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E-Business
Business Online

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Introd
E-Business - use of internet technologies
to improve and transform key business
processes.
Evolution from traditional business
practice to E-Business.
Web enabled processes to strengthen
customer service operations
Streamline supply chain
To reach existing and new customers.

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Introd
Customer expect accurate, round the
clock service.
E-Business works for everyone
consumers, businesses and governments.
Primary values cost saving, revenue
growth, customer satisfaction.
To better serve customers and improved
efficiency.

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Introd
Automating supply chain
When organization is interacting online
with employees, customer, suppliers its
truly becomes an E-Business.

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Introd
E-Business conduct of automated
business transactions by means of
electronic communications network (like
internet/or private networks) end to end.
End to end process involved integrating
designers, suppliers and buyers, trading
partners, logistic providers and end
customers in entire planning and
execution process.

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Introd
Promotes inter-enterprise business
relationships

Collaborative business.

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E-Co
E-commerce mainly Focuses on buying and selling products
and services, transfer funds through digital communication
or by the use of internet. This includes
1. Online display of goods and services,
2. Ordering and billing
3. Customer service and handling of payments and
transactions
E-commerce facilitates commercial transactions
electronically by using the technologies like EDI to send
commercial documents like invoices, bills and purchase
orders.
E-Commerce does not include the key process of business
like CRM, SCM, ERP.

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E-Co

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E-Business refers to not only information exchange but also

include service to the customer, collaborating to the
partners, distributors, suppliers, Optimization of SCM.
Manages back office processes like distribution,
manufacturing and accounting.
Manages external or front office processes like connect an
organization to its customer and suppliers (CRM).
Full integration of ERP like business tools to undertake
business processes by electronic communications.
E-BUSINESS IS MUCH MORE THEN E-COMMERCE.

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Chara
1. Collaborative product development
2. Collaborative planning, forecasting and replenishment
3. Procurement and order management
4. Operations and logistics.

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Global Reach. Goods and services can be sold to customers
worldwide.
Personalization. Companies can customize products and
reduce inventory.
Interactivity. Customers and suppliers can negotiate prices
online.
Right-time and integrated marketing. Online retailers provide
products when and where customers want them and promotions
can be directed to individual customers.
Cost savings. E-business can reduce costs.
Improving Workflow
Reducing Errors and Improving Quality
Customer satisfaction

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Rule 1: technology is no longer an afterthought in forming
business strategy, but the actual cause and driver.
Rule 2: the ability to streamline the structure,
Influence and control of the flow of information is
dramatically more powerful and
Cost effective than moving and manufacturing physical
products.
Rule 3: inability to overthrow the dominant, outdated
business design often leads to business failure.

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Rule 4: the goal of new business design is to create
flexible outsourcing alliance between companies that not
only off load costs, but also make customer ecstatic
Rule 5:e-commerce is enabling companies to listen to their
customers and become either the Cheapest, the most
familiar or the Best.
Rule 6:Dont use technology just to create the product.
Use technology to innovate, entertain and enhance the
entire experience surrounding the product, from selection
and ordering to receive the services.

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Rule 7:the business design of the future increasingly uses

reconfigurable e-business community models to best meet
customers need.
Rule 8:the tough task for management is to align business
strategies, processes and application fast, right and all at
once. Strong leadership is imperative.

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Element
Customer
KM
CRM

Web Selling

ERP
Purchasing

Finance
accounting
auditing

Ordering
Production
Supply/chain

E-markets,
Actions,
Intermediaries

Stake
holders

Delivery
Distributors
Supply
Partners

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Improved operational efficiency and

productivity
Reduction in operating cost and cost of
good and services
Improved competitive position
Penetration into new markets through new
channels
Improved communication, information and
knowledge sharing

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Impact
Harmonization and standardization of
processes
Improved relationships with supplier,
distributors and customers.

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Conc

Companies must rethink strategies,

Reengineering key business processes,
Implement new technologies
Ensure they are trusted on cyber space
Navigate independently
Taxation and regulatory hazards.

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Di g it

Digital Economy refers to an economy

that is based on digital technologies.
The digital economy is also sometimes
called the Internet Economy, the New
Economy, or Web Economy.

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Di g it

An economy based on digital

technologies, including communication
networks (the Internet , intranets, and
extranets), computers, software, and other
related technologies; also sometimes
called the Internet economy, the new
economy, or the Web economy

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Exampl
The digital economy refers to
an economy that is based on
digital technologies, including
digital communication
networks, computers, and
software.
The digital economy is also
sometimes called the Internet
economy, New economy, or
the Web economy.

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Old vs
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Old Economy
You buy film at the store, insert
it into your camera & take
pictures.
Once you complete the film,
sometimes weeks or months
after you began the roll, you take
it to the store for processing.
Go back to the store and pay for
enlargements and duplications.
Send photos to family and
friends.

New Economy
Use a digital camera that can
also take videos. No film is
needed, and no processing
required. You can see the
results immediately & enlarge
& print photos quickly.
If your digital camera is
connected to a wireless
device (such as a palmtop
computer or a cell phone)
take pictures and see them
within a few seconds.

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Example

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Old

New

Buying and selling text book

Visit the bookstore

Visit web site for publishers and

retailers

Registering for classes

Walk around campus to Departments,

Registrars office, etc.

Access campus web site

Photography

Buy film, use camera, take picture,

take it for processing

Use digital camera

Paying for Gasoline

Fill up your car, go inside, pay cash or

credit card

Use speed pass token wave

over the sensor and go

Paying the Transportation

Pay cash, metal tokens

Metro cards electronic cards

Paying for goods

Visit store, take the item, pay , go

Use self service kiosks

Supplying commercial photos

Use newspapers, paper, catalog or on

line

Use hub-like supply chain with

digitized picture

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Business Model :
A method of doing business by which a company can
generate revenue to sustain itself; spells out how the
company adds value to its products or services.

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Name- your- Own- Price: allow the buyer

to state a price he or she is willing to pay
for a specific product or service.
Bidding Using Reverse Auctions: Via a
request for quote, the buyer indicates a
desire to receive bids on a particular item,
and would-be sellers bid on the job

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Affiliate Marketing: Marketing partners

place a banner ad for a company on their
Web site
Group Purchasing: The purchase orders
of many buyers are aggregated, a small
business, or even an individual, can get a
discount
E-Marketplace: Markets in which buyers
and sellers negotiate online

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Market Pressure:
The global economy and strong competition
The changing nature of the workforce
Powerful customers.

Technology Pressures:

Technological Innovation and Obsolescence

Information Overload.

Societal Pressure:

Social responsibility
Government regulation and Deregulation
Spending for social programs
Protection Against Terrorist Attacks.
Ethical Issues

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Strategic systems for competitive

advantage
Continuous improvement efforts
Business process reengineering
(BPR)
Business alliances
Electronic commerce


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Major
Strategic Systems provide organizations with strategies to
increase their market share, better negotiate with suppliers, or
stop competitors. (e.g. Federal Expresss overnight delivery sys)
Continuous Improvement Efforts aim to improve a companys
productivity and quality. Examples include:
Improved productivity Managing enterprise data
Just-in-time (JIT)
Innovation and creativity
Total quality management Change management
Knowledge management
Customer service


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Business Process Reengineering refers to the introduction
of a major innovation in an organizations structure & the
way it conducts business.
The major areas in which IT supports BPR are the following;
Reducing cycle time and time to market.
Empowerment of employees and collaborative work.
Customer-focused approach and CRM.
Restructuring and team-based structure.


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Business Alliances. Many companies realize that alliances
with other companies, even competitors, can be very
beneficial.
Temporary joint venture = companies form a special company
for a specific, limited-time mission.

Electronic Commerce. Doing business electronically is

the newest and perhaps most promising strategy that many
companies can pursue.