UNIT - 3

Electronic Way of Doing Business Dr Arvind Bhatt

DEFINING E-BUSINESS

• E-Business is the use of information and

communication technologies (ICT) to support
business activities.
• It allows companies to connect business
processes and greatly simplify relations
with customers and suppliers.
• E-commerce is a sub-set of e-business which
uses the internet as a medium for transactions
– the purchase, transfer or exchange of goods,
services and/or information over the internet.
• An example of e-commerce is a Web shop

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E-business is wider and can include
➢ Communications,

➢ Promoting your business,

➢ Getting business information,

➢ Buying and selling online,

➢ Online banking and

➢ Dealing with the government (such as online tax

payment).

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Why should I care about E-business?

E-business can:
• Enhance services and access to customers beyond your
local market.
• Help you market your business cost-effectively.
• Help you organize your business processes more efficiently.
• Give you fast access to a network of
businesses.

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E-business can:… Continued

• Allow you to compare products and prices to find

the best offers.
• Allow your business to keep pace with or
overtake your competitors.
• Lower the costs of business transactions.
• Enhance your visibility and accessibility for your
customers and suppliers.
• Allow you to communicate or conduct
transactions when out of the office.
• Make easier your communications with partners
such as suppliers, banks and government.

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The advantages of E-Business
The advantages of E-business over non-electronic
business models include:
• New business models which increase income.
• Flexibility and efficiency: the ability to handle complex
information, product ranges and customer profiles.
• Extended hours: 24 hours a day, 7 days a
week, 365 days a year.

• Reduced costs and time: less labor, paper, data entry, lead times
and deliveries.
• Improved customer relations and sales using marketing
techniques on the internet.
• Improved cooperation with business partners.
• Easier business research, analysis and forecasting.
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Electronic Commerce
Systems
Introduction to E-Commerce

 Electronic commerce encompasses the entire

online process of
o Developing Marketing
o Selling
o Delivering
o Servicing
o Paying for products and services

 It relies on the Internet and other information

technologies to support every step of the process
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Dr Arvind Bhatt
 E-COMMERCE TECHNOLOGIES

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CATEGORIES OF E-COMMERCE

C2C B2B
B2C

CONSUMERS BUSINESS

ADMINISTRATION
CATEGORIES OF E-COMMERCE
Business-to-Business
o B2B stands for "business-to-business," as in businesses doing business
with other businesses.

o On the Internet, B2B (business-to-business), is the exchange of

products, services, or information between businesses.
o B2B is e-commerce between businesses.

o Business-to-business electronic commerce (B2B) typically takes the

form of automated processes between trading partners and is
performed in much higher volumes than business-to-consumer (B2C)
applications.

Example : ORACLE

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Business to Consumers (B2C)
[ Refers to businesses selling products or services to end-
user consumers.

B2C stands for transaction activities involving a business

[ and a consumer (business-to-consumer transaction).

E-commerce decreases the distance between producers

[ and consumers. Consumers can make their purchase
without entering a traditional shop.

Example: NETFLIX OR EXPEDIA

What is Consumers to Consumers (C2C) ?
o Abbreviation for consumer-to-consumer commerce
o The most notable examples are Web-based auction and classified as sites.
o for example, eBay and Classifieds2000 are quickly permeated by consumers
who participate so actively and regularly.
What is Business to
Administration (B2A) ?

o Short for business-to-administration, also known

as e-government.
o B2A is the idea that government agencies and
[ businesses can use central Web sites to conduct
business and interact with each other more
efficiently than they usually can off the Web.
o FindLaw is an example of a site offering B2A
services -- a single place to locate court
documents, tax forms and filings for many
different local, state and federal government
organizations
 ESSENTIAL E-COMMERCE ARCHITECTURE

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Access Control and Security
• E-commerce processes must establish mutual trust and
secure access between parties
➢User names and passwords
➢Encryption key
➢Digital certificates and signatures

• Restricted access areas

• Other people’s accounts
• Restricted company data
• Webmaster administration areas
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 Profiling and Personalizing
• Profiling gathers data on you and your website behavior
and choices
• User registration
• Cookie files and tracking software
• User feedback

• Profiling is used for

• Personalized (one-to-one) marketing
• Authenticating identity
• Customer relationship management
• Marketing planning
• Website management
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 Search Management

• Search processes help customers find the specific

product or service they want
• E-commerce software packages often include
a website search engine
• A customized search engine may be acquired from
companies like Google or Requisite Technology
• Searches are often on content or by parameters

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Content and Catalog Management

• Content Management Software

• Helps develop, generate, deliver, update, and archive text and
multimedia information at
e-commerce websites
• Catalog Management Software
• Helps generate and manage catalog content
• Catalog and content management software works with
profiling tools to personalize content
• Includes product configuration and mass customization

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 Workflow Management
• E-business and e-commerce workflow management depends on a
workflow software engine

• Contains software model of business processes

• Workflow models express predefined

• Sets of business rules
• Roles of stakeholders
• Authorization requirements
• Routing alternative
• Databases used
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Dr Arvind Bhatt • Task sequences
 Example of Workflow Management

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 EVENT NOTIFICATION
• MOST E-COMMERCE APPLICATIONS ARE EVENT DRIVEN

• Responds to customer’s first website visit and payments

• Monitors all e-commerce processes
• Records all relevant events, including problem situations
• Notifies all involved stakeholders
• Works in conjunction with user-profiling software

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Collaboration and Trading

• Processes that support vital collaboration arrangements

and trading services
• Needed by customers, suppliers, and other stakeholders

• Online communities of interest

• E-mail, chat, discussion groups
• Enhances customer service
• Builds loyalty

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Electronic Payment Processes

• Complex processes
• Electronic nature of transactions
• Many security issues
• Wide variety of debit and credit alternatives
• Financial institutions may be part of the process

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Electronic Payment Processes

• Web Payment Processes

• Shopping cart process
• Credit card payment process
• Debit and other more complex processes

• Electronic Funds Transfer (EFT)

• Major payment system in banking, retail
• Variety of information technologies capture
and process money and credit card transfers

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ELECTRONIC PAYMENT EXAMPLE

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Securing Electronic Payments

• Network sniffers easily recognize credit card formats

• Encrypt data between customer and merchant
• Encrypt data between customer and financial institution
• Take sensitive information off-line

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 Functional Business Systems

• A variety of types of information systems that support the business

functions of

• Accounting
• Finance
• Marketing
• Operations management
• Human resource management
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 IT IN
BUSINESS

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MARKETING SYSTEMS

• Marketing systems are concerned with

– Planning, promotion, and sale of existing products in existing markets
– Development of new products and new markets
– Better attracting and serving present and
potential customers

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MARKETING INFORMATION SYSTEMS

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INTERACTIVE MARKETING
• Interactive Marketing
– A customer-focused marketing process
– Uses the Internet, intranets, and extranets
– Establishes two-way transactions between a business and its customers or
potential customers
• Goal
– Profitably use networks to attract and keep customers
– Get customers to help create, purchase, and improve products and services

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TARGETED MARKETING
• An advertising and promotion management concept with five
targeting components

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TARGETED MARKETING COMPONENTS

• Community: customized ads to appeal to specific virtual

communities
• Content: ads placed on a variety of selected websites, aimed at
a specific audience
• Context: ads placed on web pages that are relevant to a
product or service
• Demographic/Psychographic: web marketing aimed at
specific types or classes of people
• Online behavior: promotions tailored to each visit to a site by
an individual

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SALES FORCE AUTOMATION
• Outfit sales force with notebook computers, web browsers, and sales
contact software
– Connect them to marketing websites and the company intranet
• Goals
– Increase personal productivity
– Speed up capture and analysis of sales data
– Gain strategic advantage

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 MANUFACTURING INFORMATION SYSTEMS

• Supports the production/operations functions

– Includes all activities concerned with planning and control of the processes
producing goods or services

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COMPUTER-INTEGRATED MANUFACTURING

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CIM OBJECTIVES
• Simplify production processes, product designs, and factory
organization
• Automate production processes and the business functions that
support them
• Integrate all production and support processes using
– Networks
– Cross-functional business software
– Other information technologies

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HUMAN RESOURCE MANAGEMENT (HRM)

• Information systems designed to support

– Planning to meet personnel needs
– Development of employees to their full potential
– Control of all personnel policies and programs

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 HRM SYSTEMS

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ACCOUNTING INFORMATION SYSTEMS
• The oldest and most widely used information system in business
– Records and reports business transactions and economic events
– Produces financial statements
– Forecasts future conditions
• Typically consists of
– Order processing
– Inventory control
– Accounts receivable
– Accounts payable
– Payroll
– General ledger systems

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ACCOUNTING INFORMATION SYSTEMS

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FINANCIAL MANAGEMENT SYSTEMS

• Supports business managers and professionals making decisions

concerning
– The financing of a business
– The allocation and control of financial resources within a business

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FINANCIAL MANAGEMENT SYSTEM EXAMPLE

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