E - Business
E - Business
E - Business
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.
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.
# Fundamentals:
3. E-procurement: It involves sales transactions between business firms through the internet.
It includes 'reverse auctions' and 'digital market places'. Reverse auction facilitates online
trade between a single business purchaser and many sellers. Digital market places facilitate
online trading among multiple buyers and sellers.
#The Types:
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 crowd sourcing based projects, the
nature of which typically includes logo designing, sale of royalty-free
photographs/media/design elements, and so on and so forth.
Note – the term ‘crowd sourcing’ was coined in the year 2005 as a sourcing model that
facilities individuals/organizations to obtain goods/services from internet users.
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:
Running an Internet business involves an understanding of how consumers buy products and
complete transactions over the Web. Internet business owners must treat their business as if
they were operating a company where customers visited them in person. Online businesses
normally require the same amount of planning and dedication afforded to brick and mortar
companies.
#Features of Internet:
Accessibility:
An Internet is a global service and accessible to all. Today, people located in a remote part of
an island or interior of Africa can also use Internet.
Easy to Use:
The software, which is used to access the Internet (web browser), is designed very simple;
therefore, it can be easily learned and used. It is easy to develop.
Low Cost:
The development and maintenance cost of Internet service are comparatively low.
Security:
Last but not the least; Internet facility has to a certain extent helped the security system both
at the individual and national level with components such as CCTV camera, etc.
In networking, a protocol is a set of rules for formatting and processing data. Network
protocols are like a common language for computers. The computers within a network may
use vastly different software and hardware; however, the use of protocols enables them to
communicate with each other regardless.
Standardized protocols are like a common language that computers can use, similar to how
two people from different parts of the world may not understand each other's native
languages, but they can communicate using a shared third language. If one computer uses
the Internet Protocol (IP) and a second computer does as well, they will be able to
communicate Internet Protocol (IP) is the method or protocol by which data is sent from one
computer to another on the internet. Each computer -- known as a host -- on the internet has
at least one IP address that uniquely identifies it from all other computers on the internet.IP
is the defining set of protocols that enable the modern internet.
There are several commonly used network protocols that run on top of IP, including:
1. TCP. Transmission Control Protocol enables the flow of data across IP address connections.
4. HTTP. Hypertext Transfer Protocol is the specification that enables the modern web. HTTP
enables websites and web browsers to view content. It typically runs over port 80.
5. HTTPS. Hypertext Transfer Protocol Secure is HTTP that runs with encryption via Secure
Sockets Layer or Transport Layer Security. HTTPS typically is served over port 443.
#World Wide Web (WWW):
The World Wide Web or Web is basically a collection of information that is linked together
from points all over the world. It is also abbreviated as WWW.
The WWW is mainly the network of pages consists of images, text, and sounds on the
Internet which can be simply viewed on the browser by using the browser software.
Client/Browser:
The Client/Web browser is basically a program that is used to communicate with the web
server on the Internet.
URL:
URL is an abbreviation of the Uniform resource locator.
It is basically a standard used for specifying any kind of information on the Internet.
In order to access any page the client generally needs an address.
To facilitate the access of the documents throughout the world HTTP generally makes use of
Locators.
HTML:
HTML is an abbreviation of Hypertext Markup Language.
XML:
XML is an abbreviation of Extensible Markup Language. It mainly helps in order to define the
common syntax in the semantic web.
#Advantages of WWW:
#Disadvantages of WWW:
There are some drawbacks of the WWW and these are as follows;
#Features of www:
The www is a search tool that helps you find and retrieve information from a web site using
links to other sites and documents. The WWW was built on the technology called
Hypertext.
Www lets you search, traverse, and use many types of information at numerous sites and in
multiple forms. This interface is called a browser.
The www is intended to help people share information resources, and services with the
widest possible community of users.
Any person can get all these pieces of information all over the world through internet using
their laptops, computer, and other devices.
Many business documents can be exchanged using EDI, but the two most common are
purchase orders and invoices.
#EDI documents:
Invoices
Purchase orders
Shipping requests
Acknowledgement
Business correspondence letters
Retail Sector – In the retail sector profit margins usually depend upon efficient inventory
management. EDI provides a structured way to maintain and replenish goods stocked at a
retail outlet. Retailers use a common model stock for each shop location and the point of sale
stock position is updated continuously and data in fed via EDI enabled SCM (supply chain
management) network. The EDI software monitors all the logistics and makes updates in the
original stock.
Automobile Sector – In automobile sector EDI is used to keep customers updated with the
current product and pricing information during the purchase cycle. An advance shipping
notice is transmitted through EDI to the customers to prepare a loading schedule and to
ensure proper receipt of the product. The customer may also make payment on receipt of
goods via EDI to speed up the payment process.
Financial Sector – In the financial sector EDI replaces the labor intensive activities of
collecting, processing and dispersing payments with an electronic system. It facilitates the
flow of payment between the bank accounts of trading partners without requiring any
human intervention. A payee`s bank account is electronically credited and the payer`s
account is electronically credited on the scheduled day of payment; such an exchange is
known as electronic fund transfer (EFT).
Computer-to-computer– EDI replaces postal mail, fax and email. While email is also an
electronic approach, the documents exchanged via email must still be handled by people
rather than computers. Having people involved slows down the processing of the documents
and also introduces errors.
#Implementing EDI:
Your first action is to ensure that you have access to the correct skills. Develop EDI
coordinators and teams that will drive the programmed through your organization.
Step 2: Undertake a strategic review:
The business areas that benefit most from EDI deployment vary by organization. A strategic
review identifies where EDI has greatest potential in your business.
Selecting the correct EDI solution for your business requires an in-depth understanding of
both the technical and business issues – for you and your trading partners.
Most organizations find using an EDI provider makes the best business and financial sense.
Selecting the correct provider for your business is imperative.
How an EDI system is designed and developed depends on the amount of custom work
required and the amount of internal systems with which it needs to share data.
Most applications impose their own data structures. The data from internal and external
systems need to be analyzed in order to ensure they translate into your EDI system.
To ensure the smooth flow of information between internal applications and trading
partners, documents need to be mapped to allow effective data transmission.
Before your EDI system goes live within your entire trading community, it is important to
select a small number of partners to test the system in ‘near live’ conditions.
Step 10: Roll out EDI to trading partners:
The last action is to implement EDI across your trading partners. This should be achieved in a
staged manner that reflects your current business priorities.
A VAN (value added network) is a private network provider that focuses on offering network
services such as secure email, message encryption and management reporting. Their goal is
to facilitate EDI (electronic data interchange) among online companies, providing a
convenient way for ecommerce businesses to securely communicate and share data.
When it comes to sharing standard based or proprietary data, VANs make it easier for online
businesses to share by becoming the one point of contact for them. They then ensure all of
the necessary information is shared with the intended receivers, reducing the number of
direct contacts the business has to make on their own. Value-added networks act as the
middle man between business entities and work in a system very similar to email.
Telecommunication companies
Industry groups
Specialized service providers
Large companies
There are three types of VANs, based on how the computers in the network are connected:
1. One-to-One
2. One-to-Many
Multiple businesses connected to one another. This is the most common type of network
used in the financial markets since there are many market participants connected to each
other via a single venue.
Benefits of VANs
1. Error correction
VANs help in error correction, as they reduce human involvement, and improve
recordkeeping. They can perform checks at the transaction level and ensure minimal error.
2. Improved exchange
The exchange of data becomes real-time with VANs. This improves decision-making and
record-keeping and provides essential business intelligence to generate insights about
operations.
3. Secure
Electronic data transfers can be made securely using encryption. All communication between
businesses can be encrypted to protect business secrets.
4. Standardized
VANs transfer data using standard formats, such as XML and CSV. They allow the data to be
read by the various Enterprise Resource Planning (ERP) software used by companies. They
also enable the use of newer technologies without making changes to existing technology.
#Difference between virtual supply and supply chain management:
A supply chain is a global network that ensures the delivery of products and/or services
domestically and internationally. A supply chain ensures product delivery from raw materials
to the final customers using a definite structure involving an efficient network and productive
information channel. The primary supply chain of any product involves raw materials,
producer, distributor, retailer, and the customer.
Collection of raw materials: The first step involves collecting the raw materials required to
make the final product. The raw materials concerned could be of a single type or may include
several other products to be collected from various sources.
Collection of material from the suppliers: The manufacturers must acquire all the required
raw materials to produce the ultimate finished product.
Manufacturing: The manufacturer then initiates and completes all the processes required for
producing the finished product. Various procedures may be, and different equipment may be
used for each operation.
Distribution to the customers: A process where the finished product is distributed to the
retailers.
Consumption by the end customers: The last step is purchasing the finished products by the
customer. In this example, the book may be used for various purposes by different people.
On the Other hand, today's supply chain is not a chain at all but rather a flexible, agile value
network designed to deliver instant choice and hyper-personalization across various
fulfillment channels and an expanding range of digital enablers. The traditional model of
producing large volumes of the same product to retailers and distributors has become a thing
of the past.
The disadvantages in traditional supply chain management:
5. Increased inventory.
6. Higher COGS.
1. Agility.
2. Lower COGS.
3. Higher Traceability.
# Here are the key differences between traditional and digital supply chain:
Traditional supply chain focuses only on production and provision, whereas Modern (digital)
supply chain focuses on the needs of the customers in general, also aims to improve the value
of the product delivered to the customer, rather than just focusing on the aspect of
distribution.
The modern (digital) supply chain allows any business organization to experience the value in
creating a partnership, whereas the traditional supply chain allows listed companies to follow
a single pathway.
The organizations operating under the modern (digital) supply chain create value for the final
customer's product. In contrast, the traditional supply chain has no such strategies to
improve the finished product's value.
Modern (digital) technologies and strategies are incorporated into the Modern (digital)
supply chain. At the same time, the traditional supply chain follows the old methods.
The modern (digital) supply chain allows faster progression than the traditional supply chain.
Modern (digital) supply chain enables the companies to use highly advanced and integrated
technology systems to ensure the expansion of the customers' portfolio, which does not
happen with the traditional supply chain.
The modern (digital) supply chain also utilizes logistics management, a system that plans,
implements, and controls the forward and reverse flow of goods. It ensures the process is
effective and efficient and also provides the safe delivery of the goods. Unlike the modern
(digital) supply chain, the traditional supply chain does not use any logistics management
tool.
The modern (digital) supply chain focuses more on building partnerships, alliances, and
collaborations. With improved relationships with the suppliers, companies can build trust
leading to long-term relationships.
# E- Marketplace:
E-marketplace is a virtual online market platform where companies can register as buyers
and sellers to conduct business to business (B2B) or Business to Consumers (B2C) transactions
over the internet. The use of the internet has helped remove intermediaries in a transaction.
It is a web based information system which provides opportunities for both suppliers and
buyers.
It enables the buyers to compare various products and services by different measures like
performance, quality, price etc. Buyers get access to a broader range of products and
services. On the other hand the sellers can reach the customers more conveniently and
affordably. Sellers gets to enter new markets, find new buyers and increase sales by
generating more value for the buyers.
#Advantages:
•The cost of the customers is reduced significantly as they can access the information about
various alternatives and choose the best that suits their needs.
•It can impose higher switching cost on the buyers and sellers.
•It provides economies of scale and scope.
•Different buyers and suppliers can work in collaboration to reap larger benefits from each
other.
# Marketing on internet:
Marketing is all about reaching your target audience at the right place and at the right time.
With more than 4.8 billion people using the internet today, internet marketing is one of the easiest and
most affordable ways to reach your prospects.
Internet marketing is the promotion of a company and its products or services through online tools that
generate leads, drive traffic, and boost sales.
Also called online marketing or digital marketing, internet marketing relies on digital channels to
distribute promotional messages.
Internet marketing is an umbrella term that covers a wide range of marketing strategies and avenues.
From emails, search engines, social media posts, and blog articles, there’s one common theme among all
of these tactics: They all focus on delivering content.
Social media marketing is the process of acquiring attention and sales through the use of social
media platforms such as Facebook, Instagram, or Twitter. Ads can be bought to reach out to a
new audience.
Pros
Social media is challenging. The algorithm changes every now and then. Along with that, new
content formats are introduced frequently. You will have to gun for updates constantly.
Although it sounds simple to post on social media, you require strategic planning and
dedication of enough time to do it consistently and efficiently.
Search engine optimization, (SEO), is the strategy of creating content in such a way that
search engines like Google will rank your page high on the search engine results page (SERP).
Pros
Content Marketing:
Content marketing refers to informational, valuable content like blog posts, how-to videos,
and other instructional materials. This type of marketing helps you connect with your
audience and answer their questions. It can also help to generate leads and close sales.
Pros
The competition is high, it takes a lot of time to rank organically for target keywords.
Consistency and high-quality is vital to be effective. Your content must meet your customers'
requirements while branding and achieving your business targets.
Email Marketing:
When someone visits your website or business, invite them to join an email subscriber list.
With their permission, you can send emails about sales, special events, or product releases.
Email marketing is often underestimated,
Pros
Amongst several types of digital marketing, this one is independent of any changing
algorithms.
Staying constantly in contact with your email list allows you to strengthen relationships, and
they are likely to keep you in their minds when they plan to buy.
Cons
Mobile Marketing:
Mobile marketing is mandatory for brands who desire to be with their customers, side by
side. It requires the marketer to adapt everything he is doing on the desktop to mobile. You
must also be efficient in mobile-specific tasks such as in-app advertising, texting, and social
messaging apps. It is significantly important for brands that target a younger audience.
Pros:
Customers spend more time on mobile phones than on their desktops/laptops these days. So,
mobile marketing helps in reaching where they spend most of their time.
It can be super-targeted with geo-fencing or specific audience segments.
Cons:
Cost Effectiveness: Online marketing has given manufacturers a new way to showcase
their products without spending too much on promotional activities. It gives them a way
where they can escape from the burden of advertising and promotions which in turn makes a
huge cut in product pricing.
Eliminates Geographical Barriers: Internet has made World a global village and any
promotion on Internet can reach to every nook and corner of the world which is not possible
in case of shops and malls where you have to respect geographical barriers.
Immediate Results: Online marketing is the best tool to measure the effect of
promotional activities by any company. Rise in sale after any promotional activity are
regularly updated. This process informs company whether they gained something or it was
just a futile exercise.
Ease of Finding Things: If you visit any shop or mall it takes time to search for the
products of yourpreference whereas in case of online marketing everything is neatly
segregated and just a click away. You just have to type your preference and it will be right
before you.
Round the Clock Availability: One of the biggest advantages of online shopping for its
customers is that they are available 24x7. In case of market you have to watch for time and
your attire which in some cases gets tiresome.
# Internet Advertising:
Is advertising that uses the Internet and other forms of digital media to help a business
promote and sell goods and services.
The purpose of using internet advertising is to reach a wider range of potential customers by
connecting with them over the web. It is also a lot more cost effective as you can fund your
advertising within the boundaries of your own budget. Another luxury of Electronic
advertising is ‘Target Marketing’. This means that you
can target your desired group of customers based on
a wide range of criteria such as age, location, gender
and religion,
1. An increase in brand awareness by displaying your content to individuals within and outside
of your networks.
2. A better understanding of your audiences by leveraging the targeting and analytics of the ads
platforms.
#HTML:
The Hypertext Markup Language or HTML is the standard markup language for documents
designed to be displayed in a web browser. It can be assisted by technologies such
as Cascading Style Sheets (CSS) and scripting languages such as JavaScript.
HTML stands for Hyper Text Markup Language. HTML is the standard markup language for
creating Web pages. HTML describes the structure of a Web page. HTML consists of a series of
elements. HTML elements tell the browser how to display the content.
HTML is one of the biggest reasons the internet has become what it is today. You can use
HTML to build websites, and the ease and simplicity of HTML enable many to develop and
build websites.
#HTML – Frames:
HTML frames are used to divide your browser window into
multiple sections where each section can load a separate
HTML document. A collection of frames in the browser window is known as a frameset. The
window is divided into frames in a similar way the tables are organized: into rows and
columns.
#Disadvantages of Frames:
There are few drawbacks with using frames, so it's never recommended to use frames in your
WebPages −
Some smaller devices cannot cope with frames often because their screen is not big enough
to be divided up.
Sometimes your page will be displayed differently on different computers due to different
screen resolution.
The browser's back button might not work as the user hopes.
There are still few browsers that do not support frame technology.
#Creating Frames:
To use frames on a page we use <frameset> tag instead of <body> tag. The <frameset> tag
defines how to divide the window into frames. The rows attribute of <frameset> tag defines
horizontal frames and cols attribute defines vertical frames. Each frame is indicated by
<frame> tag and it defines which HTML document shall open into the frame.
HTML – Tables:
The HTML tables allow web authors to arrange data like text, images, links, other tables, etc.
into rows and columns of cells.
The HTML tables are created using the <table> tag in which the <tr> tag is used to create table
rows and <td> tag is used to create data cells. The elements under <td> are regular and left
aligned by default
#CSS:
CSS stands for Cascading Style Sheets. It is the language for describing the presentation of
Web pages, including colours, layout, and fonts, thus making our web pages presentable to
the users.
CSS is designed to make style sheets for the web. It is independent of HTML and can be used
with any XML-based markup language. Now let’s try to break the acronym:
#Website Development:
A website is a collection of many web pages, and web pages are digital files that are written
using HTML(Hypertext Markup Language). To make your website available to every person
in the world, it must be stored or hosted on a computer connected to the Internet round a
clock. Such computers are known as a Web Server.
#Components of a Website:
We know that a website is a collection of a WebPages hosted on a web-server. These are the
components for making a website.
Webhost: Hosting is the location where the website is physically located. Group of
WebPages (linked WebPages) licensed to be called a website only when the webpage is
hosted on the web server. The web server is a set of files transmitted to user computers
when they specify the website’s address..
Address: Address of a website also knows as the URL of a website. When a user wants to
open a website then they need to put the address or URL of the website into the web
browser, and the asked website is delivered by the web server.
Homepage: Home page is a very common and important part of a webpage. It is the first
webpage that appears when a visitor visits the website. The home page of a website is very
important as it sets the look and feel of the website and directs viewers to the rest of the
pages on the website.
Design: It is the final and overall look and feel of the website that has a result of proper use
and integration elements like navigation menus, graphics, layout, navigation menus etc.
Content: Every web pages contained on the website together make up the content of the
website. Good content on the WebPages makes the website more effective and attractive.
The Navigation Structure: The navigation structure of a website is the order of the
pages, the collection of what links to what. Usually, it is held together by at least one
navigation menu.
A reliable web hosting service: Web hosting services make it possible for your website to
be viewed on the internet, so paying for a trustworthy one is a great investment. They
maintain every web page they host on their servers and handle set-up and other related
technicalities. They also provide high-speed internet connection, good customer service, and
support.
UX (user experience): In order to have a successful website, you must ensure that it’s
accessible, usable, efficient, and easy on the eyes. Try experimenting with design components
such as templates, images, typography, and colors to create and maintain an exceptional UX.
Use attractive calls to action (CTA): While creating buttons for your website, you should
think about colors and the psychology behind them. Different colors evoke different
feelings. Consider the message and feelings you want to evoke in a user, such as trust
or expertise, and then choose your colors wisely.
Use images (wisely): People across the internet are getting smarter and faster at judging
websites. They can easily detect a generic or non-personal style of stock photography.
Unfortunately, these associations reflect on your business and may decrease your visitor’s
trust. While stock photographs may be high quality, they often fail to create a connection
between the user and the brand. Only images created specifically for your company are
capable of conveying your brand, services, and products the way you want. Make them look
professional in order to create trust with your visitors.