E-Business

Introduction to E-Business
Amalgamation of tools build on information
and communication technologies (business
software) in the organization, to enhance their
performance to build a value for the company,
its customers and its affiliates.

Introduction to E-Business
Powerful business setting connects critical
business systems directly with
consumers,workforce,traders and business
associates using intranet,extranet,ecommerce technologies,two way applications
and the web

Introduction to E-Business
For organizations
Enhance productivity
Bring down costs
Ebusiness implemented appropriately and
matches market segment

Introduction to E-Business
Three categories of E-business applications
- Internal Business Systems
- Enterprise Communication and
Collaboration
- Electronic Commerce

Definition of E-Business
Buying, selling of information, products and
services through the computer network
1. E-business business activity which uses an
electronic medium, buying or selling of goods
or services without visiting the store
2. E-business involves activities like delivery of
information,products,services and payment
through the electronic medium

E-Business VS E-Commerce
S.No

E-business

E-Commerce

Explicitly involves business

transactions

Involves all types of

commerce

It is a closed system

It is an open system

It is secured

It is not much secured

Uses concept of EDI

(Electronic Data
Interchange)

Does not involve the

concept of EDI

Operates on intranet or
extranet

Always operate on Internet

Used for bulky transactions Used for small and large

transactions

Execution of E-Business
Online Customer

Merchant Website

Internet

Online Transaction Server

Processing
Network

Acquring Merchant Bank

Issuing Consumer Bank

Difference Between Traditional Business and E-Business

S.No

Basis

E-business

Traditional
Business

Reduction of error

No data re-entering Buyer or seller

in multipoints
creates po and
send,receiver reenters, error prone

Reduction of cost

Initial cost high,cost Duplicate of work

effective for future costs money,time

Reduction of paper
work

Data in electronic
form,easy to share

Time wasted in
reentering and
printing

Reduction in
processing time

Reduce processing
cycle

Processing time is
more

Advantages of E-business

All time processing

Better service
Removing mediators
Data on consumer preferences
Time saving
Reduces cost of the product
Reduces paper work

Advantages of E-business

Product is directly supplied to customers

Improved customer relationship
Minimizes time taken from order to delivery
Better,faster and effective linkage with clients
Market analysis, organization get feedback
from the customer
Knowledge markets
24X7,global reach

Disadvantages of E-business

Lack of customer awarness

Not for small business
Does not support all types of businesses
Legal Formalities
High risk for internet startup organization
E-business is not free
Security problem

Disadvantages of E-business
Customer relationship / satisfaction problems
Data integrity problems

Main goals of E-business

Meet the needs of merchants,consumers and
organizations
Improve the quality and quantity of goods
Increase the speed of services

Trends,Design and construction

E-business offers
- Improved customer services
- Orginating new business
- Enhaced speed and accuracy of
processing
- product cost saving

Trends,Design and construction

Prerequisites for E-business procedure
1. A commercial website like www.jabong.com
2. product and services you want to sell
3. Shopping carts or purchase order forms
4. Current credit card which will accept epayment
5. An online payment gateway
6. Secure Socket Layer (SSL) which will secure
the gate way

Functions of E-business
E-Advertising
- info about its product and services
- E Banners
- News Group
E-Catalogues
- Packaging
- Product Attributes and characteristics
- Availability
- Payment Modes
- Cost

Functions of E-business
E-publishing
- Online reading/browser
- Online Search
- Customized Information Services
E-Banking
- Bill Payment
- Electronic Cheque Writing
- Record Keeping
- Tracking of bank accounts,credit cards

Shopping Services
For comparison of shopping of specific
products like price
Ads displayed in a shopping service channel
Services offered to subscribers through online,
consumers can shop/purchase from their own
computer terminals

Information Services

Enterprise Collaboration System (ECS)

Transaction Process System (TPS)
Decision Support System (DSS)
Executive Support System (ESS)
Management Information System (MIS)

Type of E-Business
Business to Consumer (B2C) through Internet
Business to Business (B2B)
Business-within-business, through intranets

Types of e-commerce
Business to Business (B2B)
Business to Consumer (B2C)
Consumer to Consumer (C2C)
Peer to Peer (P2P)
Mobile Commerce (M Commerce)
Others
Government to Business (G2B)
Government to Citizen (G2C)
Business to Employee (B2E)

Portal

Horizontal Vs Vertical portal

Personal Portals
Regional Web portals
Government Web portals
Corporate Web Portals
Hosted Web Portals
Domain Specific Portals
Sports Portals
Electronic retailer (E-tailer)

Advantages & Disadvantage of E-Tailing

Advantage : Greater profit margins than
physical retail store
Disadvantage: customer servicing

Portal
Content Provider
- store & access data
- make it available to all applications
To make your data public
- you can create your own content
provider
- you can add data to a content provider

The data model

ID

Number

Label

Name

Type

200

AB Dept.

Ajay

TYPE_HOME

100

Delhi Office

Raj

TYPE_MOBILE

300

Ashirwad

Kapil

TYPE_HOME

Portal
Transaction Broker
- Middle ware application facilitates flow of
information from third party applications into
access dimensions
Integration of data with transaction broker is
expensive

Portal
Transaction Broker
- Making integration simple
- Adapting to your business systems
- Faultless Data Transfer
- Reducing your e-business costs

Portal
Market Creator
- important role in transaction over internet
- It surveys the market before any
transaction occurs
Service Provider
- ATM
- Credit/Debit Cards
- Smart Cards

Applications in B2C
E-Banking
- Payment of Bills
- Fund Transfer
- Credit Cards
- Railway Pass
- Investment through Internet Banking
- Recharging Prepaid Phone
- Shopping

Applications in B2C
E-Trading
- Stocks,securities and funds
B2B Ecommerce
- Supply Chain Management (SCM)
- Just In Time
- E procurement System

Benefits and Draw Back of Peer-Peer Network

Benefits

Draw Backs

Users have authority to control their Network security is applied to one

own shared resources
computer at a time
It is easy to install and configure

Every time a computer in the

network is accessed, performance
suffers

In expensive to purchase and

operate

Back up is performed on each

machine separately to protect
resources

No dependence on a dedicated
server

Users have to use a separate

password on each computer in the
network

Ideal for small businesses of ten

users or fewer

No centralised set-up to
locate,manage or control access to
data

All you need to setup this network is

an operating system and a few
cables
No need for a full time network
administrator

Organizational Framework and

Implementation
Ecommerce Application
E- business can be applied to
1. Supply chain Management
2. Procurement and Purchasing
3. Home Shopping
4. Online Banking
5. Online Marketing and Advertisement

E-Business Applications
Common Business Services
Infrastructure/Security/Authentication/Epayment
The messaging and Information distribution
infrastructure (EDI,email)

Multimedia content and network publishing

infrastructure

The Information Super highway infrastructure

(Telecommunication,cable TV,Wireless
network,Internet)
Public policy,legal and
privacy issues (Cyber
law, IT Act 2000)

Technical Standard for EDocuments,Multimedia and

Network Protocols

Client Server Architecture In E-Business

Processed Result
Application Logic

Application Logic

Presentation Logic

Multimedia Content
Result

I-Way or Information Highway

Network of interconnected data highways of
several kinds
- Cable TV Wires
- Telephone Wires
- Cellular and Satellite
- Radio-based wireless

I Way
It helps companies in
- Their Infrastructure
- Ways to change their business
- Transaction Strategies
(Marketing,Advertising)
- Ways to sell their products and services
- Ways to change their relationship with the
customer

Market Forces behind I-Way

1. Requirement of market participants
- Number of users who use online services
- Consumers who pay for information and
products
- Persons who provide services
- Others including third party brokers and
intermediaries

Market Forces behind I-Way

2. Strategic alliances and I-Way infrastructure
- Success of I Way is based on market
strategies
Three Segments
- Communication
- Entertainment
- Information

Components of I Way
I - Way Component

Network Access
Component

Hubs

Local
Access
Component
Telephone based

Global
Access
Component
Long Distance Network

Cable based

Routers

Satellite
Wireless based

Set-top Boxes

Computer based

Components of I Way
Network access equipment or component
- Specific equipment at consumers end to
access any network like Routers etc.
Local access component
- communication link between
schools,organization etc
- Last mile
Global access component
- World wide

E-Business Application Areas

CRM
E-CRM :- Activities that handle customer
relationships with the use of
internet,electronic mediums and web
browsers
ERP
SCM and selling

E-CRM and CRM

E-CRM

CRM

It provides information in response to

specific customer inquiries

It has uniform message of Push and

sell for all customers

Promotion and discounts are offered

to individual customers

Promotion and discounts are the same

for all customers

Pricing of products is negotiated with

each customer

The sellers set the pricing of products

for all customers

New product features are created in

response to customer demands

CRM is determined by the seller,based

on research and development

Functions of CRM System

Encourages philosophy of customer
orientation
Recognizes aspects significant to customer
Develops end-end process to serve clients
Provides Successful customer support
Tracks Sales-related aspects
Handles Customer complaints
Takes up Customer-based measures

Phases of E-CRM
Three Phases of E-CRM
- Acquisition
- Enhancement
- Retention

E-CRM Solutions
E-CRM Strategy
Step 1: Customer Information Environment
- Collecting customer info
- Metrices to monitor customer behaviour
Step 2: Customer Value Orientation
- Value for money
- Perceived Money

Customer Value Orientation

Core products and
benefits
Perceived Quality
(Obtained)

+
Customised Service
Benefits

Perceived Value
Price

+
Costs other than
price

Perceived Sacrifice
(Given)

E-CRM Solutions
Step 3: Customer Loyality
- spend less for services
- better discounts

Implementing and Integrating CRM Solutions

Points to be considered
1. Adoption of customer focused managers
2. Organization having customer focused
culture
3. End-End process to serve customers
4. Tracking selling to existing as well as
prospects
5. Habit of asking questions when helping
customers with problems

Issues and CRM

Cookies
Personal data Tracking
Less profitable customer avoided

Use of e-CRM
Providing round the clock technical assistance
Methods to manage and schedule follow up
sales calls
Customer value and strategies to be adopted
Storing customer interests
Tracking all communication with customer
System to rectify service insufficiencies
Identify potential problem before they occur
Method to handle complaints and issues

Failure of e-CRM
Intangable benefits are not easy to measure or
value
Specific business problems may not possible
to be identified or to be focused on
Absence of sponsorship from senior
management level
User acceptance is not up to the mark
Failure to automate a badly defined process

SCM Supply chain management

SCM - Rigid sequences of activities that
contribute to manufacture,production and
delivery of goods
Inflexible manufacturing plans
hypothetical shipping schedules
Questionable inventory forecasts

E-SCM - Need

Minimize Administrative costs

Abstain from Costly disasters
Reduce labour cost
Earn bigger profit margins on completed goods
Revenue producting gains and cost cutting
Remove outdated business process
Accelerate responsiveness and production to
customers
Decrease needless inventory

Advantages of E-SCM
Real Time Advantages
- Global trading capablilites
- Global Knowledge Exchange
- Enterprise-Enterprise connectivity
- E Market Place E Market Place
connectivity
- Provision of a specific market place

Advantages of E-SCM
Strategic Advantages
- information exchange to
employees,customers,suppliers,distributors &
manufactures
- An interface with any third party software
- Platform independent
- Fully integrated system
- Rapid deployment and scalability

Internet & E-Business

Internet - Networks of Networks
ARPANET (Advanced Research Projects Agency
Network)

Important Features - Internet

WWW
Direct Communication Email
24 X 7
Central repository of data
Search Engines
Ads
E-Commerce
Distance Learning
BBS and new services
WAN
Shareware Software

Connecting to Internet
Direct Connection
Through ISP (Internet Service Provider)
- Remote Dial up connection (SLIP or PPP
protocol)
- Permanent Dedicated Connection (ISDN)
Eg: T1 and T2

Internet Protocols
TCP/IP (Transmission control protocol /
Internet Protocol)
HTTP (Hyper Text Transfer Protocol)
FTP (File Transfer Protocol)
Telnet (Remote Login)

Domain Name System

TELNET 10.12.7.14
TELNET My Host
HOSTS.TXT
Hierarchial Name Space
Eg: myHost.myDept.myDiv.mycorp.com

Domain Name Space

Hierarchial namespace topology / Inverted-tree
structure
Label
Domain Name
Fully Qualified Domain Name (Absolute Domain
Name)
Eg:- myDept.myDiv.myCorp.com.
Partially Qualified Domain Name (PQDN)
Eg: - myDept.myDiv.myCorp.

Domain
Subtree of Domain Name Space
Eg: .com , .edu

Distributed Name Space

Internet Corporation For Assigned Names and
Numbers (ICANN)

DNS in the internet

Generic Domains (three character long or
more)
Eg: - .aero, .biz, .com, .coop, .edu, .gov, .info,
.int, .mil, .museum, .name, .net, .org, .pro
Country Domains (two character)
Eg: - .in, .fr, .ca, .br, .us, .ae, .it
Inverse Domains
- to map IP Address to a symbolic name

Inverse Domains
Resolution Conversion of an IP address to a
symbolic name or viceversa is called Name
address resolution
Recursive Resolution
Iterative Resolution

Caching
Sometimes, a server requests a parent server
to fulfill the request because it is unable to do
so. When the response arrives this
information is stored in its cache memmory
(buffer storage memmory of the RAM) before
forwarding it to the client. This is called
caching. This helps in optimizing data and
curtails search time.

DNS Messages
Messages

Query
Header
Question Section

Response
Header
Question Section

Answer Section
Authoritative Section
Additional Section

E-mails

Exchanging Emails
Composing and Sending
Social Networking sites
Travel Sites
Job sites
Auction sites

SPAMS

Usenet Spam
Email Spam
Spam Filter
Bayesian Filters or Heuristic Filters
Completely Automated Public Turning Test
(CAPTCHA)

Sorting Mail and Avoiding Email Viruses

Folders
Searching
Sorting
Filters and Rules
Colours
Archiving
Never open Un identified adons
Never open spam messages
Aware of abnormal message from friends
Use antivirus of good quality

Chatting and conferencing on Internet

Instant Messaging
VOIP
Deliver Presentations
Webinars
Connect for tech support / websharing

Usenet Newsgroup
1990s DejaNews
Non-Usenet newsgroups NNTP Servers
Eg: Microsoft allow peer to peer support of
their products

Chat
Internet Relay Chat
Instant Messaging (Refer wikipedia)

Voice and Video conferencing

Webcamera
Visual Display
Audio System
Compression
User interface and Control System