E-Business Systems PDF

Sadat Academy for Management Sciences Electronic Business Systems Dr. Noha Ibrahem Department of Computers & IS Chapter 1 Introduction to Electronic Business Electronic Business (E-Business) is : ❑ The administration of conducting any business using the internet, extranet, web, a...

Sadat Academy for Management Sciences Electronic Business Systems Dr. Noha Ibrahem Department of Computers & IS Chapter 1 Introduction to Electronic Business Electronic Business (E-Business) is : ❑ The administration of conducting any business using the internet, extranet, web, and intranet. ❑ It includes buying and selling of goods or services using commercial transactions. It provides customer or technical support with the help of the internet. ❑ Electronic Business refers to business activities conducted using electronic data transmission via the Internet and the World Wide Web. Different types of e-business models: ❑ Business-to-consumer (B2C) model. Sellers offer products and services directly to consumers online, and the buyer purchases them via the internet. ❑ Business-to-business (B2B) model. Companies use the internet to conduct transactions with one another. Unlike B2C transactions, B2B transactions usually involve multiple online transactions at each step of the supply chain.  Different types of e-business models, cont..: ❑ Consumer-to-business (C2B) model. Consumers create their own value and demand for goods and services. Examples include reverse online auctions and airline ticket websites such as Priceline and Expedia. ❑ Consumer-to-consumer (C2C) model. Consumers are buyers and sellers via third-party-facilitated online marketplaces such as eBay. These models generate revenue through personal ad fees, charges for memberships and subscriptions, and transaction fees. E-Business Components: ❑ Business Intelligence (BI), ❑ Customer Relationship Management (CRM), ❑ Supply Chain Management (SCM), ❑ Enterprise Resource Planning (ERP), ❑ E-Commerce, conducting electronic transactions within the firm.  Business Intelligence Customer Relationship Management Supply Chain Management E-Business Components Enterprise Resource Planning E-Commerce  E-Business Components: ❑ Business Intelligence (BI): The activities that a small business may undertake to collect, store, access, and analyze information about its market or competition to help with decision making. When conducted online, BI is efficient and quick, helping companies to identify noteworthy trends and make better decisions faster.  E-Business Components: ❑ Customer Relationship Management (CRM): It is a company-wide strategy that brings together information from all data sources within an organization (and sometimes from external data sources) to give one 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): SCM is about efficiently and effectively improving the way that a company finds those raw components and then delivers the product or the service to the customer. Every small business has a supply chain, a network of vendors that provide the raw components that are needed to make a product or deliver a service.  E-Business Components: ❑ Enterprise Resource Planning (ERP): is about integrating all departments and functions across a company (sales, marketing, human resources, finance, accounting, production, engineering, etc.) into a single computer system that can serve the particular needs of each department. The objective is to provide information quickly and efficiently to those who need it. Small businesses have many vendor choices for ERP systems. There are more than thirty vendors in the field, and they are looking to small and midsize businesses as their primary growth market.  E-Business Components: ❑ E-Commerce, conducting electronic transactions within the firm. is the marketing, selling, and buying of goods and services online. It generates revenue, which e-business does not. It is typically associated with e-marketing. Conducting electronic transactions within a firm can occur through an , e- mail, and instant messaging. An intranet is a private network within a business that is used for information sharing, processing, and communication.  Advantages of Electronic Business Electronic Business can increase sales. Electronic Business can decrease costs. Web advertising reaches a large number of potential customers throughout the world. The Web creates virtual communities for specific products or services. A business can reduce its costs by using Electronic Business in its sales support and order-taking processes. Electronic Business increases sale opportunities for the seller. Electronic Business increases purchasing opportunities for the buyer.  Disadvantages of Electronic Business Some business processes are difficult to be implemented through Electronic Business. Return-on-investment is difficult to apply to Electronic Business. Businesses face cultural and legal obstacles to conducting Electronic Business.  SWOT Analysis : Evaluating Business Unit Opportunities ❑ Most Electronic Business initiatives add value by either reducing transaction costs, creating some type of network economics effect, or a combination of both. ❑ In SWOT analysis, you list the strengths and weaknesses of the business unit and then identify opportunities presented by the markets of the business unit.  The Role of Electronic Business ✓ Electronic Business can play a role in ▪ reducing costs ▪ improving product quality ▪ reaching new customers or suppliers ▪ creating new ways of selling existing products ✓ By examining elements of the value chain outside of the individual business unit, managers can identify many business opportunities , including those that can be exploited by using Electronic Business.  E-Commerce vs. E-Business ❖ Compared with e-Commerce, e-Business is a more generic term; it refers not only to information exchanges related to buying and selling but also to servicing customers and collaborating with business partners, distributors and suppliers. ❖ E-Business includes advanced business-to-business interactions and collaboration activities at a level of enterprise applications and business processes. ❖ E-Business processes are integrated end-to-end across the company, with key partners, suppliers and customers & can respond with flexibility and speed to customer demands and market opportunities.