E-business involves automating business processes electronically and includes e-commerce transactions. It provides benefits like reduced costs, improved capabilities, communication, control, and customer service. E-business technologies empower employees, customers, suppliers, distributors, and vendors. There are various models of e-commerce like business-to-business, business-to-consumer, and consumer-to-consumer. Effective e-business requires appropriate hardware, software, and an internet-based infrastructure to connect the supply chain.

1. E-Business

2. E-Business Automation of business processes through electronic means. E-Business that includes a financial transaction is known as e-commerce. Benefits of e-business: Reduced costs Increased capability Improved communication Enhanced control Improved customer service Source of competitive advantage

3. E-business has been defined by IBM as ‘the transformation of key business processes through the use of internet technologies Includes: On-line marketing and sales Supply chain Channel management Manufacturing and inventory control Financial operations Employee workflow procedures

4. E-business technologies empower: Employees Customers Suppliers Distributors Vendors partners

5. E-Commerce Electronic ordering Online ordering, payment and deliver services EFT Electronic share trading Commercial auctions Direct consumer marketing and after sales service

6. Benefits of E-Business Cost reduction – increased revenues Capability Communication Control and channel efficiency Visibility Customer service Competitive advantage

7. Barriers to E-Business E-business not relevant to some people Skills and expertise to use the internet Customers do not use e-business Country factor conditions Economic issues Culture Organizational type

8. Varieties of E-Commerce B2B B2C C2B C2C G2G G2E B2G G2C B2M

9. Market place channel structures Means of delivery Simplest is direct Intermediaries – agents, traders, brokers, dealers, wholesalers, distributors

10. Changes to channel structures Disintermediation – removal of intermediaries in supply chain (Home Depot) Reintermediation – new roles for traditional intermediaries – amazon.com replacing retailers, search engines, directories, portals, e-tailers (consumer sites) Countermediation – is the creation of a new intermediary by an established co to compete via e-business – airlines, grocery delivery, financial services (car sales)

11. Categorizing an e-commerce business model (Rappa) Brokerage model (buyer-seller) Advertising model (ad revenue) Infomediary model (collecting data about customers and selling it to other cos) Merchant model (retail transaction) Manufacturing model (direct selling) Affiliate model (incentives to affiliate partner sites) Community model (investment by consumers, content, money, time) Subscription model (extra payment for VAS) Utility model (pay as you go)

12. Hardware & Software Infrastructure System architecture (machines, OS, language) The internet (telecommunication link) www (navigation system) Intranet Internet Server/client E-mail Internet protocol iDTV M-commerce Wi-fi

13. IT & Strategy Role of internet in business Apex should plan it Suitability, acceptability, feasibility Kalakota & Robinson Knowledge building & capability evaluation Develop a comprehensive e-business design E-business blue print Application development and deployment

14. Stage models (Computing evolution) Initiation stage (clerical) Contagion stage (rapid & uncontrolled growth) Control stage (standards set by management) Integration stage (use of new technology) Maturity stage (in line with business strategy)

15. Supply Chain Management A supply chain encompasses all activities and information flows necessary for the transformation of goods from the origin of the raw material to when the product is finally consumed or discarded.

16. Push n Pull Models Push model – organization produces goods according to schedules on historical sales patterns Slow response, overstocking, bottlenecks, delays, unacceptable service levels, product obsolescence Pull model – where production and distribution are demand driven Reduced product obsolescence, higher service levels, reduced bull whip effect, use of electronic connections

17. Use of IS Value chain Value network To achieve Efficiency – profitability, capacity use, yield gain Effectiveness – allocation of resources