Questions and Answers
What is the purpose of Secure Sockets Layer (SSL) in e-business?
E-Business and traditional business operate under the same set of customer demands.
False
What are two significant external forces driving the change to e-business?
Competitive pressures and demanding customers.
E-_____ refers to the purchase and sale of goods and services over the internet.
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Which term is commonly associated with the management of online transaction processes?
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Match the following terms with their definitions:
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The transition to e-business is solely driven by technology improvements.
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What is one major benefit of adopting e-business practices?
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Which of the following is a notable disadvantage of e-business?
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E-business eliminates the constraints of time and location for businesses.
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What are two applications of e-business?
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E-business allows firms to contract out manufacturing and R&D rather than __________ everything themselves.
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Match the following aspects of e-business with their benefits:
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Which country is noted for its significant growth in the global outsourcing business?
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The benefits of e-business are evenly distributed across all countries.
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Name one risk associated with data storage in e-business.
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What is one primary benefit of e-business compared to traditional business?
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E-Business requires a company to have a physical presence to operate effectively.
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What is the nature of internal communication in traditional businesses?
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In e-business, operational costs are typically ______ due to reliance on networks rather than ownership of resources.
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Match the following characteristics with traditional and e-business:
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Which of the following is NOT a characteristic of e-business?
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In an e-business model, customer relationships can be managed more directly than in traditional models.
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What is one challenge that companies face when ensuring online transaction security?
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An e-business operates on a ______ structure, allowing direct and instant communication.
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Match the benefits of e-business with their respective descriptions:
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Study Notes
E-Business Overview
- E-business offers opportunities for firms to engage with customers anytime, anywhere, overcoming traditional time and location constraints.
- High-tech e-business lacks personal touch, which may impact customer experience due to limited interpersonal interactions.
- Significant concerns about security and privacy in online transactions.
- Benefits of e-commerce distribution vary across countries and regions within a nation.
Business Process Changes
- Firms are shifting from a 'do it all by yourself' approach to outsourcing various functions, including manufacturing, R&D, and other business processes.
- This trend of outsourcing is prevalent regardless of IT enablement and enhances operational capabilities.
Impact of E-Business and Outsourcing
- India significantly benefits from global outsourcing, which boosts employment, skill development, exports, and GDP.
- The combination of e-business and outsourcing is transforming traditional business operations.
- Both e-business and outsourcing are dynamic, continuously evolving as emerging business modes.
Differences Between Traditional and E-Business
- Ease of Formation: Traditional business formation is complex; e-business is simple and straightforward.
- Physical Presence: Traditional businesses require a physical location; e-business does not.
- Locational Requirements: Traditional businesses must be near resources or markets; e-business enjoys no locational constraints.
- Cost of Setting Up: Traditional businesses incur high initial costs; e-business has lower setup costs through reliance on digital resources.
- Operating Costs: Traditional businesses face high ongoing costs; e-business benefits from reduced expenses through a network-based model.
- Nature of Supplier and Customer Contact: Traditional businesses rely on intermediaries; e-business fosters direct interaction with customers.
- Internal Communication: Traditional businesses have a hierarchical structure; e-business supports non-hierarchical, open modes of communication.
- Response Time: Traditional businesses have slower response times; e-business allows for instantaneous communication and resolution.
- Organizational Structure: Traditional businesses have tall structures due to hierarchy; e-business promotes flat structures for efficient communication.
Key Terms in E-Business
- E-Business: Integrates business processes using technology.
- E-Commerce: Facilitates online transaction processes.
- Secure Sockets Layer (SSL): Protocol for secure data transmission.
- E-Procurement and E-Bidding: Digital methods for purchasing and bidding.
- Business Process Outsourcing: Delegating business functions to third-party providers.
- Captive BPO Units: In-house units set up to carry out outsourced functions.
Summary of Business Evolution
- Business landscapes are evolving with significant changes represented by e-business and outsourcing.
- Internal motivations for these changes include seeking operational efficiency, while external pressures stem from competition and customer demands.
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Description
Test your knowledge on key terms related to e-business and e-commerce. This quiz covers fundamental concepts such as secure transactions, browser functionality, and more. It's designed to enhance your understanding of online business operations.
