E-Business Overview and Trends

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Questions and Answers

What does B2B stand for in e-commerce?

Big to Business

Business to Business (correct)

Business to Buyer

Buy to Business

What role does e-learning play in personnel management?

It focuses solely on recruitment.

It is only used for employee education.

It eliminates the need for training.

It is a method for training and development. (correct)

How can employees utilize e-business for better interaction with customers?

By avoiding the use of technology.

Through the use of electronic catalogues and ordering forms. (correct)

By relying solely on paper reports.

By engaging in face-to-face meetings only.

What advantage does Virtual Private Network (VPN) technology provide to employees?

It allows employees to work from any location. Signup and view all the answers

In which scenario is C2C commerce most effectively applied?

Consumers trading used goods like books or clothes. Signup and view all the answers

What is a unique feature of C2C commerce?

It often uses intermediaries like PayPal for transactions. Signup and view all the answers

What capability does intra-B commerce provide to firms?

It facilitates communication among different departments. Signup and view all the answers

How can field reports be sent according to modern e-business practices?

Via e-mail for real-time management access. Signup and view all the answers

What does Section 4 of the Information Technology Act 2000 establish regarding electronic records?

It gives legal recognition to electronic records. Signup and view all the answers

Which section of the Information Technology Act 2000 addresses the use of digital signatures?

Section 5 Signup and view all the answers

How does Section 6-1 facilitate electronic processes within government agencies?

By allowing electronic forms to meet existing legal requirements. Signup and view all the answers

What does Section 7-1 specify about the retention of electronic records?

It allows electronic retention to satisfy legal periods for records. Signup and view all the answers

Which of the following is a consequence of the Information Technology Act 2000?

Enhanced efficiency in conducting business electronically. Signup and view all the answers

What does outsourcing primarily involve?

Contracting out activities to external agencies Signup and view all the answers

What is required for a digital signature to be legally recognized under the Information Technology Act?

It must be affixed in a prescribed manner by the Central Government. Signup and view all the answers

Which of the following is a core activity that companies might initially choose to keep in-house?

Customer service management Signup and view all the answers

What aspect of electronic records does Section 4 particularly address?

Their usability for future reference. Signup and view all the answers

Which provision enables businesses to use electronic forms for legal obligations?

Both Sections 6-1 and 7-1 apply. Signup and view all the answers

Why can protecting information shared online be challenging?

Once information is online, it becomes publicly available Signup and view all the answers

What is a typical initial step for organizations venturing into outsourcing?

Outsourcing non-core activities Signup and view all the answers

Which of these functions is commonly seen as non-core for most organizations?

Sanitation and housekeeping Signup and view all the answers

What may companies gain by engaging third-party specialists?

Increased investment and experience Signup and view all the answers

In relation to outsourcing, what do organizations often outsource to a captive unit or a third party?

Recruitment and training processes Signup and view all the answers

How has the phenomenon of outsourcing evolved across businesses?

It has become a global management strategy. Signup and view all the answers

What does the acronym 'VIRUS' stand for?

Vital Information Under Siege Signup and view all the answers

Which level of virus causes complete destruction of the system?

Level-4 virus Signup and view all the answers

What is the purpose of using anti-virus programs?

To protect data from virus attacks Signup and view all the answers

What does cryptography primarily do?

Encrypt data into an unreadable format Signup and view all the answers

How is a website defined in the context of e-business?

An online embodiment of a firm's offerings Signup and view all the answers

Which of the following best describes outsourcing?

Contracting out non-core activities to external parties Signup and view all the answers

In terms of e-business setup, which of the following is an additional resource needed?

Website maintenance and enhancement Signup and view all the answers

What is a potential risk during data transmission?

Interception of data Signup and view all the answers

What are firms that specialize in providing services across various industries called?

Horizontals Signup and view all the answers

What benefit does outsourcing provide to firms, particularly regarding their investments?

It limits investment and focuses attention on core processes. Signup and view all the answers

Which of the following is an emerging mode of business according to the content?

Outsourcing Signup and view all the answers

What is the primary focus of firms that are categorized as 'verticals' in outsourcing terminology?

They specialize in specific industries and processes. Signup and view all the answers

What philosophy has evolved from 'doing it all by yourself' to emphasize in outsourcing?

Utilizing external expertise for efficiency. Signup and view all the answers

What type of service provision is referred to as 'call centers' in the outsourcing context?

Customer-oriented voice-based services Signup and view all the answers

What is one of the main reasons firms outsource activities like Human Resource Management?

To leverage specialized expertise for efficiency. Signup and view all the answers

What is a potential concern regarding the operations of third-party service providers?

They may not align with the firm’s core values. Signup and view all the answers

What are the two primary expressions of change in the world of business?

e-Business and outsourcing Signup and view all the answers

What internal factor is driving businesses towards e-business and outsourcing?

Quest for improvement and efficiency Signup and view all the answers

Which of the following is NOT a concern associated with e-business?

High transaction costs Signup and view all the answers

How does e-business impact the time and space constraints on business performance?

It eliminates the constraints Signup and view all the answers

What has been a major benefit for India from participating in the global outsourcing business?

Capability building and employment generation Signup and view all the answers

What does the shift from a 'do it all by yourself' mindset signify for modern businesses?

A willingness to collaborate and contract out processes Signup and view all the answers

Which factor influences the uneven accrual of e-commerce benefits across different regions?

Varying economic conditions Signup and view all the answers

What characterizes e-business despite its high-tech nature?

Low personal touch in customer interactions Signup and view all the answers

Study Notes

Learning Objectives

Students should be able to state the meaning of e-business
Explain the process of online buying and selling as part of e-business
Distinguish between e-business and traditional business
State benefits of switching to electronic mode
Explain requirements for a firm's initiation into e-business
Identify major security concerns of electronic mode of doing business
Discuss the need for business process outsourcing
Appreciate the scope of business process outsourcing

Emerging Modes of Business

E-business transforms traditional business practices
Digitization, outsourcing and internationalization are key trends
The fundamental objective of business is to create value through goods and services
Companies constantly seek better ways to deliver value through improving business operations
Evolving technologies and consumer expectations fuel this ongoing evolution

E-Business

E-business encompasses all business activities conducted electronically
E-commerce is a facet of e-business, focusing on customer interactions
E-business includes broader functionalities such as production, inventory management, and more
E-business differs from e-commerce as it involves internal processes unlike the external focus of e-commerce

Scope of E-Business

E-business is vast and encompasses diverse functions such as production, finance, and personnel administration
The scope of e-business encompasses B2B (business-to-business), B2C (business-to-customer), and intra-business (internal business) processes

B2B Commerce

B2B commerce involves business firms interacting with each other in electronic transactions
It encompasses functions like placing orders, monitoring production, handling deliveries, and payments

B2C Commerce

B2C commerce comprises interactions between firms and customers
This entails various stages, from marketing and advertising to the ultimate purchase

C2C Commerce

C2C commerce occurs when consumers interact with each other
This involves selling or purchasing items without typical business intermediaries

E-Commerce Benefits

E-commerce expands market reach, lowering operational costs
It enables flexible customer interaction, better time management, and greater convenience
Companies gain competitive advantages through e-commerce, offering customized products, quicker service, and wide outreach

E-Business Challenges

Security concerns arise, particularly regarding data transmission risks and customer identities
Ethical considerations arise regarding intellectual property theft and unfair business practices
Low personal touch is a potential drawback, as online interactions lack the warmth of personal connections
High costs related to IT competence and technology capability are barriers to entry for some firms

Outsourcing

Outsourcing is the contracting out of business functions
Businesses often choose outsourcing due to cost-effectiveness, efficiency gains, and division-of-labor benefits
Outsourcing helps businesses remain competitive especially in today's highly competitive environment, particularly at an international level

Types of Outsourcing

Captive service providers are internal units within a company managing outsourced functions
Third-party service providers are external entities managing outsourced processes
Vertical outsourcing focuses on a specific process, while horizontal outsourcing contracts multiple processes

Need for Outsourcing

Outsourcing allows companies to focus intensely on core functions
Outsourcing permits leveraging expertise of specialized service providers

Limitations of E-Business

Difficulty in establishing customer trust due to anonymity and interactions with unknown individuals
The digital division (lack of technological literacy in some areas) may pose a challenge to businesses
Lack of a tangible product within e-business poses a problem for maintaining quality and customer satisfaction, and trust in the process
People initially resistant to change from traditional methods may make it more challenging when implementing the digital adoption process

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Description

This quiz explores the fundamental concepts of e-business including its definition, the online buying and selling process, and the distinctions between e-business and traditional business. Students will also learn about the benefits of e-business, security concerns, and the significance of business process outsourcing in today's digital landscape.