CHAP5 EMERGING MODES

e-Business
e-business encompasses a wide range of electronic business activities, including operations like production, inventory
management, and human resources, in addition to buying and selling. It utilizes both public and private networks to enhance
operational efficiency and security.
e-Business versus e-Commerce
While often used interchangeably, e-business is a broader concept that includes e-commerce as a subset. e-commerce
specifically focuses on online transactions and interactions with customers and suppliers, whereas e-business covers all
electronic business functions.
BENEFITS OF E-COMMERCE
1. Business Organisation:
(i) Expands the marketplace to national and international markets
(ii) Gradual decline in the cost of operations
(iii) Facilitates ‘pull’ supply chain management
(iv) Competitive advantage over competitors
(v) Proper time management and support business processes
(vi) Small firms co-exist with big firms (win-win).
2. Benefits to Consumers and Society
(i) Flexibility
(ii) Competitive price/discounts/waive offs
(iii) More options and choices and Customised products
(iv) Quick and Timely delivery (digitised products)
(v) Employment potential
(vi) Facilitate e-Auctions and e-Tenders
(vii) Interaction with consumers
(viii) Wider outreach
ATM speeds up Withdrawal of Money
e-Commerce greatly facilitates and speeds up the entire B2C process. Withdrawal of one’s own money from banks was, for
example, a tedious process in the past. One had to go through a series of procedural formalities before he or she was able to
get the payment. After the introduction of ATMs, all that is fast becoming a history now. The first thing that occurs is that the
customer is able to withdraw his money, and the rest of the back-end processes take place later.
SCOPE OF E-BUSINESS
1. B2B COMMERCE
B2B commerce is when businesses buy from or sell to other businesses, like an automobile company sourcing parts
from multiple suppliers. It uses technology to streamline orders, track stock in real-time, and improve the supply
chain. B2B e-commerce started with Electronic Data Interchange (EDI), making document exchanges and money
transfers faster and more efficient.
2. B2C COMMERCE
B2C commerce is when businesses sell directly to customers, using online platforms to streamline marketing, sales,
and delivery. E-commerce allows personalized shopping experiences and 24/7 customer support. It also includes
C2B, letting customers shop at their convenience and access call centers for assistance.
3. INTRA-B COMMERCE
Intra-B commerce is when a business uses an intranet for transactions and communication within its own
departments, helping with flexible manufacturing and efficient inventory management. It improves coordination
between teams, making it easier to handle customer orders and manage resources. With tools like VPNs and video
conferencing, employees can work remotely and stay connected for faster decisions and better productivity.

4.
C2C commerce involves consumers selling directly to other consumers, often using online platforms like eBay to
trade items like used goods. These platforms offer features like seller ratings and payment intermediaries (e.g.,
PayPal) for secure and trusted transactions. Additionally, C2C commerce supports consumer forums and pressure
groups, where individuals can share experiences and influence others about products and services.
TRADITIONAL BUSINESS VS E-BUSINESS
 SOME E-BUSINESS APPLICATIONS
1. e-Procurement: e-Procurement enables internet-based transactions between businesses, including reverse auctions and
digital marketplaces for multi-party trading.
2. e-Bidding/e-Auction: e-Bidding lets consumers bid on products and services, while e-Auction includes online tender
submissions for various quotations.
3. e-Communication/e-Promotion: e-Communication involves email, online catalogues, ads, customer surveys, and video
conferencing for virtual meetings.
4. e-Delivery: e-Delivery allows electronic delivery of digital content like software and e-books, as well as services like legal
consulting, directly to users.
5. e-Trading: e-Trading facilitates the online buying and selling of securities, like shares, thru platforms like Sharekhan.

BENEFITS OF E-BUSINESS
1. EASE OF FORMATION AND LOWER INVESTMENT REQUIREMENT
-Unlike a host of procedural requirements for setting up an industry, e-business is relatively easy to start.
-Internet is responsible for the popularity of the phrase: ‘networked individuals and firms are more efficient than net-
worthed individuals.’ This means that even if you do not have much of the investment (networth) but have contacts
(network), you can do fabulous business.
2. CONVENIENCE
-Internet offers the convenience of ‘24 hours × 7 days a week × 365 days’ a year business
- So, e-business [a busn enabled and enhanced by electronicsoffers the advantage of accessing anythg, anywhere, anytime.
3. SPEED
-much of the buying or selling involves exchange of information that Internet allows at the click of a mouse.
- This benefit becomes all the more attractive in the case of information-intensive products such as softwares, movies,
music, e-books and journals that can even be delivered online.
4. GLOBAL REACH/ACCESS
- Internet is truly without boundaries. On the one hand, it allows the seller an access to the global market; on the other
hand, it affords to the buyer a freedom to choose products from almost any part of the world.
- It would not be an exaggeration to say that in the absence of internet, globalisation would have been considerably
restricted in scope and speed.
5. MOVEMENT TOWARDS A PAPER LESS SOCIETY
- Use of Internet has considerably reduced dependence on paperwork and the attendant ‘red tape.
- Even the government departments and regulatory authorities are increasingly moving in this direction whereby they
allow electronic filing of returns and reports. e-commerce tools are affecting the administrative reforms & aims at
speeding up the process of granting permissions, approvals and licences.

LIMITATIONS OF E-BUSINESS
1. LOW PERSONAL TOUCH
- High-tech it may be, e-business, however, lacks warmth of interpersonal interactions. Hence, it is relatively less suitable
mode of business in respect of product categories requiring high personal touch such as garments etc

2. INCONGRUENCE BETWEEN ORDER TAKING/GIVING AND ORDER FULFILMENT SPEED

- Information can flow at the click of a mouse, but the physical delivery of the product takes time. This incongruence may
play on the patience of the customers[or sometimes, websites may load for a long time – frustrates users]

3. NEED FOR TECHNOLOGY CAPABILITY AND COMPETENCE OF PARTIES TO EBUSINESS

- Apart from the traditional 3R’s (Reading, WRiting, and ARithmetic), e-business requires a fairly high degree of
familiarity of the parties with the world of computers.
-This responsible for DIGITAL DIVIDE [division of society based on familiarity and non-familiarity with digital technology.]

4. INCREASED RISK DUE TO ANONYMITY AND NON-TRACEABILITY OF PARTNERS

-Internet transactions occur between cyber personalities. As such, it becomes difficult to establish the identity of the
parties. Moreover, one does not know even the location from where the parties may be operating.

5. PEOPLE RESISTANCE
- The process of adjustment to new technology and new way of doing things causes stress and a sense of insecurity.
Asa result, people may resist an organisation’s plans of entry into e-business

6. ETHICAL FALLOUTS
- Nowadays, companies use an ‘electronic eye’ to keep track of the computer files you use, your e-mail account, the
websites you visit etc