E-BUSINESS

U.KALPANADEVII – MBA

MICHAEL INSTITUTE OF MANAGEMENT

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.

E-BUSINESS

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

Direct Marketing, Selling, & Services

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

using the Internet to contact customers directly

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

Maintenance, Repair, & Operations (MRO)

MRO goods include – office suppliers, office equipment, furniture, computers, and replacement parts

The Internet can transform corporate purchasingfrom a labour and paperwork intensive processinto a self-service application

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

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

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)

E-Business Models

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

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)

• 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.

Business to Consumer ( B2C) Models

Service Industries – B2C

Electronic banking International and Multiple-Currency

Banking Online Securities Trading Online Job Market Travel Services Real Estate

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.

Who are online

buyers and

sellers?

Typical user is young, highly educated, urban or suburban, and affluent.

Demographics are shifting; there is decreasing difference in Internet purchasing habits among groups.

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

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

E-Business Challenges

Cost Value Security Leverage existing systems Interoperability

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)

Extended E-Business Models

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

Service Industries – B2C

Electronic banking International and Multiple-Currency

Banking Online Securities Trading Online Job Market Travel Services Real Estate

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.