The Internet And E Business Definition

Published Date: 02 Nov 2017

E-business is a name describing the information process systems and their uses which enable and run business systems by using internet technologies.

E- Business enables companies to run their processes more effectively and more efficiently with suppliers and wholesalers and meet their needs and providing customer satisfaction and in turn improving the overall business.

E-business are the businesses run on the internet, it refers not only to trading but also meeting up with their business partners.

IBM was the first organisation who used e-business solutions for their business now many businesses incorporate e-business technologies for research, sales and trade.

Marios Alexandrou, Infolific, 2013.

E-business creates business value:-

1. By adding value – It adds value by providing better quality services and products.

2. By reducing costs- It reduce costs by monitoring business solutions to be more efficient.

3. Risk management- It acts by creating functions and different professions.

4. Creating reality- It creates reality by making businesses creative.

By Dave Chaffey, E-business and E commerce Management, 3rd edition @marketing insights 2007.

E-business challenges: The ever quickly changing business conditions direct many organisations to set up e-business and ecommerce. Bringing about a lot of changes in the way organisations run. The challenges being the one in which they have to meet in order to obtain the benefits of e-business. Challenges can be by law legal, attitude based and technological.

Challenges faced technologically like poor standards of ecommerce, less reliable network facilities and expensive transmission rates of computer networks.

Views and changes of consumers attitude lead to behavioral challenges from lack of relying on customers and threat of invading of privacy making them unwilling to deal with internet transactions. Challenges faced by law being the harshness in controlling standards by poor principles. Other challenges being maintaining and retaining customers for longer time.

(IBS centre for management research 2012. Chapter 25, challenges in e-business).

THE DIFFERENT E- BUSINESS MODELS THAT EXIST AND HOW THESE CAN BE USED TO GENERATE REVENUE:-

Business model: A business model gives a detailed account of how company functions, how it supplies a product, how it produces money, how it will adjust to recent markets and their trends.

The four components of business model:-

1).E-business concept.

2).Sources of revenue.

3).Value proposition.

4).Activities, resources and capabilities.

In a productive business, all of the business models collaborate together in a supportive way.

1. E-business concept: It denotes the basics of the business, its aims and objectives, its products and services from where money generates. A highly achieved concept is based on a market research which indicates which buyers and sellers will buy the product and for what price.

Goals and objectives: The business concept should focus on an aim such as to become a major vehicle seller, or a branded hospital. Or become a major competitor to firms of industries. Objectives being precise such as capturing 20 percent of market or having 50 million incomes in three years. Whether these goals achieved or not these plans are mentioned in the business plan.

Corporate strategies: These strategies give the business a detailed account of how the business concept plan will be monitored.

The e-business concept and market research: the business concept should be entirely linked to the market it deals.

2. Value proposition: The value proposition gives a detailed account of the value that the company it gives to its dealers. With the knowledge of the value proposition the company tries to offer better value to any of its competitors so that the person who makes the purchase benefits best. A value proposition brings about price reduction, products leading to productivity.

3. Sources of revenue: Many revenue sources are available depending on the business model. The sources are:

Advertising, affiliation, agent commissions, subscription and licensing.

4. Activities, resources and capabilities: They are known as business requirements. To conduct the activities needed to bring about the aim, the businesses require some resources like skilled employees, or either capabilities are required to conduct activities the right efficient way.

Dr. James E Burke, prudens information resources for the internet, 2008.

TYPES OF E-BUSINESS MODELS :-

DEFINITION OF A BUSINESS TO BUSINESS E-BUSINESS MODEL:

These are those firms which trade straight to other business firms and not only to sole single buyers. E- business alter the type of business connections which were before constrained in various factors such as price, geography, area of location and occasion.

A strong belief, of that e- business taking over the b2b business market reorganizing their product supplies and value material chains. According to Jack Wilson he states that in e-business, if business to customer model systems are connected into business to business supplies network systems then an order from a customer may integrate and focus from delivery chains to their dealers of suppliers.

DEFINITION:-

The b2b business models operate and function similar to the business models. The main aim being to link suppliers to their businesses. In e-business, the b2b locations link businesses together electronically, by internet and email. Buyers, sellers, suppliers and producers are an example of this category.

IMPORTANCE OF B2B MODEL:-

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E-business help in dealing straight with supply chain procedures such as placing orders, invoicing and taking up bills are all done online. The internet access helps to connect between many firms in distant areas which allow more trade competition and much better enhanced efficient services.

The websites of b2b help widen and enhance the quality of work efficiently, with no extra price and making it a whole lot easier for businesses no matter where or what location you or your business is located.

OBJECTIVES:-

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The four main areas focus on interest in interconnections, enhancements, developments, efficiency and keeping up with the trends in competition.

On connecting online with distributors it helps in enhancing quality name and even maintains and keeps relationships within customers. Working online with customers in turn gives a brand name and helps in getting attention from new customers.

B2B MODELS:-

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Transaction based: These conduct a certain formula for transactions in supply product network and implement the same formula across the whole process.

Process based: These occur when two or more develop the same business procedure to perform better and effectively.

Strategic relation based: These are when two or more organisations interconnect their process and procedures throughout the business relations.

E-businesses save huge amount of time, require lesser people, and prevent alterations made by mistakes.

By Dana Griffin, Demand Media 2013.

B2C :

The b2c model of e-business is the model which does the selling of their products to trade consumers on the internet. This e-business has identification on the internet online by which a variety of goods are provided to consumers. Most of these b2c models get income by sales directly and by their money got by it. B2C also known as e-tail.

C2B:

C2b also known as consumer to business in which the purchasers of the commodities give worth and credit for the goods. The website for airline ticketing is an example, in which the airline website offers booking tickets online, in which the consumers offer a rate for their own tickets at their own cost.

Example: priceline.com

C2C :

This model involves consumers to involve in buying and selling through third party markets. For example of this model is craigslist. In this the company brings together different purchasers and sellers to perform business. This kind of model makes money in various ways such as private advertisement charges, sales commissions and transaction charges.

By Natasha Gillani.

http://yourbusiness.azcentral.com/types-ebusiness-models-1144.html

THE ROLE OF INTRANET AND EXTRANET WITHIN BUSINESS:-

An intranet functions just like an internet as it being a method of communication and connecting for business partners by use of computers. Internet is assessed by entire public, the extranet is kept secure and private and the business owner decides who can or cannot gain access.

E-business and intranets: An intranet is a system of computers that exist to a particular organisation. Companies take advantage of the intranet to share data such as job related data and to organise partnership efforts amongst its staff. It brings a secure private system of network, only users which are authorized can make access.

The intranet is an internal organisation that incorporates the standards of the internet. Authority is given to people of their own organisation.

(http://www.stjohn.ac.th/engineer/boom/int4322/download/internet_intranet_extranet.ppt

Pratik Jain.)

ADVANTAGES OF INTRANET:-

Sharing of the company’s rules and policies.

Sharing of data of similar topics.

Deliverance of reports.

DISADVANTAGES OF INTRANET:-

Management problems.

Security problems.

Productivity problems.

E-business and extranet: It is similar to intranet except that people from not only within but outside the organisation can take advantage of the system. Extranets do business with sellers, buyers and their business dealers.

DigitSmith 2011 (http://www.digitsmith.com/what-is-ebusiness.html).

ADVANTAGES AND DISADVANTAGES OF EXTRANETS:

By Julie Daveron, 2013, Ehow.

Improved flexibility: Extranets increase ease of communication as they give an excellent way of communicating within business partners. Since extranets are available all day, there is easier access available at any time or hour of the day.

Lower commuting expenses.

Improved communication.

Overall improvement in customer service and business.

Disadvantages:

As there is no guarantee in seeing the contact face to face, there is increased security issues of fraud.

Chances of competitors misusing the data.

http://www.stjohn.ac.th/engineer/boom/int4322/download/internet_intranet_extranet.ppt

The security and legal issues facing an online organisation:-

The onset of internet has given occasions to many complications from web fraud, financial information security, and data security issues.

Due to internet developments, both customers and organisations are aware of use of fraud by third party people pretending to be a right organisation.

Ecommerce security: Though buyers and business owners share the ease of doing business online several issues arise such as data misuse and financial data misuse.

Privacy:-

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Internet business takes legal actions to protect the confidential information of their clients. E-commerce activity frequently involves collecting personal data like names, contact numbers and email addresses. Many e-business activities also involve transactions, so customer banking or bank card datas are stored online. Legally, it is up to the e-business to store and protect personal data. The Children’s web confidentiality Protection Act has set of laws that protect the web confidentiality rights of children. The parents have to be in charge of what personal information their children give to e-businesses.

Advertising Online:-

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A number of online marketing issues arise from the inherent anonymity of the internet; it is difficult to know the true identity of an e-business owner. A few online businesses take advantage of this in illegal ways. Chances are that the average business owner would not be the one in charge of maintaining e-business security measures, the company who host or the IT staff normally take charge of it.

1. Privacy -- recognizing that it is very crucial to keep certain information from unofficial parties.

2. Integrity -- prevent messages and confidential information from being altered within any way.

3. Authentication --Both sender and receiver should be guaranteed that they are interacting with who they apparently need only.

Net Neutrality: It is the most sought after thought that internet users should have quite similar access to all websites. Presently, all websites are received by computers at the identical speed, no matter what the webpage site is. However, internet providers have the ability to deliver different websites at unusual untimely speeds. This is a concern because websites could compensate providers to convey their content at quicker and rapid speeds, less important businesses with not many resources might not be able to have enough finances for quicker processing.

(Rosyln frenz, Ehow, 2013).

(By Catherine Capozzi, eHow Contributor, 2013).

The Security Measures which Can Be Implemented in E-Business:-

E-business security measures:-

1) Install and update the anti-virus software. This will reduce the risk of viruses and worms. A solid firewall should be turned on to keep track and aware of confidential information.

2) Reduce spam, perform regular data backup, and create a system for developing safe and protected passwords.

3) Lastly, monitor and test your security regularly.

Dereck Dowell ,2012

internetsecuritysystemsnetworkcard.danielcadams.com

THE ROLE SEARCH ENGINES PLAY IN E-BUSINESS STRATEGY:-

E-business strategy emphasizes on how an organisation would gain value from within by using electronic networks, by sharing employee information and improving process efficiencies through intranets. It can be created through known principles of business planning, but through careful consideration of how to best identify and take advantage of the differences introduced by new electronic channels. E-business strategy characteristics are how they contribute in general with community, businesses and promotion strategies.

Search engines are indeed lucrative to increase efficiency in business to business projects.

A survey based questionnaire amongst participants in a research survey said 90 percent would purchase on the web and 70 percent would use a search engine over the purchaser to re-evaluate web pages or e-commerce web pages.

The Uniqueness of Search Engine Marketing:-

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Search engine medias are highly sought after. That is because prospective buyers who discover your business to business contributions through search engines are looking for your merchandise and services by their self, so they are inclined to take notice of your advertising message. It is not possible to find a more practiced and knowledgeable view than that.

By Paul. J .Bruemmer, Marketing Today, 2007.

FEATURES OF E-BUSINESS STRATEGY:-

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"Deals with its present performance in a marketplace".

 "Defines how we meet our objectives".

"Sets distribution of resources on meeting goals".

"Selects chosen strategic options to participate within a marketplace".

 "Provides an extended term arrangement for the improvement of the organisation".

http://www.davechaffey.com/E-business/C5-Strategy/E-business-strategy-defined.

By Dave Chaffey 2007.

Social media strategy:-

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Sites for social media give a good base to give advertisements, introduce their new services and offers.

It also provides a platform for communication with its business partners. Hearing customer views is imperative and also complaints on sites of social networking like twitter, yahoo is taken care. A strong social media strategy helps a business grow. Gathering feedback is vital. They can be utilised as qualitative objectives for business growth and online strategic aims.

Smallbiztechnology, Mandira Srivastava 2011.

THE IMPACT OF A WELL DESIGNED WEBSITE ON AN E-BUSINESS:

A well designed website attracts more customers, and traffic. It will be the most sought after website which in turn improves businesses and helps in maximizing name and trust. It makes people want to stay. The longer they stay the more the trust and eventually would make them into signing to the product and then buying the products. It also attracts customers to know more about the website features. It will definitely help in maximizing the company’s business resources.

( By Jason Capshaw, 2010, Mywebtronics).

Website trust, Website satisfaction and E loyalty:-

A good website generates trust, name, and customer satisfaction. Trust focuses on consumer confidence in the website as part of a buyers or sellers transactional exchange and consumer’s willingness to depend on the seller. In contrast, website satisfaction refers to good browsing experience and concept if there is a well designed website.

E-loyalty:-

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Online loyalty brings consumers to purchase from a particular website and not change to another website. E loyalty is defined as the consumer’s aspirations to re visit or re buy in the next year’s time. Repeated customer satisfaction leads to better customer eloyalty. Trust of the consumer’s increases when the website services seem valuable which in turn leads to e Loyalty behaviors’.

Diane Cyr, academia.edu. Pg11.