Business

1. Business Business is an economic activity concerned with production and distribution of goods and/or services with the aim to earn profit. It includes all those activities which are directly /indirectly concerned with production, purchase and sale of goods and services. So the production, marketing, advertising, warehousing, insurance, banking, etc. are all business activities.

2. E-Business • The Practice of performing and co-ordination critical business process such as designing products, obtaining raw material from suppliers, manufacturing, selling, fulfilling orders and providing services through the extensive use of computer & communication technologies and computerized data. • E-business does NOT equal the Internet, though the growth of the Internet acted as a very powerful catalyst

3. Work System It is a system in which human participants and /or machines performs a business process using information, technology and other resource to produce products and/or service for internal & external customers

4. Information System • An information system is a work system whose business process is devoted to capturing, transmitting, storing, retrieving manipulating and display information thereby supporting other work systems.

5. Business Process • It is a related group of Steps / activities in which people use information and other resources to create value for internal & external customers.

6. The Value Chain • The set of processes used by a firm to create value for its customers. Includes: • Primary processes – directly create the value as perceived by the customers • Support processes – indirectly create value by supporting the primary processes

7. EDI – ELECTRONIC DATA INTERCHANGE Electronic data interchange (EDI) was one of the earliest uses of information technology for supply chain management. EDI involves the electronic exchange of business transaction documents over the Internet and other networks between supply chain trading partners (organizations and their customers and suppliers). Data representing a variety of business transaction documents (such as purchase orders, invoices, requests for quotations, and shipping notices) are automatically exchanged between computers using standard document message formats. Typically, EDI software is used to convert a company’s own document formats into standardized EDI formats as specified by various industry and international protocols. Thus, EDI is an example of the almost complete automation of an e-commerce supply chain process. EDI over the Internet, using secure virtual private networks , is a growing B2B e-commerce application.

9. E-commerce The process of buying, selling and marketing the Products / Services using internet Technologies. Any internet visitor can access information about a product, place an order, make electronic payments to commit the order, and in some cases can receive products or services using computers. E-commerce isthe part of e-business that the customer experiences directly

10. E-commerce Categories • Business to Business (B2B) • Sales of goods and services among business • Business to Customer (B2C) • Retailing products and services • Customer to Customer (C2C) • Individuals use web for sale and service • Government to Customer (G2C)

11. E-Commerce Architecture Most of the information technologies and Internet technologies are involved in e-commerce systems as clear from the following figure , which gives an example of the technology resources required by many e-commerce systems. The figure illustrates some of the hardware, software, data, and network components used by a compny to provide business-to-business (B2B) online auction e-commerce services.

13. Advantages of E-Commerce The advantages of e-commerce allow a business of virtually any size that is located virtually anywhere on the planet to conduct business with just about anyone, anywhere. The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers.

14. Advantages of E-Commerce The advantages of e-commerce allow a business of virtually any size that is located virtually anywhere on the planet to conduct business with just about anyone, anywhere. Imagine a small olive oil manufacturer in a remote village in Italy selling its wares to major department stores and specialty food shops in large metropolitan markets of various parts of the world . The power of e-commerce allows geophysical barriers to disappear, making all consumers and businesses on earth potential customers and suppliers.

15. Advantages of E-Commerce • Barrier to Entry are Low • Global Presence / Global Choice • Improved Competitiveness / Quality of Service • Mass Customization / Personalized Products and Services • Substantial Cost Savings / Substantial Price Reductions • Novel Business Opportunities / New Products and Service

16. E-Commerce Risks • Confidentiality • Integrity • Availability • Authentication & Nonrepudiation

17. Confidentiality Potential consumers are concerned about providing unknown vendors with personal, sometimes sensitive information. Connecting to the internet via a browser requires running software on the computer that has been developed by some one unknown to the organization. Integrity Data, both in transit and storage, could be susceptible to unauthorized alteration or deletion

18. Availability The internet holds out the promise of doing business on a 24-hour, seven days-a-week basis. Hence, high availability is important with any systems failure becoming immediately apparent to customers or business pattern. Authentication & Nonrepudiation The parties to an electronic transaction should be in a known and trusted business relationship, which requires that they prove their respective identities before executing the transaction. Then, after the fact, there must be some manner of ensuring that the transacting parties cannot deny that the transaction was entered into and terms on which it was completed.

19. E-Commerce Risk Sabotage or Defacement:Unauthorized access:Degradation of performance:

20. Sabotage or Defacement: All the business transactions and deals going on through online methods, you being a businessman can also face the problem of attacks. There are different malicious attacks like – virus, worms and Trojan horse, that your system can be a pray to. You should always have a good anti-virus and keep it updated to impede any such kinds of attacks.

21. Unauthorized access: While you may not be aware of and trust your employees the best, you might never know who accesses your data and account illegally. Unauthorized access to your data can also be done by outsiders. Poor configuration of systems and poor encrypted transmission are few factors that can let others access your confidential business data illegally. You must also be careful to choose strong passwords, and avoid hint questions like – ‘maiden name of your mother’ or ‘school you went to’. In most cases you can form your own question. Do that wherever applicable; and if not try choosing your hint questions in a way that will not let anyone guess it or know it. .

22. Degradation of performance: Machines make our life easier, and technology makes it luxurious. But even technology is bounded by certain barriers. Busy network, with heavy traffic is a common problem. Hardware and software can also cause you troubles at any time; yes, might also be when you are on a major transaction. Your processor speed and data storage might also pose as a problem for degradation of your system’s performance.

23. Internet Business Model • Virtual storefront model • Virtual community • Online marketplace • Portal model • Auction model • Dynamic pricing model

24. E-Business • The Practice of performing and co-ordination critical business process such as designing products, obtaining raw material from suppliers, manufacturing, selling, fulfilling orders and providing services through the extensive use of computer & communication technologies and computerized data. • E-business does NOT equal the Internet, though the growth of the Internet acted as a very powerful catalyst

25. E-business VS E-commerce • e-Business • A company that has an online presence • e-commerce businesses allow customers to buy, sell, and trade over the Web E-Business E-Commerce

26. Internet Technology and Digital Firm • Information technology infrastructure • easy to use • Direct communication between trading partner • disintermediation

27. Advantage of IT and Digital Firm • Round clock serviced: 24x7 • Extended distribution channel • Reduce transaction cost • Cost of searching buyer, seller

28. E-business • What do we want • Grow businesses • Improve profitability • Reduce expense • Remain competitive • Attract customer • But today, there is • Information overload • Too little time • Other priorities • Too many details Time Effort

29. Why e-business • Benefit of bringing a business to the internet • High-quality customer service • Improve personalization • supply-chain management

30. Business Model Examples • Type 1 Information only • Reduce expense • Enhance customer relationships • Support your business (INFORMATIONAL WEBSITES) • Type 2: Directly generate revenue (transactional) • Selling products online • Selling advertisement (TRANSACTIONAL WEBSITES)

31. Business Model • Defines an enterprise • Describes how the enterprise deliver products or services • Shows how the enterprise create worth / value in the products or services.

32. Internet Business Model • Virtual storefront model • Virtual community • Online marketplace • Portal model • Auction model • Dynamic pricing model

33. Storefront Model • What many people think of when they hear the word “e-business” • A basic form of e-commerce in which the buyer and the seller interact directly • Storefront model enables merchants to sell products on the Web • Transaction processing, security, online payment, information storage

34. Storefront Model • E-commerce allows companies to conduct business 24-by-7, all day everyday, worldwide • Many leading store front model companies are B2C companies • An e-commerce storefront should include: • Online catalog of products • Order processing • Secure payment • Timely order fulfillment

35. Shopping Cart Technology • Shopping Cart • An order-processing technology allowing customers to accumulate lists of items they wish to buy as they continue to shop • Shopping cart is supported by • Product catalog • Merchant server • Database technology • Combine a number of purchasing methods to give customers a wide array of options

36. Online Shopping Malls • Wide selection of products and services • Offers greater convenience than shopping at multiple online shops • Consumers can make multiple purchases in one transaction Bestbuy.com Cdnow.com Etoy.com Mall.com Amazon.com Eddiebauer.com Jcrew.com

37. Virtual Community • MSN • Yahoo Messenger • Twitter • Facebook

38. Marketplace • Catalog • Sourcing • Automated purchasing • Processing and fulfillment

39. Auction Model • Online auction sites • Act as forums through which Internet users can log-on and assume the role of either bidder or seller • Collect a commission on every successful auction • Sellers post items they wish to sell and wait for buyers to bid

40. Auction Model • Reserve price • The minimum price a seller will accept in a given auction • Reverse auctions • Allow the buyer to set a price as sellers compete to match or even beat it

41. Portal Model • Portal sites • Give visitors the chance to find almost everything they are looking for in one place • Horizontal portals • Portals that aggregate information on a broad range of topics • Yahoo, AltaVista, hotbot, Google, ask jeeves, gomez, sanook • Vertical portals • Portals that offer more specific information within a single area of interest • WebMD.com, IMDB.com, FirstGov.com

42. Dynamic Pricing Models • The Web has changed the way products are priced and purchased • Comparison pricing model • Web sites using shopping technology to find the lowest price for a given item • techsbargain, bottomdollar, deja, dealtime • Demand-sensitive pricing model • Group buying reduces price as volume of sales increase • Mercata, mobshop

43. Dynamic Pricing Models • Name-your-price model • Name-your-price for products and services • Priceline • Bartering Model • Individuals and business trade unneeded items for items they desire • Allows individual and companies wishing to sell products to post their listing

44. Dynamic Pricing Models • Rebate Model • Sites offer rebates on product at leading online retailers in return for commission or advertising revenues • eBates, eCentives • Free offering model • Free products and services generate high traffic • Freemerchant, Start Sampling, FreeSamples

45. CRM Managing the full range of the customer relationship involves two related objectives  A single, complete view of every customer of a business at every touch point and across all channels;  To provide the customer with a single, complete view of the company and its extended channels .

46. CRM CRM uses information technology to create a cross-functional enterprise system that integrates and automates many of the customer-serving processes in sales, marketing, and customer services that interact with a company’s customers. CRM systems include a family of software modules that provides the tools that enable a business and its employees to deliver fast, convenient, dependable, and consistent service to its customers.

47. CRM

48. THREE PHASES - CRM • Acquire. CRM software help to acquire new customers by doing a superior job of contact management, sales prospecting, selling, direct marketing, and fulfillment. The goal of these CRM functions is to help customers to perceive the value of a superior product offered by an outstanding company.

49. THREE PHASES - CRM • Enhance . Web-enabled CRM account management and customer service and support tools help to keep customers happy by supporting superior service from a responsive networked team of sales and service specialists and business partners. In addition, CRM sales force automation and direct marketing and fulfillment tools also help companies in cross-selling and up-selling to their customers, thus increasing their profitability to the business. The value the customers perceive is the convenience of one-stop shopping at attractive prices.

50. THREE PHASES - CRM • Retain . CRM analytical software and databases help a company proactively identify and reward its most loyal and profitable customers to retain and expand their business via targeted marketing and relationship marketing programs. The value the customers perceive is of a rewarding personalized business relationship with “their company.”