E-Business

Introduction to E-Business
Amalgamation of tools build on information and communication technologies (business software) in the organization, to enhance their performance to build a value for the company, its customers and its affiliates.

Introduction to E-Business
Powerful business setting connects critical business systems directly with consumers,workforce,traders and business associates using intranet,extranet,ecommerce technologies,two way applications and the web

Introduction to E-Business
For organizations Enhance productivity Bring down costs Ebusiness implemented appropriately and matches market segment

Introduction to E-Business
Three categories of E-business applications - Internal Business Systems - Enterprise Communication and Collaboration - Electronic Commerce

Definition of E-Business
Buying, selling of information, products and services through the computer network 1. E-business business activity which uses an electronic medium, buying or selling of goods or services without visiting the store 2. E-business involves activities like delivery of information,products,services and payment through the electronic medium

E-Business VS E-Commerce
S.No 1 2 3 E-business Explicitly involves business transactions It is a closed system It is secured E-Commerce Involves all types of commerce It is an open system It is not much secured

Uses concept of EDI (Electronic Data Interchange)

Operates on intranet or extranet

Does not involve the concept of EDI

Always operate on Internet

5 6

Used for bulky transactions Used for small and large transactions

Execution of E-Business
Online Customer Merchant Website

Internet

Online Transaction Server

Processing Network

Acquring Merchant Bank

Issuing Consumer Bank

Difference Between Traditional Business and E-Business

S.No 1 Basis Reduction of error E-business Traditional Business

No data re-entering Buyer or seller in multipoints creates po and send,receiver reenters, error prone Initial cost high,cost Duplicate of work effective for future costs money,time Data in electronic form,easy to share Reduce processing cycle Time wasted in reentering and printing Processing time is more

2 3

Reduction of cost Reduction of paper work Reduction in processing time

Advantages of E-business
All time processing Better service Removing mediators Data on consumer preferences Time saving Reduces cost of the product Reduces paper work

Advantages of E-business
Product is directly supplied to customers Improved customer relationship Minimizes time taken from order to delivery Better,faster and effective linkage with clients Market analysis, organization get feedback from the customer Knowledge markets 24X7,global reach

Disadvantages of E-business
Lack of customer awarness Not for small business Does not support all types of businesses Legal Formalities High risk for internet startup organization E-business is not free Security problem

Disadvantages of E-business
Customer relationship / satisfaction problems Data integrity problems

Main goals of E-business

Meet the needs of merchants,consumers and organizations Improve the quality and quantity of goods Increase the speed of services

Trends,Design and construction

E-business offers - Improved customer services - Orginating new business - Enhaced speed and accuracy of processing - product cost saving

Trends,Design and construction

Prerequisites for E-business procedure 1. A commercial website like www.jabong.com 2. product and services you want to sell 3. Shopping carts or purchase order forms 4. Current credit card which will accept epayment 5. An online payment gateway 6. Secure Socket Layer (SSL) which will secure the gate way

Functions of E-business
E-Advertising - info about its product and services - E Banners - News Group E-Catalogues - Packaging - Product Attributes and characteristics - Availability - Payment Modes - Cost

Functions of E-business
E-publishing - Online reading/browser - Online Search - Customized Information Services E-Banking - Bill Payment - Electronic Cheque Writing - Record Keeping - Tracking of bank accounts,credit cards

Shopping Services
For comparison of shopping of specific products like price Ads displayed in a shopping service channel Services offered to subscribers through online, consumers can shop/purchase from their own computer terminals

Information Services
Enterprise Collaboration System (ECS) Transaction Process System (TPS) Decision Support System (DSS) Executive Support System (ESS) Management Information System (MIS)

Type of E-Business
Business to Consumer (B2C) through Internet Business to Business (B2B) Business-within-business, through intranets

Types of e-commerce
Business to Business (B2B) Business to Consumer (B2C) Consumer to Consumer (C2C) Peer to Peer (P2P) Mobile Commerce (M Commerce) Others Government to Business (G2B) Government to Citizen (G2C) Business to Employee (B2E)

Portal
Horizontal Vs Vertical portal Personal Portals Regional Web portals Government Web portals Corporate Web Portals Hosted Web Portals Domain Specific Portals Sports Portals Electronic retailer (E-tailer)

Advantages & Disadvantage of E-Tailing

Advantage : Greater profit margins than physical retail store Disadvantage: customer servicing

Portal
Content Provider - store & access data - make it available to all applications To make your data public - you can create your own content provider - you can add data to a content provider

The data model

ID 1 Number 200 Label AB Dept. Name Ajay Type TYPE_HOME

100

Delhi Office

Raj

TYPE_MOBILE

300

Ashirwad

Kapil

TYPE_HOME

Portal
Transaction Broker - Middle ware application facilitates flow of information from third party applications into access dimensions Integration of data with transaction broker is expensive

Portal
Transaction Broker - Making integration simple - Adapting to your business systems - Faultless Data Transfer - Reducing your e-business costs

Portal
Market Creator - important role in transaction over internet - It surveys the market before any transaction occurs Service Provider - ATM - Credit/Debit Cards - Smart Cards

Applications in B2C
E-Banking - Payment of Bills - Fund Transfer - Credit Cards - Railway Pass - Investment through Internet Banking - Recharging Prepaid Phone - Shopping

Applications in B2C
E-Trading - Stocks,securities and funds B2B Ecommerce - Supply Chain Management (SCM) - Just In Time - E procurement System

Benefits and Draw Back of Peer-Peer Network

Benefits Draw Backs
Users have authority to control their Network security is applied to one own shared resources computer at a time It is easy to install and configure Every time a computer in the network is accessed, performance suffers Back up is performed on each machine separately to protect resources Users have to use a separate password on each computer in the network No centralised set-up to locate,manage or control access to data

In expensive to purchase and operate No dependence on a dedicated server Ideal for small businesses of ten users or fewer

All you need to setup this network is an operating system and a few cables
No need for a full time network administrator

Organizational Framework and Implementation

Ecommerce Application E- business can be applied to 1. Supply chain Management 2. Procurement and Purchasing 3. Home Shopping 4. Online Banking 5. Online Marketing and Advertisement

E-Business Applications
Common Business Services Infrastructure/Security/Authentication/Epayment The messaging and Information distribution infrastructure (EDI,email)

Multimedia content and network publishing infrastructure

The Information Super highway infrastructure (Telecommunication,cable TV,Wireless network,Internet) Public policy,legal and privacy issues (Cyber law, IT Act 2000) Technical Standard for EDocuments,Multimedia and Network Protocols

Client Server Architecture In E-Business

Processed Result
Application Logic Presentation Logic Result Application Logic Multimedia Content

I-Way or Information Highway

Network of interconnected data highways of several kinds - Cable TV Wires - Telephone Wires - Cellular and Satellite - Radio-based wireless

I Way
It helps companies in - Their Infrastructure - Ways to change their business - Transaction Strategies (Marketing,Advertising) - Ways to sell their products and services - Ways to change their relationship with the customer

Market Forces behind I-Way

1. Requirement of market participants - Number of users who use online services - Consumers who pay for information and products - Persons who provide services - Others including third party brokers and intermediaries

Market Forces behind I-Way

2. Strategic alliances and I-Way infrastructure - Success of I Way is based on market strategies Three Segments - Communication - Entertainment - Information

Components of I Way
I - Way Component

Network Access Component

Local Access Component Telephone based Cable based

Global Access Component Long Distance Network

Hubs

Routers
Wireless based Set-top Boxes

Satellite

Computer based

Components of I Way
Network access equipment or component - Specific equipment at consumers end to access any network like Routers etc. Local access component - communication link between schools,organization etc - Last mile Global access component - World wide

E-Business Application Areas

CRM E-CRM :- Activities that handle customer relationships with the use of internet,electronic mediums and web browsers ERP SCM and selling

E-CRM and CRM

E-CRM It provides information in response to specific customer inquiries CRM It has uniform message of Push and sell for all customers

Promotion and discounts are offered to individual customers Pricing of products is negotiated with each customer New product features are created in response to customer demands

Promotion and discounts are the same for all customers The sellers set the pricing of products for all customers CRM is determined by the seller,based on research and development

Functions of CRM System

Encourages philosophy of customer orientation Recognizes aspects significant to customer Develops end-end process to serve clients Provides Successful customer support Tracks Sales-related aspects Handles Customer complaints Takes up Customer-based measures

Phases of E-CRM
Three Phases of E-CRM - Acquisition - Enhancement - Retention

E-CRM Solutions
E-CRM Strategy Step 1: Customer Information Environment - Collecting customer info - Metrices to monitor customer behaviour Step 2: Customer Value Orientation - Value for money - Perceived Money

Customer Value Orientation

Core products and benefits

+
Customised Service Benefits

Perceived Quality (Obtained)

Perceived Value
Price

+
Costs other than price

Perceived Sacrifice (Given)

E-CRM Solutions
Step 3: Customer Loyality - spend less for services - better discounts

Implementing and Integrating CRM Solutions

Points to be considered 1. Adoption of customer focused managers 2. Organization having customer focused culture 3. End-End process to serve customers 4. Tracking selling to existing as well as prospects 5. Habit of asking questions when helping customers with problems

Issues and CRM

Cookies Personal data Tracking Less profitable customer avoided

Use of e-CRM
Providing round the clock technical assistance Methods to manage and schedule follow up sales calls Customer value and strategies to be adopted Storing customer interests Tracking all communication with customer System to rectify service insufficiencies Identify potential problem before they occur Method to handle complaints and issues

Failure of e-CRM
Intangable benefits are not easy to measure or value Specific business problems may not possible to be identified or to be focused on Absence of sponsorship from senior management level User acceptance is not up to the mark Failure to automate a badly defined process

SCM Supply chain management

SCM - Rigid sequences of activities that contribute to manufacture,production and delivery of goods Inflexible manufacturing plans hypothetical shipping schedules Questionable inventory forecasts

E-SCM - Need
Minimize Administrative costs Abstain from Costly disasters Reduce labour cost Earn bigger profit margins on completed goods Revenue producting gains and cost cutting Remove outdated business process Accelerate responsiveness and production to customers Decrease needless inventory

Advantages of E-SCM
Real Time Advantages - Global trading capablilites - Global Knowledge Exchange - Enterprise-Enterprise connectivity - E Market Place E Market Place connectivity - Provision of a specific market place

Advantages of E-SCM
Strategic Advantages - information exchange to employees,customers,suppliers,distributors & manufactures - An interface with any third party software - Platform independent - Fully integrated system - Rapid deployment and scalability

Internet & E-Business

Internet - Networks of Networks ARPANET (Advanced Research Projects Agency Network)

Important Features - Internet

WWW Direct Communication Email 24 X 7 Central repository of data Search Engines Ads E-Commerce Distance Learning BBS and new services WAN Shareware Software

Connecting to Internet
Direct Connection Through ISP (Internet Service Provider) - Remote Dial up connection (SLIP or PPP protocol) - Permanent Dedicated Connection (ISDN) Eg: T1 and T2

Internet Protocols
TCP/IP (Transmission control protocol / Internet Protocol) HTTP (Hyper Text Transfer Protocol) FTP (File Transfer Protocol) Telnet (Remote Login)

Domain Name System

TELNET 10.12.7.14 TELNET My Host HOSTS.TXT Hierarchial Name Space Eg: myHost.myDept.myDiv.mycorp.com

Domain Name Space

Hierarchial namespace topology / Inverted-tree structure Label Domain Name Fully Qualified Domain Name (Absolute Domain Name) Eg:- myDept.myDiv.myCorp.com. Partially Qualified Domain Name (PQDN) Eg: - myDept.myDiv.myCorp.

Domain
Subtree of Domain Name Space Eg: .com , .edu

Distributed Name Space

Internet Corporation For Assigned Names and Numbers (ICANN)

DNS in the internet

Generic Domains (three character long or more) Eg: - .aero, .biz, .com, .coop, .edu, .gov, .info, .int, .mil, .museum, .name, .net, .org, .pro Country Domains (two character) Eg: - .in, .fr, .ca, .br, .us, .ae, .it Inverse Domains - to map IP Address to a symbolic name

Inverse Domains
Resolution Conversion of an IP address to a symbolic name or viceversa is called Name address resolution Recursive Resolution Iterative Resolution

Caching
Sometimes, a server requests a parent server to fulfill the request because it is unable to do so. When the response arrives this information is stored in its cache memmory (buffer storage memmory of the RAM) before forwarding it to the client. This is called caching. This helps in optimizing data and curtails search time.

DNS Messages
Messages Query Header Question Section Response Header Question Section

Answer Section
Authoritative Section Additional Section

E-mails
Exchanging Emails Composing and Sending Social Networking sites Travel Sites Job sites Auction sites

SPAMS
Usenet Spam Email Spam Spam Filter Bayesian Filters or Heuristic Filters Completely Automated Public Turning Test (CAPTCHA)

Sorting Mail and Avoiding Email Viruses

Folders Searching Sorting Filters and Rules Colours Archiving Never open Un identified adons Never open spam messages Aware of abnormal message from friends Use antivirus of good quality

Chatting and conferencing on Internet

Instant Messaging VOIP Deliver Presentations Webinars Connect for tech support / websharing

Usenet Newsgroup
1990s DejaNews Non-Usenet newsgroups NNTP Servers Eg: Microsoft allow peer to peer support of their products

Chat
Internet Relay Chat Instant Messaging (Refer wikipedia)

Voice and Video conferencing

Webcamera Visual Display Audio System Compression User interface and Control System