E-Business Management

Module-I
E-business (electronic business) is the conduct of
business processes on the Internet.

These electronic business processes include :

• Buying and selling products, supplies and services;
• Servicing customers;
• Processing payments;
• Managing production control;
• Collaborating with business partners;
• Sharing information;
• Running automated employee services; recruiting; and more.
Why?.
Anytime, anywhere commerce and services

Cost-effective in providing information.

Mobility, portability of services.

Availability of shared services.

Cost-effective utilization of services.

Better turn around time (for all parties involved).

Requirements?
Web technologies

Database technologies

Integration technologies

Networking technologies

Security technologies

Application Development technology

Important aspects of E_Business
Functionality

Access
Reliability
Control

Scalability Security

Speed
Advantages

• Cost-Effective Marketing
• Flexible Business Hours
• Eliminates Geographic Boundaries
• Reduces Transaction Cost
• Low Overhead Costs
• Reduces transaction time
• Huge range of products.
E-Business Trends
Introduction

According to industry experts, online sales will

experience a growth from $335 billion in 2015 to a
whopping $523 in the year 2020 which comes to a
growth of 9.32% per year.
TRENDS!
Mobile E-Business

Customer Experience

Big Data Analytics

Selling on Social Network

Chatbots (Virtual Shopping Assistance)

Making feel and touch

Real time analysis

Same day delivery options

Free shipping

More payment options

Easy returns

Selection of best e-commerce platform

Administrative and technological
implications
of electronic businesses
Administrative and technological implications
of electronic businesses-1

Customer relationship
Human resources:
management:
It is important to have the right
people in place to take on the
significant changes demanded by e-
While e-business is reshaping the
business. As per reports, 76% of IT
corporate landscape, it is also
professionals feel that e-business
changing customer behaviours and
facilitates cross-functional work
expectations. This is specifically
teams, which has a significant
relevant for organisations involved
impact on employees’ workloads
in B2C e-commerce because the
and the company culture. E-
Internet has created an extremely
business applications in Human
demanding and information-
Resources are rapidly progressing
sensitive customer
toward an electronic delivery
concept sometimes referred to as
eHR .
Administrative and technological implications
of electronic businesses-2

IT Department: Technology:
e-business is placing increased
pressure on IT by causing IT
Companies implementing an e-
departments to reengineer and
business initiative will have to
making greater demands on all
replace or integrate formerly
workers in terms of job
disparate systems and applications
responsibilities and expanding skills
to improve decision-making
[6]. As a result IT departments are
capabilities and minimise redundant
hiring people with a mix of
data entry and maintenance.
backgrounds and skills. Many IT
Without seamless interfaces to
managers have aspired to a greater
administrative systems from
role in the strategic business
Internet-based applications an e-
decisions of their organisations –
business initiative will not succeed.
and thanks to e-business they are
getting that wish.
Administrative and technological implications
of electronic businesses-3

Financial Change Business

evaluation: management: environment:

According to Cohan
[5] their research
The speed of today’s
has found that large In market space the
business
organisations are constraints of time,
environment means
finding that place, and
that companies must
traditional capital geographic
replace sequential
budgeting methods boundaries are
change processes
are difficult to apply completely
with parallel
to projects that eliminated
processing.
employ Internet
technology
Administrative and technological implications
of electronic businesses-4

Function
Service Supply chain
lines in Trust:
management: management:
company:

The creation and

maintenance of an
E-business
e-business
requires a greater In an effective e-
initiative can defy
degree of trust business initiative,
traditional What is different in
between a the following SCM
functional lines an e-business
business, its independent
within an environment is the
partners and processes must be
organisation. E.g. scope of service
customers than in highly integrated:
Orders can be management. e-
the traditional demand
processed directly ITSM should be
business model. management,
by customers. equipped to handle
Many businesses supply
Sales cycles quick changes and
are therefore management and
shorten and the scalability issues.
reluctant to fully inbound/outbound
number of
embrace e- logistics
customer calls
business.
decrease and their
nature change.
Analysis of an E-Business with regards to
economic changes
E-commerce has altered the practice,
timing, and technology of B2B and
B2C markets, affecting everything
from transportation patterns to
consumer behavior.
 B2B e-business transactions leads the way
•Business-to-business
electronic commerce
accounts for the vast
majority of total e-
commerce sales and plays a
leading role in global
supply chain networks.
•The steady growth in
business-to-business e-
commerce has changed the
cost and profit picture for
companies worldwide. At
the microeconomic level,
growth of B2B e-commerce
results in a substantial
reduction in transaction
costs, improved supply
chain management, and
reduced costs for domestic
and global sourcing.
Double-digit growth for B2C
• E-commerce retail has
become the fastest
growing trade sector and
has outpaced every other
trade and manufacturing
sector since 1999
E-Business influences demand patterns

• As technology, e-commerce, and globalization

become more intertwined, buyers and sellers are
increasing their connectivity and the speed with
which they conduct sales transactions.
Impact on National Growth

• The theoretical implications of e-business on the macro-economy

are far reaching, because ICT increases productivity, enhances
competition, and broadens consumer choice.

New Competition
• Organizations in many sectors face new forms of competition from
businesses that utilize e-business processes to offer customers a
high-quality service at lower cost than established businesses. In the
financial sector, for example, a study by Bruce Perrott of the
University of Technology, Sydney, Australia, found that e-business
was transforming the structure of the banking industry with the
emergence of non-traditional competitors, such as retailers or other
financial institutions.
Productivity
• Productivity gains are an important benefit of e-business. A report
by the U.K. Office for National Statistics found that organizations
with automatic links between key business process and their e-
commerce activities have higher average labor productivity than
firms without the links. The productivity gains result from e-
business investment in processes, such as workflow, access to data
and communication tools.
Preservation of the well being of
the community by using the
Internet with social responsibility
Spreading the good work to motivate
others:
• Intel’s Director of Corporate Responsibility, Michael
Jacobson, says his department takes advantage of
social media by marketing the positive ways Intel is
working to minimize its global carbon emissions, as
well as the entire industry’s.
• “There was a time when we only focused on
reducing own environmental footprint,” said
Jacobson. “Today, we look for ways to help reduce
CO2 emissions across the board, and we do that by
talking with our stakeholders individually through
social media.
 Influencing Customers as Citizens
• In this age of digital democracy, social media allows
companies to influence and view the behavior of their
customers after a product or service is bought.
• The dialogue exchanged between customers and
companies can be highly beneficial for both sides, and
build and strengthen a sense of community, which is the
fundamental purpose of social media.
• “We communicate with our people about everything
from how they can help us magnify our green message,
to what scent we should choose for our next eco-friendly
laundry detergent,” said Hollender.
Improving the health sector
• In the health sector, telemedicine provides a number of
advantages for doctors and other medical staff. In the Third
World, in particular, access to appropriate expertise for an
accurate diagnosis and the treatment of illnesses is often
difficult to obtain. While this is particularly true in rural
and remote areas, it applies to many urban areas as well.
• Computerized networks facilitate access to accurate and
up-to-date information, enable long-distance training and
consultation, and improve the administration of the health
sector. Online initiatives addressing health and medicine
promote networking among hospitals and health
professionals worldwide and provide updates on current
medical research.
Improving the education sector
• The Internet enables alternative teaching methods through
virtual classrooms and long-distance education, thus
allowing more people to receive education.
• The internet networks have since evolved from the
sharing of research findings among scientists and scholars
to access to libraries, schools, and universities worldwide.
Not only can one find interesting reference material and
valuable resources, but increasingly one can also
download books and journals, the Internet thus providing
a wealth of knowledge at ones finger tips.
Imposing more clarity in political
processes.
• The ease with which information can be published and
disseminated on the Internet allows for more democratic
and participatory political structures. For many years
computerized networks have been used to share
information on important events, and given today's
world of increasing global integration it would appear
impossible to stop such information flows.
Bridging the cultural gap
• The North American origin of the Internet is evident
in the dominant language of the Net as well as the
origin of most existing sites. This Anglophone
influence in both form and content could be
interpreted in terms of cultural dominance, or cultural
homogenization, and the Internet could be seen as a
vehicle for marketing ideas and values stemming
from a very specific and powerful part of the world.
Questions…..
• What do you mean by E-Business? How it is different
from E-Commerce.
• How the trend of E-Business has changed from its
inception? Discuss with examples.
• “Due to the use of E-Business the technological and
administrative environment in changed in great
amount”. Justify the statement.
• How the use to E-Business can change the micro and
macro economy of any country or the whole universe?
• Customers have gained huge upper hand after the use
of E-Business facility of any organization. How?
• Internet has to play a great role in fulfilling the some
important social responsibilities of the country and
the whole community? How it can be possible?
 Module-2

E-BUSINESS MANAGEMENT
 E-business architecture application
framework
Electronic Commerce Applications
Supply Chain Management Audio and Video on Demand Technical
Online Marketing and Online Financial Transaction
standards for
Advertising Entertainment and Gaming
Procurement & Purchasing Education and Research electronic
Public policy,
Online Shopping documents,
legal, multimedia
Common Business Services Infrastructure
economical (Security/Authentication, Electronic Payment, Directories/Catalogs contents,
business
development, Multimedia Content & Network Publishing Infrastructure
(Digital Video, Electronic Books, World Wide Web) transactions,
and privacy and network
Messaging & Information Distribution Infrastructure
issues (EDI, E-Mail, HyperText Transfer Protocol) protocols

Information Superhighway Infrastructure

(Telecom, Cable TV, Wireless, Internet)
 Client Server Architecture

 E-commerce is based on client/ server architecture

 Client processes requesting service from server processes
 First used in 1980s, the model improves to be e-commerce usability,
flexibility, interoperability and scalability.
 In e-commerce the client is defined as the requestor of a service
and a server is the provider of the service
 Browser is the client and the customer, the computer that sends the
HTML files is the server
 The server can also be a computer program that provides services to
other computer programs
 A web server is the computer program that serves requested
HTML pages or files.
 Uses client/server model and http(hypertext transfer protocol)
 Every computer on the internet that contains a web site must have a web
server program.
A Simple E-commerce Web Database Construction Model

HTTP URL
Web HTML formatted Web Web
Browser Server Server
HTML
Software Helper
Data
(e.g. HTML table)
Client
Desktop
Middleware

Database
Front-end

Back-end
S E A R C H O F O P P O RT U N I T I E S
I N O R D E R TO
DEVELOP AN ELECTRONIC BUSINESS
In today’s business environment, sustaining
growth and profitability is never a
guarantee. Technological and scientific advances
shorten life cycles of products and services,
business models change and new competitors
appear from outside the industry. This constant
instability makes it necessary to seek new
business opportunities. How do you identify
market opportunities in these conditions
Consumer segmentation: To understand your demand, you must identify
consumer segments that share common characteristics. These characteristics can be
“hard” variables such as age, gender, place of residence, educational level,
occupation and level of income or “soft” variables such as lifestyle, attitude,
values ​and purchasing motivations.

Purchase situation analysis: Purchase situations must also be examined to

uncover expansion opportunities. Questions to ask when reviewing purchase
analysis are:
•When do people buy our product or service?
•Is it when they need it?
•Where do people make the purchase?
•How do they pay?

Direct competition analysis: In addition to analysing demand and purchasing

situations, it is important to analyse supply. Knowing the existing players in the
market where you are competing or going to compete is important when evaluating
opportunities. Relevant questions in this case are:
What are the products and brands of our industry that are growing more
significantly and why?
What is their value proposition?
What competitive advantage do we have over them?
Indirect competition analysis: Opportunities can also be found by
analysing substitute industries. For example, thanks to the decrease in air
fares, airlines may look for opportunities in consumer segments currently
supplied by other means of transport. Air carriers should research how
many people travel on long-distance buses and trains, which routes are the
most in demand, how much travelers pay for their tickets, what the
occupation rate of long-distance buses and trains is and what is necessary
to persuade a current passenger of buses or trains to choose to travel by
plane instead.

Analysis of complementary products and services: Companies

should monitor the performance of other companies’ products, which are
complementary to their own. For instance, a packaging company should
monitor sales of products that it could potentially package, while a
company producing coffee machines should gather insights on the
evolution of different types of coffee sales. Trends in complementary
markets should be taken into account when making investment decisions.
Analysis of other industries: In some cases the objective of companies is not to
continue operating within an industrial sector but to expand a certain business
model or philosophy. For example, a British holding of companies, Easy Group,
started maximising the occupancy rate of flights with the airline Easy Jet. Easy
Group understood that it was preferable to sell a seat at a lower price than not
selling it at all. Easy Jet opted for a rate management model that depended on the
occupancy rate of flights and the time remaining until the day of the flight. With this
business model it managed to increase occupancy rates.

Foreign markets analysis: When a company operates in a mature or saturated

market, exploring other countries may lead to additional opportunities. Markets in
different countries grow at different paces for several reasons, including disparities
in the level of economic development and local habits.

Environment analysis: Market opportunities can also be identified by analysing

changes in the environment with technological and scientific developments
generating new business opportunities.

According to Euromonitor International, the share of mobile internet subscriptions

to mobile telephone subscriptions in the world was 20% in 2011, reaching 53% in
2016.
Selling Chain
Management
“Selling chain management is a combination of customer
relationship management, integrated marketing communications, and
order fulfillment strategy situated in a multi-channel environment.”

The major purpose of selling chain management is to transform

customer contact into profits.
Selling chain management is a broad set of
sales/marketing solution that includes the
following strategic areas: data acquisition and
analysis (such as data mining and warehousing),
marketing intelligence (such as business
intelligence tools), sales force automation (SFA),
customer services (such as CRM), product catalog
and pricing services, proposal/quote/contract
management, order management, fulfillment, and
the integration of back-office system (such as
ERP)
 Business forces that defines the need for
Selling chain Management
Increased ease of customer trading: Being customer oriented and inclusive at every
step allow the final product and post sales support to fulfill the customer needs and reduce
returns and rework to close to zero.

Increased value to the customer: This is the implementation of a collaborative effort for
needs fulfillment, mediates through CRM and sales force automation tools to arrive at an
agreed product that satisfies the customer need.

Ease of ordering and tailoring: The ability to provide flexible products allows the
customer to define a product focused to their needs. This permits flexible production and
reduced stock on hand for the business.

Rising sales effectiveness and customer satisfaction: The easier it is to acquire,

manage and process customer orders through Selling Chain /2
WWW.DHLMASTERCLASS.COM the entire fulfillment process the more revenue that is
generated and customer satisfaction levels increase.

Increased efficiency of Relationship management: The creation of a CRM capability

has to include the integration of the sales process and information into its core data and
information capabilities. This will ensure that the customer relationship includes a full view
of contact, proposals, specifications and contact support in relation to their business.
Selling Chain Management
Selling Chain Management
Technological Framework
With self-service applications in hand, customers
will be able to touch the resource of an enterprise.
The customer drives the entire value chain,
determining what is to be produced, when, and at
what price. The customer will interact with the
entire business ecosystem, not just the individual
company. The selling chain management that
reinvented itself from traditional sales/marketing
strategies will undoubtedly be the best solution to
today’s e-business Internet marketing.
Integrated Applications Framework According To The Needs
Of Electronic Businesses

To achieve the fundamental goal of a foundation application framework,

the Framework defines:

An application programming
model, based on the system
A system model that model, for designing e-
structures the fundamental business applications, A platform for developing,
topology of e-business including an architecture that deploying, and managing e-
applications for a broad supports a broad spectrum of business solutions for a
spectrum of business business domains, and number of business domains
domains architectures that support a
number of business-specific
domains.
The Key requirement for An E-Business Platform are as
follows:

Integrated User Experience:

• A multiplicity of systems with proprietary interfaces might be integrated in
assembling a solution, but it is important to provide an integrated user
experience, including role-based rendering and shared sessions.

Common Security Mechanism:

• Typically, each ISV (Independent Software Vendor) application and
middleware component uses its own unique security subsystem. The
platform should hide these disparate systems and enable single sign-on and
global registration.

Business Process Integration:

• The key to a successful realization of a collaborative B2B solution is the
support for business process driven integration of legacy systems, ISV
applications, users, and trading partners.
Common Messaging Infrastructure:
• Enterprise application integration via a message hub and standard XML
(Extensible Markup Language) message sets reduce integration complexity.

Solution Management & Monitoring:

• This includes facilities for audit logging, tracing, and exception handling.

Extensibility:
• The next wave of B2B e-commerce systems need to be very dynamic as
enterprise boundaries fade and supply chains and virtual corporations
emerge. The platform should provide support for easily modifying and
extending business processes.

Performance and Scalability:

• As transaction volumes increase, it should be possible to maintain the
system performance by adding more resources.
Clients are implemented
with industry-standard
technologies, interact with
the user, and communicate
with a middle tier via
standard protocols, and send
and receive standard data
formats.
The middle tier The enterprise information
servers incorporate system (EIS) tier includes
several application new and existing internal
integration applications, services, and
technologies for data, and also external
communicating with applications, data, and
applications, data, and services from new and
services in other tiers existing business partners.