2. Modes of business means the manner in which
businessisconductedandemergingstandsforthefact
thatthesechangesarehappeningnow,hereandthere
andtheyarelikelytocontinue.
Digitization
Outsourcing
Internationalizationandglobalization
3. The term business
comprises industry, trade
and commerce. E- business
may be defined as the
conduct of business using
thecomputernetworks.
4.
5.
6. The terms e-commerce and e-business are used interchangeably but
they are distinct concepts. We have already seen that e-commerce refers to
online transactions – buying and selling of goods and/or services over the
Internet.
E-commerceispartofe-business.Inabroadsensee-Businessisthesum
ofe-Commerceandotheractivitiesthathavedonetopromotethebusiness.
E-Business = e-Commerce + Supply Chain Management + Customer
Relationship Management + Business Intelligence + Enterprise Resource
Planning+KnowledgeManagement.
These online interaction are aimed at improving or transforming
business process and efficiency. One of the first to use the term was IBM, in
1997.
7. Improved accuracy, quality and time required for updating and delivering information on
productsand/orservices.
Accessforcustomerstocataloguesandprices–24hours*7days.
Improvedeaseandspeedofcustomersordering.
Enhanced market, industry or competitor intelligence acquired through information
gathering andresearchactivities.
Newdistributionchannelsviaelectronicdeliveryofsomeproductsandservices.
Expansionofcustomerbaseandgrowthinexportopportunities.
Reducesroutineadministrativetasksfreeingstafftofocusonmorestrategicactivities.
8.
9. Thescopeofe-Businessisquitevast.Businessfunctionslike
production, finance, marketing, personnel, etc., and
managerial activities such as planning, organising, staffing,
controlling, etc., can be carried out effectively through
computer networks. Another scope of e-business is to be
understood in terms of people or parties involved in
electronictransactions
10. Transactions taking place
between two business
enterprises electrically are
known as B2B (Business to
Business) transactions, e.g.,
trade negotiations, placing
order with suppliers, forming
jointventures,etc.
11. Transactions taking place
between business and individual
consumers are known as B2C
(Business to Consumer)
transactions, e.g., consumer
placing order online, electronic
payment, consumer seeking
clarification on price, terms of
payment,etc.
13. Transactions taking place
between business and
employees are called B2B
(Business to Employees)
transactions, e.g., salary
payments, seeking employees’
suggestionsonline,etc.
14. The benefits of e-
commerce over non-
electronic commerce can
beseentoaffectthreemajor
stakeholders:
organizations, consumers
andsociety.
22. Registration
Before making online shopping, one has to register
with the online vendor by filling up a registration
form. It is for the purpose of opening an account with
the vendor. Among various details that you fill up,
passwordisanimportantitem.Therebyyouraccount
shopping cart are protected. Otherwise, anyone can
loginusingyournameandshopinyourname.
27. TransactionRisks
– denialonthepartofsellerthatthe
customer ever placed the order or on the part of customer that he
everplacedtheorder.
- Notdelivered,delivered atwrongaddressor
wronggoodsdelivered
- Claims that either payment not received by
thesellerorCustomerclaimsthatpaymentwasmade.
28. Datastorageandtransmissionrisks
Datastoredinthesystemsanden-routeisexposedtovariousrisk.
Valuable information may be stolen, or modified for selfish motives or
forfun.Wehaveheardaboutvirusandhacking.Avirusisaprogramthat
attacks itself to computer systems and destroys or corrupts the data
stored. Installing and updating anti-virus programs is the solutions.
Data may be intercepted while in transmission. For this, We can use
Cryptography.Itisanactof protectinginformationbytransformingit
intoanunreadableformatcalledCyphertext.
32. Business activities are fast changing in this dynamic world. Since
thelastdecade,anewconcepthasevolvedintheservicesectorcalled
Business Process Outsourcing(BPO). BPO is a system of getting a
business task accomplished through an outside agency. For
example, transportation of raw materials into the factory may be
entrusted to a transport company; conducting of canteen for
employeeswithahotel;recruitmentofemployeeswitharecruiting
agency,etc.
33. InBPO,companieshireoutoncontractcertaintasks,which
are performed on a regular basis. It is a deviation from the
earlier practice of doing all business operations on its own.
Earlier, certain firms used to hire the services of outside
agenciesoccasionally,e.g.,hiretheservicesofanadvertising
agencytocarryoutanadvertisementcampaignorentrustthe
work of conducting a trade fair with an agency to promote a
particularproduct.
34. All routine and regular business tasks were performed by
the company staff, e.g., maintaining books of accounts,
managingaccountreceivables,etc.(corebusinessactivities).
Non-core activities are outsourced BPO assumes hiring out
even these regular and routine matters. This concept has its
origin in the core competence theory propounded by a
famousmanagementconsultantnamedC.K.Prahlad.
35.
36. Outsourcing is more associated with IT – enabled
services or BPO (Business Process Outsourcing). The
frequently used term is ‘call centres ’ which provide
customer-oriented services. Call centres work 24*7
(24 hours and seven days) which handle in-bound
(customer queries and grievances) and out-bound
(paymentfollow-up,telemarketing,etc.)traffic.
37.
38. Necessity is the mother of inventions. This is
especially true in the case of outsourcing also. Global
competitivenessmadebusinessfirmstorethinkorre-
look at very many factors. These include providing
higher quality products at fair and reasonable prices,
satisfying ever demanding customers,copingup with
theemergingtechnologies,etc.
39.
40. Itenablesthebusinesstoconcentrateonareasinwhichithascorecompetency.
Since outsourcing agencies are specialists in their fields, better quality service
can beobtained.
It can obtain the services at a lower cost than that of running a separate
departmentforthispurpose.
Itcangettheadviceofoutsourcingagenciesastheyveryoftenactasconsultants
forthispurpose.
It reduces labour problem because outsourcing requires lesser number of
employees.
