E-business Types

8/9/2019 E-business Types

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E-business and How it

Levels the Playing Field

Rodolfo Noel S. Quimbo


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What is e-Business?

Electronic Business or e-Business, alsoknown as electronic commerce and e-commerce, refers to the use of computers

and electronic communications networksto do business.

It refers to every type of businesstransaction or interaction in which theparticipants prepare or conduct businesselectronically. This covers a wide range ofactivities, ranging from the use ofelectronic mail (email) and ElectronicFunds Transfer at Point of Sale (EFTPOS),through Internet based sales andtransactions and web-based marketing. e-

Business is a business issue rather than atechnology issue.


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What are the 2 main types

of e-commerce?

There are 2 types of e-

commerce applications:

(1) Business-to-business (B2B);

and

(2) business-to-consumer (B2C).


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B2Bapplications:

Supply Management. Electronic

applications in this area aid in

expediting business partnerships

through the reduction of purchaseorder (PO) processing costs and

cycle times, and by maximizing the

number of Pos processed with fewer

people.


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B2Bapplications:

Inventory Management. Electronicapplications make the order-ship-billcycle shorter. For instance, if most of a

businesss partners are linkedelectronically, any information sent bymail can be transmitted instantly.Businesses can easily keep track oftheir documents to makesurethat they

werereceived. Such asystemimprovesauditingcapabilities, andhelps reduceinventory turns, andeliminateout-of-stock occurrences.


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B2Bapplications:

DistributionManagement.

Electronic-basedapplications

makethe transmissionofshippingdocuments alot easierandfaster.

E-commercealsoenables more

efficient resourcemanagement by

certifyingthat documents containmoreaccuratedata.


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B2Bapplications:

ChannelManagement. E-

commerceallows for speedier

disseminationofinformationregardingchanges inoperational

conditions oftradingpartners.

Technical, product, andpricing

informationcanbepostedwithmuch easeonelectronicbulletin

boards.


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B2Bapplications:

Payment Management. An

electronic payment systemallows

foramoreefficient paymentmanagement systemby minimizing

clericalerrors, increasingthe

speedofcomputinginvoices, and

reducingtransactionfees andcosts.


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Business to Consumer

B2Capplications involve customersgathering information, purchasing,andreceivingproducts overanelectronic network. It may be used inthe followingtransactions:

Purchasingproducts and information.Electronicapplications make it possiblefor consumers to look up online

information about existingandnewproducts/services.

Personalfinance management. In thisfield, electronicapplications (e.g.Quicken)aidthe consumers in managing

investments andpersonalfinancesthroughthe use ofonline bankingtools.


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E-business Benefits Costs:

Lower transaction expenses. Labor costsassociatedwithadministration can beslashed.

Reducedsupply costs. More Internet basedinformation affords firms awider choice ofsuppliers andby extension, more competitiveprices.

Publication anddistribution fees fall.

Publishingabrochure online enables avastnumberof people toaccess it, while alsoallowingthe company toupdate andthen addtothe contents.

The role of the Middleman becomes lessimportant as companies can selldirect to the

customer.


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E-business Benefits

Marketing:

It helps buildbrandawareness offering

newavenues of promotion. Customerloyalty deepens because web

basedpurchasingaffords customers theopportunity tocommunicate withthe

company.

Conversely, aweb site alsoallows the

firmtooffer better service to

consumers.


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E-business Benefits

Competitiveness:

E-business offers a reliable, cost

effective andavoluntary means ofdoingbusiness. Routine tasks are automatedandcustomers, if they wish, can avail

themselves ofa24-hour sales service.

More players willenter the market as

technology enables firms topenetrateoverseas.

Companies needtobe aware ofmarket

changes.


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What are the different

aspects of E-business

infrastructure? The information infrastructure

composed ofmany types of transport systems. It is asynthesis of various forms of high-speed transportsystems land-based telephones, wireless, modem-basedPC, or satellite based. For example, an emailsent froma

desktop in Laos PDR to a laptop in Singapore may travelthrough severaltypes of transport networks which areinterconnected before it reaches its destination. Thisinfrastructure is the transportation foundation thatprovides the means forcontent transmission.

The players in this industry are called the informationtransport providers. These include:

Telecommunications companies, which supply the phonelines;

Cable TV systems, which set-up coaxialcables anddirect broadcast satellite networks;

Wireless companies, which provide the mobile radio andsatellite networks;

Computernetworks, which include both private networks

(e.g. AOL) and public networks (e.g. Internet)


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The E-business

Infrastructure The secondaspect of the e-business

infrastructure is multimedia content

andnetwork publishing. At present,the most common architecture fornetwork is the WorldWide Web(WWW). The Web allows companiestocreate product information

(content) andprovides themwith themeans topublish it in a distributioncenter(i.e. a network server)


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The E-business

Infrastructure The thirdaspect of the infrastructure is messagingand

information distribution. Howexactly is this done? Tobegin with, we knowthat information contenttransportedoverthe network is made upof text,

numbers, pictures, audioandvideo. Allcontent is digital that is, in combinations ofones andzeroes. Themoment content is createdandstoredon a server, it iscarriedacross the network through vehicles, ormessagingand information distribution methods. Thismessagingvehicle is calledthe middleware software,which is positionedbetween the web servers and the

end-userapplications. Messagingand informationdistribution systems alsohave translators whichinterpret and transformdata formats.


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The E-business

Infrastructure Common business services infrastructuremakes up the fourth aspect of e-commerceinfrastructure. This includes methods

which facilitate online buyingandsellingprocesses. The purchasertransmits anelectronic payment (say, a formofelectronic checkordigitalcash) togetherwith some remittance information tothe

seller. There is settlement fromthemoment the selleraccepts andvalidatesthe payment andremittance information.


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In summary

E-business provides the opportunity

even forsmall businesses to be able

to compete. The e-business potential must be

harnessed correctly in orderto bring

business success. But to do this, we

must learn and familiarize ourselveswith the nuances of this mannerof

doing business.


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Thank You

E-business Types

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