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UNIT - 4
E- Business Applications
Prepared by : II MBA Students, Class 2017-19, CBIT College - Proddatur
E- BUSINESS APPLICATION
• E- BUSINESS
• Deals with the buying and selling of information
products and services through the computer network .
• Business activity which uses electronic medium.
• E business or electronic business is the administration
of conducting business via the internet . This world
include the buying and selling of goods and services
along with providing technical or computer support
through the internet.
ADVANTAGES OF E BUSINESS
• All time processing.
• Removing mediators.
• Time saving.
• Enhanced speed and accuracy of a product.
• Coast saving of the product.
• Reduces paper work.
• fast dissipation of information.
• Global research.
DISADVANTAGES OF E-BUSNIESS
• Lack of customer awareness.
• Small businessmen do not want to take any extra
burden.
• Legal formalities.
• It is not free.
• Security problems.
• Customer satisfaction problems.
• Data integrity problems.
WHY E-BUSINESS
• Lack of time at public or consumer.
• Flexibility in timing for payment.
• Easy delivery at door steps.
• Planning for payment.
• Safe transactions.
E BUSINESS STRATEGY
To grow an E- business and help it succeed.
There are a number of strategies a small business
owner can employ falling behind the times in this
rapidly changing frontier can mean risking your
company’s success in the virtual world.
E BUSINESS STRATEGY
• CRM – CUSTOMER RELATIONSHIP MANAGEMENT.
Manage and analyse customer interaction and data
through out the customer life cycle assisting in customer .
• SCM –SUPPLY CHAIN MANAGEMENT.
They supply materials information and
finances as they move in a process from supplier to manufacture
to wholesaler to retailer to consumer.
• EC –ELECTRONIC COMMERCE.
Focuses on transactions processes and can be
applied to the links of various business processes . Such as
auctioning of surplus goods.
Measure
&
optimize
Attract
visitor
Convert
visitor to
customer
Retain &
customer
E BUSINESS ADVERTISING STRATEGY
E-BUSINESS GROWTH
STRATEGY
 Take advantage of new marketing opportunities to
target a larger audience for their products.
 Creation an affiliate marketing program for your
products or services.
 Continuous improvement in productivity and
profitability.
WHAT IS E – BUSINESS
E –business is the conduct of business
process on the internet .These E –business process
include buying and selling products , supplies and
services; servicing customers ;processing payments ;
managing production control; collaborating with
business partners; sharing information ; running
automated employee services ;recruiting ;and more.
E- BUSINESS MODELS
• E- commerce business models can generally be
categories into the following
• BUSINESS –TO –BUSINESS [B-B]
• BUSINESS – TO – CONSUMERS [B-C]
• CONSUMER – TO – CONSUMER [C-C]
• CONSUMER –TO –BUSINESS [C-B]
• BUSINESS –TO – GOVERNMENT [B-G]
• GOVERNMENT – TO BUSINESS [G-B]
• GOVERNMENT –TO –CITIZENS [G-C]
BUSINESS –TO BUSINESS
A website following the B2B Business
model sells its products to an intermediate buyer who
then sells the product to the final customers . As an
example a wholesaler places an order from a
company’s website and offer receiving the
consignment , sells the end product to the final
customer who comes to buy the product one of its
retail outlets .
BUSINESS – TO – CONSUMER
A website following the B2B business
model sells its products directly to a customer . A
customer can view the products shown on the website
. The customer can choose a product and order the
same . The website will then send a notification to the
business organisation via email and the organisation
will dispatch the products/ goods to the customer
CONSUMER –TO –CONSUMER
A website following the C2C business
model helps consumer to sell their assets like
residential property ,cars ,motorcycles etc ., or rent a
room by publishing their information on the website .
Website may or may not charge the consumer for its
services . Another consumer may opt to buy the
product of the first customer by viewing the post
/advertisement on the website .
CONSUMER – TO –BUSINESS
In this model a consumer approaches a
website showing multiple business organisation for a
particular services . The consumer places an estimate
of amount he/she wants to spend for a particular
services . For example ,the comparison of interest
rates of personal loan /car loan provided by various
banks via websites . A business organisation who full
fills the consumer’s requirement within the specified
budget , approaches the customer and provides its
services.
BUSINESS –TO –GOVERNMENT
B2G model is a variant of B2B model
.such websites information with various business
organisation such websites are accredited by the
government and provide a medium to business to
submit application forms to the government .
GOVERNMENT –TO –BUSINESS
Government use B2G model
websites to approaches business organisation such
websites support actions ,tenders and applications
submission functionalities.
GOVERNMENT –TO –CITEZEN
Government use G2C model websites to
approaches citizen in general .such websites
support auctions if vehicles machinery or any
other material .such websites also provides
services like registration for birth marriage or
death certificates . The main objectives of G2C
website is to reduce the average time for full
filling citizen request for various government
services.
ADVANTAGES OF E- BUSINESS
• Easy to set up.
• Cheaper than traditional.
• No geographical.
• Government subsidies.
• Flexible business hours.
DISADVANTAGES OF E- BUSINESS
• Lack of personal touch.
• Delivery time.
• Security issues.
REVENUE MODELS
A revenue model is a frame work for
generating revenues . It identifies which revenue
sources to pursue what value to other how to price the
value . It is a key component of a company business
model.
TYPES OF REVENUE MODEL
• Production model.
• Manufacturing model.
• Construction model.
• Rental or lease model.
• Advertising model.
• Sponsored ranking model.
• Communication model.
• E- commerce model.
• Free- for – service model.
• Licensing model.
Emergency trends in E-business
governance
The emergence of internet technologies have provided
organizations and customers with access to vast amounts of data,
information, and services which have revolutionized the process
of exchanging products and services online. Trends in E-
Business, E-Services, and E-Commerce: Impact of Technology
on Goods, Services, and Business Transactions provides insights
into issues, challenges, and solutions related to the successful
application and management aspects of electronic business. This
book will bring together a comprehensive framework for
researchers and practitioners in understanding the growing
demand of e-business research.
1. Micro-payments.
2. Mobile technologies.
3. Social media.
4. Fullfillment options.
5. Global availability.
6. Localization.
7. Customizability.
8. Time-based availability.
1.Micro-payments
Among the most revolutionary changes in the
coming months—not years—is the use of micro-payment
systems from a variety of financial firms.
2.Mobile technologies
More people access the Internet on their mobile
devices than on any other device. We are rapidly app-
roaching the time where designs must be created for the
mobile web first, and for the desktop second. Mobile
technologies facilitate comparison shopping; with the
advent of barcode reader apps and price-comparison
databases, a consumer could snap a bar code in Walmart
and quickly reference product reviews and prices on
walmart.com
3.Social media
As Facebook has become the most visited site on
the Web, the role of social media, including Facebook
and its local clones such as Twitter, is increasingly
important. Social media sites increasingly act as points
of entry to e-commerce sites, and vice versa, as e-
commerce sites build rating, loyalty and referral systems
tied to social media. Group buying is also gaining
mainstream ground, with many “deal of the day” sites
competing for an increasingly savvy consumer base, but
improvements lie ahead as the social aspects and user
experience are refined.
4.Fullfillment options
I believe that users will want to have multiple
fulfillments and return options when interacting with
a vendor: ship to address, courier, pick-up in store,
return to store, etc. Having many fulfillment options
is how customers view their overall customer
experience. Some companies have made a business
proposition online by being exceptional in service to
the online channel.
5.Global availability
Increasingly, consumers want the
availability to buy products from foreign sites and
have them delivered locally. Thus, currency and
customs will be of growing concern to many online
retailers. Along with this, there will be concerns with
local privacy laws and restrictions on related data
collection and storage.
6.Localization
While the trend is to globalize, what’s
often more important is to localize. User
Centric’s research clearly shows that sites that
‘feel’ local – with proper imagery, language,
time/date, weights/measures, currency, etc.
resonate far more than sites that seem
culturally distant or sterile.
7.Customizability
Consumers want control, and want to be able to
design the details of the items they purchase.
8. Time-based availability
Some of the hottest and most successful sites
are those that have a time-critical response
component. Sites like Groupon, Gilt and others
capitalize on the perception of limited-time
availability. Creating a sense of urgency drives traffic
and purchase behavior.
Digital commerce
Digital commerce (D-commerce) is a type of e
commerce used by an organization that delivers and
sells products online. D-commerce is used by companies
that sell news, subscriptions, documents or any form of
electronic content, and the digital commerce company
collects payments, handles customer refunds and billing
and manages other accounting functions for online
publisher clients.
D-commerce is considered a form of e-commerce
because it deals with the exchange of electronic goods.
Definition
D-commerce (or) e-commerce is the
action of buying & selling items (or) services
through the use of the internet.
Examples of digital commerce.
Sending personal information & credit card
information via e-mail.
Buying online impulsively.
Using another credit card without permission.
What includes
o Buying & selling “virtual merchadise” for online
games.
o Online buying & selling though commercial sites,
auction sites & internet locations.
How it works
o Digital transactions.
o Through internet channels to buy/sell goods.
o Auctions.
Things to consider electronic wallet
1. Personal info privacy : pay on locations that
you trust.
2. System security: customer have to use touch id
for using security.
3. Best practices: do not leave your phone
unattended.
Advantages
• Buy any time from anywhere though digital
commerce.
• You don’t have the need for long lines at the mall.
• May found cheapest products.
Disadvantages
• User must take into consideration safety & security.
• Not working how & where to buy items online can
leave kids vulnerable to interest scams & identity
theft.
• Receiving goods (or) services which are not the same
as described by the seller.
• You win not receive your purchase immediately, you
must track shipment in the case of non-digital
purchases.
Mobile commerce
M-commerce (mobile commerce) is the buying and
selling of goods and services through wireless handheld devices
such as cellular telephone and personal digital assistants (PDAs).
M-Commerce also called as Mobile Commerce involves the
online transactions through the wireless handheld devices such as
mobile phone, laptop, palmtop, tablet.
Through M-Commerce, people can perform several functions
such as pay bills, buy and sell goods and services, access emails,
book movie tickets, make railway reservations, order books, read
and watch the news, etc
Objectives of mobile commerce
It is convenient for the customers as it
allows making transaction on their mobiles like e-
commerce & m-commerce does not require to go to
stone in person. The main aim of mobile commerce is
to improve the convenience of trading & also to
implement electronic money for quicker purchase
goods.
Advantages
• It provides a very convenient and easy to use the
system to conduct business transactions.
• Mobile commerce has a very wide reach. A huge part
of the world’s population has a mobile phone in their
pocket. So the sheer size of the market is tremendous.
• M-commerce also helps businesses target customers
according to their location, service provider, the type
of device they use and various other criteria. This can
be a good marketing tool.
• The costs of the company also reduced. This is due to
the streamlined processes, now transaction cost, low
carrying cost and low order processing cost as well
Disadvantages
• The existing technology to set up an m-commerce
business is very expensive. It has great start-up costs
and many complications arise.
• In developing countries, the networks and service
providers are not reliable. It is not most suitable for
data transfer.
• Then there is the issue of security. There are many
concerns about the safety of the customer’s private
information. And the possibility of a data leak is very
daunting.
Applications of mobile commerce
1. M-Commerce for finance.
2. M-Commerce for Retail and After sale Services.
3. M-Commerce and Mobile Marketing.
4. M-Commerce and Mobile Ticketing.
5. M-Commerce and Mobile Entertainment.
6. M-Commerce for Hotel Reservations.
7. M-Commerce in Healthcare and Medicine.
8. M-commerce for Intra-Office Communication.
9. M-Commerce for Information.
10. M-Commerce for Gaming.
1.M-Commerce for finance.
The customer (using the mobile) can pay from their
bank account using mobile commerce facilities. Mobile users
can transfer funds between account or receive any information
related to finance from financial institutions or banks. WAP
based mobile devices allow the user to access the internet or the
website of the financial institutions.
The M-Commerce is very much prevalent in stock broking
services. The user can access the stock market quotes. The share
brokers send details about the market trends to client and offer
some tips for trading. After receiving the information, the client
responds or gives instructions to the stock broker. Such
transaction takes place either in his/her form of SMS or call.
2.M-Commerce for Retail and After
sale Services.
Companies can also make online
catalog of products so that the mobile users can
access the catalog from their mobile devices.
Customers are able to shop, place orders or hire
services and pay for dues through mobile
phones.
3. M-Commerce and Mobile Marketing
• It is easy for business organizations to send text
messages to promote a new product or carryout any
form of promotional campaign.
Example : Reliance Fresh sends the customer an SMS stating
the reward points earned by them when they purchase goods
from Reliance. Even if some changes are brought in providing
reward points, they are informed to the customer in order to
encourage sales.
4. M-Commerce and Mobile Ticketing
Airline tickets can be purchased through mobile
phone. It also enables users of mobile phone to make
changes in their tickets.
For example : With “ flybuy SMS” launched by
Kingfisher Airlines and paymate , customers can get the
details of Kingfisher airlines flights by sending SMS. The
customer can book the ticket after receiving a reply.
Besides the above, movie tickets can also be booked
through mobile phones.
5. M-Commerce and Mobile
Entertainment
Mobile terminal acts as a portable music
player. Downloading ringtones has become successful
m-commerce application. Mobile phone manufacturers
and wireless providers are making good money by
selling different kinds of customized ringtones.
6. M-Commerce for Hotel Reservations
Using mobile devices, customer can reserve for
restaurants and hotels according to their needs.
7. M-Commerce in Healthcare and Medicine
Wireless services are used in healthcare and
medicine for billing, lab ordering, referrals, prescriptions and
clinical decisions. For example, in United States, healthcare
professionals are able to obtain patient information from any
location by getting connected wirelessly to the hospital’s
information system. They are able to access the pharma-
ceutical information of patients and provide better patient
care.
8.M-commerce for Intra-Office Communication
Sales personnel, who are always on the
move, may need to access to the company inform-
ation system to check price of products. But mobile
allows the travelling sales personnel to track
inventory and maintain communication with seniors
at ease. Travelling salesmen do not have to wait for
long to get approval from the seniors. Any
information could be transferred easily and quickly
with the help of mobile devices. It removes barriers in
intra-office communication.
9. M-Commerce for Information
Mobiles enable customers to get information like
sport news or political news of their choice.For
example, today through SMS, students are able to
check their university results or public examination
results.
10. M-Commerce for Gaming
Customers can play multi player games through
mobiles. Mobile games are very popular with colourful
displays and it generates good revenue.
Strategies for business over web
1. Create and Grow an E-Commerce Website.
2. Use Content Marketing to Solve Problems for
Your Target Market.
3. Develop Systems for Digital Marketing.
4. Create Useful Videos.
5. Build a Social Media Presence.
1. Create and Grow an E-Commerce Website
While most businesses already have a website
for marketing purposes, many have yet to make the
move to creating an e-commerce site that allows them
to sell their products online. Whether that is because
they’re fearful of the technological aspect of
maintaining an e-commerce website or the lack of
time to do so, there is a tremendous amount of growth
opportunity with e-commerce.
2. Use Content Marketing to Solve Problems
for Your Target Market.
One of the most popular ways for businesses to
earn customers online is by utilizing content marketing
to solve problems for their target market. If you’re
unfamiliar with content marketing, it can be described
simply as a digital marketing strategy that involves
creating and sharing online content.
3. Develop Systems for Digital Marketing.
From email and content marketing to social
media and SEO marketing, there are several different
types of digital marketing strategies out there for
businesses to utilize. While getting started with any
one of them can be a difficult process, doing so
becomes much simpler when you start by creating a
system for your digital marketing strategies.
4. Create Useful Videos
Creating videos has also become a popular
strategy for online marketers as the attention span of
consumers continues to decrease. According to video
brewery, 90% of online shoppers find that video is
helpful in making their purchasing decisions. While
this is a fairly new concept for many business owners,
it is an tremendous opportunity to get ahead of the
competition, especially if you’re competing locally.
5. Build a Social Media Presence
The impact of a social media presence on
earning customers online has been debated since
platforms like Facebook, Pinterest, and Twitter
became household names on the web. What can’t be
debated, however, is that social media provides the
opportunity to increase brand awareness and earn
trust with potential customers.
Definition
• Internet business models are categorized as business-
to-consumer , business-to-business and more recently
consumer-to – consumer and business – to –
consumer and business – to – business models
typically sell good and services or provide
information designed to help visitors make purchase
decisions. Consumer- to – consumer models involve
consumer- to – consumer information or product
exchange.
Objectives
• Internet commerce patterns
• Business models
• E-business models
• Survival indicators
Types of internet based business
models there are follows
1. Merchant and brokerage models.
2. Community models.
3. Infomediary and affiliate models.
4. Advertising models.
5. Manufacturers direct models.
6. Subscription and utility models.
7. web 3.0.
1.Merchant and brokerage models
Business- to – consumer and business-to –business
models sell products and services Via websites . there are
two basic types like .
1.Merchant models
2.Brokerage models
• Merchant models such as operate storefronts on the
internet that provide a shopping experience similar to
catalog shopping .
• Brokerage models such as bring buyers and sellers
together in a bid and ask prices in market place.
2. Community models
The community model can be business to
consumer or business to business , but has found great
acceptance as a consumer to consumer business model .
Community models are simple discussion lists and readers
participation blogs. They all are based on individuals
talking and sharing information and experiences , rather
than companies advertising to individuals.
Example :
• Consumer reviews of product and services on websites
such as angie’s list
• Social networks such as facebook and twitter .
Infomediary are similar to infomercials because they give
information designed to subtly sell a product or service. The
automobile information site.
Example : AMAZON
4 . Advertising models
Advertising model it paid text advertisements, search
placement and user tracking to steer advertising to consu-
mers as they browse the internet. About.com provides con-
textual advertising linking keywords with in articles,
advertising community where individual post sale
advertisement and announcements.
Example: Google
3. Infomediary and affiliate models
5.Manufacturer’s direct models
Manufacturers direct model an individuals
or business can be used the manufacturer websites can
be used. Manufacturers direct model is the one of the
best model and type in internet based business models
Example: cisco.com & dell.
6.Subscription and utility models
Subscription and utility models is web based
software programs and the various internet sites such as
share point and sales forces .where users pay fee to
access web based software programs, are all examples of
subscription and utility models.
7.Web 2.0
The future is the semantic web ,called has web 3.0
because it is the next step from the social web and web2.0
currently going through the maturation process. The
semantic web will collect a database of all your web
activities and use it to provide a customized personal
experience Same of examples there are follows are,
 Face books advertising models.
 Amazons products models .
Advantages of internet based business models
• Potential access to a global market :
The internet is an excellent tool for increasing the
visibility of your business .The internet overlooks physical
borders, there by giving your product and services
heightened exposure to global audience. This can lead to
increased sales as your business . Especially if you are a
small business owner.
• Reduced marketing costs :
With the rise of the internet , there has been a huge
increase in various social media platforms. These platforms
that are designed to connect people with one another
become powerful , relatively low cost marketing channels
that can be utilized by both large and small enterprise .
• Reduced building over head:
Many jobs and business functions can be
performed online . This means that incorporating the
internet into your business functions could open up an
opportunity to have remote staff who can work from home
, there by reducing the cost of having an office building .
• Automated systems and resource sharing:
The internet has enabled a million and one way
you can make your life easier as a business owner .you can
do your bookkeeping and customer service care online ,and
get be spoke solutions that automate how customers
purchases your good and services .
Disadvantages of internet based business
models
• Potentially lower profit margins :
The internet has upped the market for many different type
businesses. Although this has made it easier for customers to access
your products and services the internet has also made it easy for
customer to access the products and services of your competitors as
well.
• Reduced physical interactions :
some of the most creative ideas are borne out of the face
to face interactions that people have with one another .while the
internet has succeeded in connecting people to one another in
superficial way ,it cannot adequately replicate the human interactions
of interacting face to face with colleagues and customers.
• Negative reviews:
People now take to social media
to voice their concerns and their viewpoints about a
business .people are more likely to complain than they
are to compliment a business and this can damage the
reputation of company. The internet is a powerful tool
not only for businesses but also for consumers.

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E-Business Applications and Models

  • 1. UNIT - 4 E- Business Applications Prepared by : II MBA Students, Class 2017-19, CBIT College - Proddatur
  • 2. E- BUSINESS APPLICATION • E- BUSINESS • Deals with the buying and selling of information products and services through the computer network . • Business activity which uses electronic medium. • E business or electronic business is the administration of conducting business via the internet . This world include the buying and selling of goods and services along with providing technical or computer support through the internet.
  • 3. ADVANTAGES OF E BUSINESS • All time processing. • Removing mediators. • Time saving. • Enhanced speed and accuracy of a product. • Coast saving of the product. • Reduces paper work. • fast dissipation of information. • Global research.
  • 4. DISADVANTAGES OF E-BUSNIESS • Lack of customer awareness. • Small businessmen do not want to take any extra burden. • Legal formalities. • It is not free. • Security problems. • Customer satisfaction problems. • Data integrity problems.
  • 5. WHY E-BUSINESS • Lack of time at public or consumer. • Flexibility in timing for payment. • Easy delivery at door steps. • Planning for payment. • Safe transactions.
  • 6. E BUSINESS STRATEGY To grow an E- business and help it succeed. There are a number of strategies a small business owner can employ falling behind the times in this rapidly changing frontier can mean risking your company’s success in the virtual world.
  • 7. E BUSINESS STRATEGY • CRM – CUSTOMER RELATIONSHIP MANAGEMENT. Manage and analyse customer interaction and data through out the customer life cycle assisting in customer . • SCM –SUPPLY CHAIN MANAGEMENT. They supply materials information and finances as they move in a process from supplier to manufacture to wholesaler to retailer to consumer. • EC –ELECTRONIC COMMERCE. Focuses on transactions processes and can be applied to the links of various business processes . Such as auctioning of surplus goods.
  • 9. E-BUSINESS GROWTH STRATEGY  Take advantage of new marketing opportunities to target a larger audience for their products.  Creation an affiliate marketing program for your products or services.  Continuous improvement in productivity and profitability.
  • 10. WHAT IS E – BUSINESS E –business is the conduct of business process on the internet .These E –business process include buying and selling products , supplies and services; servicing customers ;processing payments ; managing production control; collaborating with business partners; sharing information ; running automated employee services ;recruiting ;and more.
  • 11. E- BUSINESS MODELS • E- commerce business models can generally be categories into the following • BUSINESS –TO –BUSINESS [B-B] • BUSINESS – TO – CONSUMERS [B-C] • CONSUMER – TO – CONSUMER [C-C] • CONSUMER –TO –BUSINESS [C-B] • BUSINESS –TO – GOVERNMENT [B-G] • GOVERNMENT – TO BUSINESS [G-B] • GOVERNMENT –TO –CITIZENS [G-C]
  • 12. BUSINESS –TO BUSINESS A website following the B2B Business model sells its products to an intermediate buyer who then sells the product to the final customers . As an example a wholesaler places an order from a company’s website and offer receiving the consignment , sells the end product to the final customer who comes to buy the product one of its retail outlets .
  • 13. BUSINESS – TO – CONSUMER A website following the B2B business model sells its products directly to a customer . A customer can view the products shown on the website . The customer can choose a product and order the same . The website will then send a notification to the business organisation via email and the organisation will dispatch the products/ goods to the customer
  • 14. CONSUMER –TO –CONSUMER A website following the C2C business model helps consumer to sell their assets like residential property ,cars ,motorcycles etc ., or rent a room by publishing their information on the website . Website may or may not charge the consumer for its services . Another consumer may opt to buy the product of the first customer by viewing the post /advertisement on the website .
  • 15. CONSUMER – TO –BUSINESS In this model a consumer approaches a website showing multiple business organisation for a particular services . The consumer places an estimate of amount he/she wants to spend for a particular services . For example ,the comparison of interest rates of personal loan /car loan provided by various banks via websites . A business organisation who full fills the consumer’s requirement within the specified budget , approaches the customer and provides its services.
  • 16. BUSINESS –TO –GOVERNMENT B2G model is a variant of B2B model .such websites information with various business organisation such websites are accredited by the government and provide a medium to business to submit application forms to the government .
  • 17. GOVERNMENT –TO –BUSINESS Government use B2G model websites to approaches business organisation such websites support actions ,tenders and applications submission functionalities.
  • 18. GOVERNMENT –TO –CITEZEN Government use G2C model websites to approaches citizen in general .such websites support auctions if vehicles machinery or any other material .such websites also provides services like registration for birth marriage or death certificates . The main objectives of G2C website is to reduce the average time for full filling citizen request for various government services.
  • 19. ADVANTAGES OF E- BUSINESS • Easy to set up. • Cheaper than traditional. • No geographical. • Government subsidies. • Flexible business hours.
  • 20. DISADVANTAGES OF E- BUSINESS • Lack of personal touch. • Delivery time. • Security issues.
  • 21. REVENUE MODELS A revenue model is a frame work for generating revenues . It identifies which revenue sources to pursue what value to other how to price the value . It is a key component of a company business model.
  • 22. TYPES OF REVENUE MODEL • Production model. • Manufacturing model. • Construction model. • Rental or lease model. • Advertising model. • Sponsored ranking model. • Communication model. • E- commerce model. • Free- for – service model. • Licensing model.
  • 23. Emergency trends in E-business governance The emergence of internet technologies have provided organizations and customers with access to vast amounts of data, information, and services which have revolutionized the process of exchanging products and services online. Trends in E- Business, E-Services, and E-Commerce: Impact of Technology on Goods, Services, and Business Transactions provides insights into issues, challenges, and solutions related to the successful application and management aspects of electronic business. This book will bring together a comprehensive framework for researchers and practitioners in understanding the growing demand of e-business research.
  • 24. 1. Micro-payments. 2. Mobile technologies. 3. Social media. 4. Fullfillment options. 5. Global availability. 6. Localization. 7. Customizability. 8. Time-based availability.
  • 25. 1.Micro-payments Among the most revolutionary changes in the coming months—not years—is the use of micro-payment systems from a variety of financial firms. 2.Mobile technologies More people access the Internet on their mobile devices than on any other device. We are rapidly app- roaching the time where designs must be created for the mobile web first, and for the desktop second. Mobile technologies facilitate comparison shopping; with the advent of barcode reader apps and price-comparison databases, a consumer could snap a bar code in Walmart and quickly reference product reviews and prices on walmart.com
  • 26. 3.Social media As Facebook has become the most visited site on the Web, the role of social media, including Facebook and its local clones such as Twitter, is increasingly important. Social media sites increasingly act as points of entry to e-commerce sites, and vice versa, as e- commerce sites build rating, loyalty and referral systems tied to social media. Group buying is also gaining mainstream ground, with many “deal of the day” sites competing for an increasingly savvy consumer base, but improvements lie ahead as the social aspects and user experience are refined.
  • 27. 4.Fullfillment options I believe that users will want to have multiple fulfillments and return options when interacting with a vendor: ship to address, courier, pick-up in store, return to store, etc. Having many fulfillment options is how customers view their overall customer experience. Some companies have made a business proposition online by being exceptional in service to the online channel.
  • 28. 5.Global availability Increasingly, consumers want the availability to buy products from foreign sites and have them delivered locally. Thus, currency and customs will be of growing concern to many online retailers. Along with this, there will be concerns with local privacy laws and restrictions on related data collection and storage.
  • 29. 6.Localization While the trend is to globalize, what’s often more important is to localize. User Centric’s research clearly shows that sites that ‘feel’ local – with proper imagery, language, time/date, weights/measures, currency, etc. resonate far more than sites that seem culturally distant or sterile.
  • 30. 7.Customizability Consumers want control, and want to be able to design the details of the items they purchase. 8. Time-based availability Some of the hottest and most successful sites are those that have a time-critical response component. Sites like Groupon, Gilt and others capitalize on the perception of limited-time availability. Creating a sense of urgency drives traffic and purchase behavior.
  • 31. Digital commerce Digital commerce (D-commerce) is a type of e commerce used by an organization that delivers and sells products online. D-commerce is used by companies that sell news, subscriptions, documents or any form of electronic content, and the digital commerce company collects payments, handles customer refunds and billing and manages other accounting functions for online publisher clients. D-commerce is considered a form of e-commerce because it deals with the exchange of electronic goods.
  • 32. Definition D-commerce (or) e-commerce is the action of buying & selling items (or) services through the use of the internet.
  • 33. Examples of digital commerce. Sending personal information & credit card information via e-mail. Buying online impulsively. Using another credit card without permission.
  • 34. What includes o Buying & selling “virtual merchadise” for online games. o Online buying & selling though commercial sites, auction sites & internet locations. How it works o Digital transactions. o Through internet channels to buy/sell goods. o Auctions.
  • 35. Things to consider electronic wallet 1. Personal info privacy : pay on locations that you trust. 2. System security: customer have to use touch id for using security. 3. Best practices: do not leave your phone unattended.
  • 36. Advantages • Buy any time from anywhere though digital commerce. • You don’t have the need for long lines at the mall. • May found cheapest products.
  • 37. Disadvantages • User must take into consideration safety & security. • Not working how & where to buy items online can leave kids vulnerable to interest scams & identity theft. • Receiving goods (or) services which are not the same as described by the seller. • You win not receive your purchase immediately, you must track shipment in the case of non-digital purchases.
  • 38. Mobile commerce M-commerce (mobile commerce) is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). M-Commerce also called as Mobile Commerce involves the online transactions through the wireless handheld devices such as mobile phone, laptop, palmtop, tablet. Through M-Commerce, people can perform several functions such as pay bills, buy and sell goods and services, access emails, book movie tickets, make railway reservations, order books, read and watch the news, etc
  • 39. Objectives of mobile commerce It is convenient for the customers as it allows making transaction on their mobiles like e- commerce & m-commerce does not require to go to stone in person. The main aim of mobile commerce is to improve the convenience of trading & also to implement electronic money for quicker purchase goods.
  • 40. Advantages • It provides a very convenient and easy to use the system to conduct business transactions. • Mobile commerce has a very wide reach. A huge part of the world’s population has a mobile phone in their pocket. So the sheer size of the market is tremendous. • M-commerce also helps businesses target customers according to their location, service provider, the type of device they use and various other criteria. This can be a good marketing tool. • The costs of the company also reduced. This is due to the streamlined processes, now transaction cost, low carrying cost and low order processing cost as well
  • 41. Disadvantages • The existing technology to set up an m-commerce business is very expensive. It has great start-up costs and many complications arise. • In developing countries, the networks and service providers are not reliable. It is not most suitable for data transfer. • Then there is the issue of security. There are many concerns about the safety of the customer’s private information. And the possibility of a data leak is very daunting.
  • 42. Applications of mobile commerce 1. M-Commerce for finance. 2. M-Commerce for Retail and After sale Services. 3. M-Commerce and Mobile Marketing. 4. M-Commerce and Mobile Ticketing. 5. M-Commerce and Mobile Entertainment. 6. M-Commerce for Hotel Reservations. 7. M-Commerce in Healthcare and Medicine. 8. M-commerce for Intra-Office Communication. 9. M-Commerce for Information. 10. M-Commerce for Gaming.
  • 43. 1.M-Commerce for finance. The customer (using the mobile) can pay from their bank account using mobile commerce facilities. Mobile users can transfer funds between account or receive any information related to finance from financial institutions or banks. WAP based mobile devices allow the user to access the internet or the website of the financial institutions. The M-Commerce is very much prevalent in stock broking services. The user can access the stock market quotes. The share brokers send details about the market trends to client and offer some tips for trading. After receiving the information, the client responds or gives instructions to the stock broker. Such transaction takes place either in his/her form of SMS or call.
  • 44. 2.M-Commerce for Retail and After sale Services. Companies can also make online catalog of products so that the mobile users can access the catalog from their mobile devices. Customers are able to shop, place orders or hire services and pay for dues through mobile phones.
  • 45. 3. M-Commerce and Mobile Marketing • It is easy for business organizations to send text messages to promote a new product or carryout any form of promotional campaign. Example : Reliance Fresh sends the customer an SMS stating the reward points earned by them when they purchase goods from Reliance. Even if some changes are brought in providing reward points, they are informed to the customer in order to encourage sales.
  • 46. 4. M-Commerce and Mobile Ticketing Airline tickets can be purchased through mobile phone. It also enables users of mobile phone to make changes in their tickets. For example : With “ flybuy SMS” launched by Kingfisher Airlines and paymate , customers can get the details of Kingfisher airlines flights by sending SMS. The customer can book the ticket after receiving a reply. Besides the above, movie tickets can also be booked through mobile phones.
  • 47. 5. M-Commerce and Mobile Entertainment Mobile terminal acts as a portable music player. Downloading ringtones has become successful m-commerce application. Mobile phone manufacturers and wireless providers are making good money by selling different kinds of customized ringtones.
  • 48. 6. M-Commerce for Hotel Reservations Using mobile devices, customer can reserve for restaurants and hotels according to their needs. 7. M-Commerce in Healthcare and Medicine Wireless services are used in healthcare and medicine for billing, lab ordering, referrals, prescriptions and clinical decisions. For example, in United States, healthcare professionals are able to obtain patient information from any location by getting connected wirelessly to the hospital’s information system. They are able to access the pharma- ceutical information of patients and provide better patient care.
  • 49. 8.M-commerce for Intra-Office Communication Sales personnel, who are always on the move, may need to access to the company inform- ation system to check price of products. But mobile allows the travelling sales personnel to track inventory and maintain communication with seniors at ease. Travelling salesmen do not have to wait for long to get approval from the seniors. Any information could be transferred easily and quickly with the help of mobile devices. It removes barriers in intra-office communication.
  • 50. 9. M-Commerce for Information Mobiles enable customers to get information like sport news or political news of their choice.For example, today through SMS, students are able to check their university results or public examination results. 10. M-Commerce for Gaming Customers can play multi player games through mobiles. Mobile games are very popular with colourful displays and it generates good revenue.
  • 51. Strategies for business over web 1. Create and Grow an E-Commerce Website. 2. Use Content Marketing to Solve Problems for Your Target Market. 3. Develop Systems for Digital Marketing. 4. Create Useful Videos. 5. Build a Social Media Presence.
  • 52. 1. Create and Grow an E-Commerce Website While most businesses already have a website for marketing purposes, many have yet to make the move to creating an e-commerce site that allows them to sell their products online. Whether that is because they’re fearful of the technological aspect of maintaining an e-commerce website or the lack of time to do so, there is a tremendous amount of growth opportunity with e-commerce.
  • 53. 2. Use Content Marketing to Solve Problems for Your Target Market. One of the most popular ways for businesses to earn customers online is by utilizing content marketing to solve problems for their target market. If you’re unfamiliar with content marketing, it can be described simply as a digital marketing strategy that involves creating and sharing online content.
  • 54. 3. Develop Systems for Digital Marketing. From email and content marketing to social media and SEO marketing, there are several different types of digital marketing strategies out there for businesses to utilize. While getting started with any one of them can be a difficult process, doing so becomes much simpler when you start by creating a system for your digital marketing strategies.
  • 55. 4. Create Useful Videos Creating videos has also become a popular strategy for online marketers as the attention span of consumers continues to decrease. According to video brewery, 90% of online shoppers find that video is helpful in making their purchasing decisions. While this is a fairly new concept for many business owners, it is an tremendous opportunity to get ahead of the competition, especially if you’re competing locally.
  • 56. 5. Build a Social Media Presence The impact of a social media presence on earning customers online has been debated since platforms like Facebook, Pinterest, and Twitter became household names on the web. What can’t be debated, however, is that social media provides the opportunity to increase brand awareness and earn trust with potential customers.
  • 57. Definition • Internet business models are categorized as business- to-consumer , business-to-business and more recently consumer-to – consumer and business – to – consumer and business – to – business models typically sell good and services or provide information designed to help visitors make purchase decisions. Consumer- to – consumer models involve consumer- to – consumer information or product exchange.
  • 58. Objectives • Internet commerce patterns • Business models • E-business models • Survival indicators
  • 59. Types of internet based business models there are follows 1. Merchant and brokerage models. 2. Community models. 3. Infomediary and affiliate models. 4. Advertising models. 5. Manufacturers direct models. 6. Subscription and utility models. 7. web 3.0.
  • 60. 1.Merchant and brokerage models Business- to – consumer and business-to –business models sell products and services Via websites . there are two basic types like . 1.Merchant models 2.Brokerage models • Merchant models such as operate storefronts on the internet that provide a shopping experience similar to catalog shopping . • Brokerage models such as bring buyers and sellers together in a bid and ask prices in market place.
  • 61. 2. Community models The community model can be business to consumer or business to business , but has found great acceptance as a consumer to consumer business model . Community models are simple discussion lists and readers participation blogs. They all are based on individuals talking and sharing information and experiences , rather than companies advertising to individuals. Example : • Consumer reviews of product and services on websites such as angie’s list • Social networks such as facebook and twitter .
  • 62. Infomediary are similar to infomercials because they give information designed to subtly sell a product or service. The automobile information site. Example : AMAZON 4 . Advertising models Advertising model it paid text advertisements, search placement and user tracking to steer advertising to consu- mers as they browse the internet. About.com provides con- textual advertising linking keywords with in articles, advertising community where individual post sale advertisement and announcements. Example: Google 3. Infomediary and affiliate models
  • 63. 5.Manufacturer’s direct models Manufacturers direct model an individuals or business can be used the manufacturer websites can be used. Manufacturers direct model is the one of the best model and type in internet based business models Example: cisco.com & dell. 6.Subscription and utility models Subscription and utility models is web based software programs and the various internet sites such as share point and sales forces .where users pay fee to access web based software programs, are all examples of subscription and utility models.
  • 64. 7.Web 2.0 The future is the semantic web ,called has web 3.0 because it is the next step from the social web and web2.0 currently going through the maturation process. The semantic web will collect a database of all your web activities and use it to provide a customized personal experience Same of examples there are follows are,  Face books advertising models.  Amazons products models .
  • 65. Advantages of internet based business models • Potential access to a global market : The internet is an excellent tool for increasing the visibility of your business .The internet overlooks physical borders, there by giving your product and services heightened exposure to global audience. This can lead to increased sales as your business . Especially if you are a small business owner. • Reduced marketing costs : With the rise of the internet , there has been a huge increase in various social media platforms. These platforms that are designed to connect people with one another become powerful , relatively low cost marketing channels that can be utilized by both large and small enterprise .
  • 66. • Reduced building over head: Many jobs and business functions can be performed online . This means that incorporating the internet into your business functions could open up an opportunity to have remote staff who can work from home , there by reducing the cost of having an office building . • Automated systems and resource sharing: The internet has enabled a million and one way you can make your life easier as a business owner .you can do your bookkeeping and customer service care online ,and get be spoke solutions that automate how customers purchases your good and services .
  • 67. Disadvantages of internet based business models • Potentially lower profit margins : The internet has upped the market for many different type businesses. Although this has made it easier for customers to access your products and services the internet has also made it easy for customer to access the products and services of your competitors as well. • Reduced physical interactions : some of the most creative ideas are borne out of the face to face interactions that people have with one another .while the internet has succeeded in connecting people to one another in superficial way ,it cannot adequately replicate the human interactions of interacting face to face with colleagues and customers.
  • 68. • Negative reviews: People now take to social media to voice their concerns and their viewpoints about a business .people are more likely to complain than they are to compliment a business and this can damage the reputation of company. The internet is a powerful tool not only for businesses but also for consumers.