E-business Tech - Lecture 1

E-business Tech - Lecture 1

• A business is an organization or enterprise engaged in commercial, industrial, or professional activities, aiming to profit by providing goods or services to customers.
• Businesses can vary in form, from sole proprietorships to large corporations, and operate in diverse industries like retail, manufacturing, technology, and healthcare.
• Key characteristics of businesses include profit-making as the primary goal, structured organization (often with employees), exchange of goods/services, and legal entity status with specific rights/responsibilities.
• Common business structures include Sole Proprietorship (simplest form, owner is the business, unlimited liability), Partnership (two or more owners sharing responsibility), and Corporation (separate legal entity from owners, offering limited liability).

Organizational Hierarchy

• Organizational hierarchy defines authority/responsibility levels within an organization, usually depicted as a pyramid structure.
• Common levels include Top management (CEO, President, overseeing organization direction), Middle management (managing specific departments, implementing top management strategies), Supervisors/team leaders (leading/coordinating teams/departments), and Frontline employees (directly interacting with customers).

Business Functions

• Business functions are fundamental activities/processes for achieving business goals, encompassing diverse aspects of operations.
• Key functions include Marketing (identifying customer needs, promoting products/services, building awareness), Sales (generating revenue by selling products/services), Finance (managing resources, accounting, budgeting), Human Resources (managing employees, recruitment, training), Operations (overseeing daily operations, production, logistics), and Research and Development (developing new products/services).

Business Processes

• Business processes are a series of interconnected tasks/activities for achieving specific business objectives. They help companies achieve goals effectively.
• Key characteristics of these processes include goal-orientation, structured processes with defined steps/activities, and the ability to be measured for evaluation and optimization.
• Examples of business processes include Order fulfillment (receiving, processing, fulfilling orders), Product development (creating new products/services), and Customer service (handling customer inquiries/complaints).

The Organizational System

• The organizational system is a framework encompassing inputs, processes, and outputs with feedback loops and control mechanisms.
• Inputs include finance, human resources, data, and physical resources; processes include new product development, manufacturing, distribution, and sales/marketing; and outputs include products/services, profits, and data.
• The system shows the flow of information and resources, how processes are managed, and goals are achieved.

Different Forms of Information

• Information can be categorized based on its structure.
• Structured information is well-organized (e.g., monthly sales reports), while unstructured information is less organized (e.g., water-cooler chats).
• Formal information typically encompasses predefined formats and standards (e.g., market research reports), contrasting informal information that lacks these standards (e.g., verbal reports).

Data-Information-Knowledge Transformation

• The transformation process involves changes from business events to knowledge through structured stages.
• Business events are collected, converted to data, then to information, followed by a process that culminates in the application of knowledge.

E-business

• E-business utilizes electronic/digital technology for business activities, integrating online sales, marketing, supply chain management, and customer service.
• Key aspects of e-business include online sales methods, e-commerce (buying/selling online), online marketing (digital channels), online customer service, and supply chain management.

Electronic Commerce (EC)

• EC encompasses processes where buyers and sellers exchange goods, services, or information via computers.
• EC organizations can be brick-and-mortar, virtual, or click-and-mortar.
• Key EC organizational classifications include brick-and-mortar (traditional offline businesses), virtual (pure-play online businesses), and click-and-mortar combining online and offline activities.

Electronic Markets & Networks

• Electronic markets (e-marketplaces) are online spaces where buyers/sellers exchange goods/services.
• Intranets are internal corporate/government networks leveraging internet tools.
• Extranets link multiple intranets through the internet.

EC Classifications by Transaction Type

• The EC field is categorized based on transactional relationships between participants:
  • Business-to-Business (B2B), where businesses interact.
  • Business-to-Consumer (B2C), where businesses sell to individuals.
  • Consumer-to-Consumer (C2C), where consumers sell to each other.
  • Business-to-Employee (B2E), where companies provide services/information internally.
  • Intrabusiness e-commerce (activities involving internal organizations)
  • Other types like Collaborative Commerce (C-commerce) and E-Government classifications.

Eight Unique Features of E-commerce Technology

• Ubiquity (existing everywhere), global reach, information richness, interactivity, information density, personalization/customization, social technology.

Electronic Commerce Business Models

• A business model describes how a company creates, delivers, and captures value to sustain itself.

Key Ingredients of a Business Model

• Components include value proposition, revenue model, market opportunity, competitive environment, competitive advantage, market strategy, organizational development, and management team.