E-COMMERCE & E-BUSINESS

AMAZON.COM???


Worlds biggest online bookstore



Who is the founder and CEO of
AMAZON.COM?

Jeffrey Bezos






Its Business is its technology;
its technology is its business.
About Bezos.
Bezos graduated from Princeton and was the
youngest vice president at Bankers Trust in
New York. He had to decide if he would stay
and receive his 1994 Wall Street bonus or
leave and start a business on the Internet. I
tried to imagine being 80 years old, looking
back on my life. I knew that I would hardly
regret having missed the 1994 Wall Street
bonus. But having missed being part of the
Internet boom-that would have really hurt,
stated Bezos.
About Bezos.
One evening he compiled a list of 20 products
he believed would sell on the Internet. Books,
being small-ticket items that are easy and
inexpensive to ship, were on the top of the list. It
was also apparent that no book store could
conceivably stock more than a fraction of the 5
million books published annually. Bezos, who
had never sold a book in his life, developed a
strategic plan for selling books on the internet.
Amazon launched three years later. In the fall of
1994, Amazon filled its first book order
personally packaged by Bezos and his wife.
Amazons E-Business Strategy
Does not operate any physical stores.
Consistently pushing the technological envelope
in its search to provide a satisfying, personalized
experience for its customers.
Computer-generated recommendation engine
morphed from human-edited list of product
suggestions.
The comments and recommendations of buyers
are captured for site visitors to read (similar to the
friendly salesperson in a store offering advice on
which books to buy)
Amazons E-Business Strategy
Tracks customer traffic, the no. of visitors, time
of their stay, pages they click on, and so forth
and uses the information to evaluate buying
and selling patterns and the success of
promotions.
Personalized recommendations
Online customer reviews
1-click ordering
Amazons E-Business Strategy
A free web service for its associates where
they can access catalog data, to create and
populate an Amazon.com shopping cart and
even to initiate the checkout process. This has
inspired 30,000 associates to invent new ways
to extend Amazons visibility on the internet.
The two terms.
E -business and e-commerce are terms that
are sometimes used interchangeably, and
sometimes they're used to differentiate one
vendor's product from another. But the terms
are different.
In both cases, the e stands for "electronic
networks" and describes the application of
electronic network technology - including
Internet and electronic data interchange (EDI)
- to improve and change business processes.
In simple terms,
E-commerce is the buying and selling of
goods and services over the internet. It refers
only to online transactions.

E-business, derived from e-commerce, is the
conducting of business on the internet, not
only buying and selling, but also serving
customers and collaborating with business
partners.
The primary difference between e-commerce
and e-business is that e-business also refers
to online exchange of information. For
example, a manufacturer allowing its supplies
to monitor production schedules or a financial
institution allowing its customers to review
their banking, credit card, and loan accounts.
E-Commerce
E-commerce covers outward-facing processes
that touch customers, suppliers and external
partners, including sales, marketing, order
taking, delivery, customer service, purchasing
of raw materials and supplies for production
and procurement of indirect operating-expense
items, such as office supplies. It involves new
business models and the potential to gain new
revenue or lose some existing revenue to new
competitors.
It's ambitious but relatively easy to implement
because it involves only three types of
integration: vertical integration of front-end
Web site applications to existing transaction
systems; cross-business integration of a
company with Web sites of customers,
suppliers or intermediaries such as Web-
based marketplaces; and integration of
technology with modestly redesigned
processes for order handling, purchasing or
customer service.
E-Business
E-business includes e-commerce but also
covers internal processes such as production,
inventory management, product development,
risk management, finance, knowledge
management and human resources.
E-business strategy is more complex, more
focused on internal processes, and aimed at
cost savings and improvements in efficiency,
productivity and cost savings.

An e-business strategy is also more difficult to
execute, with four directions of integration:
vertically, between Web front- and back-end
systems; laterally, between a company and its
customers, business partners, suppliers or
intermediaries; horizontally, among e-commerce,
enterprise resource planning (ERP), customer
relationship management (CRM), knowledge
management and supply-chain management
systems; and downward through the enterprise,
for integration of new technologies with radically
redesigned business processes.

But e-business has a higher payoff in the form
of more efficient processes, lower costs and
potentially greater profits.
Goals of E-BUSINESS
E-Business enables organizations to accomplish
the following goals:-
1) Reach new markets
2) Create new products or services
3) Build customer loyalty
4) Enrich human capital
5) Make the best use of existing & emerging
technologies.
A more complete definition is:
E-commerce is the use of electronic
communications and digital information
processing technology in business transactions
to create , transform and redefine relationships
for value creation between or among
organizations and between organizations and
individuals.
From a communication perspective, it is the
ability to deliver products, services, information,
or payments via networks like the internet.
From an interface view, e-commerce means
information and transaction exchanges: B2B,
B2C, C2C, and B2G.
As a business process, e-commerce means
activities that support commerce electronically by
networked connections. E.g.: business
processes like manufacturing and inventory and
B2B processes like supply chain management
are managed by the same networks as B2C
processes.
E-commerce is breaking the traditional rules of
commerce:
a. Companies share information with competitors
b. Suppliers share information with buyers
c. Corporate procurement should be determined
solely on price
d. Financial transaction occurs with the
involvement of a bank.

E-COMMERCE Drivers
Several drivers promote E-Commerce.
A. Digital convergence
B. Anytime, anywhere, anyone
C. Changes in organizations
D. Demand for customized products and
services
E. Widespread access to IT

Advantages of E-COMMERCE
1) Economy
2) Lower cost
3) Better customer service
4) Greater profit margin
5) Knowledge markets
6) Swapping goods and services
7) Information sharing, convenience and
control
8) Quick comparison shopping
9) Teamwork
10) Productivity gains
11) Customization
12) Ensure security
13) Other benefits
14) Benefits to the society
Limitations of E-COMMERCE
1. High risk of internet start up organization
2. Lack of blue print for handling E-
Commerce
3. E-Commerce involves cost
4. Security
5. Customer relations problems
6. Systems and data integrity
7. Products people wont buy online
8. Corporate vulnerability
9. Fulfillment problems
10. System scalability
11. Consumer search is not efficient or cost
effective
12. Other limiting factors
E-COMMERCE vs. E-
BUSINESS
i. E-Commerce is the subset of E-Business. The later
one is a very broad concept while the former one is
just a small part of it.
ii. Those activities which essentially involve monetary
transactions are termed as "e-commerce". However,
e-business is a much broader term. There are many
other things besides selling including but not limited to
marketing, procurement of raw materials or goods,
customer education, looking for suppliers etc.

iii. To sell online is e-commerce but to bring and retain
customers and educate them online about the product
or service is e-business.
iv. E-commerce has also been defined as a process
covering outward processes that touch customers,
suppliers and external partners while e-business
covers internal processes such as production,
inventory management, product development, risk
management, finance etc.
v. E-Commerce can be described as the use of
the Internet and the web to transact business.
More formally, digitally enabled commercial
transactions between and among
organizations and individuals. On the other
hand, E-Business can be described as the
digital enablement of transactions and process
within a firm, involving information systems
under the control of the firm. Moreover, E-
Business applications turn into e-commerce
precisely when an exchange of value occurs.

Example
When Dell sell computers, laptops, monitors,
printers, accessories etc online then it is not
engaged in e-commerce but e-business. When
a visitor comes on the website, the first thing he
see is website design and navigation as well as
those things which are going to help him find
what he is looking for and if he directly lands on
the page he was looking for, he looks for the
information related to it. The information
provided should be appealing and clear
maximum doubts of the visitor so as to convert
him in a client. Till now no money has been
exchanged nor been talked about.




So, was this e-commerce?

No

it is
e-business
which guides the visitor
THANK YOU