e-BUSINESS

What is eBusiness?
eBusiness is the integration of a company's business including products, procedures, and services over the Internet.

Electronic business
Definition
"e-business", may be defined as the application of

information and communication technologies (ICT) in support of all the activities of business

What is e-commerce?
Electronic commerce or "e commerce" covers the range of on-line business activities for products and services, both business to business and business to consumer, through the Internet.
Online Shopping

Online Purchasing

E-commerce vs. E-business

E-commerce the buying and selling of goods and

services over the Internet

E-business the conducting of business on the

Internet, not only buying and selling, but also serving customers and collaborating with business partners

E-Commerce & E-Business

E-Commerce is what you doE-Business is what you are

E-Business
Enterprise designed for success in the Information Age Creates new sources of shareholder value E-Commerce Building customer loyalty Marketing Optimizing business process Selling Creating new products and services Buying of products Managing risk and compliance and services on Reaching new markets the Internet Enhancing human capital Harnessing technology Achieving market leadership

Capabilities and Benefits of E-Business

Global Reach. Goods and services can be sold to

customers worldwide.
Personalization. Companies can customize products and

reduce inventory.
Interactivity. Customers and suppliers can negotiate

prices online.
Right-time and integrated marketing. Online retailers

provide products when and where customers want them and promotions can be directed to individual customers.
Cost savings. E-business can reduce costs.

Impacts of E-business

Economic Efficiency
Reduces cost of carrying out transactions
But, substitutes costs of building and maintaining the system

Network Effects
Email is more valuable if more people are using it
Growth can be explosive

Operational Efficiency
Extension of Electronic Data Interchange (EDI) Supply chain management Raw materials Assembly, manufacturing, packaging Distribution Retail Customer

Effects of Operational Efficiency

Disintermediation Cutting out some of the steps in the supply chain Theres also reintermediation (new middlemen)

Payment processing; product delivery; trust providers; etc.

Lowering communication costs May also lower inventories with just in time deliveries Enterprise resource planning (ERP) systems

Other Organizational Impacts

Channel conflict Retailers challenged by manufacturers
New markets New products New competition

E-Business Challenges (privacy)

Privacy is among the top concerns of Internet users.
E-business sites often require passwords and use

electronic signatures, an electronic form of identity verification. Companies can track customers shopping and viewing habits through cookies. Customers usually prefer that companies do not share their personal information. Merchants have responded by joining privacy organizations. Privacy protections may soon become legally required. Employees also have concerns that employers are monitoring their Internet behavior.

E-Business Challenges (Internet Fraud)

Internet Crime Complaint Center logs more than 200,000

complaints annually.
50% of the complaints referred to law enforcement

agencies deal with online auctions. Phishing is a growing form of Internet fraud that uses email or pop-up messages to get unsuspecting victims to disclose personal information.
Vishing, or voice phishing, involves phone calls to credit

card customers to obtain personal and banking information.

Payment fraud is growing.

E-Business Challenges (poor website design)

50% of shopping carts are abandoned before any purchase

is made.
Lack of Information Inability to find the information they need

Feeling overwhelmed by too much information

Companies that have brick-and-mortar experience often

have better success satisfying customers than Internet-only retailers.

Online sales can compete with business partners such as

retailers and distributors causing disputes called channel conflict.

Applications
Applications can be divided into three categories
Internal business systems Enterprise communication and collaboration: Electronic commerce

Internal business systems

Customer relationship management Enterprise resource planning Document management systems Human resources management

o Customer relationship management (CRM) is a

broadly recognized, widely-implemented strategy for managing and nurturing a companys interactions with customers, clients and sales prospects. o It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service and technical support

 Enterprise resource planning (ERP) is an

Integrated computer-based system used to manage internal and external resources, including tangible assets, financial resources, materials, and human resources. It is a software architecture whose purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders

 A document management system (DMS) is a

computer system (or set of computer programs) used to track and store electronic documents and images of paper documents. The term has some overlap with the concepts of content management systems

 Human resource management (HRM) is the

strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business.

Enterprise communication and collaboration:

VoIP content management system e-mail voice mail Web conferencing Digital work flows

 Voice over Internet Protocol (VoIP, Voice over IP)

is a general term for a family of methodologies, communication protocols , and transmission technologies for delivery of voice communications and multimedia sessions over Internet Protocol (IP) networks.

 A content management system (CMS) is the collection of

procedures used to manage work flow in a collaborative environment. These procedures can be manual or computer-based. The procedures are designed to: Allow for a large number of people to contribute to and share stored data Control access to data, based on user roles. User roles define what information each user can view or edit Aid in easy storage and retrieval of data Reduce repetitive duplicate input Improve the ease of report writing Improve communication between users

 Electronic mail, commonly called email or e-mail, is

a method of exchanging digital messages across the Internet or other computer networks. Email systems are based on a store and forward model in which email server computer systems accept, forward, deliver and store messages on behalf of users, who only need to connect to the email infrastructure, typically an e-mail server, with a network-enabled device for the duration of message submission or retrieval.

 Voicemail is a centralized system of managing

telephone messages for a large group of people. The term is also used more broadly, to denote any system of conveying voice message, including the answering machine.

 Web conferencing is used to conduct live meetings,

training, or presentations via the Internet. In a web conference, each participant sits at his or her own computer and is connected to other participants via the internet. This can be either a downloaded application on each of the attendees computers or a web-based application where the attendees access the meeting by clicking on a link distributed by e-mail to enter the conference.

internet shop supply chain management online marketing offline marketing

 Online shopping is the process whereby consumers directly

buy goods or services from a seller in real-time, without an intermediary service, over the Internet. If an intermediary service is present the process is called electronic commerce. An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or in a shopping mall The process is called Business-to-Consumer (B2C) online shopping. When a business buys from another business it is called Business-to-Business (B2B) online shopping. Both B2C and B2B online shopping are forms of e-commerce

 Supply chain management (SCM) is the

management of a network of interconnected business involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption

 Internet marketing, also referred to as i-marketing,

web-marketing, online-marketing or e-Marketing, is the marketing of products or services over the Internet Internet marketing is sometimes considered to be broad in scope because it not only refers to marketing on the Internet, but also includes marketing done via e-mail and wireless media. Management of digital customer data and electronic customer relationship management ECRM systems are also often grouped together under internet marketing.

Models
When organizations go online, they have to decide

which e-business models best suit their goals. A business model is defined as the organization of product, service and information flows, and the source of revenues and benefits for suppliers and customers. The concept of e-business model is the same but used in the online presence.

 The following is a list of the currently most adopted e-business

models such as: E-shops E-commerce E-procurement E-auctions Virtual Communities Collaboration Platforms Third-party Marketplaces Value-chain Integrators Value-chain Service Providers Information Brokerage Telecommunication

 Online shopping is the process whereby consumers

directly buy goods or services from a seller in real-time, without an intermediary service, over the Internet. If an intermediary service is present the process is called electronic commerce. An online shop, e shop, e-store, internet shop, web shop, web store, online store, or virtual store evokes the physical analogy of buying products or services at a bricks-andmortar retailer or in a shopping mall The process is called Business-to-Consumer (B2C) online shopping

 Electronic commerce, commonly known as e-

commerce or eCommerce, or e-business consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks

 E-procurement is the business-to-business or

business-to-consumer or Business-to-government purchase and sale of supplies, Work and services through the Internet as well as other information and networking systems, such as Electronic Data Interchange and Enterprise Resource Planning

 A reverse auction is a type of auction in which the

roles of buyers and sellers are reversed. In an ordinary auction, buyers compete to obtain a good or service, and the price typically increases over time. In a reverse auction, sellers compete to obtain business, and prices typically decrease over time.

 A virtual community is a social network of

individuals who interact through specific media, potentially crossing geographical and political boundaries in order to pursue mutual interests or goals. One of the most pervasive types of virtual community include social networking services, which consist of various online communities

 Collaboration platforms offer a set of software

components and software services that enable individuals to find each other and the information they need and to be able to communicate and work together to achieve common business goals. The core elements of a collaboration platform are messaging, team collaboration and real-time collaboration and

 The virtual value chain, is a business model

describing the dissemination of value-generating information services throughout an Extended Enterprise. This value chain begins with the content supplied by the provider, which is then distributed and supported by the information infrastructure; thereupon the context provider supplies actual customer interaction. It supports the physical value chain of procurement, manufacturing, distribution and sales of traditional company

 An information broker is a person or business that

researches information for clients. Common uses for information brokers include market research and patent searches, but can include practically any type of information research.

 Telecommunication is the transmission of messages,

over significant distances, for the purpose of communication. In earlier times, telecommunications involved the use of visual signals, such as smoke, semaphore telegraphs, signal flags, and optical heliographs or audio messages via coded drumbeats lung-blown horns or sent by loud whistles

Classification by provider and consumer

Roughly dividing the world into providers/producers and consumers/clients one can classify e-businesses into the following categories: business-to-business (B2B) business-to-consumer (B2C) business-to-employee (B2E) business-to-government (B2G) government-to-business (G2B) government-to-government (G2G) government-to-citizen (G2C) consumer-to-consumer (C2C) consumer-to-business (C2B)

 Business-to-business (B2B) describes commerce

transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

 Business-to-consumer describes activities of

businesses serving end consumers with products and/or services.

An example of a B2C transaction would be a person

buying a pair of shoes from a retailer.

 Business-to-employee (B2E) electronic commerce

uses an intrabusiness network which allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes.

 Business-to-government (B2G) is a derivative of B2B

marketing and often referred to as a market definition of "public sector marketing" which encompasses marketing products and services to various government levels - including federal, state and local through integrated marketing communications techniques such as strategic public relations, branding, marcom, advertising, and web-based communications.

 Government-to-Business is the online non-

commercial interaction between local and central government and the commercial business sector, rather than private individuals For example is a government web site where businesses can get information and advice on e-business 'best practice'.

 Government-to-Government is the online non-

commercial interaction between Government organisations, departments, and authorities and other Government organisations, departments, and authorities.

 Government-to-Citizen is the communication link

between a government and private individuals or residents. G2C communication most often refers to that which takes place through Information Communication Technologies (or ICTs), but can also include direct mail and media campaigns. G2C can take place at the federal, state, and local levels.

 Consumer-to-consumer involves the electronically-

facilitated transactions between consumers through some third party. A common example is the online auction, in which a consumer posts an item for sale and other consumers bid to purchase it

 Consumer-to-business (C2B) is an electronic

commerce business model in which consumers offer products and services to companies and the companies pay them This business model is a complete reversal of traditional business model where companies offer goods and services to consumers

 Business-to-business (B2B) describes commerce

transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer.

 E business is relevant and unavoidable factor in the

modern era

It has reduced the process of marketing

THANK YOU