This document discusses electronic business (e-business) and compares it to traditional business. Some key points: - E-business involves commercial transactions over the internet, while traditional business involves in-person interactions. E-business has lower costs but also less personal touch. - The four main e-commerce models are B2B (business to business), B2C (business to consumer), C2B (consumer to business), and C2C (consumer to consumer). - E-business requires resources like adequate hardware, qualified workforce, a well-designed website, payment systems, and telecommunications. It can shorten traditional distribution channels. - Risks of e-business include security issues

1. Electronic
Business
Prepared by : Liza Salim Varghese

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.

5. E-
Commerce
B2B
B2C
C2B
C2C
E-Commerce Models

6. Business to Business
Transactions that take place
between two organizations come
under business to business.

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’

16. PAYMENT
Cash on
delivery
Cheque
Net Banking
Transfer
Credit or
Debit CardDigital
Cash

17. SECURITY AND SAFETY OF
E-TRANSACTIONS: E-BUSINESS RISKS
Default on order
Default on
delivery
Default on
payment

18. (B)DATA STORAGE AND
TRANSMISSION RISKS
VIRUS

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