E Business, it's nature and scope, models of e business

1. E-Business

2. Business Definition
•
Business refers to an enterprising
entity or organization that carries
out professional activities. They can
be commercial, industrial, or others.
• For-profit business entities do
business to earn a profit, while non-
profit ones do it for a charitable
mission. Business ownership includes
partnerships, sole proprietorships,
corporations, etc.
• Businesses can be small-scale or
large-scale. Some of the biggest
businesses in the world are Amazon

3. • E-business or Online business means
business transactions that take place
online with the help of the internet. The
term e-business came into existence in the
year 1996. E-business is
an abbreviation for electronic business. So
the buyer and the seller don’t meet
personally.

4. • In the present day, electronic business has
become the order of the day with the
presence of internet and web technologies in
business.
• E-business is the conduct of business on the
Internet, not only buying and selling but also
servicing customers and collaborating with
business partners.

5. History of E-commerce:
• In 1960 Electronic Data Interchage (EDI) replaced the traditional
mailing and faxing of documents. Further, teleshopping was
introduced which was widely used up to 1982.
• In 1982, minitel with the help of videotex terminal was introduced
and was used upto 1991.
• (Minitel was a videotex online service accessible through telephone
lines and was the worlds most successful online service prior to the
WWW)
• In the year 1990 web server and web browser was developed.
• Internet was introduced in 1991 for trading purpose and many
business entities started to operate online.
• Further google and yahoo search engines popularised online
activities.
• After the year 2000, security reforms took place for online activities
which increased the volume of e-business and at present it is
continuing with the use of internet in smart phones, tablets, etc.

6. • E-business generally refers to buying and selling of
goods or services through internet.
• E-business involves the use of information and
communication technologies to facilitate and
support processes and activities of business.
• In other words, E-business is the conduct of
business on the internet, not only buying and selling
of goods but also servicing customers and
collaborating with business partners.
• E-commerce is where business transactions take
place via telecommunication networks like internet.
In other words, it refers to conduct of business or
financial transactions by electronic means

7. Importance/ significance/Features of
E-Commerce Technology:
• Improved sales
• Improved responsiveness
• Efficient inventory management
• Increased Efficiency and effectiveness
• Planning and execution
• Extended market space
• Service availability and global reach
• Sets universal standards
• Interactivity and support
• Information density
• Personalization or customization

8. Benefits of E-Commerce: to Business:
• Global reach
• Cost effective
• New customers with search engine visibility
• It reduces the paper costs
• Reduction in Inventories
• Mass customization and competitive advantage
• No middlemen
• Reduced production lead time
• Improved customer relationship
• Lower sale and marketing costs
• Lower telecommunication costs
• New found business partners
• Increased supply chain efficiencies
• Digitization of products and processes
• Information sharing

9. To Consumers:
• Gives freedom to make choices
• Increase in variety of goods
• It gives more choice and alternatives
• Convenience of Shopping at Home
• Ensure secrecy
• More competitive prices and increased price
comparison capabilities
• Access to greater amounts of information on demand
• Time compression
• Quick delivery of digitized products/services
• Provide comparison shopping
• E-payment system

10. To Society:
• Enables More Flexible Working Practices
• Connects People
• Facilitates Delivery of Public Services

11. Disadvantages of E-Commerce
• E-commerce lacks personal touch
• System and data integrity
• E-commerce delays goods
• System scalability
• Dependent on internet
• Many goods cannot be purchased online
• People won't buy online products very often
• E-commerce does not allow experiencing the product
before purchase
• Loyal customers
• Shopping is social experience
• Anyone one can set up an E-commerce website
• Too Many Competitors
• Security

13. E- BUSINESS MODELS:
Business 2 Business Model (B2B)
• Business-To-Business is a transaction that occurs between two companies,
as opposed to a transaction involving a consumer. The term may also
describe a company that provides goods or services for another company.
Advantages of B2B Model:
• It can efficiently maintain the movement of the supply chain and the
manufacturing and procuring processes.
• It can automate corporate processes to deliver the right products and
services quickly and cost effectively.
• B2B is a global trade market where we can buy anything at any time.
• Creates new sales opportunities.
• It lowers the search costs and time for buyers to find products and
vendors.
• Reduces marketing and sales costs

14. • Provides for efficient customer service
• Increases opportunities for collaboration
• Enables customized online catalogues with different
prices for different customers
Disadvantages of B2B Model:
• Delay of goods where the earliest to receive goods
would be the next day
• Some goods cannot be purchased online such as
perishable items
• Unable to experience the product before purchasing
• Fraudulent websites.
• Security issues leading to credit card fraud or
identity theft.

15. Business- to- Consumer (B2C)
• B2C, or business-to-consumer, is the type of
commerce transaction in which businesses sell
products or services to consumers. More
recently, the term B2C refers to the online
selling of products, or e-tailing, in which
manufacturers or retailers sell their products
to consumers over the Internet. B2C-
Represents the vast majority of e-Commerce
web sites online.

16. Advantages of B2C Model:
1) For Business
a. worldwide market reach
b. Display of product information with colourful
advertisement.
c. Easy order processing
d. Low or no overhead
2) For the Consumers
a. Convenience to customers
b. More choices for consumers

17. Disadvantages of B2C:
1) To Business
a. Many websites offering same product
b. Technological problems in website
c. Lack of security norms
2) To consumer
a. Lack of security norms
b. Unsatisfied customers

18. Consumer to Consumer (C2C) Model
• C2C, or customer-to-customer, or consumer-
to-consumer, is a business model that
facilitates the transaction of products or
services between customers.

19. Advantages of C2C Model:
1. Customers can directly contact sellers and
eliminate the middle man.
2. Anyone can now sell and advertise a product in
the convenience of one's home.
3. Sellers can reach both national and international
customers and greatly increase their market.
4. Feedback on the purchased product helps both
the seller and potential customers.
5. The transactions occur at a swift rate with the
use of online payment systems such as PayPal

20. Disadvantages of C2C Model:
• Although online auctions allow one to display his or
her products, there is often a fee associated with such
exhibitions.
• The number of Internet-related auction frauds has
also increased
• Identity theft has become a rising issue.
• Numerous cases have been documented in which
users find unknown charges on their credit card
statements and withdrawals in their bank statements
after purchasing something online.
• Illegal or restricted products and services have been
found on auction sites.

21. Consumer - to - Business (C2B) :
• Consumer to business e-commerce means transactions taking place between
consumers to business organizations.
• The C2B model completely transposes the traditional business-to-consumer
(B2C) model, where a business produces services and products for consumer
consumption.
• Eg. Job Portals/affiliate marketing services
Peer-to-Peer (P2P):
• P2P is not only an E-commerce type but also a technology that allows people
to share computer files and computer resources without going through a
central web server.
• The required software should be installed by both sides so that they can
communicate on the common platform.
• As from the beginning this type of e-commerce has been launched to the free
usage, it has quite low revenue. It consists in mutual help of consumers.
• The main disadvantage of this model of transaction often entangles cyber
laws.
• Eg: Uber

22. Government-to Consumer (G2C) model: In this model the
government transacts with an individual consumer. For example, a
government can enforce laws pertaining to tax payments on
individual consumers over the Internet by using the G2C model.
Eg: Online Forms
Consumer-to-Government (C2G) model: In this model, an
individual consumer interacts with the government. For example, a
consumer can pay his income tax or house tax online. The
transactions involved in this case are C2G transactions.
Eg.: Online Filing of Tax returns
Business-to-Government (B2G) model: In this model, an individual
Business firms interacts with the government. For example, a
business firm can pay its income tax or corporate tax online. The
transactions involved in this case are B2G transactions.
Eg.: e-procurement

23. E-business and Global Economy
• The growth of the e-commerce industry has
been rapid over the past few years, with no
signs of slowing down.
• In a world that is becoming increasingly
digitized, e-commerce has become a crucial
component of the global economy.
• As technology continues to advance and
consumers become more comfortable with
online shopping, it is expected that the e-
commerce industry will play a vital role in
driving economic growth in the years to
come.

24. • One of the key factors contributing to the growth of e-
commerce is the convenience it offers to consumers.
• With the ability to shop from the comfort of their own
homes, customers can avoid the hassle of physically
visiting stores and save time in the process.
• In addition, the wide selection of products available
online has made it easier for customers to compare
prices and find the best deals, further fueling the growth
of e-commerce.
• Another factor that has contributed to the rise of e-
commerce is the increased availability of high-speed
internet and mobile devices.
• With more and more people having access to the
internet and smartphones, the number of people
shopping online has increased dramatically.
• This trend is expected to continue in the coming years,
as technology continues to improve and more people

25. • The growth of e-commerce has also had a
significant impact on small businesses and
entrepreneurs.
• By providing a low-cost platform for selling goods
and services, e-commerce has made it easier for
small businesses to reach a wider audience and
compete with larger companies.
• This has helped to create new jobs and stimulate
economic growth, as small businesses are able
to invest in new products and services, hire new
employees, and expand their operations.
• In addition, e-commerce has also had a positive
impact on the global economy by creating new
markets and increasing cross-border trade.
• With the ability to sell products and services to
customers all over the world, e-commerce has
opened up new opportunities for businesses to

26. • Finally, e-commerce has also played a crucial role
in reducing the environmental impact of traditional
retail.
• By reducing the need for physical stores and
reducing the amount of waste generated by
shipping and packaging, e-commerce has helped
to reduce carbon emissions and promote
sustainability.
• In conclusion, e-commerce has already had a
significant impact on the global economy, and its
role in driving economic growth in the years to
come is expected to be even greater.
• With its ability to offer convenience, create new
markets, and promote sustainability, e-commerce

27. Nature of e-business:
• Daughtrey (2001) refers to the conditions of consumers expect
purchasing from the Internet or when conducting business with:
• Generalized perception of supplier or reputation.
• Confidentiality and privacy, security for Customer expectations.
• Supplier provided by Assurances for example guarantees.
• Other customer’s reports. For example a history of prior
transactions If the customer has, additional factors may be:
• Order fulfillment accuracy.
• Order fulfillment Timeliness.
• With customer relations Nature of any interactions.
• Any disputes Resolution.
• From the supplier Subsequent communications.
• With whom customer information was shared any
communications from other suppliers.

28. Scope of E-Business
• E-business in boarder in scope
• As information sharing is the major part of the corporate industries,
networking has given boost to E-Business. This change in viewpoint has
opened door for new opportunities.
• Selling can be focused to the global customer
• Pre-sales, subcontracts, supply
• Financing and insurance
• Commercial transactions: ordering, delivery, payment
• Product service and maintenance
• Co-operative product development
• Distributed co-operative working
• Use of public and private services
• Business-to-administrations (e.g. customs, etc)
• Transport and logistics
• Public procurement
• Automatic trading of digital goods
• Accounting
• Dispute resolution

29. Impact of E-business on business
• Direct sales to customers.
• Anytime access from anywhere.
• Customization of products.
• Quicker time to market.
• Flexible pricing, product portfolio and
promotions.
• Price discrimination.
• Transfer of fund with efficiency.
• Lower stock outs.
• Automated and convenient process.