UNIT- 1

INTRODUCTION TO E-BUSINESS
1. E-Procurement
It is also known as supplier exchange
in
which business to business, business
to government, business to consumer,
and sales of services are made with
the help of the internet. Basically,
e-procurement is a way adopted by
the companies to reduce the costs
and efforts by sourcing products or
services electronically.
• 2. Online Stores
• It is an electronic sourcing (website or application) for products or services, such as online
shopping stores. Online stores are also known as e-shop, internet shop, web-store, virtual
store, web-shop, m-commerce, and online storefront. The main purpose of these online
stores is to save precious time and money.
• Anyone can buy products or services by making online payments using credit cards, cash on
delivery and other payment methods. The owners of online stores should host their
eCommerce website on the PCI compliant hosting because Payment Card Industry Security
Standards Council (PCI SSC) make it compulsory for those who are accepting the online
payments.
• 3. Online Marketplace
• It is an electronic commerce that connects the
buyers and suppliers to the services or products
over the internet. Keep in mind, the operator of an
online marketplace only presents the inventory of
other people and provides the transaction facility.
• 4. Online Communities
• Online communities (also known as web communities or
internet communities) are the groups of people having the
same interests or purposes who use the internet to
communicate with each other. It is used between the
individuals and organizations to prepare transaction
decisions.
• 5. Online Companies
• It is electronic business cooperation that
connects the individual companies and forms
a virtual business with a common transaction
offer
• Order Fulfillment Process
Order fulfillment process is based on all the activities needed for a customer to get his
ordered product or service including the related customer services. What is e-business
and how the orders are processed is discussed with the help of particular figures.
• 1. Product inquiry
• You are surfing the website of any well-reputed business brand
manufacturing laptops, desktops, or monitors, and able to view their
all products.
• 2. Sales Quote
• Laptop prices, screen size or usage are clearly mentioned on the
website for the sales quotation for customers.
• 3. Order Configuration
• Once the customers select what he proposed to purchase, the
number of products are easily adjusted or canceled during this
phase.
• 4. Order Booking
• This phase includes the booking of products available on the website,
such as desktops, laptops, or necessary accessories.
• 5. Order Confirmation
• This process ensures the details of the order such as prices and
quantities are accurate.
• 6. Billing
• Billing is the process that enables customers to pay for the products by
Visa, cheque, ATM, or other available payment methods.
• 7. Order Planning
• Every customer has different options for delivery, so the order will be
delivered accordingly.
• 8. Order Processing
• Once the order is confirmed, the company ensures the right item in
the right quantity, time, place, price, and condition to the right
customer.
• 9. Shipment
• According to the customers’ requirements, the products will be delivered
by means of an express, Air-to-Sea initiative, and so on.
• 10. Delivery
• The products will be delivered within a given time slot at the right address.
• 11. Settlement
• It is the method to settle all the remaining charges, like delivery costs or
extra products’ care expenditure.
• 12. Returns
• Most of the companies offer the returns option with their particular terms
and conditions. So, any customer who has received the products with any
technical or physical problems of products, they can easily return their
products within a specified period.
• E-Business Model
What is electronic business model and its components? In fact, it is a way
that describes how a company functions to provide the services or products
and how it generates profits. Moreover, it also defines how a company will
create and adapt to new technologies or markets. All components of a
business model work together for successful business operations.
• 1. E-business Concept
• What is e-business concept and how is it essential for a successful business? It
describes the basic information of the business including goals, vision, products
and offers from which it will earn revenue. The effective concept is based on
market analysis that will identify the customers’ interests to purchase the
product and how much they can pay for it.
• What is e-business concept? It is based on goals such as “Become a major bus
seller or commercial enterprise” and objectives such as “have $80 million in
revenues in five years”. Whether the company is prepared to achieve their goals
and objectives addressed in the implementation plan for running a business and
in the business plan process for startup companies.
• Corporate strategies are also embedded in the e-business concept and describe
how the business concept will be implemented and can be modified in order to
enhance business performance.
• Business concept and market research are important to understand the market,
who comprises it and what do they want. Once the market research is done,
now the pricing should be established according to the competition.
2. Value Proposition
• As the name denotes, the value proposition is a value that an organization or
business will provide to its customers. It may include one or more of the following
points:
• Reduced price
• Improved service or better functionalities with user-friendliness
• Speedy delivery and improved assistance
• Products or services that result in greater efficiency and productivity
• Access to available inventory having different options for the buyer
• Value Delivery With The Help Of Integrations
• Every functional website is based on two parts: frontend for dealing directly with
the customers and backend in order to automate the online operations of the
company without having direct dealing with customers. Order placements using
POS (Point of Sales) systems, product customization, tracking and order fulfillment
are the activities that require integrated systems.
3. Sources of Revenue
• What does eCommerce mean and how do companies earn revenue? Ecommerce
is also known as Electronic/internet commerce, refers to the buying and selling of
services/products. It also includes the online payment options to the great online
shopping experience. So, e-business will have three, four, or a mix of the following
sources referred to as a revenue model:
• Advertisement
• Affiliation
• Agent/Representative commissions
• Licensing
• Sales commissions
• Sponsorship
• Syndication
• Use Fees
• Subscription
4. Required Activities, Resources, and Capabilities
• In order to carry out the mission of the business, different activities are required and certain resources are needed. For example, professional
employees with specific skills or capabilities can better perform particular business activities.
Activities
• Particular business processes or groups of processes that are required to implement the business concept are known as
activities. The operational business model is used to identify the costs/expenses and outputs of each activity.
• What is e-business and its processes? Keep in mind, some of the e-business activities may infringe on patents. Different
business processes or “Method of doing business” might be patented, so that the business model may unintentionally include
the intellectual property and patents will be freely awarded for business processes.
• For example: Amazon’s “one-click” purchasing patent has a most widely renowned patent infringement case because buyers
can easily buy the products and services without using a shopping cart. Several companies have patented Internet Business
Models, which are being used by many companies. So, they charge for licensing otherwise they will face problems in the future
development of e-business.

Resources
• Organizations require human, tangible, intangible, and supporting resources in order to perform the activities in an efficient
manner. Tangible resources are also known as physical and financial including company equipment, case reserves, and facilities.
• Whereas the intangible resources include the customized software, customers data, intellectual property and business
processes that can be patented. Supporting resources include the IT and communication processes and organizational
structure.
Capabilities
• Workers with required skills are vital for every successful business. What is e-business and Why are the capabilities necessary?
E-business is similar to the traditional business except internet presence, broader audience and buying facility without visiting
the company’s outlet. First/initial wages are the highest cost for a business and capable worker may not be available all the
time.