Basic of E-Business Management

1. Jitendra Tomar, Amity School of Business, AUUP Page 1
Synopsis - E-Business
Introduction to E-Business
The Internet revolution has advanced to the stage at which every enterprise must become an e-
business. This is an imperative and not a choice. Hence, it is necessary to determine when and
how an enterprise becomes an e-business.
What is e-business? It is a fundamental change to the way an organization conducts business. An
e-business uses Internet technology to:
 Attract, satisfy, and retain the customers who buy its products and services
 Streamline supply chain, manufacturing, and procurement systems to efficiently deliver
the right products and services to the customers
 Automate corporate business processes to reduce cost and improve efficiency through
self-service
 Capture, analyze, and share business intelligence about customers and company
operations. This enables management to make better business decisions and to
continually refine business strategy.
An e-business requires a variety of Internet-enabled applications including e-commerce Web
sites, portals, supply-chain management, procurement management, online marketplaces,
customer relationship management, and enterprise resource planning. All these applications must
be integrated with one another to make an enterprise an e-business.
Amalgamation of services, the Key to E-Business
The necessity for businesses to become "zero latency organizations" drives enterprise-wide
integration of information systems and applications. For instance, in a smoothly running e-
business:
 An order received at an electronic storefront is automatically visible to a customer service
representative who must answer customer inquiries about its status.
 The order is automatically propagated to a supply chain application to start a planning
and execution operation.
 The order information is exchanged over the Internet with a supplier or partner who
provides fulfillment and delivery.
e-Business

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These developments drive the need for e-business integration:
 Mergers and Acquisitions
 Packaged Applications
 Business Process Re-engineering
 Virtual, Dynamic Supply Chains
 Customer Relationship Management
 Corporate Self-Service
 Business-to-Business Commerce
 Application Service Providers and Hosting
Difference In e-Commerce & e-Business
E-commerce describes the process of buying, selling, transferring, or exchanging products,
services, and/or information via computer networks, including the Internet.
E-Busies refers to not just the buying and selling of goods and services, but also servicing
customers, collaborating with business partners, conducting e-learning, and processing electronic
transactions.
e-Business integrate their web based systems with their business systems for processes like
supply chain management, customer relationship management, online transacting processing, as
well as traditional systems like computer based accounting, business information systems, and
the internal systems such as production inventory management, product development, risk
management, financial management, knowledge management, human resources, and similar
processes.
This integration of business process in 4 directions:
 Vertical – between web front and back-end systems.
 Lateral – between a company and its customers, business partners, suppliers or
intermediaries.
 Horizontal – among ERP, CRM, Knowledge management, and Supply Chain
Management.
 Downward – through the enterprise, for integration of new technologies with redesigned
business processes.
E-Business Trends
Key questions that must be integrated into future business strategy are: How will changing
customer demographics affect business strategy? What workface shifts will attract talent? What
are the top technologies and business processes that will shape competitive advantage? How
will future economic trends affect markets? What new opportunities does science offer? What
role will globalization and trade play in the future? What are the essential strategies to building
an agile organization and navigating uncertainty?

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Business is totally dominated, as are governments by the speed, intelligence, communications
and linkage of technology enabled services that support the culture.
1. E-business will become a critical competitive strategy that will revolutionize the global
economy.
2. Companies will learn to manage customers’ relationships by virtually serving their needs “24
× 7″-24 hours a day, 7 days a week.
3. E-business that enables customers to personalize and customize products or services will
flourish.
4. Using the Net to find new customers and to better target customer preferences will be a
standard practice.
5. Producing, marketing, and distributing products or services online will be a cost-effective
strategy for business.
6. Learning to develop and serve online communities with niche interests will be essential to
building customer loyalty.
7. E-business models that provide greater choice for customers will change the traditional
economics of supply and demand.
8. Ready access to the Net from multiple gateways-cable TV, satellite, wireless telephones, and
other devices-will greatly expand e-business opportunities.
9. Highly efficient e-business virtual supply chains will intimately link manufacturers and
producers directly to customers.
10. E-business will reach over one billion people and generate more than $2 trillion in revenues
worldwide by 2018.

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What companies had been doing till date for expansion on electronic media:
1. Business without borders
2. Free and faster shipping
3. Go Mobile
4. Use RSS and Direct-to-Desktop Technology
5. Create Content With Viral Potential for marketing
6. Consumer-driven demand and personalization
7. Growth of guided discovery through feedback
8. It's still about the brand
Managerial and Technological Implications:
Management Implications:
1. Security and privacy concerns deter customer from buying
2. Lack of trust in EC and in unknown sellers hinders buying
3. Many legal and public policy issues, including taxation, are yet unresolved.
4. National and International government regulations sometimes get in the way
5. It is difficult to measure some benefits of EC, such as advertising. There is a lack of mature
measurement methodology.
6. Some customers like to feel and touch products. Also, customers are resistant to the change
from a real to a virtual store.
7. People do not yet sufficiently trust paperless, faceless transactions.
8. In most case, there is an insufficient number of sellers and buyers which are needed for
profitable EC operations.
9. There is an increasing amount of fraud on the internet.
10. It is difficult to obtain venture capital due to the dot-com disaster.
11. The digital divide is still very high in the society.
Technical Implications:
1. There is a lack of universally accepted standards for quality, security, and reliability.
2. The telecommunications bandwidth is insufficient
3. Software development tools are still evolving
4. There are difficulties in integrating the internet and EC software with some existing
applications and databases.
5. Special web servers are needed in addition to the network servers.
6. Internet accessibility is still expensive and/or inconvenient.
7. Order fulfillment of large scale B2C requires special automated warehouses.

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Impact on Economy:
Global trends – estimates vary,
 Forrester (for 2013)
o B2B transactions: $559 billion (US market only)
o B2C transactions: $252 billion (US market only)
 Interactive Media in Retail Group (for 2013)
o B2C revenue: $1.25 trillion
 Goldman Sachs (for 2013)
o Retail web revenue: $963 billion
 eMarketer (for 2013)
o B2C e-commerce revenue: $1.3 trillion

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Some Extraordinarily Ordinary News

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Prospects of Economic Development – Indian Scenario:
Prospects of economic development through electronic medium can be cited from the
composition and size of the Indian population. India’s 60% of the population consists of young
people who are unemployed, educated, angry, somewhat educated, but have not skills or are
unemployable. These are about half of the total 15 to 24 year olds of which Indian population
consists of. A portion of it is self-employed micro entrepreneurs, who are smart, keen to learn
and full of ideas. Electronic medium, internet and social networking sites cannot prove to be a
platform to showcase and even sell their products and extent their services to various
stakeholders. With the efficient use of electronic medium, any indigenous product – whether it is
a book, or a dress material, peculiar to a certain region, one can find a market not only in the
domestic market but in the international market as well. This with the right kind of linkages can
grow up to a big industry as well. India’s cultural and geographical difference can be put on
advantage today, by showcasing each region’s indigenous products through the Global internet,
whether it is for the retail market or online streaming video, or online same day grocery delivery.
All we need today is simply a smart phone or a computer. And if one can walk up the ladder to
be a billionaire, he can have packages of food or other commodity dropped off by unmanned
drones instead of bomb shells!

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As on today the e-commerce sites are targeting the upper and upper-middle class section of the
society selling from industrial motors, consumer durables, to fashion accessories and the likes in
India. E-business can be extended further to cover larger sections of the society and larger
varieties of products at a lesser time and at a lesser price. The hospitals run out of medicine and
surgical necessities in the rural areas. The challenge is to reach the unreached, by approaches that
are accessible, acceptable and affordable. It may start at an individual level, but definitely be
made big with a team effort.
Any person with entrepreneurial skills or even with marketing skills, having a fair knowledge of
financial support available, angel investors, start-up incubators, accelerators, can start an
entrepreneurial venture with wide reach if technology is used.
The use of technology in business has had tremendous impact over society and economy as
whole. The five common economic effects of ICT are:
1. Direct job creation.
2. Contribution to GDP growth.
3. Emergence of new services and industries.
4. Workforce transformation.
5. Business innovation.
Online Operations – Business perspective.
The new ventures have given advantages too when they are starting up:
1. Lower set up and running costs than an offline businesses.
2. The business can be operated from anywhere.
3. Scale-ability.
4. No opening time restrictions.
5. More measurable, better information collection and analytics.
6. Less time intensive.
7. Higher margins and better cash flow.
Online Operations – Customer’s Perspective.
1. Better Prices and comparative shopping.
2. Convenience, 24/7 Shopping.
3. Variety.
4. Discreet Purchases.
5. Compulsive Shopping.
6. Physical market hassle.
7. Clear Product Information For the Customer.
8. Track Your Purchase and Choose Delivery Dates.
9. Reduction in Personal Carbon Footprint.