EMERGING MODES OF

BUSINESS ORGANISATION

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E-Commerce and E-Business

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• E-Business is described as the use of computer
networks to conduct business, trade, and commerce.
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• E-business is a more comprehensive phrase that
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encompasses a wide range of electronic business
transactions and services, including the more well-
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known 'e-commerce' operations.

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• E-commerce refers to a company's online interactions

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with its customers and suppliers.

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• E-business encompasses not just e-commerce, but

also production, inventory management, product
creation, accounting and finance, and human
resource management.

• Also, the scope of E-business is said to be wider and

broader than that of e-commerce.
• Examples of E-commerce and E-business are
Amazon, Flipkart, eBay.
Scope of E-Business

B2B Commerce

• Because both parties involved in e-commerce

transactions are businesses, the term B2B (business-
to-business) was coined.

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• A business must engage with a number of other

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businesses in order to create utility or deliver value.

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These businesses may be suppliers or vendors of
various inputs, or they may be part of the distribution
channel through which a company distributes its items
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to clients.
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• Example Turtle.com
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B2C Commerce
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• Business-to-customer (B2C) interactions involve

business organizations on one hand and their
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customers on the other.

• It encompasses a wide range of internet marketing

operations such as identifying activities, promoting
them, and occasionally even delivering items

• It enables a business to be in touch with its customers

on round-the-clock basis which helps in knowing the
customer satisfaction level.
 • Few examples are Amazon, Walmart etc.

Intra-B Commerce

• The parties participating in electronic transactions are

all from the same company.

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• Today's businesses are able to engage in flexible

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manufacturing in great part due to the use of intra-B

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commerce. The use of computer networks allows the
marketing department to communicate with the
production department on a continuous basis,
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allowing for the creation of personalised products
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according to the needs of each unique customer.
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C2C Commerce
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• The consumer is the source of the business, and

consumers are the ultimate destination.
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• This form of business is best for dealing with items

for which no recognised market mechanism exists.
• Few examples are Quickr, Olx etc.
Benefits of E-Business

1. Easy to set up:

If we have the necessary software, a device, and
access to the internet, we can start an online
business from the comfort of our own homes.

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2. Cheaper than traditional business:

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The cost taken to set up any business is cheaper. In

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addition, the transaction costs are effectively lower.
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3. No geographical boundaries:
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Anyone from anywhere can order anything at any
time. On the one hand it allows the seller and access
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to the global market, on the other hand It offers the

buyer freedom to choose products from almost any
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part of the world.

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4. Flexible business hours:

The internet is available at all times. The time barrier
that location-based firms face is broken by e-
business.

5. Speed and efficiency:

 Online ordering systems scans process payment and
orders in real-time, usually faster, more accurately
and cheaper than human workers.

6. Movement towards up paperless society:

Use of the internet has considerably reduced
dependence on paperwork. In fact, administrative

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reforms are attracting E-Commerce solutions to

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speed up the process of giving rights, approvals, and
licenses.

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Limitation of E-Business
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1. Lack of Personal Touch:

• Unlike traditional business, you cannot touch and
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feel the product. So it is difficult for the

consumers to check the quality of the product,
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until the order has been delivered.

• Traditional businesses have contact with the
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salesperson in the traditional way, and there is a

sense of humanity and trustworthiness as a result
of this. It also fosters customer confidence. Such
characteristics will always be absent from an e-
business paradigm.

2. Delivery Time:
 • The delivery of the products takes time in e-
business. This lag time often discourages
customers.
• However, these days, e-businesses are trying to
resolve such issues by promising very limited
time. For example Amazon now guarantees
delivery within one day.

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3. Security Issues:
• Many people are capable of conducting

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online business. Additionally, hackers have
an easier time obtaining one’s financial
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information. It has a few concerns with
security and integrity. This creates
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skepticism among potential clients.
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4. Technology Capability and Competency of E-

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business Participants are Required:

• E-business necessitates a high level of computer

literacy among the parties involved. This

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obligation can also be blamed for the so-called

digital divide.
• The term "digital divide" refers to the separation

of society based on one's familiarity or lack

thereof with digital technologies.

5. Ethical Fallouts:
 • Companies utilise an 'electronic eye' to keep
track on your computer files, email account, and
internet visits, among other things, so as to gain
knowledge about your interests, preferences etc.
It’s unethical in a number of ways

Process of Online Trading

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Registration ⇒ Placing an order ⇒ Payment

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mechanism
Step 1: Registration: H
• When you register with an online retailer, you create
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an 'account’, by filling up the registration form.
• A "password" must be entered among the numerous
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details since the areas relating to an individual’s

"account" and "shopping basket" are password
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protected.
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Step 2: Placing an Order:

• You can add products to the shopping cart by
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dragging and dropping them.

• A shopping cart is an online record of what an

individual has added to his cart while visiting an online

store.
• Once you've decided what you want to buy, you may

'checkout.'
Step 3: Payment Mechanism:
Purchases through online shopping may be done in a
number of ways.
• Cash-on-Delivery: Payment for things ordered online
can be made in cash when the goods are delivered
physically.

• Cheque: The online merchant may arrange for the

customer's cheque to be picked up. After realisation,
product delivery may be attempted.

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• Net-banking Transfer: Modern banks provide to their

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customers the facility of electronic transfer of funds
over the Internet using Immediate Payment Service

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(IMPS), NEFT and RTGS

•
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Credit or Debit Cards: The holders of credit cards
can enjoy making purchases on credit. The amount
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owed by the cardholder to the online seller is
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assumed by the card issuing bank, which then

transfers the transaction's amount to the seller's
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credit.
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A debit card permits the holder to make purchases up

to the amount of money in the linked account. The
moment a transaction is made, the amount due as
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payment is deducted electronically from the card.

• Digital Cash: This type of currency has no physical

qualities, but it allows you to utilise real money in an
electronic format, such as through e-wallets or
PayTm.
E-Business Risks

a. Transaction Risks:
• Either the seller or the customer may refuse an

order being made or placed. This might be cited

as 'default on order taking/giving.
• The supposed delivery doesn't take place, or is

delivered at the incorrect address, or product

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apart from ordered is delivered. This can be

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thought of as "default on delivery."

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• The vendor doesn't get payment for the things

provided, despite the fact that the customer

states that payment was created. This might be
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cited as 'default on payment'.
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• As a result, order taking/giving in e-business may

pose a danger to the vendor or the client.

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b. Data storage and Transmission Risks:

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• Data in the systems and on the way is vulnerable

to a variety of threats.
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• Important data may be stolen or altered for

nefarious purposes or merely for fun/adventure

• Antivirus softwares installed and updated on a

regular basis prove useful in scanning files and

discs, protecting data files, folders, and systems
against virus attacks.
• Data could be intercepted during transmission.

Cryptography can be used for this. It refers to the

process of encrypting data and transforming it to
 cyphertext, an unreadable format. Only those
with a secret key may decipher (or decrypt) the
message into 'plaintext.'

c. Risks of Threats to Intellectual Property and

Privacy Include:
• Once the material is available on the internet, it is

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no longer considered private. It got more difficult

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to protect it from being copied after that.
• Data provided during online transactions may be

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shared with others, who may begin flooding one’s
inbox with advertising and promotional materials.
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Outsourcing
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It refers to the long-term outsourcing of non-essential and,

more recently, key functions to captive or third-party
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specialists in order to take advantage of their expertise,

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efficiency, and, in certain situations, investment.

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Feature of Outsourcing

• Activities that are interchangeable or fungible:

Activities that are not distinguishable can be
outsourced, whereas unique activities cannot.

• Requiring Explicit knowledge which is Formal and

Codifiable: Although an IT programmer's job can be
 outsourced to a third party, a CEO's position requires
management, technical, and human relations skills.

• Measurable Activity: You can't outsource something

you can't quantify

• Activity is not interconnected to other jobs: If a

fungible, specialized, and measurable position is

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linked to other key operations within the organization,

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it cannot be outsourced.

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