e-business

Dr. Ranjan Maheshwari

E-business and E-commerce

• Electronic business or e-business is the use

of ICT to improve business (from the use of
email to facilitate administrative procedures
in buying and selling through the Internet).
• Electronic commerce or e-commerce is
where business transactions take place via
electronic communication networks,
especially the Internet.

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E-business vs. E-commerce

• Electronic commerce describes the buying

and selling of products, services, and
information via computer networks including
the Internet, where
• e-Business describes the broadest definition
of EC. It includes buying and selling of
products and services, servicing customers,
collaborating with business partners, and
conducting other intra-business tasks.

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Traditional Purchasing Process Flow

Source: ariba.com, February 2001.

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The inspiration for budding
entrepreneurs
• “It is not the strongest of the species that
survive, nor the most intelligent, but the one
most responsive to change”
Charles Darwin

• “If you’re not changing faster than your

environment, you are falling behind”
Jack Welsh, CEO of GE

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E-Business concepts
E-business defined from the following
perspectives:
• Communications: delivery of goods,
services, information, or payments over
computer networks or any other electronic
means
• Commercial (trading): provides capability
of buying and selling products, services,
and information on the Internet and via
other online services
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E-Business concepts (cont.)
• Business process: doing business electronically
by completing business processes over electronic
networks, thereby substituting information for
physical business processes

• Service: a tool that addresses the desire of

governments, firms, consumers, and management
to cut service costs while improving the quality of
customer service and increasing the speed of
service delivery

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E-Business concepts (cont.)
• Learning: an enabler of online training and
education in schools, universities, and other
organizations, including businesses

• Collaborative: the framework for inter- and intra-

organizational collaboration

• Community: provides a gathering place for

community members to learn, transact, and
collaborate

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Dimensions of e-business/ e-commerce

Source: Choi et al. (1997), p. 18.

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Levels of e-maturity

Innovate
Business development
Integrate
Order processing
Interact
Order taking
Informate
Brochure-ware Where do you
want to
Be and Go….
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Dimensions of e-business/ e-commerce
• Pure vs. Partial: based on the degree of digitization of:
- Product
- Process
- Delivery agent

• Traditional commerce: all dimensions are physical

• Pure e-business: all dimensions are digital

• Partial e-business: all other possibilities include a mix

of digital and physical dimensions

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Types of e-business

• Business-to-business (B2B)
Business that sells products or provides services to
other businesses

Business-to-consumer (B2C)
Business that sells products or provides services to end-
user consumers

Consumer-to-consumer (C2C)
Consumers sell directly to other consumers

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Types of e-business (cont.)

• Business-to-government (B2G)
Government buys or provides goods, services or information to/from
businesses or individual citizens

Business-to-employee (B2E)
Information and services made available to employees online

Mobile commerce (m-commerce)

E-commerce transactions and activities conducted in a wireless
environment

Collaborative commerce (c-commerce)

Individuals or groups communicate or collaborate online

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Evolution of e-business
How it started

• Electronic data interchange (EDI) - electronically transfer routine

documents (application enlarged pool of participating companies to
include manufacturers, retailers, services)

• 1970s: innovations like electronic funds transfer (EFT) - funds

routed electronically from one organization to another (limited to
large corporations)

• 1990s: the Internet commercialized and users flocked to participate

in the form of dot-coms, or Internet start-ups

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Evolution of e-business (cont.)
• 1997: Introduction of a brand new phrase – e-business

• 1999: The emphasis of e-business shifted from B2C to B2B

• 2001: The emphasis shifted from B2B to B2E, e-commerce, e-

government, e-learning, and m-commerce

• 2004: Total online shopping and transactions in the United States

between $3 to $7 trillion

• E-business will undoubtedly continue to shift and change

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Evolution of e-business (cont.)
The Future
By 2008:
• Number of Internet users worldwide should reach
750 million

• 50 percent of Internet users will shop

• E-business growth will come more from:

• B2C, B2B, e-government, e-learning, B2E, c-commerce

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Stakeholders
E-Business relationships are formed with the
following types of stakeholders:
• Internal stakeholders: Management and staff
• Suppliers and manufactures
• Customers
• Intermediaries
• Financial institutions
• Web service providers
• Associations
• Web communities
• Etc.
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Major Players

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A govt. website in e-business

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Major business pressures

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E-business framework
E-Business does not affect an organization’s fundamental
goals, rather it provides a new ways to achieve them:

• E-business adoption strategy and direction

Vision must be communicated to all stakeholders

• The interaction among stakeholders

Strong network, more flexible organizations, shifting priorities and roles

• Information system and technology infrastructure

Mechanism to improve, enrich, change, and deepen relationships with
key stakeholders

• Culture
Need to adapt the new way, will impact on rules, belief,
norms, and behaviours

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In India, the backbone…
• E-Banking with its components
• NEFT: National Electronic Fund Transfer
• RTGS: Real Time Gross Settlement
• Railways, Air Transport & Surface Transport
• Speed-post Tracking
• VAT and e-Taxation
• Websites and E-mails for Promotion (Skype)

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Thank you Very Much…

Dr. Ranjan Maheshwari

[email protected]