E-Business –

What is E-business? E-business (electronic business) is the conducting of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners. The processes and tools that allow an organization to use Internet- based technologies and infrastructure, both internally and externally, to conduct day to day business process operations. Stands for electronic business and refers to any kind of sales, services, purchasing or commerce on the Internet. A new-tech jargon word used more for marketing than for technical description. Most commonly it broadly refers to conducting business over the Internet ( and web) by communicating and perhaps transacting (buying and selling) with customers, suppliers, and business partners.    

What is E-business? e-business Using internet technologies to transform key business processes Web l Universal Access l Standards IT l Data l Applications l Core business processes l Reliability, security and availablitiy e-business = Web + I/T

E-business types: CONSUMERS C2C BUSINESS B2B ADMINISTRATION C2A B2C B2A

E-business category  E-banks  E-trade  E-consulting  E-engineer  E-learning   E-marketing  E-transactions

HARDWARE SOFTWARE INTERNET ACCESS, SERVICES, E-payment, CERTIFICATES, ADVERTISEMENT E-business infrastructure

Virtual Markets mediators Needed, measure price offer goods, services, deadline and circumstances buyers seller Goods A Goods B ordersfinished orders Virtual connections to other markets

Can my business benefit from e- Business?  Reduce administrative and operating costs  Reduce inventory costs  Reduce the cost of procurement  Improve customer service and satisfaction  Streamline procurement procedures  Increase communication efficiency and interaction with employees, vendors, customers and strategic partners  Increase revenues and profit margins

E-Business Models 1-Storefront Model Storefront model enables merchants to sell products on the Web –Transaction processing, security, online payment, information storage E-commerce allows companies to conduct business 24-by-7, all day everyday, worldwide An e-commerce storefront should include: – Online catalog of products – Order processing – Secure payment – Timely order fulfillment

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 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

2-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 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

12 3- 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, GoogleYahoo!AltaVistaGoogle Vertical portals –Portals that offer more specific information within a single area of interest –WebMD, IMDB, FirstGovWebMDIMDBFirstGov

13 4- Dynamic Pricing Models The Web has changed the way products are priced and purchased Comparison pricing model –Web sites using shopping bot technology to find the lowest price for a given item Demand-sensitive pricing model –Group buying reduces price as volume of sales increase Name-your-price model –Name-your-price for products and services Bartering Model –Individuals and business trade unneeded items for items they desire –Ubarter.com, isolve.comUbarter.comisolve.com Rebate Model –Sites offer rebates on product at leading online retailers in return for commission or advertising revenues –eBateseBates Free offering model –Free products and services generate high traffic –Freemerchant, Start Sampling, FreeSamples.comFreemerchantStart SamplingFreeSamples.com

14 Click-and-Mortar Businesses Brick-and-mortar –Companies that operate solely offline with traditional business practices Click-and-mortar –Companies operating with both an online and offline presence Click and mortar companies have brand recognition, and an established customer base: Bestbuy.comBestbuy.com