PRESENTATION ON ANALYSIS OF IMPACT OF

E-BUSINESS ON DIFFERENT INDUSTRY SECTORS

Presented By:Rohit Bhabal

Table Of ContentsSection I: Introduction

1.E-business Concept

2.E-Business Model

3.Goals and Objectives of E-business

Section II: Theoretical View

1.E-business Concept and Market Research

2.Value Delivery through Integration of Activities

3.Front-End and Back-End System

4.E-Business Environment and Strategies

5.E-business Strategy and performance Model

6. Impact of E-business on Manufacturing Industry

6.1 Impact of E-business on Automobile Industry

6.2 Impact of E-business on Pharmaceutical Industry

6.3 Impact of E-business on Machinery and Equipment Industry

6.4 Impact of E-business on Petroleum Industry

6.7 advantages of E-business for Agriculture Industry

7. Impact of E-business on Retail industry

8. Impact of E-business on Service Industry

8.1 Impact of E-business on Telecom Industry

8.2 Impact of E-business on Airline Industry

8.3 Airline Management System

8.4 Airline E-Ticket

8.5 Impact of E-business on Medical Industry

8.6 Healthcare Products Distribution System

8.7 Impact of E-business on Education Industry

8.8 Education Industry Model

8.9 Impact of E-business on Real Estate Industry

8.10 Real Estate Model

8.11 Impact of E-business on Hospitality Industry

8.12. Impact of E-business on Transport Industry

8.13. Rail E-business Process

8.14. The Role of Information in Transport

Section III: Methodology of The Study

1.Analysis of Problem

2.Data collection

3.Analysis

4.Percentage of Responses given by Employees for given factors (Table)

5.Percentage of Responses given by Employees for given factors

(diagram)

Section IV: Conclusion

Section V: Bibliography

Section I: Introduction

E-business Concept

Goal and Vision

OpportunityProduct/Offering

Sources of Revenue

The Market

E-business (electronic business) is the conduct of business processes on the Internet. A successful concept is based on a market analysis that identifies customers likely to purchase the product and how much they are willing to pay for it.

E-Business Model

E-business Concept

Value Proposition

Activities, Resources and

Capabilities

Sources of Resources

Goals and Objectives of E-business

The E-business concept should be based, in part, on goals such as "become

a major car seller, bank, or other commercial enterprise", and "to become a

competitor to some of the well-known firms in each of these industries."

Objectives are more specific and measurable, such as "capture 10% of the

market", or "have $100 million in revenues in five years." Whether these

goals and objectives are realistic or not, and whether the company is

prepared to achieve these goals is addressed in the business plan process for

startup firms and in the implementation plan for an existing firm that is

considering a significant change.

Section II: Theoretical

View

E-business Concept and Market Research

The selection and refinement of the business concept should be integrally

tied into knowledge of the market it serves. In performing market research

care must be taken to account for the global reach of the Internet for both

customers and competitors.

But most important is to truly understand what the market is, who

comprises it, and what do they want.

Price: Pricing is an important part of the E-business concept and should be

established on the basis of market research. Price is often set with an eye

on the competition and can have a direct effect on market share.

Value Proposition: A value proposition may include one or more of

the following points:

• Reduced prices

• Improved service or convenience such as the "1 click" checkout

• Speed of delivery and assistance

• Products that lead to increased efficiency and productivity

• Access to a large and available inventory that presents options for

the buyer

Value Delivery through Integration of Activities

The integration of systems inside and outside the organization can provide

value for both customers and the organization. One of the requirements

for E-business is to link front-end with back-end systems in order

automates the online operations of the organization.

Front-End and Back-End System

Order Processing Order Placement

Customer History

Inventory Shipping

Shopping Cart

CRM

Back-end System Front-end SystemE.g. (Data Driven System) E.g. (Web-Based System)

Front-end activities deal directly with the customer while back-end systems include all of the internal support activities that do not deal directly with the customer.

E-Business Environment

E-Business

Competitor

Partners

Customer/Client

Communities

Legal/Regulator

Technology

Economic Forces

Work Forces

The environment of any organization consists of all of the factors that are beyond its control, but influence it in one way or another.

E-business Environmental Strategies

A. The Competitive Environment and Strategies: The competitive

environment is sometimes known as the industry environment, results from

relationships with other firms.

1. First Mover Advantage: A strategy that has been used by some dot-com

companies is the first mover advantage, that is, to be the first to serve a new

online market.

2. Second Mover Advantage: In some traditional sectors, such as real estate

development, being a first mover is often shunned as too risky, and the second

mover advantage is sought.

3. Maintain and Improve Competencies: One obvious strategy is to develop the

capabilities, and to build and maintain competencies in order to keep an

advantage over other firms.

B: The Technology Environment and Strategies: Technology plays an important

role in E-business and must be tracked closely. It can shift very quickly and greatly

disrupt an unprepared company.

1. Disruptive Technologies: When a new technology creates a different approach

to performing a task that is less costly, more efficient, or otherwise relatively

advantageous and displaces existing technology, it is known as a disruptive

technology.

C: The General Environment and Strategies: The general environment contains

those factors that face most businesses: laws and regulations, the economic climate,

and worker availability.

1. Laws and Regulations: New laws and regulations may have unexpected effects

on E-business, especially in the areas of privacy, patents and other intellectual

property.

E-business Strategy and performance Model

Impact of E-business on Manufacturing

Industry

E-business Application in Manufacturing Industry Facilitates:•Collaboration with Partners•Procurement of Material•Transportation•Warehousing•Production Planning and Control•Electronic Buying and Selling of Products

:

Impact of E-business on Pharmaceutical Industry

Impact of E-business on Machinery and Equipment

Industry

Impact of E-business on Petroleum Industry

Advantages of E-business on Agriculture Industry

Impact of E-business on

Retail industry

E-business could help retailers to reduce costs related to commercial

transactions; e-procuring via marketplaces or buying groups would open up

cost advantages to small retailers. Today, major corporations are rethinking

their businesses in terms of the Internet and its new culture and capabilities.

Companies are using the Web to buy parts and supplies from other

companies, to collaborate on sales promotions, and to do joint research.

Exploiting the convenience, availability, and world-wide reach of the

Internet, many companies, such as Amazon.com, flipkart.com, ebay.com,

have already discovered how to use the Internet successfully.

Impact of E-business on

Service Industry

E-business Application in Service Industry

Facilitate: E-banking, E-Supply chain

Management, E-Customer Relationship

Management, E-warehousing, E-Learning,

E-Human Resource Management, E-commerce,

E-Money Transfer, E-communication,

E-Airline Management, E-Healthcare etc.

Impact of E-business on Telecom Industry

The Indian Telecommunications network with 203 million connections is

the third largest in the world and the second largest among the emerging

economies of Asia. Today, it is the fastest growing market in the world.

This rapid growth has been possible due to various proactive and positive

decisions of the Government and contribution of both by the public and the

private sector. The rapid strides in the telecom sector have been facilitated

by liberal policies of the Government that provide easy market access for

telecom equipment and a fair regulatory framework for offering telecom

services to the Indian consumers at affordable prices.

Impact of E-business on Airline Industry

The advancement of information technology helps airlines industry to reach

global markets. In fact, it brings a fundamental change to airlines industry in

term of distributions channel.

E-Commerce in Airline Industry: For online retail selling, the term e-tailing

is sometimes used. Airlines have been heavily invested in technology for years.

The introduction of the computerized reservations system in 1962 allowed the

airlines to have real-time data on the number of seats available on any given

flight.

Starting 1990s Airlines quickly started employ online sales channels. They

already had the infrastructure of mainframes and the knowledge of data

collection, so the transition to online was a natural one.

Proposed Schedules

Final Schedule

Fairs and Restrictions

Avaibility Controls

Fleet Assignment

Model

Yield ManagementPricing

Airline Profitability

Model

Shipping and Booking Data

Global Distribution System

Sales ChannelAirline Management

System

Airline E-Ticket

Impact of E-business On Medical Industry

During the early 20th century, the development of medicine changed

drastically. What was a possible cause for this major shift in thinking was

the rejection of the traditional way of thinking and approach to science. In

spite of strong resistance from some, many open-minded individuals led the

way in improving or rejecting the old theories of the past. Much has

changed since then, due to the advancement in technology, doctors, clinics

and hospitals are able to save and review a patient’s full medical history. It

gives doctors an early start on what to look for in a patient.

Healthcare Products Distribution System

Purchasing Group

Pharmaceutical Manufacturer

Healthcare Financing

Administration(Medicare)Medical Fiscal

Intermediaries& Carrier

Medical/Surgical Manufacturer

Wholesale Drug Distributor

Claims Payers Indemnity Managed

Care Self-Insured

E-Medical Companies

Medical/Surgical Distributor

Medicaid

Medicaid Processers

Self-Pay

Healthcare Products Distribution System

Impact of E-business on Real Estate Industry

Real estate area with great potential development, the main function of

e-commerce is that it can greatly simplify merchandise trade links,

so that the transaction process can become simple. In terms of other

commodities, the largest shortage of e-commerce is difficult to solve their

lack of logistics. As far as real estate products concerned, the logistics

problem does not exist as they are with special attributes, and information

flow and money flow are the main problems. Therefore, e-commerce in

real estate transactions has huge potential and obvious advantage.

Real Estate E-business Model

Procurement Center

Electronic Market

Small and Medium Real Estate Enterprise 1

Large Real Estate Enterprise 2

Large Real Estate Enterprise 1

Large Real Estate Enterprise

Small and Medium Real Estate Enterprise 2 Small and Medium

Real Estate Enterprise

Supplier 1

Supplier 2

Supplier

Supplier 3

Impact of E-business on Banking Industry

In the BI, all the main purposes for the use of ICT and E-business are highly

relevant, as companies in the BI use ICT to reduce costs by increasing

process efficiency, to improving and innovating customer relationship

management strategies, to better serve the customers by developing new

products and services to meet customer’s needs, and enabling growth by

increasing market reach, either by acquiring companies with innovative ICT

skills or by using ICT to smoothen mergers and acquisitions. For

implementing E-business facilities, the BI must have to empower the work

force by appropriate investments in training and skill-formation, which is

very important.

Internet Banking Mobile Banking

Impact of E-business on Education Industry

The benefits of E-business can be realized in the education sector. These strategic

business issues include: • Identifying the customer service imperative for E-

business for each organization involved in an E-business initiative;

• Appreciating the advantages and disadvantages of incremental implementation of

E-business versus a wholesale implementation;

• Examining other organizations’ cost benefit analyses for their E-business

initiatives and developing a cost benefit analysis for one’s own organization;

• Understanding the value of national, integrated approaches to E-business in

education versus local initiatives in E-business;

• Understanding the need to develop user support systems, to underpin E-business

developments;

E-business in Education Industry Model

BACK OFFICE SUPPLY

CHAIN

FRONT OFFICE

Examples:Computer Supplier,

Stationary Supplier,

Material Supplier

Examples: Finance unit, HR unit,

Marketing unit, Procurement unit, Stores unit

Examples:Learning delivery

unit, Customer relation unit

Impact of E-business on Hospitality Industry

The hospitality industry has followed the trend of Internet application in

recent years, and sometimes even gaining its own name of Internet

application - called "e-traveling" referring to all travel related business

transactions now completing through Internet applications. Some key issues

addressed in the recent literature about the e-traveling include: customer

acceptance and satisfaction, services rendered, value added for both the

travel businesses and consumers, privacy concerns, profitability,

operational risks, and competition from traditionally non-traveling firms.

Impact of E-business on Transport Industry

Improving performance of computers and communications technologies

are now starting to have a significant impact on the urban public transport

industry. Automatic data collection systems including automatic vehicle

location systems, automatic passenger counting systems, advanced

passenger information systems and electronic fare payment and ticketing

systems are becoming ubiquitous in large systems and are having an

impact on the quality and availability of information for service and

operations planning, controlling the service and measuring the resultant

service quality delivered to passengers.

CONSIGNER CONSIGNEEDrivers with web enabled Cell Phone

Pick up

Haulage 1 Haulage 2INTERMODAL

Intermodal Term Operator

Intermodal Term Operator

RU 1

IM 1

IM 2

IM 3

RU 2

RU 3

Rail E-business Process

The Role of Information in Transport

Section III: Methodology of The Study

Problem Area Analysis

In order to participate in the new online business environment, businesses

have had to make significant financial investments, not only in the necessary

technologies but also in the processes and people necessary to operate them.

Whether evaluating E-business investment proposals or monitoring the

resulting online business operations requires the existence of an appropriate

measurement of the effect of E-business on corporate performance. The

unique characteristics underlying the Web may in some cases require new

metrics or at least the careful evaluation of the E-business implementation

including their impact on the corporate performance as compared to the

previous traditional systems.

Data Collection

This study examines the impact of E-business

on different industry in Maharashtra state.

Target Populations: This research is exploratory research in nature since it attempts to

find out the qualitative factors such as effectiveness, efficiency and other attributes on

the corporate performance reference to different industry sector in Maharashtra.

Sample Size: The survey includes approximately 50 different industry sector’s

professionals handling E-business from four different industry sector’s (both public and

private sectors).

Primary Data: Survey questionnaire was administered to empirically assess the level

of adoption of E-business in Maharashtra. A survey questionnaire will be completed by

the different industry sectors of the society, employees and customers of the respective

different industry sectors.

 Secondary Data: The secondary data is obtained through the Net, books and related

journals.

Analysis

To find out the impact of E-business on different

industry sectors, data collected through telephonic

interview and questionnaire has been interpreted as

follows:

 

Percentage of Responses given by Employees for given factors (Table)

Attributes Factors on which E-business facilities are measured

Industry Employee Responses

YES NO

A1 Improving customer service 96% 4%

A2 Speed and efficiency 86% 14%

A3 Increased market share 82% 18%

A4 Improvement in Productivity 84% 16%

A5 Increment of sales 94% 6%

A6 Improvement in internal and external communication

100% 0%

A7 Lower cost of doing business 80% 20%

A8 Marketing and market access 90% 10%

Percentage of Responses given by Employees for given factors (Diagram)

YES

Section IV: Conclusion

E-business brings the merchandise information to the online consumer's

home wherever they are. The choice available through E-business to the

consumer is enormous. Usually visiting a store physically means trek

around, looking for the item consumer wants. E-business made it easy for

the consumer to access the stores online to find their relevant item.

Online shopping websites like amazon.com illustrate how E-business

provides the consumer vastly increased verity of products available 24/7,

both physical goods as well as services.

Section V: Bibliography

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