The document discusses the concepts of electronic business (e-business) and e-commerce. It begins by defining e-business and e-commerce, explaining that e-business includes all tasks related to online buying and selling as well as interactions between these tasks. It then covers various types of e-business models including B2C, B2B, C2C, C2B, and intrabusiness e-commerce. It also discusses the components, cycles, and applications of e-business including benefits to organizations, consumers, and society. Key topics include disintermediation, reintermediation, and the impact of e-business on business processes and models.

1. The objective of the course is to make the student understand the
latest trends in electronic business and the information technology
involved in running e-business
Unit – 1
Introduction to E-Business – Definitions – Types of E-
Business, Benefits of Business – Limitations of E-
Business – Impact of E-Commerce – Electronic Market
Structure – Business Model of Electronic Marketing –
Procedure for Internet Shopping: Consumer Perspective
– Aiding Comparison Shopping

2. The Cycle of Electronic Commerce
• Electronic Business includes the tasks that
support the buying and selling of goods and
services, and interactions among these tasks

3. Definition of Electronic Commerce
• Electronic Business is defined as the
conducting of business transactions over
electronic networks instead of paper,
telephones, couriers, tracks, planes and other
means of moving products and information.

4. Definitions of E-Commerce
• According to Lou Gerster, IBM’s CEO – “E
Business is all about cycle time, speed,
globalization, enhanced productivity,
reaching new customers and sharing
knowledge across institutions for competitive
advantage.”

5. Why E-Business
• Lack of time at public or Consumers
• Flexibility in timings
• Easy delivery at door steps
• Planning for payment
• Safe Transactions

6. Introduction to Electronic Business
• According to Albert Gore Jr. “We are on the verge of
a revolution that is just as profound as the change in
the economy that came with the industrial
revolution. Soon electronic networks will allow
people to transcend the barriers of time and distance
and take advantage of global markets and business
opportunities not even imaginable today, opening up
a new world of economic possibility and progress”.

7. Introduction to Electronic Business
• Electronic commerce describes the manner in which
transactions take place over networks, mostly the Internet.
• It is the process of electronically buying and selling goods,
services, and information. Certain Electronic commerce
applications, such as buying and selling stocks or books on
the internet, are growing at a rate of several hundred
percent every year.
• Electronic Commerce could have an impact on significant
portion of the world on businesses, professions, and of
course on people.
• However, the impact of Electronic Commerce is not just the
creation of web-based corporations. It is the building of new
Industrial order.

8. Components of Electronic Business
Electronic Business
NetworksNetworks
CorporateCorporate
InternetInternet
CommercialCommercial
InstitutionsInstitutions
GovernmentGovernment
MerchantsMerchants
ManufacturesManufactures
SuppliersSuppliers
ConsumersConsumers
ProcessesProcesses
MarketingMarketing
SalesSales
PaymentPayment
FulfillmentFulfillment
SupportSupport

9. The cycle of Electronic Business
Access
Follow on sales
Customer Online Ads Online order
Standard order
Distribution
Electronic customer
Support

10. Disintermediation and Reintermediation by Electronic
Business
Eliminations of traditional intermediation is called
disintermediation. Incorporation of new electronic
intermediaries (such as Electronic-malls,electronic-
catalogues/directory, search engine services and product
selection agents) are called reintermediation

11. Disintermediation and Reintermediation by Electronic Business
ManufacturerManufacturer
ElectronicElectronic
IntermediariesIntermediaries
On the InternetOn the Internet
consumerconsumer
ReintermediationReintermediation

12. Elements of E-Business
• Direct to Consumer from Manufacturer
• Electronic payment system
• Negotiation at online
• Flexibility in Delivery of the product
• Saving the time and cost

13. Disadvantages of E-Business
• Can not test the product
• Disadvantage in Price and quality
• Legal Problems and jurisdiction

14. Disintermediation and Reintermediation by Electronic Business
ManufactureManufacture
DisintermediationDisintermediation
ConsumerConsumer

15. Disintermediation and Reintermediation by Electronic Business
ManufacturesManufactures
WholesalerWholesaler
DistributorDistributor
RetailerRetailer
ConsumerConsumer
TraditionalTraditional
IntermediationIntermediation

16. Components of Electronic Business
Electronic Business can facilitate Internal department
interactions, improve customer relations and
eliminate the constraints of time and place.
A significant synergy has formed between the use of
digital information, computerized business practices
and the Internet. This synergy is what enables
electronic commerce more efficient and effective

17. Types of E-Business
a common Classification of E-Commerce is by the nature of transaction.
• Business-to-consumers (B2C)
• Business-to-business (B2B)
• Consumer-to-consumer (C2C)
• Consumer to Business (C2B)
• Non-Business EC
• Intrabusiness (organizational) EC

18. Types of EB (Continued)
• Mobile Commerce (m-commerce)
refers to e-commerce that is conducted
in a wireless environment. i.e. using cell
phone to shop over the Internet
• Business model is the method by which
a company generates revenue to
sustain itself.

19. Classification of Electronic Business Applications
Types of interorganizational
systems.
• Electronic Data Interchange (EDI), which
provides secured B2B connection over Value-
added-networks (VANs)
• Extranets, which provide secured B2B
connection over the Internet
• Electronic funds transfer
• Electronic forms

20. Types of Interorganisational systems
• Integrated messaging delivery of e-mail and fax
documents through a single electronic transmission
system that can combine EDI, e-mail, and electronic
forms
• Shared databases – information stored in repositories
is shared between trading partners and is accessible to
all.
• Supply Chain Management – cooperation between a
company and its suppliers and/or customers regarding
demand forecasting, inventory management and
orders fulfillment can reduce inventories, speed
shipments, and enable just-in-time manufacturing.

21. Classification of Electronic Business Applications
Interorganizational Systems (IOS)
An IOS involves information flow among two or
more organizations. Its major objective is efficient
transaction processing. Such as transmitting orders,
bills, and payments using Electronic Data Interchange
(EDI) or extranets.
Interorganizational systems are used exclusively
for Business to Business (B2B) applications, whereas
electronic markets exist in both the B2B and Business
to Consumer (B2C) cases.

22. Interorganisational system
A typical IOS will include a company and its
suppliers and/or customers. Through IOS,
buyers and sellers arrange routine business
transactions. Information is exchanged over
communications networks using prearranged
formats.

23. Classification of Electronic Business Applications
What is internet, intranet and extranet?
1. Computers connected to a global networked environment
known as the Internet.
1. Computers connected to a global networked environment
and its counterpart within organizations, called an intranet.
An intranet is a corporate network that functions with
Internet technologies, such as browsers, using Internet
protocols.
1. An extranet, a network that links the intranets of business
partners over the Internet.

24. Classification of Electronic Commerce Applications
Electronic Markets
Electronic Market is a network-based location where business
interactions occurs. Where information, products, services, and payments
are exchanged. The Electronic Market is place where shoppers and
sellers meet. The Electronic Market handles all the necessary
transactions, including the transfer of money between banks. In
Electronic Markets the principal participants are transaction handlers,
buyers, brokers, and sellers.

25. Classification of Electronic Business Applications
Application of EC are divided into 3 categories
1. Buying and selling goods and services. These are usually
referred to as Electronic Markets
2. Facilitating Inter and Intra-organization flow of information.
Communication and collaboration. These are sometimes
referred to as Interorganizational Systems (IOS).
3. Providing customer services.

26. Business-to-Consumers (B2C)
These are retailing transactions with
individual shopper. The typical shopper at
Amazon.com is a consumer, or customer.
Woolworths of Australia with home
shopping site (www.woolworths.com.au) is
designed with freshness in mind and all the
fresh food is available for delivery.

27. Business-to-Consumers (B2C) cont…
• Electronic Storefront has its own URL at which
buyers can place orders.
• Electronic Malls (Cybermall or e-mall) is a collection
of individual shops under one Internet address.
– Referral malls in which you are transferred to a
participating storefront
– Electronic shopping cart enables you to gather
items from various vendors and pay for them in
one transaction.

28. Business-to-business (B2B)
Most of Electronic Business
today is of this type. It includes the IOS transactions
(An IOS involves information flow among two or more organizations.
Its major objective is efficient transaction processing, such as
transmitting order, bills and payments using Electronic Data Interchange
(EDI) and Electronic Market transactions between organizations.)
• Sell-side marketplaces are where organizations attempt to
sell their products or services to other organizations
electronically from their own private e-marketplace.
• Buy-side marketplaces are where organizations attempt to
buy needed products or services from other organizations
electronically.

29. Business-to-business (B2B) cont…
• E-Procurement is using electronic support to
purchase goods and materials, sourcing,
negotiating with suppliers, paying for goods
and making delivery arrangements.
• Group purchasing is when the orders of
many buyers are combined so that they
constitute a large volume.

30. Consumer-to-Consumer (C2C)
In this category consumer sells directly to consumers.
Examples are individuals selling in classified ads (
www.classified2000.com) and selling residential
property, cars and so on. Advertising personal services
on the Internet and selling knowledge and expertise is
an other example of C2C

31. Consumer to Business (C2B)
This category includes individuals who sell
products or services to organizations, as well
as individuals who seek sellers, interact with
them and conclude a transaction.

32. Non-business Electronic Business
An increased number of non-business
institutions such as academic institutions,
non-profit organizations, religious
organizations, social organizations and
government agencies are using various types
of Electronic Commerce to reduce their
expenses. e.g. improve purchasing or to
improve their operations and customer
services

33. Intrabusiness (organizational) EC
In this category we include all internal
organizational activities, usually performed
on intranets, that involve exchange of goods,
services or information. Activities can range
from selling corporate products to
employees to online training and cost-
reduction activities.

34. BENEFITS OF ELECTRONIC Business
The global nature of the Technology, low cost,
opportunity to reach hundreds of millions of people,
interactive nature, variety of possibilities, and
resourcefulness and rapid growth of the supporting
infrastructures (especially the web) result in many
potential benefits to:
1)1) OrganizationsOrganizations
2)2) ConsumersConsumers
3)3) SocietySociety

35. BENEFITS OF ELECTRONIC Business
Benefits to organizations
1) Provide opportunity to expends the marketplace to
national and international markets. With minimal
capital outlay, a company can easily and quickly
locate more customers, the best suppliers and most
suitable business partners worldwide.
1) Decreases the operating cost. EC decreases the cost
of creating, processing, distributing, storing, and
retrieving paper-based information. For example, by
introducing an electronic procurement system,
companies can cut the purchasing administrative
costs by as much as 85 per cent.

36. BENEFITS OF ELECTRONIC BUSINESS
Benefits to organizations
• Provide new platform for specialized business. For
example, dog toys which can be purchased only in pet
shops or discount stores in the physical world, are sold
now in a specialized www.dogtoys.com
• Reduces inventories and overhead by facilitating “pull”
type Supply Chain Management (SCM). In this system the
process starts from customer orders and uses Just-in-time
manufacturing. The pull-type processing enables
expensive customization of products and services which
provides competitive advantage to its implementers. A
class example is DELL Computer Corporation.

37. BENEFITS OF ELECTRONIC BUSINESS Benefits to organizations
• Reduces the time between the outlay of capital and the receipt
of products and services.
• Initiates business processes reengineering projects. By
changing processes productivity of salespeople, knowledge
workers and administrators can increase 100% or more.
• Improved image, customer services, new-found business
partners, simplified processes, compressed cycle and delivery
time, increased productivity, eliminating paper, expediting
access to information, reduced transportation costs and
increased flexibility.

38. BENEFITS OF ELECTRONIC BUSINESS Benefits to
consumers
1. No restriction on shopping time. EC enables customers to
shop or do other transactions 24 hours a day, thought-out the
year and from almost any location.
2. Increased choices, EC provides customers with more choices:
they can select from many vendors and from move products.
3. Easy to get less expensive product or services. EC frequently
provides with less expensive products and services by
allowing them to shop in many places and conduct quick
comparisons.

39. BENEFITS OF ELECTRONIC BUSINESS Benefits to
consumers
4. EC provides quick delivery of products
( in case of digitized products)
5. Transformation of information from
manufacture or services provider to
customers in seconds of time, rather than
days or weeks.

40. Benefits to Consumer
6. Provides customers to participate in virtual
auctions.
7. Customers can interact with other customers
in electronic communities and exchange ideas
as well as compare experiences.
8. Facilities competition, which results in
substantial discounts.