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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History
With 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
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at them for managing their carreer, vacation, or

their relationship with the company committee.

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
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as well. Finally, technology is key to securing the smooth

transactions of ebusiness.

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
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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.

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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Advantage
s 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

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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.

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
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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
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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Benefits
Business 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
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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.

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 ebusiness
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

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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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