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Emerging Modes of Business I PUC

E-business comprises various transactions and functions of a business that are conducted electronically, including e-commerce which involves interactions between a business and its customers and suppliers over the internet for buying and selling goods and services. E-business also includes other business functions within a company such as production, inventory management, and accounting that are carried out electronically using computers and networks. While e-commerce is a part of e-business, e-business is broader in scope and includes all electronic aspects of running a business.

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39 views20 pages

Emerging Modes of Business I PUC

E-business comprises various transactions and functions of a business that are conducted electronically, including e-commerce which involves interactions between a business and its customers and suppliers over the internet for buying and selling goods and services. E-business also includes other business functions within a company such as production, inventory management, and accounting that are carried out electronically using computers and networks. While e-commerce is a part of e-business, e-business is broader in scope and includes all electronic aspects of running a business.

Uploaded by

yathirajl37
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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It may be defined as the conduct of industry, trade and commerce using

computer networks.

It comprises of transactions and functions conducted electronically and


includes e-commerce.

It includes business functions such as production, inventory management,


product development, accounting and finance, HRM etc.,
E-commerce is all about buying and selling of goods
and services over the internet, whereas e-business is
conducting a business electronically.

E-commerce covers a firm’s interactions with its


customers and suppliers over the internet. E-business
comprises of various transactions and functions of a
business which are conducted electronically, including
e-commerce.
i. Both the parties are business firms.

ii. Aims on creation of utilities or delivering value.

iii. Interactions are between the business firms (suppliers, vendors, etc.).

iv. A network of computers are used for placing orders, monitoring


production & delivery etc.
i. Transactions between business firms and its customers.

ii. Involves marketing activities, promotion & delivery of goods, that are carried out

online.

iii. All the activities are conducted at low cost and high speed.

iv. Convenience of delivery and payment at their pleasure.

v. 24/7 service

vi. Companies also conduct surveys to understand customer buying behavior and

satisfaction level.
i. Parties involved are from within a business firm.

ii. They use intranet or VPN for managing interactions and dealings among various

departments and persons within the firm.

iii. Used for recruitment, selection, training, development, education etc.

iv. Leads to efficient inventory and cash management, greater utilization of machinery and

plants, effective handling of customers, etc.

v. Virtual Private Network (VPN) also enables employees to work from home.

vi. Helps in conducting meetings online via tele/video conferencing.


i. Business originates and ends with consumers.

ii. Suits for goods where there is no established market mechanism.

iii. Provides market system security.

iv. Consumers’ forum and pressure groups


1. Ease of formation & lower
investment requirements

2. Convenience

3. Speed

4. Global reach/access

5. Movement towards a
paperless society
1. Low personal 2. Incongruence between
touch order taking/giving & order
fulfilment speed
3. Need for 4. Increased risk due to
technology anonymity & non-
capability traceability of parties

5. People resistance 6. Ethical fallouts


Differences between Traditional business & E-business

Basis Traditional Business E-Business


Ease of Formation Difficult Simple
Physical presence Required Not required
Locational Proximity to the source of raw
None
requirements materials or market for the products
Low as no requirements for
Cost of setting up High
physical facilities
Low as a result of reliance on
High due to fixed charges associated
Operating cost network of relationships rather
with investment in various activities
than ownership of resources
Differences between Traditional business & E-business
Basis Traditional Business E-Business
Nature of contact with Indirect through
direct
suppliers and customers intermediaries
Nature of internal
Hierarchical Non-Hierarchical
communication
Response time for
meeting
Long Instantaneous
customers’/internal
requirements
Horizontal/flat due to directness
Organizational structure Vertical/Tall due to hierarchy
of command and communication
Business processes & Sequential precedence- Simultaneous (concurrence)
length of the cycle succession relationship different processes
Opportunity for
More less
interpersonal touch
Differences between Traditional business & E-business
Basis Traditional Business E-Business
Opportunity for physical Less, but tremendous
More
pre-sampling of products opportunities for digital products
Much as cyber space is truly
Ease of going global Less
without boundaries
Much, as IT sector is among the
Government patronage Shrinking topmost priorities of the
government
Semi-skilled & unskilled Technically & professionally
Nature of human capital
manpower required qualified personnel required
Low due to arm’s length
High due to distance & anonymity
Transaction risk transactions & Face-to-face
of the parties
contact
1. Registration

2. Placing the
order
3. Payment
Mechanism

a. Cash on c. Net d. Credit or e. Digital


Delivery b. Cheque banking Debit Cards Cash
(COD) transfer
1. Transaction risks:

i. Default on order taking/giving

ii. Default on delivery

iii. Default on payment

2. Data storage & transmission risks

3. Risks of threat to intellectual property and privacy


Website:

It is an online embodiment of all the content that a firm may like to


provide to others.

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