Aliyah University

Seminar Report On e-Business

Byy

Mohammad Ehtasham Akhtar

Roll No- 08mba20017
Stream-IMBA

2011

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Contents

Acknowledgement…………………………………………………………….1

1. Introduction………………………………… ...……………………3
2. Objective…………………………………………………………….5

Goal of e-business…………………………...…………………..8

Purpose of e-business………………….………………………...9

3. Methodology….………………………………………...…………...10
Strategy………………………………………………………….11

Analysis………………………….……………………………….11

Design………………………………...……………...………......12

Implementation…………………………..………………………13

Training…….………………….………………………….13

Project Management……………………………………………..14
4. Details………….…………………………………………..…..........15
Details

Type of e-business………………………………….…..……… ..16

Characterization of e-business…………………..………………24

Front office & Back office…...……..,……………..…...………..25

5. Conclusion….……………………………………………..………...26

Advantages……..………………… ….………………………….27

Disadvantages…………………..…………………………..….....39

Problems…………………………....……………………….……39

6. Bibliography……………………………………………………… ..31

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Acknowledgement

Apart from the efforts of me, the success of any project

depends largely on the encouragement and guidelines of many others. I
take this opportunity to express my gratitude to the people who have been
instrumental in the successful completion of this project.

I would like to show greatest appreciation to Prof.

Mrinalkranti Chakma. I can’t say just thank you for his tremendous
support and help. I felt motivated and encouraged every time I attended
his meeting. Without his encouragement and guidance this project would not
have materialized.

The guidance and support received from all the faculty

members of IMBA department who contributed to this project, was vital
for its success. I am grateful for their constant support and help.

Name Of Student- Mohammad Ehtasham Akhtar

Stream- IMBA
Roll No- 08IMBA20017

Place- Kolkata
Date- 18th May,2011

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 INTRODUCTION 1
E-business is an acronym for 'Electronic BUSINESS.' The word 'e-business' has
been derived from terms such as "e-mail." As the name implies, e-business means
conducting or operating business through the Internet. It also pertains to “any form of
business transaction in which the parties interact electronically rather than by
physical exchanges or direct physical contact”. The main aim is to establish a
positive reputation of the enterprise as well as sell goods and services. Internet is used
as a medium like print and broadcast to promote business and earn profits. It is also
used to collaborate with business partners.

In e-business, on the other hand, ICT is used to enhance one’s business. It

includes any process that a business organization (either a for-profit, governmental or
non-profit entity) conducts over a computer-mediated network. A more
comprehensive definition of e-business is: “The transformation of an organization’s
processes to deliver additional customer value through the application of
technologies, philosophies and computing paradigm of the new economy.” Three
primary processes are enhanced in e-business.

1. Production processes, which include procurement, ordering and replenishment

of stocks; processing of payments; electronic links with suppliers; and production
control processes, among others;
2. Customer-focused processes, which include promotional and marketing efforts,
selling over the Internet, processing of customers’ purchase orders and payments, and
customer support, among others; and
3. Internal management processes, which include employee services, training,
internal information-sharing, video-conferencing, and recruiting. Electronic
applications enhance information flow between production and sales forces to
improve sales force productivity. Workgroup communications and electronic
publishing of internal business information are likewise made more efficient
E-business has received much attention from entrepreneurs, executives,
investors, and industry observers recently. As information technologies (IT) develop,
novel ways of business process redesign (BPR) emerged, creating turmoil in the
industry. Organizations today frequently integrate Internet technology to redesign
processes in ways that strengthen their competitive advantages. Success breeds
imitation and invites more entries. The rapid expansion of e-commerce values in the

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past few years convinced many people that a new economy has emerged. Chairman of
Microsoft, Bill Gates, frequently expressed his fear that Microsoft is about 2 years
away from failure, that somewhere out there is a formidable competitor, unborn and
unknown, who will use better business models to put companies like Microsoft into
obsolescence. And the most successful new business models are probably those that
can integrate Internet technology to all activities of the enterprise-wide value chain.
The three principal categories of e-business applications are:-

1. Electronic markets or e-marketplaces: buying and selling goods and services.

2. Inter-organizational systems: facilitating inter and intra-organization flow of goods,
services, information, communication, and collaboration.
3. Customer service: providing customer service, help, handling complaints, tracking
orders, etc.

As information technologies developed, novel ways of business process

redesign emerged. Most organizations today use Internet technology to redesign their
processes in ways that provide new competitive advantage. Through the infrastructure
of existing B2B exchanges in the e-marketplaces, many organizations will eventually
be able to integrate activities of their value chain encompassing suppliers, customers,
and distribution channels within an industry or across industries. The potential of e-
business is so great that many believe that e-business is the new economy that decides
the success of future business organizations. Andy Grove, Chairman of Intel boldly
stated in 1998: ‘‘ Within 5 years, all companies will be Internet companies or they
would not be companies’’.

It is widely acknowledged today that new technologies, in particular access to the

Internet, tend to modify communication between the different players in the
professional world, notably:

relationships between the enterprise and its clients,

the internal functioning of the enterprise, including enterprise-employee
relationships,

the relationship of the enterprise with its different partners and suppliers.

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 OBJECTIVES 2

 E-Business Objectives
Objectives give the business a clearly defined target. Plans can then be made to
achieve these targets. This can motivate the employees. It also enables the business to
measure the progress towards to its stated aims.

The objectives of e-business can be summarise as below:-

 improve service
 save time

time taken by customers

elapsed time for processes
 reduce process errors
 reduce the cost of core service provision
 free staff to provide value added services
 improve morale
 give people the tools and time they need

The most effective business objectives meet the following criteria:

S – Specific – objectives are aimed at what the business does, e.g. a hotel might have
an objective of filling 60% of its beds a night during October, an objective specific to
that business.

M - Measurable – the business can put a value to the objective, e.g. €10,000 in sales
in the next half year of trading.

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A - Agreed by all those concerned in trying to achieve the objective.

R - Realistic – the objective should be challenging, but it should also be able to be

achieved by the resources available.

T- Time specific – they have a time limit of when the objective should be achieved,
e.g. by the end of the year.

The main objectives that a business might have are:

Survival – a short term objective, probably for small business just starting out, or
when a new firm enters the market or at a time of crisis.

Profit maximisation – try to make the most profit possible – most like to be the aim of
the owners and shareholders.

Profit satisfying– try to make enough profit to keep the owners comfortable –
probably the aim of smaller businesses whose owners do not want to work longer
hours.

Sales growth – where the business tries to make as many sales as possible. This may
be because the managers believe that the survival of the business depends on being
large. Large businesses can also benefit from economies of scale.

A business may find that some of their objectives conflict with one and other:

Growth versus profit: for example, achieving higher sales in the short term (e.g. by
cutting prices) will reduce short-term profit.

Short-term versus long-term: for example, a business may decide to accept lower
cash flows in the short-term whilst it invests heavily in new products or plant and
equipment.

Large investors in the Stock Exchange are often accused of looking too much at short-
term objectives and company performance rather than investing in a business for the
long-term.

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Alternative Aims and Objectives

Not all businesses seek profit or growth. Some organisations have alternative
objectives.

Examples of other objectives:

Ethical and socially responsible objectives – organisations like the Co-op or the Body
Shop have objectives which are based on their beliefs on how one should treat the
environment and people who are less fortunate.

Public sector corporations are run to not only generate a profit but provide a service
to the public. This service will need to meet the needs of the less well off in society or
help improve the ability of the economy to function: e.g. cheap and accessible
transport service.

Public sector organisations that monitor or control private sector activities have
objectives that are to ensure that the business they are monitoring comply with the
laws laid down.

Health care and education establishments – their objectives are to provide a service
– most private schools for instance have charitable status. Their aim is the
enhancement of their pupils through education.

Charities and voluntary organisations – their aims and objectives are led by the
beliefs they stand for.

Changing Objectives:-

A business may change its objectives over time due to the following reasons:

A business may achieve an objective and will need to move onto another one (e.g.
survival in the first year may lead to an objective of increasing profit in the second
year).

The competitive environment might change, with the launch of new products from
competitors.

Technology might change product designs, so sales and production targets might need
to change.

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 Goal of e-Business
The goal of any e-Business project is to create value. Value can be created in different
manners:

• As a result of an increase in margins, i.e. a reduction in production costs or an

increase in profits. E-Business makes it possible to achieve this in a number of
different ways:

Positioning on new markets

Increasing the quality of products or services

Prospecting new clients

Increasing customer loyalty

Increasing the efficiency of internal functioning
• As a result of increased staff motivation. The transition from a traditional activity
to an e-Business activity ideally makes it possible to motivate associates to the
extent that:

The overall strategy is more visible for the employees and favors a
common culture

The mode of functioning implies that the players assume responsibilities

Teamwork favors improvement of competences
• As a result of customer satisfaction. As a matter of fact, e-Business favors:

a drop in prices in connection with an increase in productivity

improved listening to clients

products and services that are suitable for the clients' needs

a mode of functioning that is transparent for the user
• As a result of privileged relationships with the partners. The creation of
communication channels with the suppliers permits:

Increased familiarity with each other

Increased responsiveness

Improved anticipation capacities

Sharing of resources that is beneficial for both parties

An e-Business project can therefore only work as soon as it adds value to the
company, but also to its staff, its clients, and partners.

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The purpose of e-business:
The e-business services have been introduced to search for business partners and
explore more opportunities. It is used to fetch potential customers, retain present
customers and even locate old customers. Entrepreneurs build business relationships
with the partners through the means of Internet. A marketer can invite the clients to
enter into mergers and acquisitions or contracts to expand the business. A marketer
should build an online presence in order to initiate and establish the online business.

This is possible by building a website for the company. You should optimize the
content in the site so that it becomes easily accessible to the search engines.

For this purpose, keyword rich content should be used. The presentation of the
company website always reflects the image of the company. Therefore, the
presentation of the website should not only be search engine friendly but also
attractively presented. This is done to allure the customers and potential business
partners towards your organization. The website should become accessible to the
customers and the presentation should be visually emphatic. The wide use of Internet
has given a boost to the growing trend of online shopping. A marketer can exhibit
lucrative offers and his products and services on his website. Make the payment and
purchasing procedure easy on the Internet. You can also provide contact details such
as phone number or contact details of the call centre of the company.

These details are useful to serve the customers at the time when they encounter any
difficulty of payment. The presentation of your products should appeal to the
customers at a glance. For this purpose, you should study your target customers
thoroughly. E-business solutions establishes your online presence which enables you
to boost the sales and revenue.

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 METHODOLOGY 3
There are some key differences between the development approach that's
appropriate for building e-business systems and the approach that's appropriate for
building traditional client/server systems. However, the differences are not as great as
many people imagine.

Too many inexperienced e-business project managers think that they're simply
"knocking together" a Web site. Faced with ever-tightening deadlines and pressure
from ignorant clients or users, these project managers believe that it will be okay to
skip key stages in the systems development lifecycle—only to find out later how
wrong they were to do so. Such an approach is doomed to failure, because the skipped
stages tend to be those that ensure quality in the final product.

By using of e-business we can differentiate our new economy relationship from

the old ones.

Figure . Old Economy Relationships vs. New Economy Relationships

The above figure shows that in Old Economy Relationship consumers were not
connect directly to the producer, so it has a lack of closeness of a producer to his
consumer because it is a linear function of consumer and producer in which retailer
was a medium. But in New Economy Relationship a customer can directly connect to
his producer and producer can interface with his customer. There is no third party

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medium like Old Economy System. So in this system, a customer is not depent on his
retailer.
In fact, it's arguably even more essential to adhere closely to a systems development
methodology when building e-business systems, which can cut across organizational
boundaries, across country boundaries, and can involve the integration of a great
number of systems.1 Without the correct planning and methodologies applied, an e-
business system is likely to fail.

However, implementing a solid methodology doesn't necessarily mean that it will

take longer to create a working system; it can actually help improve the chances of
meeting tight deadlines. In cases where the chances of meeting such deadlines were
nonexistent in the first place, a solid methodology can help the clients or users to
understand the reasons that the deadlines are not feasible and can help them to take
some ownership for some of the timescale issues.

 Strategy

It's important that user/client expectations be managed early on in the process of

building an e-business system. Facilitated workshops involving users/clients as well
as knowledgeable e-business staff can help. Users/clients need to realize that e-
business strategy is still about working out the best mission statement, goals, and
objectives to enable a retailer to be an excellent retailer or a financial institution to be
an excellent financial services provider. It's not about working out how to be an
excellent e-business.2 Encourage clients/users to use e-business systems to carry out
their current business better, rather than trying to do something new—there will
almost always be someone else who can do the new thing bigger and better because
they have more experience or money.

 Analysis

Users/clients should not be allowed to think that requirements analysis can be

skipped for e-business systems because "there's not enough time." Studies show that
spending more time on analysis up front considerably reduces the chances of the
system failing later on. Because requirements for e-business systems can be critical—
customer or business partner expectations often include reliable, available (24 * 7 *
365), secure systems that are scalable, able to perform under high load, and able to
cope with cross-country and cross-organizational transactions—it's vital to spend
plenty of time up front getting these systems right.

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It's a good idea to design, build, and prototype the technical architecture for critical e-
business systems ahead of writing any other code, to ensure that the technical
architecture really can support the requirements.

Architecture can be a massive task, for example involving getting a Web server, an
application server, a content-management system, and a customer-relationship
management system talking to one another. Or it might involve constructing an
architecture that will support a collaborative workflow across many organizations,
integrating a number of systems.

A typical e-business system may need to support any or all of the following:

• CRM features. A great deal of interaction with the user; building up a personal
profile of each customer and tailoring Web site features to meet that profile;
providing self-service facilities, chat rooms, discussion groups, rating facilities.

• PRM facilities. Shared processes/workflows across many organizations;

sending parts of or whole transactions securely between organizations (Web EDI,
XML); sharing data and ideas securely between organizations.

After the technical architecture requirements are gathered, the business requirements
need to be gathered. Initial broad-brush impressions can be gathered in brainstorming
meetings and JAD sessions. Iterative prototyping is a good way of subsequently
refining requirements quickly when under pressure to meet tight deadlines, while still
maintaining close interaction with users to ensure that the system does what it should.

 Design

Iterative prototyping is also a good way of identifying issues with Web page
design. Human/computer interaction (HCI) issues are key when designing e-business
systems because the system must be intuitive, designed for naïve users, given that the
user of the system is unlikely to get any training in how to use it.

Design of an e-business system should involve more than just visual design, however.
Just as it's important during the design phase of "traditional client/server computing,"
it's crucial that the design makes clear where the processing is taking place—client
side or server side (or in some middle tier, or on the database). It should also identify
common code/libraries to be developed to reduce duplication, and should identify
standards and guidelines to enhance maintainability.

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  Implementation

Because implementation of e-business systems is more likely to involve

incremental development, it's vital that code development and
environment/installation planning be tightly controlled to ensure that defects don't
creep into the various releases. Coding standards should be adhered to, code
inspections/walkthroughs should be carried out regularly, and quality should be
ensured through effective testing. Testing should be carried out in all supported
browsers and with all PC (or other client) configurations/screen resolutions, and
although there may be an emphasis on performance/stress/security/cross-system/cross-
organizational testing, in general, the approach to testing should be much the same for
e-business systems as it has been for traditional client/server systems. Configuration
management and source code control can also be vital throughout the implementation
phase.

Installation/delivery must still be thoroughly planned—an e-business system might be

developed and working very effectively in-house, but deployment might involve
fitting the code around a live environment provided by an ISP. Allow time in the
schedule for ISP incompetence, as it's rife! Of course, the client side of e-business
installations is often far easier than traditional client/server installations because all
the user needs to run the system is a Web browser.

 Training

Installation of a new system always causes change-management issues, but e-

business systems can involve total cultural revolution. Effective leadership is
necessary so that staff see the changes in a positive light. Managers of employees who
have been used to hoarding information must encourage those employees to share data
with external business partners. Contrary to popular belief, it's productive to an e-
company to encourage employees to play computer games, surf the Web, and use chat
rooms and discussion groups, so that they're not paralyzed by technofear when they
receive the new e-business system. This strategy also encourages employees to "think
out of the box" about new ways in which technologies can be exploited to improve the
business. They need to be taught that in the competitive, ever-changing e-business
world, change must become a way of life. This can be done by encouraging
employees to think of new and innovative ways of beating the competition—or to
think of new and innovative ways in which the competition might beat them!

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  Project Management

Project management of e-business systems implementations can be difficult due to

the complexities involved, but often not much more complex than many of the
client/server projects that experienced project managers have already managed.
Iterative development and phased releases are issues that typical project managers
have experienced, and time box approaches make it easier for managers to set and
stick to deadlines.

New, untried, and untested technologies and unstable development products are not
new to the IT world! Lack of technical skills/training has also been an issue for many
years. Project managers are accustomed to adding in contingency due to factors like
this, and are also accustomed to locating bright sparks within the team who can pick
up the essential skills and get those technologies working in a timely fashion.

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 DETAILS
ETAILS 4
In recent years, the business community and the public have been confused by
distorted market signals of many dotcoms, such as the exponential growth in number
of customers, artificially-low operation costs, and inflated revenues. Some companies
even resorted to dubious accounting methods to inflate revenues and deflate costs.
Somehow these distorted signals have misled many people into a belief that the e-
marketplaces have rendered old rules of competition obsolete. As a consequence,
many companies decided to shift their fundamental ways of doing business from
quality, feature, innovations, service, and profits toward mainly low price and revenue
growth. Without long-term profits, they failed. To succeed, companies will need to
search and implement innovative strategies that capitalize on both the power of the
Internet and the changes in both traditional and electronic markets. Companies that
run e-business should have tight supply chain relationships with customers, suppliers,
and distributors. In addition, the supply chain within e-business companies also
continues to change. Businesses need to be sure that customers and suppliers can
easily gain access to their websites to gain important product information for decision
making. Currently, the major barrier to customers’ and suppliers’ access to the web is
ease and speed of access, e-loyalty, and e-trust. Because the use of ecommerce
technology tends to reduce the switching cost, it is important for e-business companies
to build its strategic position by focusing on e-loyalty which encompasses good
relationships and trust with value chain partners. B2B procurement of direct goods
requires a relationship, usually long-term, with a vendor who will deliver a known
quality of goods. With mission critical buying, companies cannot just buy from
anyone in the e-marketplace. If an order for supplies goes unfilled, the missing goods
could shut down a production line or an entire factory. In B2B procurement of direct
goods, tight integration with major suppliers along the supply chain is absolutely
essential. Major success factors for e-business include :-

 Internet technology fully integrated into the company’s overall strategy.

 Competitive advantage maintained in both operational efficiency and
distinctive strategic positioning.
 Basis of competition not shifted from traditional competitive advantage, such
as cost, profit, quality, service, and features.
 Company’s strategic positioning well maintained.

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  Support from top management.
 Buyer behavior and customer personalization.
 Quick time to market.
 Right systems infrastructure.
 Good cost control.
 Good e-business education and training to employees; management and
customers.
 Customer’s and partners’ expectations well-managed.
 Good products and services offered by e-business.
 Current e-business systems expanded to cover entire supply chain.
 New competitors and market shares tracked.
 Website of high quality that meets or exceed user expectations.
 Company’s virtual marketplace established.

 TYPE OF e-BUSINESS

The Different Types of e-business:-

E- Business is the process of buying and selling of various products and services by
businesses through the Internet. It deals various kind of business concern, from retail
site of the consumer, which includes auction. The main focus is to concentrate on
business substitutes involving goods and services between various corporations.
E- Business is the purpose of Internet and the web to Conduct business but when we
concentrate on commercial deals among organizations and individuals demanding
selective information systems under the guarantee of the firm it accepts the form of e-
business. Nowadays, the word ‘e’ is hitting momentum. If you’re looking to get into
this business, one of the fore most thing you have to have is a Virtual Private Cloud
Hosting keeping the traffic in mind and respecting customers valuable time.

B u s ine s s to Co n s um e r ( B2 C)

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B2C stands for Business to Consumer as the name suggests, it is the model taking
businesses and consumers interaction. Online business sells to individuals. The basic
concept of this model is to sell the product online to the consumers. B2c is the indirect
trade between the company and consumers. It provides direct selling through online.
For example: if you want to sell goods and services to customer so that anybody can
purchase any products directly from supplier’s website.
Directly interact with the customers is the main difference with other business model.
As B2B it manages directly relationship with consumers, B2C supply chains normally
deal with business that are related to the customer.
B2C (Business to Consumer): Refers to a business communicating with or selling to
an individual rather than a company. B2C e-commerce jumped from $11.2 billion in
1998 to $31.2 billion in 1999, Doing business online no longer requires a huge
investment by retailers, thanks to developments in template-based online stores
which are based on packaged applications that are delivered over the internet.

As nearly all online stores will require the same functions: catalogues, order baskets,
payment processing, content management and member management, it makes sense
for those components to be created once and shared by all stores, with each store
effectively ‘renting’ its own copy of the applications.

The one area where it's important for online stores to differentiate is their look and
feel, and naturally retailers feel very strongly about their business branding. So the
ability to create a unique ‘skin’ for each site is an important part of a template-based
e-store offering.

Using the latest internet application technology, individual sites can be created within
minutes of the retailer selecting a template and supplying graphics such as logos.
Typically, retailers will pay only a modest monthly rental charge – and retailers
require no specialist hardware or software, other than internet access.

Anyone who wants to sell products and services over the internet, or who wants
customers to be able to research their purchases on the internet, should consider an
online store.

These days, a web site should be a standard part of the promotional and advertising
mix for every business, along with other tools such as Yellow Pages, newspaper
advertising and signage.

Advantages:-
B2C e-commerce has the following advantages:

Shopping can be faster and more convenient.

Offerings and prices can change instantaneously.

Call centers can be integrated with the website.

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Broadband telecommunications will enhance the buying experience.

Challenges faced by B2C e-commerce:-

The two main challenges faced by B2C e-commerce are building traffic and
sustaining customer loyalty. Due to the winner-take-all nature of the B2C structure,
many smaller firms find it difficult to enter a market and remain competitive. In
addition, online shoppers are very price-sensitive and are easily lured away, so
acquiring and keeping new customers is difficult.

A study of top B2C companies by McKinsey[citation needed] found that:

Top performers had over three times as many unique visitors per month than
the median. In addition, the top performer had 2,500 times more visitors than
the worst performer.

Top performers had an 18% conversion rate of new visitors, twice that of the
median.

Top performers had a revenue per transaction of 2.5 times the median.

Top performers had an average gross margin three times the median.

There was no significant difference in the number of transactions per customer
and the visitor acquisition cost.

B us i ne s s to Bu s in e s s ( B2 B )

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B2B stands for Business to Business. It consists of largest form of Ecommerce. This
model defines that Buyer and seller are two different entities. It is similar to
manufacturer issuing goods to the retailer or wholesaler. Dell deals computers and
other associated accessories online but it is does not make up all those products. So, in
govern to deal those products, first step is to purchases them from unlike businesses
i.e. the producers of those products.
“It is one of the cost effective way to sell out product through out the world”
B2B is the selling between companies, wholesale rather than retail. But it means
more than that. Efficient use of capital demands small inventories, which entails
anticipating demand, and so maintaining detailed information flows between all
parties involved in today's complex manufacturing processes. B2B involves widening
the circle of suppliers (for safety and competition), and of centralizing control (for
records and discounts).

B2B ecommerce is an important part of any online business. Leaving aside the
simple transfer of funds — covered here — many businesses need some combination
of:

Credit worthiness assessment.

guarantee of quality and delivery of goods (escrow services).

safeguards against fraud.

fast collection of funds, with ability to vary the collection period.

reporting: approval of sale, invoicing, delivery, payment.

procedures to handle disputes.

Information of all types — corporate, technical, identity-building — has to be
interchanged across the scattered divisions of large companies, and new ideas
fostered, assessed and disseminated. Speed is vital, as are improved
communication, collaboration, and customer understanding. All these
requirements can be handled by IT, and software has been developed to meet
the challenge — customer relationship management, enterprise resource
planning, online auction, supply chain management, etc. Little of it is off-the-
shelf, but is devised as systems to be extended and built round individual
company requirements.

Hence many problems with surveys. B2B has reportedly done better than B2C —
steadier growth, higher profits — but is it software sales or savings in companies with
B2B-enhanced management that have been measured? Even within the B2B market,
there are marked differences between types of software and their successes. Records
of some are distinctly spotty, and sales of the more advanced systems have been
badly hit by the dotcom bust and US recession. Improved management is not simply a
matter of installing new software: extensive company reorganization and retraining
are required to obtain even a modest payoff. These points need to be borne in mind
when following up the information briefly noted below.

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 B2B Ecommerce History

An Anderson survey found that America accounted for 67% of worldwide B2B
revenues in 2000, and Europe 14%. Towards the end of 2000, a gloomy period for
ecommerce in America, executives remained confident about the digital marketplace.
Some 45% of suppliers reported an average 31% increase in sales over the previous 6
months, and 66% of customers responding said they had increased purchases over the
period. A June 2001 IDG survey came to a similar conclusion, noting that B2B trade
in Brazil should near $2 billion in 2003. . Even in the B2C ecommerce slump of
August 2001, the larger US retailers were planning to invest in B2B to improve
customer service and supply chain management.

Benefits:

Encourage your businesses online

Products import and export

Determine buyers and suppliers

Position trade guides

C o ns u me r to Co n s u me r (C2 C )

C2C stands for Consumer to Consumer. It helps the online dealing of goods or
services among people. Though there is no major parties needed but the parties will
not fulfill the transactions without the program which is supplied by the online market
dealer such as eBay.

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 The introduction of the new economy has helped to create a very individualistic and
independent society. Consumers are no longer totally reliant on corporations and are
increasingly looking to conduct their own business transactions. This is evident in
Western Australia where the number of small businesses has doubled from 1983 to
1999 (Australian Bureau of Statistics, 2001). At the forefront of this movement are
Consumer-to-Consumer (C2C) applications within eBusiness. C2C applications are
any transactions between and amongst consumers (QUT School of International
Business, 2003, p. xv). They are often described as Peer-to-Peer (P2P) (QUT School of
International Business, 2003, p. xv). When eCommerce was first introduced, it
redefined the traditional structure of business by giving small firms and individuals the
same opportunity as multi-national corporations. As a result, many individuals
established online organizations that encouraged and assisted commerce between
consumers.

There are many sites offering free classifieds, auctions, and forums where
individuals can buy and sell thanks to online payment systems like PayPal where
people can send and receive money online with ease. eBay's auction service is a great
example of where person-to-person transactions take place everyday since 1995.
Companies using internal networks to offer their employees products and services
online--not necessarily online on the Web--are engaging in B2E (Business-to-
Employee) ecommerce.

G2G (Government-to-Government), G2E (Government-to-Employee), G2B

(Government-to-Business), B2G (Business-to-Government), G2C (Government-to-
Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve
transactions with the government--from procurement to filing taxes to business
registrations to renewing licenses. There are other categories of ecommerce out there,
but they tend to be superfluous.

The most famous and successful example of a Consumer-to-Consumer application

is Ebay. Ebay.com is an online auctioning site that facilitates the trade of privately
owned items between individuals (May, 2000, p.109). The website claims that through
Ebay, “practically anyone can trade practically anything� (Ebay, 1995-2004). The
company began in September 1995 when Pierre Omidyar decided to establish the first
online marketplace (Ebay, 1995-2004). Since that time, the company has continued to
grow both in size and popularity. Ebay is now considered one of the most successful
C2C e-Businesses ever.

Other examples of Consumer-to-Consumer applications are service and employment

websites such as Monster.com, Seek.com.au and CareerOne.com.au. These websites
provide a valuable service to consumers looking for jobs. Employers can advertise on
these websites and potential employees can contact their organization for an interview.

Web-based communication organizations are one final example of a C2C operation.

Sites such as Sastashopping.com ICQ.com and MSN.com act as a communications
medium for peer-to-peer deliberations. Although there is no commercial benefit to the

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website, they do provide the facilities for Consumer-to-Consumer exchange.

Consumer-to-Consumer applications are a growing area of eCommerce. As online

business expands, peer-to-peer transactions will continue to grow in popularity and the
industry will become highly profitable.

B US INE S S TO E MP LO Y E E (B 2 E )

B2E (Business to Employee) E-Commerce generally refers to the requisitioning of

supplies by employees for use in their jobs, but this really has grown to encompass much
more. For example, B2E makes it very easy for an employee to requisition a new toner
cartridge and printer paper - the order is entirely electronic, and supervisors are asked to
approved the requisition in the event that the total order exceeds preset limits for that
particular employee. However, B2E has grown into technologies that allow the
employee to access their employee records to update address information, shift
investments in the 401K plan, or maintain their internal resume. Many companies have
found that B2E technologies have dramatically reduced the administrative burdens with
the human resources department. Admittedly, maintaining employee information has
little to do with commerce, but this term has grown to encapsulate this activity into the
B2E definition.

The Complete Business-to-Everyone E-Business Solution.

Creative Web Store is a complete Web store solution that integrates closely and easily
with Creative Web Store End-to-End E-Business Solutions. This powerful package
provides businesses with powerful business-to-business (B2B) and business-to-consumer
(B2C) e-commerce capabilities in a single, robust, and easy-to-use business-to-everyone
(B2E) solution.

Creative Web Store makes your e-commerce transition easy by providing out-of-the-
box integration with your accounting system, adaptability to the way you do business
today, and flexible deployment options. And, of course, Creative Web Store offers all
the customization features you expect from a premier Web store solution.

C O NS U ME R TO BUS INE S S (C 2 B )

A consumer posts his project with a set budget online and within hours companies
review the consumer's requirements and bid on the project. The consumer reviews the
bids and selects the company that will complete the project. Elance empowers consumers

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around the world by providing the meeting ground and platform for such transactions

C2B is a rather peculiar Internet phenomenon. An example of C2B e-commerce could be

the following. A student wants to fly from London to New York, but has only £200
($320) in the bank to pay for this round trip. They put up an ad in an Internet C2B site,
seeking airlines that are willing to offer the transatlantic round trip for £200 or less. The
beauty of the Internet is that it brings together a large number of customers to create a
marketplace that a number of airlines (that will have to otherwise fly with empty seats)
will be interested in.

Many analysts state that C2B and C2C e-commerce will thrive in the near future. It is a
challenging task, however, to construct these e-commerce systems because of their
diverse nature. The existing EC construction tools, which usually focus on B2B and B2C
e-commerce schemes, were designed for constructing specific e-commerce systems,
making them unsuitable for developing consumer-initiated e-commerce systems. In this
paper, we propose a trading model that supports C2B and C2C e-commerce through the
use of digital media called “vouchers” and the trading system “VTS”. We show how the
introduction of vouchers simplifies the procedures of C2B and C2C e-commerce, and
show that vouchers, together with VTS, can be utilized to form a trading framework that
uniformly realizes the delivery/payment phase. We demonstrate that a wide range of
matching phase implementations, in which the characteristics of specific e-commerce
systems such as market coordination are implemented, can be integrated into this
framework.

P e e r to P e e r (P 2 P )

It is a discipline that deal itself which assists people to instantly shares related
computer files and computer sources without having to interact with central web
server. If you are going to implement this model, both sides demand to install the

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expected software so that they could able to convey on the mutual platform. This kind
of e-commerce has very low revenue propagation as from the starting it has been
tended to the release of use due to which it sometimes caught involved in cyber laws.

m -Bu s in e s s

It deals with conducting the transactions with the help of mobile. The mobile device
consumers can interact each other and can lead the business. Mobile Commerce
involves the change of ownership or rights to utilize goods and related services.

CHARACTERIZATION OF THE e-BUSINESS

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A company can be viewed as an entity providing products or services to clients with
the support of products or services of partners in a constantly changing environment.
The functioning of an enterprise can be roughly modeled in accordance with a set of
interacting functions, which are commonly classified in three categories:

Performance functions, which represent the core of its activity (core business),
i.e. the production of goods or services. They pertain to activities of production,
stock management, and purchasing (purchasing function);

The management functions, which cover all strategic functions of management
of the company; they cover general management of the company, the human
resources (HR) management functions as well as the financial and accounting
management functions;

The support functions, which support the performance functions to ensure
proper functioning of the enterprise. Support functions conver all activities related
with sales (in certain cases, they are part of the core business) as well as all
activities that are transversal to the organization, such as management of
technological infrastructures (IT, Information Technology function).

FRONT OFFICE & BACK OFFICE

The terms Front Office and Back Office are generally used to describe the parts of the
company (or of its information system) that are dedicated, respectively, to the direct
relationship with the client and proper management of the company.
The Front-Office (sometimes also called Front line) refers to the front part of the
entrepriser that is visible to the clients.
In turn, Back Office refers to all parts of the information system to which the final
user does not have access. The term therefore covers all internal processes within the
enterprise (production, logistics, warehousing, sales, accounting, human resources
management, etc.)

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 CONCLUSION 5
Market volatility makes understanding—let alone predicting strategic movements—
very difficult. Practicing managers, consultants, investors, and students all face the
problems associated with analyzing a dynamic market environment. As the
environment changes, it becomes important to ask the following fundamental
questions:

Do we understand the emerging business models?

Are we investing in the right business opportunities?

Are we attacking these opportunities using the right business model?

Are these opportunities ever going to be profitable?

In today's environment more than ever, managers of "old economy" companies need
the right tools to support and improve their effectiveness when making major strategic
moves, allocating scarce resources, and managing risk. Why? Because the large "old
economy" companies from consumer products to industrial manufacturing have begun
to see relatively small pieces of their markets taken away by new, Web-enabled firms.
As a result, they're waking up to the e-business threat (and opportunity) and have
started to push toward more efficient digital strategies based on optimizing customer
experiences, integrating their value chains, and accelerating information flow.

Clearly, we're in the early stages of a revolution that's changing the business
landscape. As with any revolution, there will be moments of extreme optimism when
the potential reveals itself; there will also be moments of extreme pessimism when
skepticism rules. However, one thing is certain. E-business.

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Advantages and Disadvantages of E-Business

 Advantages of E-Business
Whether on or off line, customers in today’s marketplace want quality products and
information in a quick and easy manner. I’ve typed it before and I’ll type it again, the
internet’s main benefit is that of speed and convenience. Therefore e-business, which
uses the internet as the core for business dealings, can help make a company more
customer-friendly in addition to many other things, such as creating a more efficient
exchange of information and/or products and services.

Worldwide Presence:-

This is the biggest advantage of conducting business online. A firm engaging in e-

business can have a nationwide or a worldwide presence. IBM was one of the first
companies to use the term e-business to refer to servicing customers and collaborating
with business partners from all over the world. Dell Inc. too had a flourishing business
selling PCs throughout the US, only via telephone and the Internet till the year 2007.
Amazon.com is another success story that helps people buy internationally from third
parties. Hence, worldwide presence is ensured if companies rethink their business in
terms of the Internet.

Cost Effective Marketing and Promotions:-

Using the web to market products guarantees worldwide reach at a nominal price.
Advertising techniques like pay per click advertising ensure that the advertiser only
pays for the advertisements that are actually viewed. Affiliate marketing, where
customers are directed to a business portal because of the efforts of the affiliate who in
turn receive a compensation for their efforts meeting with success, have emerged on
account of e-business. Affiliate marketing has helped both the business and the
affiliates. Firms engaging in e-business have managed to use cost effective online
advertising strategies to their advantage.

Developing a Competitive Strategy:-

Firms need to have a competitive strategy in order to ensure a competitive advantage.
Without an effective strategy, they will find it impossible to maintain the advantage
and earn profits. The strategy, that the firms can pursue, can be a be a cost strategy or
a differentiation strategy. For instance, till the year 2007, Dell Inc. was selling
computers only via the Internet and the phone. It adopted a differentiation strategy by
selling its computers online and customizing its laptops to suit the requirements of the

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clients. Thus, e-business resulted in Dell Inc. managing to capture a vast segment of
the market using the differentiation strategy.

Better Customer Service:-

E-Business has resulted in improved customer service. Many a times, on visiting a
website, the customer is greeted by a pop-up chat window. Readily available customer
service may help in encouraging the customer to know more about the product or
service. Moreover, payments can be made online, products can be shipped to the
customer without the customer having to leave the house.

Removes Location and Availability Restrictions:-

Users need not be in the same physical location as an e-business and the exchange of
information and transactions may take place at any given time, twenty-four hours a
day, seven days a week and from any location in the world with Internet access. A
physical location is restricted by size and limited to only those customers that can get
there, while an online store has a global marketplace with customers and information
seekers already waiting in line.
Reduces Time and Money Spent:-
In e-business, there is often a reduction in costs required to complete traditional
business procedures. Many of those same traditional business approaches can be
eliminated and replaced with electronic means, which are often easier to carry out as
well as easier on the pocketbook. For example, compare the cost of sending out 100
direct mailings (paper, postage, staff and all), to sending out a bulk e-mail. Also think
about the cost of paying rent at a physical location opposed to the cost of maintaining
an online site.
Heightens Customer Service:-
With e-business customers receive highly customizable service, and communication is
often more effective. There is far more flexibility, availability and faster response
times with online support. For example, think about the speed of e-mail inquiries and
live chat as opposed to getting on the phone, especially when that business is closed
for the day. There is also a faster delivery cycle with online sales, helping strengthen
the customer/business relationship. The internet is a powerful channel for reaching
new markets and communicating information to customers and partners. Having a
better understanding of your customers will help to improve customer satisfaction.
Gives a Competitive Advantage:-
The internet opens up a brand new marketplace to businesses moving online.
Competition via the internet is growing as the internet itself grows and waiting too
long to move online may cause you to lose your place in line entirely. Easy access to
real time information is a primary benefit of the internet, enabling a company to give

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more efficient and valid information and helping to gain the competitive advantage
over those that are not online.
Although there are risks associating with e-business, as with most business decisions,
there is also the risk associated with the inability to adapt to the changing times.
Change is inevitable in today’s marketplace and should be embraced with open arms
and open sites!

 Disadvantages of E-Business
Sectoral Limitations: The main disadvantage of e-business is the lack of growth in
some sectors on account of product or sector limitations. The food sector has not
benefited in terms of growth of sales and consequent revenue generation because of a
number of practical reasons like food products being perishable items. Consumers do
not look for food products on the Internet since they prefer going to the supermarket
to buy the necessary items as and when the need arises.

Costly E-Business Solutions for Optimization: Substantial resources are required for
redefining product lines in order to sell online. Upgrading computer systems, training
personnel, and updating websites requires substantial resources. Moreover, Electronic
Data Management (EDM) and Enterprise Resource Planning (ERP) necessary for
ensuring optimal internal business processes may be looked upon, by some firms, as
one of the disadvantages of e-business.

It's evident that the advantages clearly outweigh the disadvantages of e-business.
Every business has to eventually change its modus operandi and adopt e-business
practices in order to ensure survival and success.

Other problems are:-

● High Internet access costs, including connection service fees, communication fees,
and hosting charges for websites with sufficient bandwidth;
● Limited availability of credit cards and a nationwide credit card system;
● Underdeveloped transportation infrastructure resulting in slow and uncertain
delivery of goods and services;
● Network security problems and insufficient security safeguards;
● Lack of skilled human resources and key technologies (i.e., inadequate professional
IT workforce);
● Content restriction on national security and other public policy grounds, which
greatly affect business in the field of information services, such as the media and
entertainment sectors;
● Cross-border issues, such as the recognition of transactions under laws of other
ASEAN member-countries,certification services, improvement of delivery methods
and customs facilitation; and

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● The relatively low cost of labor, which implies that a shift to a comparatively
capital intensive solution (including investments on the improvement of the
physical and network infrastructure) is not apparent.

Starting your own e-business might sound easy, what with all the turnkey operations,
website building tools, and more, but there is a lot that must go into it if it is going to
be successful. Often times, the most difficult part of starting a successful e-business is
coming up with the idea. Because of the sheer number of websites already existing,
and the thousands upon thousands of new ones being created every day, it can be a
daunting task to try and come up with a good e-business idea. Here, we’ll go over the
process behind starting an online business of your own, what aspects go into the
creative process, and how to get your fledgling business off the ground.
While there are lots of online businesses for virtually every market out there, it is
possible to get ahead by putting a new twist on an existing idea, or providing a better
product or service in less time for less money. It is not crucial that your e-business
idea be completely original, but it is important that there be some way for it to stand
out from the sea of other, undoubtedly quite similar ideas floating around it.
When trying to consider possibilities for a new online business, take a look at existing
examples of highly successful online businesses. eBay, Amazon, eHarmony, and
similar sites all took a relatively simple idea, adapted it for the internet, and turned it
into a highly polished and efficient business. Are there any other relatively simple
ideas out there that could be commandeered and turned into an online business? What
can you offer online that currently cannot be found on the internet, or that you can do
better, cheaper, faster? Keeping these things in mind will help you ensure that your
business has an edge over the competition.
Another important aspect of making sure your e-business gets off the ground is to use
a variety of internet marketing strategies. Many online businesses use techniques such
as SEO (search engine optimization), affiliate marketing, and more in order to ensure
they get a large amount of traffic, thus increasing their customer base. If you want to
get ahead in the online business world, it is going to require a fair investment of time
and resources into first making sure you are noticed and taken seriously. By creating a
relatively unique and noticeable site you can take your ideas to their natural
conclusion as an online business.
It's evident that the advantages clearly outweigh the disadvantages of e-business.
Every business has to eventually change its modus operandi and adopt e-business
practices in order to ensure survival and success. So e-business is a better option to
promote or increase our business in this high-tech society.

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Bibliography 6

I have collected the Informations of my seminr report on e-business from different

sources.some sources are:

1)

Books Authors

Information management Dien D. Phan

e-commerce & e-business Zorayda Ruth Andam

2)

Internet

Web Address:

www.weeksupdate.com

www.homeshop18.com

www.indiaplaza.in

www.shopping.indiatimes.com

www.elsevier.com

www.google.com

www.bing.com

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