Electronic Business Systems Overview

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.

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.