Topic: Electronic Business

Under the guidance of:

Ms. E.PRASHANTHI Asst. Prof
Sanskrithi School of Business.

Submitted by:

Ajay Kumar .V

19HX1E0067
Introduction to e-Business

E-business or Online business means business transactions that take place online with the help of
the internet. The term e-business came into existence in the year 1996. E-business is
an abbreviation for electronic business. So the buyer and the seller don’t meet personally.

In today’s world, we are exposed to various forms of e-Business. Since its emergence, it has grown
by leaps and bounds. Some predict that it may very soon overtake brick and mortar stores
completely. While that remains to be seen, we cannot ignore the immense role it plays in the current
global economy.

E-business has made shopping easy for us. We don’t need to go anywhere physically, we can shop
from home and get great deals too. But do you know what are the types of e-business? What are its
characteristics? Let’s find out more about e-business.
Features of Online Business

Some of the features of Online Business are as follows :

 It is easy to set up

 There are no geographical boundaries

 Much cheaper than traditional business

 There are flexible business hours

 Marketing strategies cost less

 Online business receive subsidies from the government

 There are a few security and integrity issues

 There is no personal touch

 Buyer and seller don’t meet

 Delivery of products takes time

 There is a transaction risk

 Anyone can buy anything from anywhere at anytime

 The transaction risk is higher than traditional business

Function of electronic business

The most important role of electronic business is “electronic value creation” – the generation of
electronic added value. The forms of electronic added value are usually distinguished in the
following way:

 Structuring value: an online offer achieves an overview of a large quantity of

information
 Selection value: an online offer provides specific database information upon request
 Matching value: an online offer makes it possible to merge inquiries from supplier and
buyers more efficiently
 Transaction value: an online offer makes a business more efficient
 Coordination value: an online offer allows different providers to better combine their
services
 Communication value: an online offer improves communication between different
consumers

Depending on which type of value a company decides to pursue, they can choose one or
more value activities – for example the collection, structuring, pre-selection, summary, or
distribution of information. A so-called “digital information product” can also be created,
offering added values which the customer is prepared to pay for. This information product may
be a website, blog comparison portal, e-book, or a software application.

The electronic value creation process involves the following steps:

 Collecting large quantities of information to identify data relevant to the product

 Processing the information and transforming it into a product
 Transferring the final information product to the customer
  Repeat this process whenever new information becomes available – information
products are not static and must be kept up to date

Besides the generation of electronic added value, the various long-term goals of the e-business
must be determined, such as how best to automate commercial processes, or establishing new
business models (such as cutting out middlemen).

Examples of e-business

There are countless examples of different e-business activities, but here is a brief selection.

The e-procurement sector includes the following activities:

 Organize the implementation of a desktop purchasing system (DPS) that supports the

whole procurement process, such as checking stock availability and handle the order and
payment
 Constructing and operating an online marketplace for products and services
 Integrating various electronic supplier catalogs into your own enterprise resource
planning (ERP) system to support procurement, warehouse management, order
processing, production management, and logistics

The e-commerce sector includes the following activities:

 Designing and maintaining an internet presence and/or an online store including:

products or services accessible from anywhere at all times, multiple payment options,
automatic e-mail notifications on orders, and customer support (live chat, hotlines, or
help centers)
  Developing and provisioning additional content, such as an informational blog or
comparison portal
 Expanding online marketing and targeting advertising to customers, for example by
using big data from cookies, purchase behavior, and customer data

Types of E-Commerce

The term commerce refers to the trading of goods and/or services. E-commerce is a modern-day
invention that facilitates the trading of goods and/or services through electronic means, or more
precisely, the internet. This article is an account of the various types of e-commerce businesses,
each of which caters to different business models.

The Types

The following are the different types of e-commerce platforms:

1. Business-to-Business (B2B)
2. Business-to-Consumer (B2C)
3. Consumer-to-Consumer (C2C)
4. Consumer-to-Business (C2B)
5. Business-to-Administration (B2A)
6. Consumer-to-Administration (C2A)

Business-to-Business (B2B)

A B2B model of business involves the conduct of trade between two or more
businesses/companies. The channels of such trade generally include conventional wholesalers
and producers who are dealing with retailers.

Business-to-Consumer (B2C)
Business-to-Consumer model of business deals with the retail aspects of e-commerce, i.e. the
sale of goods and/or services to the end consumer through digital means. The facility, which has
taken the business world by storm, enables the consumer to have a detailed look at their
proposed procurements before placing an order. After the placement of such orders, the
company/agent receiving the order will then deliver the same to the consumer in a convenient
time-span. Some of the businesses operating in this channel include well-known players like
Amazon, Flipkart, etc.

This mode of purchase has proved to be beneficial to the consumers when compared to the
traditional method, as they are endowed with access to helpful contents which may guide their
purchases appropriately.

Consumer-to-Consumer (C2C)

This business model is leveraged by a consumer for selling used goods and/or services to other
consumers through the digital medium. The transactions here are pursued through a platform
provided by a third party, the likes of which include OLX, Quickr, etc.

Consumer-to-Business (C2B)

A C2B model is the exact reversal of a B2C model. While the latter is serviced to the consumer
by a business, the C2B model provides the end consumers with an opportunity to sell their
products/services to companies. The method is popular in crowdsourcing based projects, the
nature of which typically includes logo designing, sale of royalty-free photographs/media/design
elements, and so on and so forth.

Business-to-Administration (B2A)

This model enables online dealings between companies and public administration, i.e. the
Government by enabling the exchange of information through central websites. It provides
businesses with a platform to bid on government opportunities such as auctions, tenders,
application submission, etc. The scope of this model is now enhanced, thanks to the investments
made towards e-government

Consumer-to-Administration (C2A)

The C2A platform is meant for consumers, who may use it for requesting information or posting
feedbacks concerning public sectors directly to the government authorities/administration. Its
areas of applicability include:

 The dissemination of information.

 Distance learning.
 Remittance of statutory payments.
 Filing of tax returns.
 Seeking appointments, information about illnesses, payment of health services, etc.

Advantages of E-business for the Consumer

There are innumerable advantages of e-business not only for the small-business owners but also
for the consumers. Some of these include:

Saving Time and Cost

Here again, just as it is with the merchant, from the consumer’s perspective, an e-business helps
the consumer to reduce time and cost since they do not have to go physically to your brick and
mortar store to do their shopping. They use their mobile device or computer to go online and do
their shopping from your website or app. It is that simple.
Convenience

With an e-business, your customers can transact business with you from the comfort of their
home or offices. This convenience, in most cases, is what attracts many consumers to this e-
business. The more convenience your brand offers your customers, the more they are likely to do
business with you and be advocates for your brand.

Not Dependent on Opening Hours

With an e-business, your consumers are not relying on opening hours of your business since they
can transact business with you around the clock via your website, app, or social network
channels.

Easy to Transact Business Internationally

Now whether your customers are in Australia, China, Antarctica, New York, Singapore or
London, they can do business with you online. This reduces transaction cost since they need not
go to your physical office to transact business with you.

Anonymity

These days we live in an interconnected world, and your data is precious to advertisers and so
on. Therefore, many consumers are concerned about their privacy. With the right processes in
place, an e-business affords your customers the ability to remain unknown. Your customers,
therefore, get to feel that they are transacting business with your brand on fair competition
regardless of socioeconomic status.

Disadvantages of E-business for the Consumer

Product Description

Regardless of how well you try to describe your product or service on your website or social
networks using multimedia, it cannot compare with your consumers experiencing your product
or service in-store physically. Your consumers cannot make any assessment of your product
quantity and how it compares to others. Your consumers cannot have access to the physical
product until it reaches their doorstep. It is only then that they can decide whether it meets their
expectations.

Cost and Shipping

Factors such as exchange rate, taxes and shipping might sometimes make your product
unaffordable for your consumers living in another geographical location.

After considering these issues, if you still wish to go ahead with your e-business, here is an
infographic with 5 Tips for an Efficient E-Business to help you out.
Conclusion
In general, today’s businesses must always strive to create the next best thing that consumers will
want because consumers continue to desire their products, services etc. to continuously be better,
faster, and cheaper.  In this world of new technology, businesses need to accommodate to the
new types of consumer needs and trends because it will prove to be vital to their business’
success and survival.  E-commerce is continuously progressing and is becoming more and more
important to businesses as technology continues to advance and is something that should be
taken advantage of and implemented.

From the inception of the Internet and e-commerce, the possibilities have become endless for
both businesses and consumers.  Creating more opportunities for profit and advancements for
businesses, while creating more options for consumers.  However, just like anything else, e-
commerce has its disadvantages including consumer uncertainties, but nothing that can not
be resolved or avoided by good decision-making and business practices.

There are several factors and variables that need to be considered and decided upon when
starting an e-commerce business.  Some of these include: types of e-commerce, marketing
strategies, and countless more.  If the correct methods and practices are followed, a business will
prosper in an e-commerce setting with much success and profitability.