E busniess - Introduction

Chapter 1: Introduction Of E-Business

1. INTRODUCTION TO E-BUSINESS & E-COMMERCE

·         E-business and e-commerce is an exciting are to be involved with since many new opportunities and challenges arise yearly, monthly and even daily.

·         Innovation is a given with the continues introduction of new technologies, new business model and new communication approaches.

·         The example is: Google.

1.2 E-commerce Fundamentals

·         Also called Electronic Commerce

·         E-Commerce is all electronically mediated transaction between organization and any third party it deals with(external stakeholders).

·         E-commerce involves much more than electronically mediated financial transactions between organizations and customers.

·         Non financial transactions customer requests for further information would also considered to be part of e-commerce

·         E-commerce is not only limited to online sales(buying and selling), but also covers(pre-sale abd post-sale activities across the supply chain).

·         Buy-side-e-commerce refers to transactions to procure resources needed by an organization from it suppliers.

·         Sell-side e-commerce refers to transactions involved with selling products to an organization's customers.

E-commerce: Online Stores

·         Most electronic commerce sites are online stores which have at least the following elements at the front-level-office level:

1.    An online electronic catalog listing all products for sale, their price and sometimes their availability.

2.    A search engine which makes it possible to easily locate a product via search criteria.

·         Virtual Caddy System: This is the heart of the e-commerce system. The virtual Caddy makes it possible to trace the purchase of the client along the way and modify the quantities for each reference;

1.    Secure online payment(accounting) is often ensured by a trusted third party(a bank) via a secure transactions.

2.    Order tracking system: allows tracking of order processing and sometimes provides information on pickup of the package by the shipper.

Relationship between e-business and e-commerce

·         E-commerce does not related to many of the transactions within a business, such as processing a purchasing order, that are part of e-business.

·         E-commerce can be conceived of as a subset of e-business

Type of commercial relationships

1.    B2B: Business to Business

2.    B2C: Business to customers

3.    B2A: Business to administration

4.    B2E: Business to employee

1.3 E-business Infrastructures

E-business Definition: refers as all electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes.

E-business terms:As a concept which can be applied to strategy and operations(1), as an adjective to describe businesses that mainly operate online. It is a 'pureplays' in the dot com era nowadays.

The Goal of E-business:

a. To create value:

1.    As a result of an increase in margins

2.    As a result of customer satisfaction

3.    As a result to increase staff motivation

4.    As a result of privileged relationships with the partners.

b. Time to market

1.    Is the time that is necessary to bring a product on a market from a time an idea was put forward.

2.    More critical because of the rapid flow of information & speedy competition.

c. Reduction of costs & ROI

·         Make it possible to reduce the cost.

Front/Back Office

·         Describe the parts of the company that are:

1.    Dedicated

2.    Respectively

3.    To the direct relationship with the client and proper management of the company

Front Office

·         Refers to the front part of the enterpriser that is visible to the clients.