E-business Tech Lecture 1 PDF

E-business Tech Lecture 1 What is a business A business is an organization or enterprise that engages in commercial, industrial, or professional activities. In simpler terms, it's an entity that provides goods or services to customers with the goal of making a profit. Businesses can co...

E-business Tech Lecture 1 What is a business A business is an organization or enterprise that engages in commercial, industrial, or professional activities. In simpler terms, it's an entity that provides goods or services to customers with the goal of making a profit. Businesses can come in various forms, from small sole proprietorships to large corporations. They can operate in different industries, such as retail, manufacturing, technology, healthcare, and more. Key characteristics of a business Profit-making: The primary goal is to generate revenue and profit. Organization: Businesses have a structure, often with employees and management. Exchange of goods or services: They offer products or services to customers. Legal entity: Businesses are typically recognized as legal entities with specific rights and responsibilities. Business structure refers to the legal framework that defines how a business is organized and operated. It outlines the relationship between the owners, employees, and the business itself. The choice of business structure can have significant implications for factors such as taxation, liability, and ownership rights. Common business structures include: 1. Sole Proprietorship: This is the simplest form of business structure. The owner is the business. It offers easy setup and minimal paperwork but exposes the owner to unlimited personal liability. 2. Partnership: A partnership involves two or more individuals who share ownership and responsibilities. It can be a general partnership or a limited partnership. 3. Corporation: A corporation is a separate legal entity from its owners (shareholders). It offers limited liability for shareholders but involves more complex setup and regulatory requirements. Organizational hierarchy is a structure that defines the levels of authority and responsibility within an organization. It outlines who reports to whom and establishes the chain of command. This hierarchy is typically represented as a pyramid, with the CEO or top executives at the apex and employees at the base. Common levels of organizational hierarchy include: 1. Top management: This includes the CEO, president, and other top executives who make strategic decisions and set the overall direction of the organization. 2. Middle management: This level consists of managers who oversee specific departments or functions within the organization. They implement the strategies set by top management and supervise lower-level employees. 3. Supervisors or team leaders: These individuals are responsible for leading and coordinating the work of teams or departments. 4. Frontline employees: These are the employees who directly interact with customers or carry out the organization's core activities. Business function a fundamental activity or process that a business performs to achieve its goals. It is a broad term that encompasses various aspects of a company's operations. Here are some common business functions: Marketing: This involves identifying customer needs, promoting products or services, and building brand awareness. Sales: This function focuses on generating revenue by selling products or services to customers. Finance: This includes managing a company's financial resources, accounting, and budgeting. Human Resources: This involves managing employee relations, recruitment, training, and development. Operations: This function oversees the day-to-day operations of a business, including production, logistics, and supply chain management. Research and Development (R&D): This function focuses on developing new products or services and improving existing ones. Business process a series of interconnected activities or tasks that are performed to achieve a specific business objective. It's a structured way of doing things that helps a company achieve its goals efficiently and effectively. Key characteristics of a business process: Goal-oriented: Each process has a clearly defined goal or outcome. Structured: Processes follow a specific sequence of steps or activities. Measurable: The performance of a process can be measured and evaluated. Repetitive: Processes are often repeated, making them subject to improvement and optimization. Examples of business processes: Order fulfillment: The process of receiving, processing, and fulfilling customer orders. Product development: The process of creating new products or services. Customer service: The process of handling customer inquiries and complaints.  The organizational system Figure 1.8 The organizational system Source: BIM  Different forms of information Figure 1.10 Different forms of information Source: BIM The data-information-knowledge transformation process Figure 1.6 The data to information to knowledge transformation process Source: BIM E-business the use of electronic technology to conduct business activities. It encompasses a wide range of activities, from online sales and marketing to supply chain management and customer service. Here are some key aspects of e-business: Online sales: This involves selling products or services directly to customers through an online store or marketplace. E-commerce: This is a subset of e-business that specifically refers to the buying and selling of goods and services over the internet. Online marketing: This includes using digital channels to promote products or services, such as search engine optimization (SEO), social media marketing, and email marketing. Online customer service: This involves providing support and assistance to customers through online channels, such as live chat, email, and social media. Supply chain management: This refers to the management of the flow of goods and services from suppliers to customers, often using electronic systems to track and coordinate the process.  Electronic Commerce: Definitions and Concepts electronic commerce (EC) The process of buying, selling, or exchanging products, services, or information via computer  EC Organizations  brick-and-mortar (old economy) organizations Old-economy organizations (corporations) that perform their primary business offline, selling physical products by means of physical agents  virtual (pure-play) organizations Organizations that conduct their business activities solely online  click-and-mortar (click-and-brick) organizations Organizations that conduct some e-commerce activities, usually as an additional marketing channel Copyright © 2012 Pearson Education, Inc. Publishing as 1-13 Prentice Hall ELECTRONIC MARKETS AND NETWORKS electronic market (e-marketplace) An online marketplace where buyers and sellers meet to exchange goods, services, money, or information intranet An internal corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols extranet A network that uses the Internet to link multiple intranets The Electronic Commerce Field: Classification, Content, and a Brief History  CLASSIFICATION OF EC BY THE NATURE OF THE TRANSACTIONS AND THE RELATIONSHIPS AMONG PARTICIPANTS  business-to-business (B2B) E-commerce model in which all of the participants are businesses or other organizations  business-to-consumer (B2C) E-commerce model in which businesses sell to individual shoppers  e-tailing Online retailing, usually B2C Copyright © 2012 Pearson Education, Inc. Publishing as 1-15 Prentice Hall The Electronic Commerce Field: Classification, Content, and a Brief History business-to-business-to-consumer (B2B2C) E-commerce model in which a business provides some product or service to a client business that maintains its own customers consumer-to-business (C2B) E-commerce model in which individuals use the Internet to sell products or services to organizations or individuals who seek sellers to bid on products or services they need Copyright © 2012 Pearson Education, Inc. Publishing as 1-16 Prentice Hall The Electronic Commerce Field: Classification, Content, and a Brief History intrabusiness EC E-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization business-to-employees (B2E) E-commerce model in which an organization delivers services, information, or products to its individual employees Copyright © 2012 Pearson Education, Inc. Publishing as 1-17 Prentice Hall The Electronic Commerce Field: Classification, Content, and a Brief History consumer-to-consumer (C2C) E-commerce model in which consumers sell directly to other consumers collaborative commerce (c-commerce) E-commerce model in which individuals or groups communicate or collaborate online e-government E-commerce model in which a government entity buys or provides goods, services, or information from or to businesses or individual citizens Copyright © 2012 Pearson Education, Inc. Publishing as 1-18 Prentice Hall Copyright © 2012 Pearson Education, Inc. Publishing as 1-19 Prentice Hall Eight Unique Features of E-commerce Technology 1. Ubiquity(existing in everywhere) 2. Global reach 3. Information richness 4. Interactivity 5. Information density(compactness) 6. Personalization/customization 7. Social technology Copyright © 2012 Pearson Education, Inc. Publishing as 1-20 Prentice Hall Slide 1-20 Electronic Commerce Business Models business model A method of doing business by which a company can generate revenue to sustain itself Copyright © 2012 Pearson Education, Inc. Publishing as 1-21 Prentice Hall  Key Ingredients of a Business Model Table 2.1, Page 62 Copyright © 2004 Pearson Education, Inc. Slide 2-22 1-23  Five Primary Revenue Models Table 2.2, Page 66 Copyright © 2004 Pearson Education, Inc. Slide 2-24  B2C Business Models Table 2.3, Page 72 Copyright © 2004 Pearson Education, Inc. Slide 2-25 Thank you