E-BUSINESS

The use of term E-Business was coined by IBM in October, 1997, when it launched a thematic
campaign built around the term. E-Business is changing the way of doing business. It
consolidates the major themes that have arisen from the area of electronic business and to
provide an understanding of its application and importance of to management.
The use of Internet and web technologies in business commonly known as e-business has
changed how marketers implement and enhance their business process and interact with their
environment.
Meaning:
Electronic business commonly referred to as e-business, or an internet business. It is the
process of buying and selling of goods or services through internet and also servicing
customers and collaborating with business partners.
Definition:
E -business is the transformation of key business processes through the use of internet
technologies. An e business is that a company adapt to constant and repeated change. The
development of intranet and extranet is part of e business.
E business is everything to do with back-end systems in an organization.
Ex: E-mail marketing, online system that tracks inventory and trigger alerts at specific levels,
a content management system (developer, editor, manager and publisher etc.)
Components of e-business:
1. Business intelligence
2. Customer relationship management
3. Supply chain management
4. Enterprise resource planning
5. Electronic fund transfers
6. Collaborating with others
7. Online activities
8. Buying and selling products and services
9. Communicating within organizations
10.Gathering information (on competitors, and so forth)
11.Providing seller support
12.Publishing and distributing information
13.Providing software update and patches
E-Commerce
E-commerce is the buying and selling of goods on the internet, complements traditional trade.
Now, technology has moved forward to next level of E-biz. E-commerce technology is
changing in a big way. It involves a lot, just as one aspect of e-commerce such as the internet,
requires extensive knowledge of web language like HRML, XML or Java. Further, there are
thousands of applications one has to know such as search engines, web servers,
communications and networking. All these are significantly different than the internal
technology structure of most organization.
Definition:
Electronic commerce is where business transactions take place via telecommunications
networks, especially the internet.
Electronic commerce is about doing business electronically.

History of E- commerce:
Origin of E-commerce is from Electronic Data Interchange (EDI) is a technology which is about
40 years old, it has not been successful. E-commerce may be dominated by the internet
rather than the EDI. The explosive growth of the internet during the late 1990s has created
the vision of e-commerce.
Evolution of E-commerce
In the 1970s, the term electronic commerce, referred to electronic data exchange for sending
business documents such as purchase orders and voices electronically. Later, with the
development of this industry the term of electronic commerce is used to business of goods
and services via the web. When the first World Wide Web was introduced in 1994 as a
comprehensive, many well-known researchers have been predicated this type of business the
web-based business will became soon an important in the world economy, but it took four
years that http based protocols should be widely available to users.
The first electronic commerce created in USA and some European countries in 1998. These
types of business are formed with beginner and unprofessional websites and it has been
expanded rapidly. Electronic commerce was spread rapidly in most cities in America, Europe
and East Asia in 2005. Some say dates of electronic commerce return to prior of the Internet,
but due to the costs of this style of business, only business and financial institutions and
corporations could use it. But with the widespread use of the Internet to all of the people and
change the structure of electronic commerce, this kind of business from specific business case
for a particular group out and became the industrial form.
Electronic commerce has been one of the most exciting developments following the internet
revolution. E-commerce basically uses the electronically networked information systems to
carry out potential commercial activity across the globe enabling times to generate business
in a big way.
Functions of Electronic Commerce
1. Communication function: Aimed at delivery information to facilitate business
transaction
2. Service management function: Covers the automation and improvement of business
process
3. Process management function: Application of technology to improve the quality of
service.
4. Transaction capabilities: Provide the ability to buy/sell on the online services.
The Impact of Electronic commerce
1. Marketing: Marketing through online.
2. Computer Science: Development of different network and computing technologies
3. Finance and Accounting: incorporates online banking, accounting and audit implication
4. Economics: impact on local and global economics
5. Production and Operations management: Production systems are integrated with
finance marketing and other functional system.
6. Manufacturing: web Based ERP can also be used to forward orders directly to designers
within seconds.
7. Management information system: This includes the analysis, design and
implementation ofe-business systems within an organization.
8. Human resource management: Issues of on-line recruiting, home working and people to
working on a project by project basis replacing permanent employees.
9. Business Law and Ethics: The different legal and ethical issues that have arisen as a
result of a global virtual market.

Characteristics of E-commerce Technology

1. Improved sales
2. Improved responsiveness
3. Efficient inventory management
4. Effectiveness and efficiency
5. Planning and execution of meetings
6. 24/7 service availability and global reach.
7. Universal standards
8. Interactivity and support
9. Information density
10.Personalization/ customization
ADVANTAGES AND DISADVANTAGES OF ECOMMERCE
The invention of faster internet connectivity and powerful online tools has resulted in a new
commerce arena Ecommerce. Ecommerce offered many advantages to companies and
customers but it also caused many problems.
ADVANTAGES OF ECOMMERCE
1. It can help increase profits; it can increase sales and decrease costs.
2. It can help organizations do business 7 days a week and 24 hours a day.
3. It can help organizations have customers all around the globe and not be limited to a
specific region.
4. It helps organizations bring higher return on advertisements, if managed properly.
5. It helps organizations identify new suppliers, partners and customers.
6. It increases flexibility and ease of shopping for the customer.
7. It can help in low operational cost.
8. It can provide personalized product and customer customization.
9. Shoppers are given a broader range of products to choose from online.
DISADVANTAGES OF ECOMMERCE
1. Security: the security risk in e-commerce can be Client / server risk
Data transfer and transaction risk
Virus risk
2. High startup cost: The various components of cost involved with e-commerce are: Connection: connection cost to the internet.
Hardware / software: this includes cost of sophisticated computer, moduer,
routers, etc.
Maintenance: this include cost involve in training of employees and maintenance
of web-pages.
3. Legal issues: these issues arises when the customer data is fall in the hands of
strangers.
4. Lack of skilled personnel: there is difficulty in finding skilled www developers and
knowledgeable professionals to manage and a maintain customer on line.
5. Loss of contact with customers: Sometimes customers feels that they does not
have received sufficient personal attention.
6. Uncertainty and lack of information: most of the companies has never used any
electronic means of communication with its customers as the internet is an unknown
mode for them.
7. Some business process may never be available to e-commerce: Some items
such as foods, high cost items such as jewellery may be impossible to be available on
the internet.
E-Commerce or Electronics Commerce business models

E-Commerce or Electronics Commerce business models can generally categorized in following

categories.

Business - to - Business (B2B)

Business - to - Consumer (B2C)

Consumer - to - Consumer (C2C)

Consumer - to - Business (C2B)

Business - to - Government (B2G)

Government - to - Business (G2B)

Government - to - Citizen (G2C)

Peer-to-peer (P2P)

Business - to - Business (B2B)

Website following B2B business model sells its product to an intermediate buyer who then
sells the product to the final customer. As an example, a wholesaler places an order from a
company's website and after receiving the consignment, sells the end product to final
customer who comes to buy the product at wholesaler's retail outlet.

Business - to Consumer (B2C)

Website following B2C business model sells its product directly to a customer. A customer can
view products shown on the website of business organization. The customer can choose a
product and order the same. Website will send a notification to the business organization via
email and organization will dispatch the product/goods to the customer.

Consumer - to - Consumer (C2C)

Website following C2C business model helps consumer to sell their assets like residential
property, cars, motorcycles etc. or rent a room by publishing their information on the website.
Website may or may not charge the consumer for its services. Another consumer may opt to
buy the product of the first customer by viewing the post/advertisement on the website.

Consumer - to - Business (C2B)

In this model, a consumer approaches website showing multiple business organizations for a
particular service. Consumer places an estimate of amount he/she wants to spend for a
particular service. For example, comparison of interest rates of personal loan/ car loan
provided by various banks via website. Business organization who fulfills the consumer's
requirement within specified budget approaches the customer and provides its services.

Business - to - Government (B2G)

B2G model is a variant of B2B model. Such websites are used by government to trade and
exchange information with various business organizations. Such websites are accredited by
the government and provide a medium to businesses to submit application forms to the
government.

Government - to - Business (G2B)

Government uses B2G model website to approach business organizations. Such websites
support auctions, tenders and application submission functionalities.

Government - to - Citizen (G2C)

Government uses G2C model website to approach citizen in general. Such websites support
auctions of vehicles, machinery or any other material. Such website also provides services like
registration for birth, marriage or death certificates. Main objectives of G2C website are to
reduce average time for fulfilling people requests for various government services.

Peer-to-peer (P2P)
Peer-to-peer (P2P) computing or networking is a distributed application architecture that
partitions tasks or workloads between peers. Peers are equally privileged, equipotent
participants in the application. They are said to form a peer-to-peer network of nodes.

Peers make a portion of their resources, such as processing power, disk storage or network
bandwidth, directly available to other network participants, without the need for central
coordination by servers or stable hosts.[1] Peers are both suppliers and consumers of
resources, in contrast to the traditional client-server model in which the consumption and
supply of resources is divided. Emerging collaborative P2P systems are going beyond the era
of peers doing similar things while sharing resources, and are looking for diverse peers that
can bring in unique resources and capabilities to a virtual community thereby empowering it
to engage in greater tasks beyond those that can be accomplished by individual peers, yet
that are beneficial to all the peers.