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E-Business

Nijaz NLecturer -ISMS

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E Commerce Describes the process of buying, selling,

transferring, or exchanging products,

services, and/or information via computer

networks, including the Internet

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E BUSINESS Broader definition of e-commerce

Not just the buying and selling of goods and

services, but also servicing customers,

conducting e-learning, and processing

electronic transactions.

IBMFirst company to use the term (1972).

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Who Uses E BusinessOnline

Cataloguesthat lists

products/price

s

71%

Pay for

products &Services

69%

Place Orders

for products &

services

65%

Receivepayments for

products &

Services

51%

Take orders

for products &services

45%

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Features of E business Anytime ,anywhere services

Cost Effective

Online Marketing

Way of information

Effective Advertisement

Instant services

No need for middleman

World level expansion

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Functions of E Business

Available at anywhere any time

Competitive rates

Better Customer Services

Availability of large sellers

Quick Services

Purchasing at home

Easy interaction

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Functions of E Business

Customers are self created

Middleman disappears

Cost Effective

Opportunities for new business

Customization of products and services

Search for potential business partners

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Functions of E Business

Availability of information about products

Online Payment

Saving of time

Helpful for developed countries

Helpful in safeguarding environment.

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Limitations of E Business1.Costly

New innovationsChanging technology

2.Lack of Information about customers habits

interest and aptitudeNo personal contact between buyers and sellers

Lack of information about customer habits interest andaptitudes.

3.Lack of faithRising frauds and crimes in cyber world

Buyer does not trust sellers

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Limitations of E Business4.Insecurity of customersDue to cyber fraud

Customers wont give their credit card numbers

5.Cyber lawsCyber laws announced by Govt. of India are not clear

Insufficient for the growth of e-commerce

6.Competition among sellersNo of website increasing

Entry barrier for new entrants

7.Change in technologyNew Innovations

Enterprises investing more in R&D

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Limitations of E Business8.Lack of top management support

No top priority for E-Commerce

Management has to make changes at top level

Allocate money for adopting IT tools and

building internal system

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How E Business Works?

Online Transaction Server

ProcessingNetwork

Acquiring Merchant

Bank Issuing Consumer Bank

Internet

Merchant

WebsiteOnline Customer

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MODELS / TYPES of E BUSINESS Business to Business (B2B)

Buying and selling goods between twoorganizations.

refers to the full spectrum of e-commerce thatcan occur between two organizations.

includes purchasing and procurement, suppliermanagement, inventory management, channelmanagement, sales activities, paymentmanagement, and service and support.

Eg : Dell Computers sell computers & relatedaccessories online; however it does not produceall the products.

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MODELS / TYPES of E BUSINESS Business to Customer (B2C)

Exchange between businessesand consumers.

Eg : Amazone.com

Marketers & Retailers can selltheir merchandise to consumer

online.

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MODELS / TYPES of E BUSINESS

Consumer-to-Consumer (C2C)

Consumer-to-Consumer exchanges

involve transactions between

and among consumers.

The consumers directly dealwith other consumers

Eg:-Matrimonial Sites, Auction

Sites etc.

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MODELS / TYPES of E BUSINESSPeer to Peer(P2P)

People with commonality develop

their own network system.

Users are connected directly

to each other over internetUsed for sharing files/programs

over a network(internet/privatenetwork) illegally

Users download directly fromother persons computer rather

than from a central server.

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MODELS / TYPES of E BUSINESSMobile Commerce (m-Commerce)Commerce transacted with the help of mobile

phones.

Latest in e-commerce.

Done through direct contact, SMS, GRPS

facilities.

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MODELS / TYPES of E BUSINESSOther types include :

Government to Business (G2B)

Government to Citizen (G2C)

Business to Employee (B2E)

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E Business Application Areas

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E Business Application AreasIt includes : Customer Relationship Management

Enterprise Resource Planning

Supply Chain Management.

Business Intelligence (BI)

Product Life Cycle Management (PLM)

Data warehousing

Data Mining

On-line Analytical Processing (OLAP)

Business Process Reengineering (BPR)

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Customer Relationship Management Customer relationship management (CRM):A customer

service approach that focuses on building long-term and

sustainable customer relationships that add value both

for the customer and the company.

Is an information technology industry term for the

methodologies, strategies, software, and other web-based

capabilities used to help an enterprise organize and

manage customer relationships.

Also known as e-CRM

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Customer Relationship Management CRM captures, analyzes, and distributes all relevant data

from customer and prospect interactions to everyone in the

organization.

This distribution of information helps an organization bettermeet customer, product, and service needs.

CRM emphasizes customer retention over customer

acquisition.

The idea of CRM is that it helps businesses use technology

and human resources to gain insight into the behavior of

customersand the value of those customers

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Uses of CRM Customer services can be improved by:

1. Providing on-line access to product information and technicalassistance around the clock

2. Identifying the customers and devising appropriate servicestrategies for each customer

3. Providing mechanisms for managing and scheduling follow-upsales calls

4. Tracking all contacts with a customer

5. Identifyingpotential problems before they occur

6. Providing a user-friendly mechanism for registering customercomplaints

7. Providing a mechanism for handling problems and complaints

8. Providing a mechanism for correcting service deficiencies9. Storing customer interests in order to target customers

selectively

10.Providing mechanisms for managing and schedulingmaintenance, repair and ongoing support

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Enterprise Resource Planning The techniques and concepts for integrated management of

businesses as a whole from the viewpoint of the effective use

of resources to improve the efficiency of enterprise.

ERPintegratesall business functions into a single, integrated

software program that runs on a single database so that the

various departments can more easily share information and

communicate with each other.

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An Enterprise where all departments know what others are doing

Central

Database

R&D

Sales &

Distribution

Marketing

Production

Fiance

Production

Planning

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Advantages of ERP Business integration - ERP packages integrates the information processing and

automates data updating (automatic data exchange among applications) between related

business components.

Flexibility- Diverse multinational environments such as language, currency, accounting

standards, etc. are covered in one system, which makes the ERP systems very flexible.

Better analysis and planning capabilitiesERP systems enables the comprehensive and

unified management of related businesses and its data. This unification makes it possible

to fully utilize many types of decision support systems and simulation functions.

Use of latest technology - ERP vendors uses the latest developments in the field of

information technology. This technology adoption benefits the organizations using the

packages as they get better products and with better capabilities.

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Disadvantages of ERP Systems Customization in many situations is limited

The need to reengineer business processes

Technical support can be shoddy

ERP's may be too rigid for specific

organizations that are either new or want to

move in a new direction in the near future

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SUPPLY CHAIN MANAGEMENT Also referred to as the logistics network Also referred to as e-SCM

Suppliers, manufacturers, warehouses, distributioncenters and retail outletsfacilities

and the

Raw materials

Work-in-process (WIP) inventory Finished products

that flow between the facilities

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Suppliers Manufacturers Warehouses &

Distribution Centers

Customers

Material Costs

Transportation

CostsTransportation

CostsTransportation

CostsInventory CostsManufacturing Costs

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SUPPLY CHAIN MANAGEMENT A set of approaches used to efficiently integrate

Suppliers

Manufacturers

Warehouses Distribution centers

So that the product is produced and distributed

In the right quantities

To the right locations

And at the right time

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Advantages of e SCM

Real Time advantages :Global trading capabilities.Knowledge can be exchange globally.

Enterprise-to-Enterprise connectivity.

Provision of a specific marketplace. Strategic advantages :It supports the exchange of information through

trading communities such as employees,customers, suppliers distributors & manufactures

It acts as an interface with any third partysoftware.

It is a fully integrated system

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Introduction Internet is a network of networks that links

computer systems around the world.

It allows communication across networks.

This allows people to have access to information

from websites, various locations & machines.

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History of Internet Mapped with timing of mass awareness about the

concept.

Dotcom 1.0 1985 - 1995

Huge traffic of net searchers /net surfers.

Can be termed as Eyeball Era, because the evaluation ofpopularity or valuation of equity.

Emergences of Google ,Yahoo etc.

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History of Internet Dotcom 2.0

1995 -2005

Created shopping experience different than physical

shopping. Sticky subscribers ,scaled up customer base.

Termed as Fire Sale Era.

Customers logged in, bought repeatedly but left little profit

for the seller.

Emergence of Amazon ,Ebay etc.

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History of Internet Dotcom 3.0

Since 2005 ---to extend up to 2020.

Focus on day-to-day engagement aspects of customerson net.

Emergences of Facebook, twitter etc.

Concept of community connection, emotion,

entertainment etc.

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Connecting to the Internet

Two options for connecting to the internet :Direct Connection

Through Internet Service Providers (ISP).

DIRECT Connection :

A machine is directly connected to the internetbackbone and act as a gateway.

Provides complete access to all internet servicesExpensive.

Suitable only for large organizations.

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Through Internet Service Provider Connect to your ISP using two methods

1. Remote Dial-Up connection: Enables you to connect to your ISP using a modem. ModemConverts Digital Signal (Computer Signal) to

analog signal that a phone line can transmit. Regular phone lines are used.

Not of good quality.

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2.Permanent Dedicated Connection Dedicated phone line for getting dedicated

internet connection.

Often connected using leased line .

These lines are preferred because they are always

open for communication traffic.This lines are called ISDN (Integrated Services

Digital Networks).

This lines allows transmission of data, voice, videoand graphics at very high speed.

Usual speed is 1.28 Mbps

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INTERNET PROTOCOLS

It enable the transfer of data over internet. It sets rules for reliable communication between

various device over internet.

Most commonly used protocols are :

Transmission Control Protocol/ Internet Protocol(TCP/IP).

Hypertext Transfer Protocol (HTTP).

File Transfer ProtocolTelnet

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TCP/IP

Specially designed to provide a reliable end-to-endbyte stream over an unreliable internetwork.

Describes a set of general design guidelines to enable

computers to communicate over a network.

The TCP/IP model is maintained by the InternetEngineering Task Force IETF).

IETF- It is an open standards organization, with noformal membership or membership requirements.

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TCP/IP - Working

Divides the message into smaller packets &transmitted over the internet.

Packets will be forwarded to the designation

device through various device depending the

traffic condition on the internet.

These packets are reassembles into the original

order after reaching.

Otherwise an error message is reported.

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TCP/IP Four Layered ModelApplication Layer

Application layer lets applications access the services of the other layersand defines the protocols that applications use to exchange data.

Transport LayerProvides the Application layer with session and datagram

communication services.

Internet LayerHandles addressing, packaging, and routing functions

Network Interface LayerHandles placing TCP/IP packets on the network medium and

receiving TCP/IP packets off the network medium.

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Hypertext Transfer Protocol HTTP). Helps to transfer files like image, text, video, sound etc.

Makes the foundation of internet.

Is based on Client-Server Architecture.

Specifies the actions that Web Browsers & Web Servers

must engage in while responding to the issued command.

Web Browser as Client

Web Server as Server