E-Business

Meaning

Electronic Business, commonly referred to as "eBusiness" or

"e- Business", may be defined as the utilisation of information and

communication technologies in support of all the activities of business.

Commerce constitutes the exchange of products and services between

businesses, groups and individuals and hence can be seen as one of the

essential activities of any business. Hence, electronic commerce or

eCommerce focuses on the use of information and communication

technologies to enable the external activities and relationships of the

business with individuals, groups and other businesses. 

E-business involves business processes spanning the entire value

chain:electronic purchasing and supply chain management, processing

orders electronically which involves online payments via credit cards or debit

cards, handling customer service, and cooperating with business partners.

Special technical standards for e-business facilitate the exchange of data

between companies. E-business software solutions allow the integration of

intra and inter firm business processes. E-business can be conducted using

the web, the Internet, or some combination of these. 

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Introduction

It is widely acknowledged today that new technologies, in particular access to the Internet, tend to modify communication between the different players in the professional world, notably:

relationships between the enterprise and its clients,

the internal functioning of the enterprise, including enterprise-employee relationships,

the relationship of the enterprise with its different partners and suppliers.

aThe 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) to improve their functioning in order to create value for the enterprise, its clients, and its partners.E-Business no longer only applies to virtual companies (called click and mortar) all of whose activities are based on the Net, but also to traditional companies (called brick and mortar).The term e-Commerce (also called Electronic commerce), which is frequently mixed up with the term e-Business, as a matter of fact, only covers one aspect of e-Business, i.e. the use of an electronic support for the commercial relationship between a company and individuals.The purpose of this document is to present the different underlying "technologies" (in reality, organizational modes based on information and communication technologies) and their associated acronyms.

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HistoryWith the advent of the World Wide Web (WWW), or the "web,"

traditional business organizations that had relied on catalog sales had a new sales vector. Other businesses found that the web was a good

place to put customer service information, such as manuals and drivers, as well as a place to help create a consistent corporate image. As the web developed, a number of Internet-based businesses developed,

including companies like eBay and Amazon, and web-based information repositories like eHow

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Features A company can be viewed as an entity providing products or

services to clients with the support of products or services of partners in a constantly changing environment. The functioning of an enterprise can be roughly modeled in accordance with a set of

interacting functions, which are commonly classified in three categories:

Performance functions, which represent the core of its activity (core business), i.e. the production of goods or services. They pertain to activities of production, stock management, and purchasing (purchasing function);

The management functions, which cover all strategic functions of management of the company; they cover general management of the company, the human resources (HR) management functions as well as the financial and accounting management functions;

The support functions, which support the performance functions to ensure proper functioning of the enterprise. Support functions conver all activities related with sales (in certain cases, they are part of the core business) as well as all activities that are transversal to the organization, such as management of technological infrastructures (IT, Information Technology function).

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Enterprises are generally characterized by the type of commercial relationships they maintain. Dedicated terms therefore exist to quality this type of relationship:

B To B (Business To Business, sometimes written B2B) means a commercial relationship business to business based on the use of a numerical support for the exchange of information.

B To C (Business To Consumer, sometimes wrritten B2C) means a relationship between a company and the public at large (individuals). This is called electronic commerce, whose definition is not limited to sales, but rather covers all possible exchanges between a company and its clients, from the request for an estimate to after-sales service;

B To A (Business To Administration, sometimes written B2A) means a relationship between a company and the public sector (tax administration, etc.) based on numerical exchange mechanisms (teleprocedures, electronic forms, etc.).

As an extension of these concepts, the term B To E (Business To Employees, sometimes written B2E) has also emerged to refer to the relationship between a company and its employees, in particular through the provision of forms directed at them for managing their carreer, vacation, or their relationship with the company committee.

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Risks of E-Business

Ecommerce is a fantastic way for businesses to connect with customers around the world in a way that has never before been possible. Yet, that is not to say that ebusiness does not have risks that entrepreneurs must be aware of before setting up a presence online. Security is the most obvious risk, as online merchants will be handling and storing sensitive information. However, a misunderstanding of the ecommerce world--how much time, money and planning it takes--is often the downfall of merchants as well. Finally, technology is key to securing the smooth transactions of ebusiness.

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E-Business Challenges

E-businesses are often highly valued due to their low start-up cost, which lessens the risk involved in owning and starting a business. Just as with traditional businesses, e-businesses are not without their risks---90 percent of all e-businesses will fail. Challenges in e-business can come in many forms, but understanding the potential challenges along the way can help any entrepreneur to be better prepared for potential pitfalls.

Cost

o A low start-up cost is the main benefit of an e-business---since many online businesses can be started for only a few thousand dollars, which compares considerably well against traditional storefronts that can be hundreds of thousands of dollars to invest in. All costs and charges, including the overhead costs of running and maintaining your website must be less than the money that you are making; therefore, proper money management is a key challenge to overcome.

Communities

o Many businesses now attempt to establish a more personal relationship with their customers. Many successful businesses reach out to customers through social networking sites, which keeps them up to-date on the current standing of the business. Other businesses maintain community blogs and forums---each of which can be very time consuming to new business owners.

Marketing

o Marketing is one of the core essentials of e-businesses that make them a success. It becomes a challenge for a business owner to market their services online, especially due to the seemingly overwhelming congestion of websites that are on the web. Understanding basics---such as SEO, PPC advertisements, and other media outlets to market to becomes a tedious job and sometimes will require the help of outsiders.

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Risk Sharing

o Although many think that e-business is relatively risk free---overcoming potential monetary risks can be a serious challenge if not addressed early in the business. Sole proprietorships--as well as partnerships---are held personally responsible for any debt that the business might incur. For this reason, many people address this challenge early and plan for potential hazards or create different types of businesses---such as LLCs---where the owner is not held personally liable.

Focusing

o Unlike in-person storefronts, e-businesses can be easily changed. The entire representation of the business can be altered within a day if desired. Many successful businesses constantly re-focus the image of their business as well as the layout of the web-pages---as they can directly affect people's willingness to buy. The layout of websites should be analytically tested to ensure that people can navigate your site successfully, which is one of the largest challenges of e-businesses.

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o Advantages of E-Business

The World Wide Web has dramatically changed the way corporations conduct business. This paradigm shift has made it paramount that company managers fully understand and appreciate the important advantages of E-Business technologies.

Website and Web-based Applications Having a website is a great way for businesses to educate their customers and help them

search for your products and services online before making purchases. In addition, with a website you can conduct business 24 hours seven days a week at your customer's convenience. Also, a business can subscribe to various Web-based applications that are helpful to your business like marketing intelligence or investment advisories. These types of e-business technologies can certainly be advantageous to any organization.

Web and Database Interface Another more advanced e-business technology is using the Web to integrate directly into

the companies own database. This opens a variety of applications that a business can create or have created. This can allow a business to better communicate with partners and affiliates as well as a better way to keep track of customers. This can provide huge advantages over competitors.

Email, Voice Broadcasts, and Integrated Text Messaging

Email allows an efficient way for companies to communicate both internally with fellow workers as well as externally with customers and business partners. In addition, companies take advantage of the e-business technologies of web-based integrated text messaging also referred to as SMS and text to speech allowing for voice broadcasts that are event-driven.

Using Search Engines for Business Research Finally, one of the more prevalent e-business technologies that companies around the globe

use to their advantage are search engines. They play a big role in how businesses gather knowledge that will help them better operate in their market space. Search engines like Google is a huge e-business technology advantage in most companies.

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Disadvantages of E-Business

A modern technology in the business world, e-businesses allow people to create companies that are functional in ways that traditional, physical businesses never were before. They allow people to start businesses cheaper, quicker and also allow access to customers across the globe. With all these benefits that e-businesses possess, there are some disadvantages which are worth taking into consideration prior to starting one.

People Standard businesses, for the most part, have always dealt with customers in-person. They

also normally have several employees that they come into contact with on a day to day basis. An e-business can leave you working alone, with only your computer for company. If you are a "people-person," having to spend your time away from others can be difficult in the long-run.

Time The same as other types of businesses, e-businesses take a significant amount of time to

become successful. E-businesses have been hyped up to be instant at generating money; however, owners can't be surprised if it takes a significant amount of time to become successful and profitable.

Sector Limits There are certain sectors that will be off limits to e-businesses for the most part. Many

business sectors are dominated by physical businesses and show very little change. The most notable examples are grocery stores and other food and drink industries.

Internet Technology A new set of disadvantages come with an e-business. Most notably, these businesses must

ensure that their website stays up and functional; this is the equivalent to a physical store staying open. If an Internet business goes offline due to technical issues, it can cost them profit; therefore, it's essential to either have the technical skills or have someone in your company that possesses the technical skills to keep the company functional at all times.

Trust In many people's minds, purchasing products over the Internet is still not as safe as

purchasing products in stores. Since people cannot see the person on the other end of the

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computer, they might have issues purchasing products---depending upon your product and sector. Lacking consumer's trust can significantly impact your sales and overall success.

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BenefitsBusiness of all sizes in all sectors are using the Internet in many different ways - to work with partners and suppliers, for procurement, for internal activities such as knowledge sharing and new product development, and

much more.

Companies such as United Technologies, J. Sainsbury, General Electric and many others are reporting benefits from the use of the Internet. These benefits include:

improved speed of response; cost savings; improved communications, information and knowledge sharing; reductions in inventory; improved efficiency and productivity; harmonisation and standardisation of procedures; better transfer of best practices; acquisition of new customers and increased sales; improved customer service.

However the benefits are achieved not by technology (which is an enabler) but by addressing strategy, technology, organisation, people and business processes as an integrated whole and making changes in all these dimensions. The Internet is just like other information technologies - change management, good implementation practices and clear business objectives are required in order to reap the full benefits.

Executives and managers can learn more by reading our e-business publications."Electronic Business: The Executive Guide" provides an introduction to the Internet and its potential. It is written for the benefit of non-specialists and avoids the use of jargon. No prior knowledge of the Internet is assumed. "E-business Strategy: Case Studies, Benefits and Implementation" is a much more detailed publication which is focused on both understanding and development of an e-business strategy. "E-business Strategy Tools: Practical Help for Executives" is a publication that provides a number of practical tools to help formulate an e-business strategy or to check/verify an existing strategy.

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Conclusion

In this paper, we have described the development, content, and

usage of a repository of reusable e-business components or building

blocks. The sources for this knowledge base are the e-business

initiatives within companies. We have modeled these building blocks to

be reusable across industries as well as functional areas with a firm.

This enables the application of proven e-business techniques to those

industries, functional areas or business processes that have not yet

benefited from it.The building blocks are modeled in terms of value

propositions delivered and capabilities required. This makes it possible

to hypothesize the ultimate value propositions of a potential initiative

designed from one or more building blocks. The required capabilities

for the building blocks lead to the identification of specific capabilities

that the firm must possess or else build or buy.

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