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The objective of the course is to make the student understand the
latest trends in electronic business and the information technologyinvolved in running e-business
Unit1Introduction to E-Business Definitions Types of E-Business, Benefits of Business Limitations of E-Business Impact of E-Commerce Electronic Market
Structure
Business Model of Electronic Marketing
Procedure for Internet Shopping: Consumer PerspectiveAiding Comparison Shopping
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The Cycle of Electronic Commerce
Electronic Business includes the tasks that
support the buying and selling of goods and
services, and interactions among these tasks
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Definition of Electronic Commerce
Electronic Business is defined as the
conducting of business transactions over
electronic networks instead of paper,
telephones, couriers, tracks, planes and other
means of moving products and information.
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Definitions of E-Commerce
According to Lou Gerster, IBMs CEO E
Business is all about cycle time, speed,
globalization, enhanced productivity,
reaching new customers and sharing
knowledge across institutions for competitive
advantage.
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Why E-Business
Lack of time at public or Consumers
Flexibility in timings
Easy delivery at door steps Planning for payment
Safe Transactions
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Introduction to Electronic Business
According to Albert Gore Jr. We are on the verge ofa revolution that is just as profound as the change in
the economy that came with the industrialrevolution. Soon electronic networks will allowpeople to transcend the barriers of time and distanceand take advantage of global markets and businessopportunities not even imaginable today, opening upa new world of economic possibility and progress.
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Introduction to Electronic Business
Electronic commerce describes the manner in whichtransactions take place over networks, mostly the Internet.
It is the process of electronically buying and selling goods,services, and information. Certain Electronic commerceapplications, such as buying and selling stocks or books onthe internet, are growing at a rate of several hundredpercent every year.
Electronic Commerce could have an impact on significantportion of the world on businesses, professions, and ofcourse on people.
However, the impact of Electronic Commerce is not just thecreation of web-based corporations. It is the building of newIndustrial order.
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Components of Electronic BusinessElectronic Business
Networks
Corporate
Internet
Commercial
Institutions
Government
MerchantsManufactures
Suppliers
Consumers
Processes
Marketing
Sales
Payment
Fulfillment
Support
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The cycle of Electronic Business
Access
Follow on sales
Customer Online Ads Online order
Standard order
Distribution
Electronic customer
Support
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Disintermediation and Reintermediation by Electronic
Business
Eliminations of traditional intermediation is called
disintermediation. Incorporation of new electronic
intermediaries (such as Electronic-malls,electronic-
catalogues/directory, search engine services and product
selection agents) are called reintermediation
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Disintermediation and Reintermediation by Electronic Business
Manufacturer
Electronic
Intermediaries
On the Internet
consumer
Reintermediation
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Elements of E-Business
Direct to Consumer from Manufacturer
Electronic payment system
Negotiation at online Flexibility in Delivery of the product
Saving the time and cost
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Disadvantages of E-Business
Can not test the product
Disadvantage in Price and quality
Legal Problems and jurisdiction
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Disintermediation and Reintermediation by Electronic Business
Manufacture
Disintermediation
Consumer
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Disintermediation and Reintermediation by Electronic Business
Manufactures
Wholesaler
Distributor
Retailer
Consumer
Traditional
Intermediation
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Components of Electronic Business
Electronic Business can facilitate Internal department
interactions, improve customer relations and
eliminate the constraints of time and place.
A significant synergy has formed between the use ofdigital information, computerized business practices
and the Internet. This synergy is what enables
electronic commerce more efficient and effective
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Types of E-Business
a common Classification of E-Commerce is by the nature of transaction.
Business-to-consumers (B2C)
Business-to-business (B2B)
Consumer-to-consumer (C2C) Consumer to Business (C2B)
Non-Business EC
Intrabusiness (organizational) EC
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Types of EB (Continued)
Mobile Commerce (m-commerce)
refers to e-commerce that is conducted
in a wireless environment. i.e. using cell
phone to shop over the Internet Business model is the method by which
a company generates revenue to sustain
itself.
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Classification of Electronic Business Applications
Types of interorganizationalsystems.
Electronic Data Interchange (EDI), whichprovides secured B2B connection over Value-added-networks (VANs)
Extranets, which provide secured B2Bconnection over the Internet
Electronic funds transfer Electronic forms
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Types of Interorganisational systems
Integrated messaging delivery of e-mail and faxdocuments through a single electronic transmissionsystem that can combine EDI, e-mail, and electronicforms
Shared databasesinformation stored in repositoriesis shared between trading partners and is accessible toall.
Supply Chain Managementcooperation between a
company and its suppliers and/or customers regardingdemand forecasting, inventory management andorders fulfillment can reduce inventories, speedshipments, and enable just-in-time manufacturing.
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Classification of Electronic Business Applications
Interorganizational Systems (IOS)An IOS involves information flow among two or
more organizations. Its major objective is efficienttransaction processing. Such as transmitting orders,
bills, and payments using Electronic Data Interchange(EDI) or extranets.
Interorganizational systems are used exclusivelyfor Business to Business (B2B) applications, whereas
electronic markets exist in both the B2B and Businessto Consumer (B2C) cases.
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Interorganisational system
A typical IOS will include a company and its
suppliers and/or customers. Through IOS,
buyers and sellers arrange routine business
transactions. Information is exchanged overcommunications networks using prearranged
formats.
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Classification of Electronic Business Applications
What is internet, intranet and extranet?1. Computers connected to a global networked environment
known as the Internet.
1. Computers connected to a global networked environment
and its counterpart within organizations, called an intranet.An intranet is a corporate network that functions withInternet technologies, such as browsers, using Internet
protocols.
1. An extranet, a network that links the intranets of businesspartners over the Internet.
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Classification of Electronic Commerce Applications
Electronic Markets
Electronic Market is a network-based location where business
interactions occurs. Where information, products, services, and payments
are exchanged. The Electronic Market is place where shoppers and
sellers meet. The Electronic Market handles all the necessary
transactions, including the transfer of money between banks. In
Electronic Markets the principal participants are transaction handlers,
buyers, brokers, and sellers.
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Classification of Electronic Business Applications
Application of EC are divided into 3 categories
1. Buying and selling goods and services. These are usually
referred to as Electronic Markets
2. Facilitating Inter and Intra-organization flow of information.Communication and collaboration. These are sometimesreferred to as Interorganizational Systems (IOS).
3. Providing customer services.
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Business-to-Consumers (B2C)These are retailing transactions with
individual shopper. The typical shopper atAmazon.com is a consumer, or customer.
Woolworths of Australia with home shopping
site (www.woolworths.com.au) is designedwith freshness in mind and all the fresh foodis available for delivery.
http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/http://www.woolworths.com.au/7/29/2019 Introductiontoe Businessunit i 090816074152 Phpapp01
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Business-to-Consumers (B2C) cont
Electronic Storefront has its own URL at which
buyers can place orders.
Electronic Malls (Cybermall or e-mall) is a collection
of individual shops under one Internet address.
Referral malls in which you are transferred to a
participating storefront
Electronic shopping cartenables you to gatheritems from various vendors and pay for them in
one transaction.
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Business-to-business (B2B)
Most of Electronic Business
today is of this type. It includes the IOS transactions(An IOS involves information flow among two or more organizations.Its major objective is efficient transaction processing, such astransmitting order, bills and payments using Electronic Data Interchange
(EDI) and Electronic Market transactions between organizations.) Sell-side marketplaces are where organizations attempt to
sell their products or services to other organizationselectronically from their own private e-marketplace.
Buy-side marketplaces are where organizations attempt to
buy needed products or services from other organizationselectronically.
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Business-to-business (B2B) cont
E-Procurement is using electronic support to
purchase goods and materials, sourcing,negotiating with suppliers, paying for goods
and making delivery arrangements.
Group purchasing is when the orders of
many buyers are combined so that they
constitute a large volume.
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Consumer-to-Consumer (C2C)
In this category consumer sells directly to consumers.
Examples are individuals selling in classified ads(www.classified2000.com) and selling residential
property, cars and so on. Advertising personal services
on the Internet and selling knowledge and expertise is
an other example of C2C
http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/http://www.classified2000.com/7/29/2019 Introductiontoe Businessunit i 090816074152 Phpapp01
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Consumer to Business (C2B)
This category includes individuals who sell
products or services to organizations, as well
as individuals who seek sellers, interact with
them and conclude a transaction.
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Non-business Electronic Business
An increased number of non-businessinstitutions such as academic institutions,
non-profit organizations, religious
organizations, social organizations and
government agencies are using various types
of Electronic Commerce to reduce their
expenses. e.g. improve purchasing or to
improve their operations and customerservices
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Intrabusiness (organizational) EC
In this category we include all internal
organizational activities, usually performed
on intranets, that involve exchange of goods,
services or information. Activities can range
from selling corporate products to
employees to online training and cost-
reduction activities.
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BENEFITS OF ELECTRONIC Business
The global nature of the Technology, low cost,opportunity to reach hundreds of millions of people,interactive nature, variety of possibilities, andresourcefulness and rapid growth of the supporting
infrastructures (especially the web) result in manypotential benefits to:
1) Organizations
2) Consumers3) Society
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BENEFITS OF ELECTRONIC Business
Benefits to organizations
1) Provide opportunity to expends the marketplace tonational and international markets. With minimalcapital outlay, a company can easily and quicklylocate more customers, the best suppliers and most
suitable business partners worldwide.
1) Decreases the operating cost. EC decreases the costof creating, processing, distributing, storing, andretrieving paper-based information. For example, byintroducing an electronic procurement system,companies can cut the purchasing administrativecosts by as much as 85 per cent.
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BENEFITS OF ELECTRONIC BUSINESS
Benefits to organizations
Provide new platform for specialized business. Forexample, dog toys which can be purchased only in petshops or discount stores in the physical world, are soldnow in a specialized www.dogtoys.com
Reduces inventories and overhead by facilitating pulltype Supply Chain Management (SCM). In this system the
process starts from customer orders and uses Just-in-timemanufacturing. The pull-type processing enables
expensive customization of products and services whichprovides competitive advantage to its implementers. Aclass example is DELL Computer Corporation.
http://www.dogtoys.com/http://www.dogtoys.com/http://www.dogtoys.com/http://www.dogtoys.com/http://www.dogtoys.com/http://www.dogtoys.com/7/29/2019 Introductiontoe Businessunit i 090816074152 Phpapp01
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BENEFITS OF ELECTRONIC BUSINESS Benefits to organizations
Reduces the time between the outlay of capital and the receipt
of products and services.
Initiates business processes reengineering projects. By
changing processes productivity of salespeople, knowledge
workers and administrators can increase 100% or more.
Improved image, customer services, new-found business
partners, simplified processes, compressed cycle and delivery
time, increased productivity, eliminating paper, expediting
access to information, reduced transportation costs and
increased flexibility.
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BENEFITS OF ELECTRONIC BUSINESS Benefits to
consumers
1. No restriction on shopping time. EC enables customers toshop or do other transactions 24 hours a day, thought-out theyear and from almost any location.
2. Increased choices, EC provides customers with more choices:
they can select from many vendors and from move products.
3. Easy to get less expensive product or services. EC frequentlyprovides with less expensive products and services by
allowing them to shop in many places and conduct quickcomparisons.
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BENEFITS OF ELECTRONIC BUSINESS Benefits to
consumers
4. EC provides quick delivery of products (in case of digitized products)
5. Transformation of information from
manufacture or services provider to
customers in seconds of time, rather thandays or weeks.
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Benefits to Consumer
6. Provides customers to participate in virtualauctions.
7. Customers can interact with other customersin electronic communities and exchange ideasas well as compare experiences.
8. Facilities competition, which results insubstantial discounts.
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