactions by electronic means’• e-business is a superset and it can be defined as‘conducting business and all business relatedactivities, internal, and external transactions alongwith communications using electronic means’• In short, e-business is the business that is empoweredby e-commerce© Oxford University Press 2012. All rights reserved. E-BusinessDifference Between e-commerce / e-businesse-business e-commerceSuperset of e-commerce Subset of e-businessDeals with all aspects of business and notlimited to just business transactionsMore about monetarytransactions, buying &sellingInternal processes such as production,inventory management, productdevelopment, risk management,finance, etc., are also part of e-businessFocuses on the outwardfacing processes and notrelated to internalprocessesOther aspects of business like contactingthe customer on-line, educating him,providing services, and product relatedinformation, that all constitute e-businessDoes not include otherbusiness aspects like in e-business© Oxford University Press 2012. All rights reserved. E-BusinessE-commerce in e-business : Issues1. Lack of awareness and understanding of the value of e-business and e-commerce2. Reluctance to go for the required change in environment3. Lack of ICT knowledge and skills4. Doubts about the capability of organizations to takeadvantage of the benefits e-business5. Assurance about security and privacy before gettingengaged in use of internet related technologies6. Lack of legal infrastructure& legal liability on e-payments7. Issues related to financial costs© Oxford University Press 2012. All rights reserved. E-BusinessE-business Framework© Oxford University Press 2012. All rights reserved. E-BusinessE-business Framework
  4. 4. 05-02-20134© Oxford University Press 2012. All rights reserved. E-BusinessFeatures of E-Business Technology• E-business features drive the new economy• Some of the major features of e-commerce are - Ubiquity Global reach Universal standards Richness Interactivity Information density Personalization© Oxford University Press 2012. All rights reserved. E-BusinessE-business technology layers© Oxford University Press 2012. All rights reserved.E-business Service Model• ‘e’ component in each ofthese transactions is a valueproposition• This component gives easyinterface for service request• No processing component sitson the customer side• All processing is done at theend of the service provider• Customer does not need anyspecial hardware or softwareE-Business © Oxford University Press 2012. All rights reserved. E-BusinessAdvantages of E-business1. Provides flexibility2. No need for physical presence3. Cost reduction4. Transparency5. Personalization6. End-to-end information flow7. Integrated solution8. Saves time9. Improved communication with customers, suppliers10. Online publishing© Oxford University Press 2012. All rights reserved. E-BusinessBenefits for the retailer• E-business provides benefits for business houses,customers as well as for retailers• These benefits come from information efficienciesand penetration, in the form of market exposure andcost reduction• Benefits for retailers include - Increased market exposure Increased sales Reduced costs© Oxford University Press 2012. All rights reserved. E-BusinessEstablishing E-business• Establishing e-business can be transformation fromtraditional business or a completely new business• Apart from the traditional parameters, other strategicaspects that need to be considered while establishing e-business are – E-business frameworks and standards E-content interoperability Inclusive solutions Trusted frameworks Support for interoperable reference implementations
  5. 5. 05-02-20135© Oxford University Press 2012. All rights reserved. E-BusinessE-Business ModelsE-business model –• A framework with all business components to createvalue and meet business objectives• A set of business processes through planned activities toachieve 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 deliveringvalue to customersVarious e-businesses models are distinguished by thenature of market relationship & the nature of transactions© Oxford University Press 2012. All rights reserved. E-BusinessIngredients of Business ModelsVarious ingredients of business models are –• The offerings and value proposition• Revenue model / cash flow• Market forces and available opportunities• Competition• Positioning of product• Market strategy• Technology and information technology strategy• Organizational structure and development• Management team• Knowledge management© Oxford University Press 2012. All rights reserved. E-BusinessElements of successful e-business Model• Web technology provides a platform for building ane-business model to improve internal and externalprocesses• New business models aim to use and leverage uniquequalities of internet and in turn the World Wide Web• A successful business model needs to address variouselements as - Value proposition Market opportunity Competitive environment Competitive advantage© Oxford University Press 2012. All rights reserved. E-BusinessInformation & Financial Transactions© Oxford University Press 2012. All rights reserved. E-BusinessTechnology Evolution in E-arena© Oxford University Press 2012. All rights reserved. E-BusinessTransaction based e-business Models• e-business models are classified based on partiestaking part in transaction• Properties of business transactions like purpose oftransactions and parties involved, are used whiledeciding the type of e-business model1. Business to business, B2B model2. Businesses to consumer, B2C3. Business to government, B2G4. Consumer to consumer, C2C5. Consumer to business, C2B and6. Business to employee, B2E
  6. 6. 05-02-20136© Oxford University Press 2012. All rights reserved. E-BusinessB2B e-business Models• Most common type of business transactions, 75 to 80% oftransactions are of this type• Various companies and transactions coming under this model are -– Transactions among providers, distributors, players,manufacturers and other ancillary organizations– Various logistics related transactions, distribution of material,storage or warehousing– Organizations providing software as a service (SAAS),application service providers (ASP), Outsourcing of activitiesrelated to e-transactions including project development, web-hosting, security services etc. , KPOs, BPOs, inter banktransfers, security companies etc.© Oxford University Press 2012. All rights reserved. E-BusinessB2B Transactions© Oxford University Press 2012. All rights reserved. E-BusinessB2C e-business Model• Second most popular e-business model after B2B• Uses a concept of on-line distribution / selling ofservices, products or information from organizationsto actual consumers• Advantages of B2C model –– Reduces the transaction costs– Increases the information space available to consumers– Allows smaller players to enter in the global market– Saves cost needed for setting up shops and physicaldistribution channels© Oxford University Press 2012. All rights reserved. E-BusinessB2C e-business Model Cont..• Manufactures, distributors, information providers,and publishers use B2C model extensively• Includes different transactions between companiesand consumers like -– Customer buying various articles like books, computers,computer accessories, etc.– Customer accessing information, analysing information,and in some cases buying information or informationcentric articles– Customer seeking some sort of services from thecompanies© Oxford University Press 2012. All rights reserved. E-BusinessB2C Transactions© Oxford University Press 2012. All rights reserved. E-BusinessB2G e-business model• Transactions between private contractors andgovernment agencies are part of this model• Refers to commercial enterprises selling product,services and information to government agencies• Connects government and private sector• Include use of internet for public procurement and fordifferent government related procedures• Increases transparency in different operations• E.g. energy providing companies and governmentenergy distribution companies, infrastructure buildingcompanies, government infrastructure authorities etc.
  7. 7. 05-02-20137© Oxford University Press 2012. All rights reserved. E-BusinessC2C e-business model• About individuals doing business in online environment• Allows individual auctions, individuals trying to sell old/new articles, cars, etc. through electronic means/ website• Slowly becoming popular• Major hurdle in accepting C2C model is the trust factor• The peers interact with each other by various means like-– Direct transaction between individuals– Individuals interacting through some well-known portal or theauction site– The individuals advertise their product through some site usingclassifieds or advertisement© Oxford University Press 2012. All rights reserved. E-BusinessC2C Transactions© Oxford University Press 2012. All rights reserved. E-BusinessM-commerce and e-business• Advent of wireless technologies and cell phonesmade it possible to carry business transactions usingmobile phones• Commerce / transactions that take place usingwireless technology (cellular phones, wirelessdevices, etc.) is referred to as m-commerce• Many of the B2B and B2C transactions are possibleover m-commerce to build m-business models• Poses different sort of technology and usabilitychallenges© Oxford University Press 2012. All rights reserved. E-BusinessStrength / Opportunity analysis of E-businessAs a part of SWOT analysis, strengths of e-businessinclude -1. Organization / company can reach to veryspecific target group2. Can have very specific instructions and servicesfor the said target group3. Low investments within the traditional sector4. Reputation of traditional brands can still be usedand even glorified with innovative marketingmeans through electronic channelsCont..© Oxford University Press 2012. All rights reserved. E-BusinessStrengths Cont..5. E-business is easily expandable compared totraditional businesses6. Allows prices to respond according to demand(direct marketing7. Help in increasing the yield maximize revenue8. Lowers the cost of stocks and personnel9. Minimizes dependence on physical resources10.Available 24 hours a day© Oxford University Press 2012. All rights reserved. E-BusinessOpportunitiesCreates opportunities for businesses like –1. use of ‘gimmicks’ for promotional activities on line2. Allows dealing with wholesale trade companies as there’sa connectivity between various companies3. Promote brands and take those brands to global level4. Selling well-known brands very easily, as the customerscannot see the actual product, they prefer branded5. Operate in niche markets at global level6. Allows organization to improve decision efficienciesbecause of integration and availability of information
  8. 8. 05-02-20138© Oxford University Press 2012. All rights reserved. E-BusinessOpportunities Cont..7. Ability to connect and integrate with otherorganizations allowing to sell complete range ofproducts by using partnerships8. Allows to sell product and the related servicestogether9. Help in building efficient market, as the increase intransparency due to electronic communicationmeans10. Delivers different kinds of services for differentprices© Oxford University Press 2012. All rights reserved. E-BusinessProactive E-Business Strategy• It is a framework that is about business transactions,means, social environment and entities taking part inbusiness transactions• Business model is the result of a business strategy• E-business strategy is –– Totality of how a company selects its customers– Defines and differentiates its offerings– Defines the task it will perform itself & the tasks it willoutsource– Configure its resources– Creates utility customers and Captures profit© Oxford University Press 2012. All rights reserved. E-BusinessE-Business – A Knowledge Perspective• E-business empowers individuals, businesses and customerswith the ability to collect information & use it• Knowledge Management (KM) is about making rightknowledge available with right person at right time• Includes building of right knowledge and processing it totake it to next level• E-business makes the KM platform available for thisknowledge management to empower business• Knowledge about suppliers, retailers, specific areas andservices empower business with knowledge• E-businesses build and use effectively this knowledge on e-platform

×