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E-Business Business Online

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Introduction 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 operationsStreamline supply chainTo reach existing and new customers.

Introduction 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.

Introduction Automating supply chainWhen organization is interacting online with employees, customer, suppliers its truly becomes an E-Business.

Introduction 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.

Introduction Promotes inter-enterprise business relationships

Collaborative business.

E-Commerce Vs E-businessE-commerce mainly Focuses on buying and selling products and services, transfer funds through digital communication or by the use of internet. This includes Online display of goods and services, Ordering and billing Customer service and handling of payments and transactionsE-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.

E-Commerce Vs E-businessE-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.

Characteristics of E-business1. Collaborative product development

2. Collaborative planning, forecasting and replenishment

3. Procurement and order management

4. Operations and logistics.

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 WorkflowReducing Errors and Improving QualityCustomer satisfaction

Capabilities and Benefits of E-Business

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Principles of E-BusinessRule 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.

Principles of E-BusinessRule 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.

Principles of E-Business

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.

KMERPElements of E-businessCustomer CRM Web Selling Financeaccounting auditing Ordering PurchasingProductionDelivery Supply/chain E-markets,Actions,Intermediaries DistributorsSupplyPartners

Stake holders

Impacts of E-Business Improved operational efficiency and productivityReduction in operating cost and cost of good and servicesImproved competitive positionPenetration into new markets through new channelsImproved communication, information and knowledge sharing

Impacts of E-businessHarmonization and standardization of processesImproved relationships with supplier, distributors and customers.

ConclusionCompanies must rethink strategies,Reengineering key business processes,Implement new technologiesEnsure they are trusted on cyber spaceNavigate independently Taxation and regulatory hazards.

Digital Economy Digital Economyrefers to an economy that is based on digital technologies. The digital economy is also sometimes called theInternet Economy, theNew Economy, orWeb Economy.

Digital Economy 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

Example :The Digital EconomyThe 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.

Old vs. New EconomyEx. PhotographyOld EconomyYou 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 EconomyUse 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.

New Economy VS. Old EconomyExample OldNew Buying and selling text book Visit the bookstoreVisit web site for publishers and retailers Registering for classesWalk around campus to Departments, Registrars office, etc. Access campus web sitePhotography Buy film, use camera, take picture, take it for processing Use digital cameraPaying for GasolineFill 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 cardsPaying for goodsVisit store, take the item, pay , goUse self service kiosksSupplying commercial photos Use newspapers, paper, catalog or on line Use hub-like supply chain with digitized picture

Digital Economy Business Models 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.

Five Representative Business Models of the Digital Age.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

Five Representative Business Models of the Digital Age.Affiliate Marketing: Marketing partners place a banner ad for a company on their Web siteGroup Purchasing: The purchase orders of many buyers are aggregated, a small business, or even an individual, can get a discountE-Marketplace: Markets in which buyers and sellers negotiate online

Major Business Pressures

Three Types of Business PressureMarket Pressure:

The global economy and strong competitionThe changing nature of the workforce Powerful customers.

Technology Pressures: Technological Innovation and ObsolescenceInformation Overload.

Societal Pressure: Social responsibility Government regulation and Deregulation Spending for social programsProtection Against Terrorist Attacks.Ethical Issues

Organizations Major Responses Strategic systems for competitive advantage

Continuous improvement efforts

Business process reengineering (BPR)

Business alliances

Electronic commerce

Organizations Major ResponsesStrategic 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 dataJust-in-time (JIT) Innovation and creativityTotal quality management Change managementKnowledge management Customer service

Organizations Major ResponsesBusiness 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.

Organizations Major ResponsesBusiness 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.