2. E-business is any kind of
business or commercial
transaction that includes sharing
information across the internet
Online
business
3. It is easy to set up
There is no personal touch
Buyer and seller don’t meet
Marketing strategies cost less
There are flexible business hours
There are no geographical boundaries
Much cheaper than traditional business
There are a few security and integrity issues
Anyone can buy anything from anywhere at
anytime
4. E-business Vs Traditional business
Basis E-business Traditional business
Formation Difficult Easy
Setting up cost Low High
Operating cost Low High
Personal touch Nil High
Physical examination of
goods
Not possible Possible
Business expansion Very scope Difficult
Market Wider Narrow
Physical presence Not required Required
Transaction risk High Low
Nature of human
resource
Technically and
professionally qualified
workforce needed
Semi-skilled and even
unskilled manpower needed.
7. Business to Consumer
When a consumer buys products
from a seller then it is business to
consumer transaction
8. Consumer to Business
Consumer to business is a business
model in which consumers or
individuals create value and
businesses consume that value
9. Consumer to Consumer
A consumer selling product or
service to another consumer is a
consumer to consumer transaction
C
C
2
10. Resources required for
E-business
1. Adequate computer hardware
2. Technically qualified work force
3. Well designed website
4. System of receiving payments
5. Effective telecommunication system
11. Conventional Distribution Channel for movement of goods and
services
Producer Wholesaler Retailer Consumer
Producer Wholesaler Retailer Consumer
(A)
Producer Wholesaler Retailer Consumer
(B)
(A) and (B) : Distribution channel gets shortened by e-Business
12. Stages of Online Transactions
Pre-
purchase/Sale
Purchase/Sale
Delivery Stage
13. E-Commerce Vs E-Business
Basis E-Commerce E-Business
Meaning Trading of merchandise,
over the internet is known
as E-commerce.
Running business using
the internet is known as E-
business.
What is it? Subset of E-Business Superset of E-business.
Is it limited to monetary
transactions?
Yes No
What they carry out? Commercial transactions Business transactions
Approach Extroverted Ambiverted
Requires Website Website, CRM, ERP, etc.
Network used Internet Internet, Intranet and
Extranet.
14. Procedures Followed in Online Transactions
For security reasons, the
buyer’s ‘Account’ and his
‘Shopping Cart’ is
password protected
15. Placing an Order
3.The buyer then
proceeds to the
payment option after
selecting all the
products
1. When a
customer likes
a product or a
service, he/she
puts the
product in the
‘shopping
cart’
20. (C) Risks of threat to intellectual
property and privacy
The information available
over the internet may be
copied by other online
vendors, who may start
sending promotional
messages in the email box
of the customer
21. Advantages of E-business
Time saving
Global reach
Better service
All time processing
Removing mediators
Reduces paper work
Cost saving of the product
22. Disadvantages of E-business
It is not free
Legal formalities
Security problems
Low personal touch
Lack of customer awareness
Customer satisfaction problems