e-business

2Agenda• Evolution of E-business

• E-business & E-commerce

• E-business concepts and dimensions

• E-business Pressures & Risks

• E-business Benefits

3Evolution of e-business

How it started

• Electronic data interchange (EDI) - electronically transfer routine documents (application enlarged pool of participating companies to include manufacturers, retailers, services)

• 1970s: innovations like electronic funds transfer (EFT) - funds routed electronically from one organization to another (limited to large corporations)

• 1990s: the Internet commercialized and users flocked to participate in the form of dot-coms or Internet start-ups

4Evolution of e-business (cont.)

• 1997: Introduction of a brand new phrase – e-business

• 1999: The emphasis of e-business shifted from B2C to B2B

• 2001: The emphasis shifted from B2B to B2E, c-commerce, e-government, e-learning, and m-commerce

• 2004: Total online shopping and transactions in the United States between $3 to $7 trillion

• E-business will undoubtedly continue to shift and change

5Traditional Purchasing Process FlowTraditional Purchasing Process Flow

Source: ariba.com, February 2001.

6Evolution of e-business (cont.)

The Future

By 2008:• Number of Internet users worldwide should reach 750 million

• 50 percent of Internet users will shop

• E-business growth will come more from:• B2C, B2B, e-government, e-learning, B2E, c-commerce

7Stakeholders

E-Business relationships are formed with the following types of stakeholders:

• Internal stakeholders: Management and staff• Suppliers and manufactures• Customers• Intermediaries• Financial institutions• Web service providers• Associations• Web communities Etc.

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Major Players

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“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change”

Charles Darwin

“If you’re not changing faster than your environment, you are falling behind”

Jack Welsh, CEO of GE

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Electronic business or e-business is the use of ICT to improve business (from the use of email to facilitate administrative procedures in buying and selling through the Internet).

Electronic commerce or e-commerce is where business transactions take place via electronic communication networks, especially the Internet.

E-business and E-commerce

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The main difference between them is that e-commerce defines interaction between organizations and their customers, clients, or constituents. On the other hand, e-business is broader term that also encompasses an organization’s internal operations.

Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet, where e-Business describes the broadest definition of EC. It includes buying and selling of products and services, servicing customers, collaborating with business partners, and conducting other intra-business tasks.

E-business vs. E-commerce

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Three alternative definitions of the relationship between e-business and e-commerce

E-business and E-commerce

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Source: Choi et al. (1997), p. 18.

Dimensions of e-business/e-commerce

14Dimensions of e-business/e-commerce

• Pure vs. Partial: based on the degree of digitization of:- Product- Process- Delivery agent

• Traditional commerce: all dimensions are physical

• Pure e-business: all dimensions are digital

• Partial e-business: all other possibilities include a mix of digital and physical dimensions

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Business Models

B2BB2CC2BC2C

Others

G2CC2GG2G

16Risks involved in E-business

Failure in fulfillment system

Failure in customer service

Failure in legal compliance

Failure in Fraud Control

Failure in Technology

Establishing Trust

Negotiating a Deal

Payment & Settlement

Information Sharing

Soft Products

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Benefits of E-business Improved Customer Relation

Reach New Markets

Reduced Inventories

Reduced Overhead Costs

Optimum use of Resources

Improved Product Analysis

Improved Market Analysis

Enhance Human Capital

B2B tie-ups

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Task for the Day

Explore any one B2B & B2C siteNote down the features of each

Compare the difference

Also find one Indian G2C site

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That’s All For The Day !!!

Q&A

Conclusion