IMPACTS OF

E-BUSINESS
CHAPTER V
LEARNING
OBJECTIVES
AT THE END OF THIS CHAPTER, THE STUDENT
SHOULD BE ABLE TO:

1.EXPLAIN IMPACTS OF BUSINESS TO

BUSINESS, CUSTOMERS, SOCIETY AND
ENVIRONMENT
2. IDENTIFY THE BARRIERS OF E-BUSINESS
Organizations are struggling to retain customers in today's
competitive market due to emerging sales channels,
innovative products, and increased global competition. The
rapid changes in telecommunication and computing
technologies, such as the internet and World Wide Web,
have led to new business applications, processes, and
structures. Companies that quickly adapt their
business models to meet market
dynamics and customer demands
can establish significant leads over
traditional competitors and new
entrants.
 Impact of Electronic on Many Areas
of Business Disciplenes
E-commerce and E-business are not solely the Internet, websites, or dot com
companies. It is about a new business concept incorporating all previous
business management and economic ideas. As such E-Business and E-Commerce
impact many areas of business and disciplines of business management studies

1 2 3 4
MANAGEMENT HUMAN
FINANCE AND
INFORMATION RESOURCE ECONOMICS
ACCOUNTING
SYSTYEM MANAGEMENT

5 6 7 8
PRODUCTION AND BUSINESS LAW
COMPUTER
OPERATION MARKETING AND ETHICS
SCIENCE
MANAGEMENT
1.Management Information System

E-commerce has forced companies to redefine their

business activities, forcing owners to analyze, design, and
implement e-business systems. The integration of front-end
and back-end systems must be decided by owners, as the
chosen systems significantly impact personnel productivity,
customer service, business growth, and management. The
chosen systems significantly impact personnel productivity
and customer service.
2. Human Resource Management

The Digital Age is transforming work and employment by

reducing employee numbers, outsourcing work to
cheaper countries, and utilizing e-commerce. Traditional
jobs are being replaced with new skills, necessitating
training in technology. E-commerce negatively affects
manual jobs and unqualified labor, but positively impacts
technically trained labor, enabling easy job search and
creating new job titles and disciplines.
3. Finance and Accounting

Businesses must adapt to new financial accounting

models, train complex personnel, and master e-
commerce knowledge. Strengthen computer and network
technology culture to promote enterprise development.
Electronic cash, backed by currency or assets, represents
the biggest currency revolution since gold replaced
cowry shells. Its diversity and pluralism could change
consumers' financial lives and shake financial systems
and governments.
4. Economics

E-commerce significantly impacts economic growth by

increasing wages, living standards, market structuring,
and sales. It facilitates global expansion, boosts digital
employment, and fosters new entrepreneurs. However, it
also presents challenges, particularly in local markets
where multinational companies may outcompete national
companies, potentially hindering economic development
and demand for technical skills.
5. Production and Operations Management

Online processing has significantly reduced cycle times,

allowing for faster delivery of digitized products and
services, and order processing times, which can be
reduced by over 90% from days to minutes. This is due
to the integration of production systems with finance,
marketing, business partners, and customers.
6. Marketing

The rise of e-commerce has revolutionized marketing,

making it cost-effective and accessible to businesses of
all sizes. Traditional methods like door-to-door, home
parties, and mail order have been replaced by social
media, search engine, and pop-up ads. These platforms
have made marketing cheaper and more accessible,
allowing businesses to run online campaigns regardless
of their budget.
7. Computer Science

The development of network and computing

technologies and languages is supporting e-commerce
and e-business, linking legacy systems with web-based
technology. E-commerce boosts production and efficiency
by supporting computer and software industries,
technological industries, and associated industries like
electronic storage media, networks, and
communications.
8. Business Law and Ethics

There are different legal and ethical issues that have

arisen as a result of a global 'virtual' market issues
such as copyright laws, privacy of customer
information, legality of electronic contracts
 Impact of E-Business to
Business
E-Business enhances promotion of products
1.Product and services through direct, attractive and
Promotion interactive contact with customers.

Online business offers a significant advantage,

2. Local and allowing companies to have a worldwide
International presence, as seen with Amazon.com, enabling
Presence international purchases from third parties.

E-business creates a new distribution channel

3. New Sales for existing products. it facilitates direct reach
Channel of customers and the bi-directional nature of
communication.
 Impact of E-Business to
DirectBusiness
savings in information delivery and
4. Direct Savings digitized product delivery are significant
compared to non-electronic and physical
delivery methods.
Digitized products and services can be
5. Reduce Cycle delivered in seconds, reducing administrative
Time work related to physical delivery, especially
across international borders.

E-business has revolutionized consumer

6. Mass purchasing by allowing customization of
products and services, allowing customers to
Customization
customize their vehicles online, unlike the
limited color options available in the past.
 Impact of E-Business to
Business
7. Digitization of Software and music/video products can be
Products and downloaded or emailed directly to customers
Processes via the internet in digital or electronic format.
E-business enhances customer service through
online chat, payment options, and efficient
8. Customer shipping. Intelligent agents and help-desk
Service software expedite customer inquiries and
provide detailed information.
Web activities allow newcomers to quickly
9. Corporate establish corporate images, fostering trust and
facilitating direct sales, a strategy traditional
Image
companies like Intel, Disney, Dell, and Cisco
utilize.
IMPACTS OF
E-BUSINESS
TO
CUSTOMER
 Impacts of E-Business to
Customer
E-business streamlines distribution, reduces
1.Ease of costs, and allows customers to shop at home,
Purchase enhancing brand image and convenience.

2. More Customers have access to a wide range of

Information and information, customizable products, and an
Choices international selection of suppliers.
 Impacts of E-Business to
Customer
Customers can conduct global shopping and
3. Price compare prices by visiting various sites or a
Comparison single site that aggregates prices from multiple
providers.

Retailers compete for customers, offering

4. Competitive substantial discounts and value-added products.
Environment Customers aggregate orders for competitive
pricing, allowing wholesalers or manufacturers to
gain a competitive edge.
IMPACTS OF
E-BUSINESS
TO SOCIETY
 Impacts of E-Business to
Society
E-business improves quality of life by allowing
1.Enhances remote work, providing more convenient,
Quality of Life happier, and less stressful environments, and
potentially reducing environmental pollution.

This program facilitates easy access to products,

2. Connects services, information, and others for people in
People developing countries and rural areas, which
would otherwise be difficult to obtain.

3. Facilitates Health services and tax filing can be done online

Deliver of Public through the Inland Revenue website, providing
Services convenient access to doctors and nurses.
IMPACTS OF
E-BUSINESS
TO
ENVIRONME
NT
 Impacts of E-Business to
Environmet
Ecommerce software reduces resource
consumption for businesses by eliminating the
1.Reduce need for physical stores, reducing electricity,
Waste water, and building space. Small office spaces
may be rentable, but not essential.

The internet is displacing various printed

materials, including text books and
2. encyclopedias. Improvements in computer
Dematerialization screen technology and user-friendly electronic
reading devices will drive more people to prefer
electronic versions of paper documents.
 Impacts of E-Business to
Environmet
Merloni Elettrodomestici, a leading European
household-appliance vendor, has developed
3. Green digital appliances with remote Internet-control
Products features, aiming to improve efficiency, safety,
and longevity while reducing energy
consumption, thereby promoting environmental
and health benefits.

RecycleNet Corp. is a B2B exchange that helps

4. Green companies find buyers for surplus materials,
Purchasing reducing waste disposal costs and generating
revenue. Users can find buyers or sellers of
various materials on recycle.net.
BARRIERS OF
E-BUSINESS
 Barriers of E-Business
The company faces a significant concern due to
insufficient internal resources to attract and
1. Lack of retain support staff for a sophisticated technology
Qualified infrastructure. Qualified personnel typically work
Personnel for larger organizations.

The article addresses internet availability and

2. Internet quality issues, focusing on Business to Consumer
Infrastructure organizations, as the ease of public internet
connectivity directly impacts their Web-based
businesses.
 Barriers of E-Business
The development of a broader security
infrastructure and measures to improve security
are crucial for e-commerce businesses. Security is
3. Security
a significant barrier to e-commerce, especially on
the Internet, where users expect 100% protection
of user identity and credit card information.

International trade agreements and taxation laws

4. Commercial are significant barriers for online trading,
Infrustructure affecting businesses of all types.