about E- Business an emerging concept

1. E-BUSINESS
U.KALPANADEVI
I – MBA
MICHAEL INSTITUTE OF
MANAGEMENT

2. E-BUSINESS
 Is derived from the term E-COMMERCE.
 Is the conducting of business on the
Internet, not only buying and selling, but
also serving customers and
 collaborating with business partners.
 e-business also refers to online exchanges of
information.

3. The four main areas where companies
conduct business online
1. Direct marketing,
selling, and
services
2. Financial and
information
services
3. Maintenance,
repair, and
operations (MRO)
4. Intermediaries

4. Direct Marketing, Selling, & Services
using the Internet to contact customers directly
Key to success:
 Marketing – create site visibility and demand
 Sales – allow personalized content and
adaptive selling processes, integrate with back-office
 Services – automate customer service features
such as customer feedback, customer inquires,
tracking information, and customized services

5. Financial and Information Services
 Online banking
 Paying bills
 Making transfers between accounts
 Trading stocks, bonds, and mutual funds
 Online billing
 Internet-based bill delivery services saves
money
 Secure information distribution –
 Business can safeguard information

6. Maintenance, Repair, & Operations
(MRO)
The Internet can transform corporate purchasing
from a labour and paperwork intensive process
into a self-service application
 MRO goods include – office suppliers, office
equipment, furniture, computers, and
replacement parts

7. Intermediaries
 Intermediaries – agents, software, or
businesses that bring buyers and sellers
together that provide a trading
infrastructure to enhance e-business
 Reintermediation – using the Internet
to reassemble buyers, sellers, and other
partners in a traditional supply chain in
new ways

8. Intermediaries
 Portals -
Central hubs
for online
contents
 Market makers –
intermediaries that
aggregate three services
for market participants
 A place to trade
 Rules to govern trading
 An infrastructure to
support trading

9. E-BUSINESS MODELS
All e-business activities happen within
the framework of two types of business
relationships:
(1) the exchange of products and
services between businesses
(business-to-business, or B2B) and
(2) the exchange of products and
services with consumers (business-to-consumer,
or B2C)

10. E-Business Models

11. Business-to-Business (B2B) Models
 Business-to-business (B2B) – applies to
businesses buying form and selling to each other
over the Internet
 E-procurement – the B2B purchase and sale of
supplies and services over the Internet
 Systematic sourcing – involves buying through
prenegotiated contracts with qualified suppliers
 Spot sourcing – businesses buy transaction-oriented
commodity-like products and rarely
involves a long-term or ongoing relationship
between buyers and sellers

12. B2B exchanges are new organizational
forms in digital space that can take place in
the following:
 Buyer model (few buyers, many
sellers)
 Marketplace model (many buyers,
many sellers)
 Longer term relationship model
(few buyers, few sellers)
 Seller model (few sellers, many
buyers)

13. Business to Consumer ( B2C)
Models
• Business-to-consumer (B2C)
• E-tailing accounts for 4% of all U.S. sales.
• Growing at a rate of 18%.
• Services like banking and brokerage are key
aspects of e-tailing
• Many retailers have electronic storefronts.
• Growth of broadband is aiding e-tailing.

14. Service Industries – B2C
Delivery of services (buying an airline ticket or stocks) can
be done 100 percent electronically, with considerable cost
reduction potential. Therefore, online services is growing
very rapidly.
 Electronic banking
 International and Multiple-Currency
Banking
 Online Securities Trading
 Online Job Market
 Travel Services
 Real Estate

15.  Typical user is young, highly educated, urban or
suburban, and affluent.
 Demographics are shifting; there is decreasing
difference in Internet purchasing habits among
groups.

16. Consumer-to-Business (C2B)
 Consumer-to-business (C2B) – applies to
any consumer that sells a product or service
to a business over the Internet
 C2B facilitates the following:
 Social interaction
 Personal finance management
 Purchasing products and information

17. Consumer-to-Consumer (C2C)
 Consumer-to-consumer (C2C) – appliers
to sites primarily offering goods and services
to assist consumers interacting with each
other over the Internet
 C2C communities thriving on the Internet:
 Communities of interest
 Communities of relations
 Communities of fantasy

18. E-Business Challenges
 Cost
 Value
 Security
 Leverage existing systems
 Interoperability

19. Future Trends: E-Channels,
E-Portals, and E-Government
 e-channel – Web-based business channel
 e-portal – a single gateway through which to
gain access to all the information, systems, and
processes used by stakeholders of an
organizations
 e-government – the use of strategies and
technologies to transform government(s) by
improving the delivery of services and enhancing
the quality of interaction between the citizen-consumer
within all branches of government(s)

20. Extended E-Business Models

21. Specific e-business models as they relate to
e-government
 Consumer-to-government (C2G) –
constitutes the areas where a consumer (or
citizen) interacts with the government
 Government-to-business (G2B) – includes all
government interaction with business enterprises
 Government-to-consumer (G2C) –
governments dealing with consumers/citizens
electronically
 Government-to-government (G2G) –
governments dealing with governments
electronically

22. Service Industries – B2C
Delivery of services (buying an airline ticket or stocks) can
be done 100 percent electronically, with considerable cost
reduction potential. Therefore, online services is growing
very rapidly.
 Electronic banking
 International and Multiple-Currency
Banking
 Online Securities Trading
 Online Job Market
 Travel Services
 Real Estate