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8/8/2019 Electronic Business(e Business)
http://slidepdf.com/reader/full/electronic-businesse-business 1/16
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` E-business is just business conducted over the
Internet.
` It is a more generic term than ecommerce
because it refers to not only buying and selling but
also servicing customers and collaborating with
business partners.
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` The term "e-Business" therefore refers to the
integration, within the company, of tools based on
information and communication technologies
(generally referred to as business software) toimprove their functioning in order to create value
for the enterprise, its clients, and its partners.
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E-business depends on many factors some of which are:
Type of Business - it should be suitable for the Internet
Competition - naturally, the less the competition the better
Customer Base - how many potential customers do you have,and are they the kind that is willing to pay money or not
Quality of the Website - you need an elegant and friendlywebsite that is hosted on fast and reliable servers
Quality of the Service - the satisfied customer will come again
and spend more money
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` Performance functions, which represent the core of its activity (corebusiness), i.e. the production of goods or services. They pertain toactivities of production, stock management, and purchasing.
` The management functions, which cover all strategic functions of management of the company; they cover general management of the
company, the HR management functions as well as the financial andaccounting management functions;
` The support functions, which support the performance functions toensure proper functioning of the enterprise. Support functions conver all activities related with sales as well as all activities that aretransversal to the organization, such as management of technologicalinfrastructures
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` TYPES OF E-BUSINESS
`
B To B (B
usiness ToB
usiness):it is that business
activity in which 2 firm or business units make electronictransaction in which 1 can be a producer firm and other areraw material supplier firm.
` B To C (Business To Consumer ) :1 party is the firm
and other party is a customer.
` B To A (Business To Administration,) means arelationship between a company and the publicsector (tax administration, etc.) based onnumerical exchange mechanisms (teleprocedures,electronic forms, etc.).
` .
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` B To E (Business To Employees) has also emergedto refer to the relationship between a company andits employees, in particular through the provision of
forms directed at them for managing their carreer,vacation, or their relationship with the companycommittee
` intra B commerce:
under this, the parties involved are 2 persons or departments of some business unit.
C to C commerce:under C to C commerce, both the parties involved
are customers. it is required for buying and selling of those goods for which there is no established marketsare available.
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` 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
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` ACCOUNTS/BILLING
` INVENTORY CONTROL
` PROCUREMENT
` HR` MARKETING
` CRM
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` ACCOUNTS/BILLING
Accounts and billing information can be made
available over the internet to customers andsuppliers and orders and payments generated
electronically.
` INVENTORY CONTROL
Systems can be open ended so that both the
supply and demand ends of the supply chain have
a clear view of data. Information flows more freely,
and collaborative forecasting supports automatic
replenishment processes
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` PROCUREMENT
There are two views ± e-procurement, a web-
based system for internal purchasing andprocurement and i-procurement, a web-basedsystem connected to the outside systems of vendors to automate procurement
` HR
Intranets will give people access to staff information and web-enabled HR applicationsreduce the amount of paperwork previously
required to complete HR functions likereimbursements.
and payment.
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` MARKETING
Marketing departments can be linked to theweb-enabled systems of sales and supply areas,
and with the systems of major partners and
vendors.
` CRM
Customers will provide and keep updated their
own information if there is an e-business
mechanism - like a website - that acts as an entrypoint for that information
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` W orldwide Presence: A firm engaging in e-business can have
a nationwide or a worldwide presence. Example: Amazon.com.
` C ost Effective Marketing and Promotions: Using the web tomarket products guarantees worldwide reach at a nominalprice.
` Developing a C ompetitive Strategy: Firms need to have acompetitive strategy in order to ensure a competitiveadvantage. Without an effective strategy, they will find itimpossible to maintain the advantage and earn profits.
` Better Cu stomer Service
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` Sectoral Limitations:The main disadvantage of e-business is the lack of growth
in some sectors on account of product or sector limitations. For example food sector.
C ostly E- Bu siness Sol u tions for Optimization: Substantial resources are required for redefining product
lines in order to sell online. Upgrading computer systems,training personnel, and updating websites requires substantialresources.Moreover, Electronic Data Management (EDM) andEnterprise Resource Planning (ERP) necessary for ensuringoptimal internal business processes may be looked upon, by
some firms, as one of the disadvantages of e-business.
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