Electronic Business Systems Overview

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Questions and Answers

What is a primary benefit of Electronic Business initiatives?

Increasing product delivery times

Enhancing transaction complexity

Increasing marketing expenses

Reducing transaction costs (correct)

Which of the following statements best describes the difference between e-Business and e-Commerce?

e-Business is a subset of e-Commerce focused on service-oriented tasks.

e-Business includes activities beyond just buying and selling, such as customer service and collaboration. (correct)

e-Commerce refers only to online payment methods, while e-Business refers to inventory management.

e-Business focuses solely on selling products, while e-Commerce encompasses broader business processes.

In SWOT analysis, which of the following elements are identified to assess a business unit's potential?

Sales revenue and historical profits

Strengths and weaknesses of the business unit (correct)

Market trends and global competitors

Employee satisfaction and productivity rates

How can managers identify opportunities for using Electronic Business?

By examining elements of the value chain outside of the business unit Signup and view all the answers

Which of the following is NOT considered a role of Electronic Business?

Increasing physical store locations Signup and view all the answers

What is the primary goal of Customer Relationship Management (CRM)?

To provide a holistic view of each customer Signup and view all the answers

Which component focuses on integrating all departments and functions across a company?

Enterprise Resource Planning Signup and view all the answers

What defines Supply Chain Management (SCM)?

It improves the sourcing and delivery of goods Signup and view all the answers

Which of the following best describes E-Commerce?

The marketing, selling, and buying of goods online Signup and view all the answers

What is one advantage of using Electronic Business?

Enhances advertising reach to global customers Signup and view all the answers

Which of the following is a disadvantage of Electronic Business?

Some business processes are challenging to implement Signup and view all the answers

What is a characteristic of an intranet?

It is a private network for internal information sharing Signup and view all the answers

Which statement is true regarding the vendors of Enterprise Resource Planning (ERP) systems?

There are over thirty vendors focusing on small and midsize businesses Signup and view all the answers

What is the primary focus of Electronic Business (E-Business)?

Conducting business using the internet and related technologies Signup and view all the answers

Which of the following is an example of the Business-to-Consumer (B2C) model?

A consumer purchasing items directly from an online store Signup and view all the answers

Which e-business model involves consumers creating their own value and demand for goods and services?

Consumer-to-Business (C2B) Signup and view all the answers

What is one of the main components of E-Business that helps in decision making by analyzing market information?

Business Intelligence (BI) Signup and view all the answers

Which of the following models facilitates transactions between individuals through an online marketplace?

Consumer-to-Consumer (C2C) Signup and view all the answers

What distinguishes Business-to-Business (B2B) transactions from Business-to-Consumer (B2C)?

B2B transactions include multiple online exchanges at each supply chain step Signup and view all the answers

What is one potential revenue generation method for Consumer-to-Consumer (C2C) models?

Transaction fees for completed sales Signup and view all the answers

Which of the following components is primarily concerned with managing customer interactions and relationships?

Customer Relationship Management (CRM) Signup and view all the answers

Study Notes

Electronic Business Systems

Electronic Business (E-Business) is the administration of conducting any business using the internet, extranet, web, and intranet.
It includes buying and selling goods/services using commercial transactions.
It provides customer or technical support with the help of the internet.
E-Business refers to business activities conducted using electronic data transmission via the Internet and the World Wide Web.

E-Business Models

Business-to-consumer (B2C): Sellers offer products and services directly to consumers online, and the buyer purchases them via the internet.
Business-to-business (B2B): Companies use the internet to conduct transactions with one another. Unlike B2C, B2B transactions usually involve multiple online transactions at each step of the supply chain.
Consumer-to-business (C2B): Consumers create their own value and demand for goods and services. Examples include reverse online auctions and airline ticket websites.
Consumer-to-consumer (C2C): Consumers are buyers and sellers via third-party facilitated online marketplaces, e.g., eBay. Revenue is generated through personal ad fees, membership/subscription fees, and transaction fees.

E-Business Components

Business Intelligence (BI): Activities to collect, store, access, and analyze information about the market or competition to aid in decision-making. Online BI is efficient and quick, aiding in identifying trends and faster decision-making.
Customer Relationship Management (CRM): A company-wide strategy bringing together information from all data sources, providing a holistic view of each customer in real-time. The goal is to reduce costs and increase profitability while providing customer satisfaction.
Supply Chain Management (SCM): Improving the efficiency and effectiveness of finding raw components and delivering the product/service to the customer. Every business has a supply chain, a network of vendors who provides needed components.
Enterprise Resource Planning (ERP): Integrating all departments (sales, marketing, HR, etc.) into a single computer system, serving the needs of each department. The objective is to provide information quickly and efficiently for those who need it. Many vendor choices are available.
E-Commerce: Marketing, selling, and buying goods and services online, generating revenue—which e-business does not. It is commonly associated with e-marketing. Can be conducted within a firm via email, instant messaging, use of an intranet.

Advantages of Electronic Business

Increased sales
Decreased costs
Reaches a large number of potential customers
Creates virtual communities
Reduces costs in sales & order-taking processes
Increases sale opportunities for the seller
Increases purchasing opportunities for the buyer

Disadvantages of Electronic Business

Some business processes are difficult to implement
Return-on-investment is difficult to apply
Cultural and legal obstacles exist

SWOT Analysis

Most E-Business initiatives add value by either reducing transaction costs, creating network economies, or both.
SWOT analysis involves listing the business unit's strengths and weaknesses, and identifying opportunities presented by the markets.
Specific SWOT analysis questions are provided for Strengths, Weaknesses, Opportunities, and Threats.

The Role of Electronic Business

Can play a role in reducing costs, improving product quality, reaching new customers/suppliers, creating new ways to sell existing products.
Managers can identify many business opportunities by examining elements of the value chain outside of the individual business unit, including those that can be exploited by using electronic business.

E-Commerce vs. E-Business

E-Business is a more generic term. It encompasses buying/selling and servicing customers, collaborating with partners, and working with distributors/suppliers. It represents more advanced B2B interactions/collaboration activities at the enterprise application/business process level.
E-commerce is a subset of E-Business (often overlapping or synonymous in many aspects) and focuses on buying/selling online.

E-Commerce and E-Business Distinctions (Table)

FeatureE-commerceE-businessScopePurchasing and selling on the web.Incorporates all business conducted on the web, intranet, or extranet.FocusSelling and buying online.Includes servicing customers, collaborating with partners and suppliers.ScopeOrganisation that offers online financial exchange.Any business that remembers online innovation.

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Description

This quiz delves into the fundamentals of Electronic Business (E-Business), exploring its definition and key models such as B2C, B2B, and C2B. It covers the various methods of conducting business transactions over the internet and the role of electronic data transmission in modern commerce.