CHAPTER 1- INTRODUCTION TO E- BUSINESS

E-business
E-business is fundamentally transforming industry structures by enabling
unprecedented networked business models facilitated by the internet. E-
business is defined as internet-mediated integration of business,
applications, and information systems .
E-business is considered as a new business model that is emerging in the
web-driven environment and has descended upon the corporate world.
These systems were based on a top-down model of information strategy
implementation and execution, and focused primarily on the coordination
of companies’ internal functions. The challenge remains in ensuring the
adaptability and flexibility of information interfaces and information flows.

Framework of e-business

Supply Chain Management – SCM is a process-oriented, integrated

approach to procuring, producing, and delivering products and services to
customers. SCM has a broad scope that includes sub-suppliers, suppliers,
internal operations, trade customers, retail customers, and end-users.
SCM covers the management of material, information, and funds flows.
The SCM is the backbone and a very critical component of e-business.
Supply chain efficiency means having the right product at the right place
at the right time, therefore saving money/reducing costs, and enhancing
cash utilisation. The future competition not only will be among companies,
but also will be among the supply chains that the companies own. ISCM
Integrated Supply Chain management can simultaneously improve
customer service and reduce inventories across the chain; if you integrate
supply chain concepts into your product development and design plans
early on, you’ll gain economic and competitive advantage throughout the
entire product life cycle.
Enterprise resource planning - ERP is a comprehensive software
platform used to help a business run more efficiently and effectively, by
automating core processes.
An ERP system can take orders from customers, manage financial records,
update inventory after each sale, and anticipate labor needs based on the
level of orders received. In addition to managing processes, ERP systems
also gather, store, and analyze data from internal functions, such as
product marketing, manufacturing, accounting, facilities, and research
and development
ERP systems integrate, or connect, many different modules that make up
the system. At the center of the system is a giant shared database that all
departments in the company can access and use. That database can
provide information about.
Customer Relationship Management -Enterprises have to focus on the
customer’s need and make the operational model around the customer.
The best way to do this is through Customer Relationship Management.
CRM is all of the activities, strategies and technologies that companies
use to manage their interactions with their current and potential
customers. CRM helps businesses build a relationship with their customers
that, in turn, creates loyalty and customer retention. CRM software lets
you store customer and prospect contact information, identify sales
opportunities, record service issues, and manage marketing campaigns,
all in one central location — and make information about every customer
interaction available to anyone at your company who might need it.
 Satisfy Old Customers – Old Customers are profitable
 Acquiring New Customers
 Enhancing profitability of Customers
 Retaining profitable Customers

Knowledge Management - The competitive advantage for a business

comes from its knowledge base, and its ability to mobilise and integrate
knowledge. It is knowledge that plays the dominant role in an Information
Age business. As e-business firms may face radically different innovations
in competing business models, the changing nature in the knowledge
structures must be carefully considered in order to determine the type of
response for e-business opportunities. Information and knowledge are
critical to manage change, which is a distinguishing feature of the
Information Age.
Intranets and extranets have spawned to improve productivity across all
sectors of the economy.

E- Business Cutting Edge

The technology and tools of Internet commerce have begun to transform
industries in many fundamental ways. These include developing new ways
to sell on the Internet, managing costs, purchasing, production planning,
supply chain management, organising work processes, and so on.
New methods have been developed for distributing data, and delivering
entertainment over telephone, while at the same time connecting cable
TV and satellite networks to the Internet
The merging of data, information, and entertainment electronics has
opened up new vistas for businesses.
A business connected to the Internet is immediately global in reach and
connectivity with no additional expenditure.
The organisation of the twenty-first century is expected to be a learning
organisation, a networked organisation with completely decentralised
methods of working and an empowered workforce with totally new re-
engineered work processes
Change, cost, competition and customer are the drivers of this
Information Age.
There are continuous changes in the market, changes in customer needs
and requirements, changes in technology, changes in resources, changes
in system environs, and also changes in rules, regulations and legislations
of governments. The challenge in the twenty-first century is not only to
survive international competition, and use new technologies, but also to
manage change in technology, and in markets
Manufacturing organisations have already embedded Just-In-Time
technologies with full automation of factories to improve productivity and
reduce costs.
These involve movement from manufacturers to warehouses, to
wholesalers, to distributors, and to retailers, in the form of a complex
supply chain. Warehousing, and transportation involving sea ports,
airports, sea and air transportation, along with national check posts, and
international customs barriers, are activities that create major bottlenecks
for the efficiency and cost-effective movement of goods.
The competitive edge today comes from the efficient management of
supply chains, from its knowledge base, and its ability to mobilise and
integrate knowledge.

Advantages of E- Business
1. E-Business Saves Money
Forgoing the traditional model of a brick-and-mortar location means small-
business owners save a tremendous amount of money at startup. You
save money when you don't have to pay for a storefront, utilities, building
maintenance, and you also save time by not having to manage those
things. If you sell products, they no longer have to go from manufacturer
to warehouse to store to the customer’s cart, they can go from the
manufacturer to the customer’s virtual cart, which saves on shipping costs
and makes products cheaper overall.
2. Better Communication and Faster Decision-Making
E-business allows for conversations to happen quickly. Faster decision-
making saves time, and time is money in business. E-business allows
people to communicate in several ways that facilitate understanding.
If someone is not comfortable on the phone or through a video chat, there
is always messaging and emailing. People who don't speak the same
language can communicate through translation software programs.
3. The Office can be Anywhere
As an e-business owner, you can work anywhere in the world. Without
being tied down to a physical location, you can create a healthy work-life
balance. E-business means you can be there for your family or go to
school or pursue your passions while crafting a business that works for
you. Your tablet, phone and computer all make 21st-century work tasks
available at the click of a few buttons. Social media, email and
teleconferencing mean that anywhere can be an office as long as the
internet is there.
4. Cheaper Marketing, More Control
Traditionally, companies had to rely on advertising agencies to promote
their brand and educate people about it. Now there are lots of ways to
pour money back into your business. When you control how your product
is represented, you control your company. E-business allows owners to
embrace their power in ways they haven't been able to before.
5. Less Restrictive Hours
No longer do people have to wait for stores to open. They can shop
whenever they want and arrange for delivery or pickup. If people want to
start planning for an event, they don’t have to wait for venues and
caterers to open, because they can go to the suppliers' websites.
Information can be accessed at all hours and at everyone’s leisure, which
makes for a more pleasant experience overall for both the e-business and
the customer.
6. More Avenues for Making Money
Most products and services that were traditionally available can be
managed and sold on the internet. The advantages of technology make
them readily available. Selling goods or services, virtual retail stores,
education, legal services, medical services – there is no end to businesses
that can flourish in the modern e-commerce market. Existing businesses
can expand into e-businesses, or entrepreneurs can start new e-
businesses quickly and less expensively than in the past.
7. E-Business Means Freedom
Many small businesses thrive due to the options technology has granted.
Opening an e-business means freedom – freedom of location, freedom to
dictate the hours you work, and the freedom to push your company where
you want it to go in ways that best suit your lifestyle, goals and needs.

8. E-business offers several revenue streams. Many people have been

successful in generating income using the Internet. Affiliate
marketing is typically the simplest method of earning money online.
Creating an account and promoting goods that can aid in driving
traffic to your website are good ways to get started. You will be
compensated with a commission if customers purchase your
product through your website.
 9. Simple to Set Up and Cheaper than Traditional Business:
It's easy to launch an online business. If you have the hardware, software,
and internet connectivity, you can launch an online business while
relaxing at home.Traditional business is significantly more expensive than
online company. On average, an e-enterprise requires far more money to
start than a conventional firm. Additionally, the transaction cost is lower.
Disadvantages of E- business
1. No Personal Touch:
No one is there to assist you when you are looking for the perfect
product, for instance-whether it be the right size, color, or type.
Additionally, you cannot see or hear what others say about your
goods. If a customer has a problem with their item, they could have
to wait days for a response rather than just returning it and
speaking with management.

2. Delivery or product/service is not fast:

Customers who wish to view a product or receive assistance from an
e-Business may have to wait a long time because these businesses
might need to be more active. Customers might want to avoid
hanging around and becoming impatient with inaction. Additionally,
lengthy product delivery delays are a huge deterrent.

3. Privacy violations and security issues:

The security dangers that e-business presents are its most
significant negative. For instance, businesses are increasingly
concerned about the problem of cybercrime. Cybercriminals lure
naïve victims using a range of tactics One of their tactics is to
produce a phony website that looks identical to the actual one.
They'll offer a free trial or some other ploy to get consumers to click
on it, and once they do, they'll hijack your account or steal your
data.

4. Not accessible to all:

Since there are few obstacles to entry, operating your business in
this manner has many benefits. In addition, we live in the Age of
Information, when we may quickly and easily obtain any
information. The drawback of e-businesses is that only some can
access them. Some people might require assistance to take
advantage of e-businesses because of the high cost of resources like
Internet connections, computer hardware and software, broadband
internet service providers, and even cell phones.

5. Nobody can make a Purchase when a Website is Down:

 The most significant disadvantage of online purchasing is that
nobody can access your store if your website is down. As a result,
be sure the platform hosting your website is appropriate.

6. Innovation Pressure:
When you use an e-business strategy, you are exposed to a fiercely
competitive global market where thousands of other brands are
likely to overshadow yours. Due to this situation, innovation is
constantly under pressure. You need to be creative if you want to
draw and keep customers; otherwise, the competition will outshine
you. It would be advantageous if you innovated your supply chain to
meet the demands of your customers.

7. Handling Returns:
Product descriptions displayed on the screen are limited in length.
Because of this, if the finished product is different from what the
buyer anticipated, they will return it. Do you have the means to
manage these returned goods in your company? Can you handle all
incoming requests for money back? These are things to consider
when starting an online business, especially if you plan to offer
physical goods.

8. Shipping Times Can Be Lengthy:

According to customers, one of the significant problems with online
purchasing is the shipment periods. When purchasing anything in
person, the customer can take it home immediately. However, most
online shoppers receive their items within a week.

9. Security Concerns and Privacy Violations:

One of the e-mail business's drawbacks is, without a doubt, the
security concerns that it introduces. For instance, companies are
increasingly worried about the problem of cybercrime.
Cybercriminals use several tactics to seduce naïve victims. One of
their tactics is to build a phony website that looks identical to the
real one. Fraudsters may use a free trial offer or another trick to
entice customers to click on it, and once they do, they take over
your account or steal your personal information.

Network Infrastructure
(Scanned notes)

Network Layers & TCP/IP Protocols

Protocols are sets of rules for message formats and procedures that
allow machines and application programs to exchange information.
These rules must be followed by each machine involved in the
communication in order for the receiving host to be able to
understand the message. The TCP/IP suite of protocols can be
understood in terms of layers (or levels).

Transmission Control Protocol (TCP) and Internet Protocol (IP)

The main work of TCP/IP is to transfer the data of a computer from
one device to another. The main condition of this process is to make
data reliable and accurate so that the receiver will receive the same
information which is sent by the sender. To ensure that, each
message reaches its final destination accurately, the TCP/IP model
divides its data into packets and combines them at the other end,
which helps in maintaining the accuracy of the data while
transferring from one end to another end.

-IP finds the destination of the mail

-TCP has the work to send and receive the mail.

How Does the TCP/IP Model Work?

Whenever we want to send something over the internet using the
TCP/IP Model, the TCP/IP Model divides the data into packets at the
sender’s end and the same packets have to be recombined at the
receiver’s end to form the same data, and this thing happens to
maintain the accuracy of the data. TCP/IP model divides the data
into a 4-layer procedure, where the data first go into this layer in
one order and again in reverse order to get organized in the same
way at the receiver’s end.

Layers of TCP/IP Model

1. Application Layer
2. Transport Layer (TCP)
3. Network/Internet Layer (IP)
4. Data Link Layer
5. Physical Layer
1. Application Layer
This layer is responsible for end-to-end communication and error-
free delivery of data. It shields the upper-layer applications from the
complexities of data. Application programs send messages or
streams of data to one of the Internet Transport Layer Protocols,
either the User Datagram Protocol (UDP) or the Transmission
Control Protocol (TCP).
One of the main protocols present in this layer is
• HTTP and HTTPS: HTTP stands for Hypertext transfer protocol.
It is used by the World Wide Web to manage communications
between web browsers and servers. HTTPS stands for HTTP-Secure.
It is a combination of HTTP with SSL(Secure Socket Layer). It is
efficient in cases where the browser needs to fill out forms, sign in,
authenticate, and carry out bank transactions.

2. Transport Layer
TCP/IP carefully defines how information moves from sender to
receiver. The TCP/IP transport layer protocols exchange data receipt
acknowledgments and retransmit missing packets to ensure that
packets arrive in order and without error.
These protocols receive the data from the application, divide it into
smaller pieces called packets, add a destination address, and then
pass the packets along to the next protocol layer, the Internet
Network layer.
Transmission Control Protocol (TCP) and User Datagram Protocol are
transport layer protocols at this level (UDP).
3. Internet Layer
The Internet Layer is a layer in the Internet Protocol (IP) suite, which
is the set of protocols that define the Internet. The Internet Layer is
responsible for routing packets of data from one device to another
across a network. It does this by assigning each device a unique IP
address, which is used to identify the device and determine the
route that packets should take to reach it.
The Internet Network layer encloses the packet in an Internet
Protocol (IP) datagram, puts in the datagram header and trailer,
decides where to send the datagram (either directly to a destination
or else to a gateway), and passes the datagram on to the Network
Interface layer.
Example: Imagine that you are using a computer to send an email to
a friend. When you click “send,” the email is broken down into
smaller packets of data, which are then sent to the Internet Layer
for routing. The Internet Layer assigns an IP address to each packet
and uses routing tables to determine the best route for the packet
to take to reach its destination. The packet is then forwarded to the
next hop on its route until it reaches its destination. When all of the
packets have been delivered, your friend’s computer can
reassemble them into the original email message.
In this example, the Internet Layer plays a crucial role in delivering
the email from your computer to your friend’s computer. It uses IP
addresses and routing tables to determine the best route for the
packets to take, and it ensures that the packets are delivered to the
correct destination. Without the Internet Layer, it would not be
possible to send data across the Internet.

4. Data Link Layer

The packet’s network protocol type, in this case, TCP/IP, is identified
by the data-link layer. Error prevention and “framing” are also
provided by the data-link layer.

5. Physical Layer/ Network Interface layer

It is a group of applications requiring network communications. This
layer is responsible for generating the data and requesting
connections. It accepts IP datagrams and transmits them
as frames over a specific network hardware, such as Ethernet or
Token-Ring networks.

INTERNET HIERARCHY

1. Top tier/Presentation tier/ client tier- User Interface

The presentation tier is the user interface and communication layer
of the application, where the end user interacts with the application.
Its main purpose is to display information to and collect information
from the user. This top-level tier can run on a web browser, as
desktop application, or a graphical user interface (GUI), for example.
Web presentation tiers are usually developed using HTML, CSS and
JavaScript. Desktop applications can be written in a variety of
languages depending on the platform.

2. Application tier
The application tier, also known as the logic tier or middle tier, is the
heart of the application. In this tier, information collected in the
presentation tier is processed - sometimes against other information
in the data tier - using business logic, a specific set of business
rules. The application tier can also add, delete or modify data in the
data tier.
The application tier is typically developed using Python, Java etc and
communicates with the data tier.

3. Data tier
The data tier, sometimes called database tier, data access tier or
back-end, is where the information processed by the application is
stored and managed. This can be a relational database
management system such as MySQL, Oracle, Microsoft SQL Server.
In a three-tier application, all communication goes through the
application tier. The presentation tier and the data tier cannot
communicate directly with one another.

Basic Blocks of E- Business

1. Supply
Understanding product profitability can help marketers create more
effective promotional strategies to increase sell-through rates, drive
higher conversions, and reduce aged stock.
2. Warehousing and inbound logistics
Insight into warehousing processes can inspire smoother customer
service experiences, including managing expectations of delivery
times and promoting safety during COVID-19.
3. Digital merchandising
Digital merchandising typically encompasses all promotional activity
to sell products online. This includes a marketer’s efforts to monitor
impressions, click-through-rates, and conversions to optimise the
user journey on the website homepage.
4. Marketing
A holistic marketing strategy takes into account user insights to
achieve key business objectives, including raising brand awareness
and driving sales.
5. Sales
Successfully tracking sales and audience conversion rates will help
marketers inform future strategies to drive higher return-on-
investment.
6. Fulfillment
An understanding of how order fulfillment works will allow marketers
to promote unique selling points, such as quality guarantees, quick
delivery, and easy returns.
7. Customer service
Identifying loyal customers, or those who’ve had negative
experiences, can help build retention and loyalty, while ensuring a
positive brand experience.

World Wide Web (WWW):

The world wide web (www) is the most common service on the
internet—the networks based on an application known as Hypertext
Transfer Protocol (HTTP). Web pages are built by using a specific
language known as Hypertext Markup Language (HTML). Over the
internet, web browsers and servers converse with each other with
the help of HTTP. The protocol is the application level as it is present
on the top of the TCP layer. In such a case, web browsers and
servers are the applications.

A few steps are followed whenever a client requests to open a

website in the web browser.
1. Most of the clients use the domain name to open the URL in
the browser
2. A connection is established among the web browser and web
server, where an HTTP requires, is submitted to explore the desired
page on the web.
3. Upon receiving the request at the webserver level, it checks
the requested web page’s presence. If the web server finds the web
page, it will send the page; otherwise, it will send an error
containing “HTTP 404 Error”.
4. The connection is made closed once the web browser will
receive the requested web page from the web server.
5. The web browser then parses each element residing in the
requested web page.
6. A few connections are established from the HTTP request’s
perspective to adjust the text, images, and styling of the requested
web page inside the web browser.
7. After getting all the elements and adjusting them accurately,
the web page is loaded and displayed in the web browser.
 Advantages of Internet
Online Education Shopping Booking
Abundant Information Work From Home
Cashless Transactions Navigating Locations
Jobs And Freelancing Donations And Funding
Selling Products Global Connectivity
Making Money Cloud Computing And Storage
Internet Banking Jobs and freelancing