E-Business Operations

Contents

Introduction:....................................................................................................................................3

The incorporation of internet and modern technology in modern day business activities and

processes has become a necessity for business organizations in the present day world. This report

would deal with the aspects of supply chain management, electronic Task 1: Produce a report

describing the purchasing process used in B2C and B2B and explain how professional buyers

affect the buying process. Analyze cultural, social, personal and psychological variables used in

purchasing process:..........................................................................................................................3

Introduction:.................................................................................................................................3

Factors influencing purchasing process and the effects of the same on the two businesses:.......3

Conclusion:..................................................................................................................................4

Task 2: In this task, you are required to carry out a comprehensive research to understand

Electronic Transactions and explain how electronic transactions can reduce the paperwork and

cut the delays in Business processes. Examine the development of Electronic Data Interchange

(EDI) and its importance in establishing B2B e-business...............................................................5

Task 3: In this task examine e-business Supply Chain clearly analyzing the flow of information,

material and finances. Your report should illustrate this supply chain with the help of a clear

diagram. Also communicate advantages of e-procurement and benefits of integrating electronic

processes with the e-business supply chain. Prepare an analytical presentation on the flow of

information in a typical logistics operation:....................................................................................8

Introduction:.................................................................................................................................8

Supply chain management:..........................................................................................................8

The advantages of e-procurement in supply chain management (SCM) activities:....................9

Conclusion:................................................................................................................................11

Task 4: Evaluate how Internet can be effectively used to communicate with employees and

business personnel through the exploration of the issues of trust and security and explain how

they are applied to supply chain management and other business operations. Demonstrate a clear

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understanding of security and trust in SCM and examine the use of internet in establishing

effective communication with current and prospective employees. Assess the issues of quality in

e-business and review the development of the internet technologies on B2B industry networks

and B2C markets:..........................................................................................................................12

Conclusion:....................................................................................................................................13

References......................................................................................................................................14

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Introduction:

The incorporation of internet and modern technology in modern day business activities

and processes has become a necessity for business organizations in the present day world.

This report would deal with the aspects of supply chain management, electronic Task 1:

Produce a report describing the purchasing process used in B2C and B2B and explain how

professional buyers affect the buying process. Analyze cultural, social, personal and

psychological variables used in purchasing process:

Introduction:

The purchasing process, in simple words, refers to the formal stage by stage process of buying

products, goods or services and transactions taking place between the seller and the buyer. The

Business to business or B2B process takes place between, spouse, a wholesaler and a retailer and

on the other hand a business to consumer or B2C process involves the purchasing process

between a seller and the consumer (Anklesaria, 2008).

Factors influencing purchasing process and the effects of the same on the two businesses:

Purchasing process in the case of the B2B or the business to business and business to consumers

is different in the sense that in the case of the former the transaction takes longer period of time

and is more complex in nature with emphasis on long-term relationship and mutual trust.

Whereas, in the case of the latter, the process is more direct, takes lesser time and is more

simplified. Moreover, the business to business purchasing process is stressed on aspects of

consultative selling and personal relationships of trust and mutual respect and in the case of the

business to consumers the purchasing process is dependent on the value of the product and is

more emotionally driven than the former (Mekenney and Deshaies, 2004).

So to say, in the case of the business to business purchasing process, the purchasing process take

longer time to be completed by following a step by step sequential process, in based on the

concepts of mutual trust, personal relationship and consultative selling and is less emotionally

driven. On the other hand, the marketing and promotional effectiveness, the brand image, the

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value of the products, the lesser time and direct results and emotionally driven process mark the

basic traits of the purchasing process of the business to consumers (Anyon, 2003).

The aspects related to the variables of culture, society, psychology and personal aspects construct

the platform for an interesting analysis of the purchasing process of the business to business and

business to consumers businesses. The effect of the variable of culture is more prominent in the

case of the business to consumers and the business organization need to be sensitive to the

cultural factors when devising and implementing their marketing strategies and on the other

hand, the cultural factors are less prominent in the case of the business to business businesses as

they are built on the foundations of trust and long-term relationships. So to say, the personal

aspects are relevant and have profound effect so far the purchasing process of the business to

business businesses are concerned and not so in the case of the business to consumers where the

value of the product lies at the core of the process. The social aspects related to the factors of the

engagement of the community and corporate social responsibility are important in the case of the

business to consumers as it influences the brand image and purchase decision making on the part

of the consumers. However, this factor is also important in the case of the business to business

businesses as a company with a good corporate social image would be more appropriate for

partnership with another one (Emmelhainz, 2000).

The psychological factors and the emotional dynamics of the marketers as well as the consumers

are vital in the case of the business to consumers businesses as it acts as the drivers of purchasing

process and is not very relevant in the case of the business to business businesses where mutual

trust and long-term personal relationships dictate the effectiveness of the process and the coming

together of the two businesses. The psychological built of the customers and the assessment of

what is known as customer behavior, in marketing terms, lie at the core of the purchasing process

of the business to consumers purchasing process (White, 2008).

Conclusion:

The purchasing process in the case of both, business to business businesses as well as the

business to consumers businesses, is influenced by a range of varied factors that have been

identified and discussed above and the intensity or effect of the each of the variables are different

and varied for each of the purchasing processes hence, establishing the differences in the two

concepts (Mekenney and Deshaies, 2004).

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As such, the social, cultural, personal and psychological aspects have profound influence on the

purchasing system of the business to business businesses as well as the business to consumers

businesses.

Task 2: In this task, you are required to carry out a comprehensive research to understand

Electronic Transactions and explain how electronic transactions can reduce the paperwork

and cut the delays in Business processes. Examine the development of Electronic Data

Interchange (EDI) and its importance in establishing B2B e-business.

With the advancements in the field of science and technology that have become the buzzwords in

the recent times, the effects of such developments have been most profoundly felt in business

process, activities and operations, as such, considering the modern demands of time and

challenges that business organizations face, the incorporation of the modern technology acts as

an indispensable component of continuous improvement. For example, the use of the electronics

transactions and electronic data interchange systems deserve special mention. The use of the

electronic systems and computer based database management systems serves to be great help for

the business organizations so far time-effectiveness as well as cost-effectiveness is concerned

(Hinge, 2008).

Electronic data interchange

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Source: (Canary.co.nz, 2015)

In technical words, Electronic Data Interchange (EDI) is the “process or mechanism of the

electronic interchange of business information using a standardized format. It is a process that

allows one company to send information to another company electronically rather than through

hard copies (Jenkins and Lancashire, 2001). The use of electronic media of transactions helps

reduce time otherwise involved in time-consuming and complex paper works and enables better

time-efficiency, more accuracy and speed of fund transfer with better security and safety as well.

The incorporation of the state of the art technology in the various business processes and

activities have merged to have become a necessity for the business organizations of the modern

day world as it enables them to save time, record better performance and deliver better, both,

quantitatively as well as qualitatively. through the effective use of the electronic data interchange

the data and information vital and sensitive for the business can be shared and transferred among

the various departments or the concerned personnel of the organization with least room for

errors, manipulation and safety and security issues and that too, in a speediest, safest and most

effective manner possible (Kimberley, 2001).

The use of the electronic systems can help a great deal in reducing the internal costs and time and

can significantly contribute to better organizational output leading to better business

performance. The Electronic Data Interchange (EDI) enables the efficient exchange of

information through a communication process through the electronic media the advantages of the

system of the Electronic Data Interchange (EDI) over paper work for an organization are

manifest mainly in the aspects related to “organizing, sorting, distributing and searching of the

documents in hard paper form” and helps the management or the personnel avoid the

unnecessary time, costs and heckle associated with the aspects mentioned above (Leyland,

2003). The use of the Electronic Data Interchange (EDI) also enables the management of the

business organizations to get rid of or avoid the aspects related to human errors or chances of

data manipulation or distortion. The use of the electronic mechanism would, moreover, enable

the management of the business organizations to enable smooth exchange of information among

two concerned departments or businesses through the adherence to standards pertaining to

Electronic Data Interchange (EDI) such as the ANSI, TRADACOMS, EDIFACT et cetera. Thus,

for effective and efficient use of the Electronic Data Interchange (EDI) the two belligerents

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would require to go by the specified standards in order to render the system effective and realize

the immense benefits it enjoys over the erstwhile paper works (Elkins, 2004).

The below attached table illustrating the differences between the two processes would make

things more clear as to how does the Electronic Data Interchange (EDI) benefit the business

organizations over erstwhile conventional paper work:

Conventional paperwork Electronic Data Interchange (EDI)

In this system, the purchase order is printed

once the buyer takes the decision for the

purchase.

The buyer, after the first step, sends the

purchase order to the one who would supply.

The supplier, on receiving the purchase order,

records and inserts the same into the order

system database.

The buyer may initiate contact to the suppliers

about the confirmation of the receiving of the

purchase order or the suppliers may themselves

contact the buyer acknowledging the receipt of

the purchase order (Elkins, 2004).

The buyer’s purchase decision is made and

followed by the purchase order.

In the next stage, the Electronic Data

Interchange (EDI) generates the purchase order

in the electronic format and readily sends it to

the supplier

The supplier, on its part, on receiving of the

purchase order update s the same into the

database for order delivery as soon as the

purchase order is received from the purchaser.

The acknowledgement or confirmation on the

successful receipt of the purchase order is

automatically sent and recorded to the buyer

for correspondence (Hinge, 2008)

The application and vitality of the Electronic Data Interchange (EDI) gets magnified when the

business to business businesses are to be dealt with in line with the E-B2B model. The use of the

Electronic Data Interchange (EDI) is of special significance as the system enables the

management of the business organization engaged in the E-business to business process to align

and streamline the processes of the development of the purchase order, the transmission of the

same and on the part of the supplier, the receiving of the purchase order and the corresponding

confirmation or acknowledgement of the same. The business to business processes in the

modern age demands speed of transmission of the information and sharing of knowledge with

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emphasis on the accuracy, reliability, validity and exactitude. The Electronic Data Interchange

(EDI) system seems to do just that once the specified standards of practice are agreed upon.

The use of this system in E-Business to business processes have emerged to have become

immensely popular owing to the speed, accuracy and reliability and protection of sensitive data

and information stored and transmitted to and from each of the trading partners. The use of

modern technology ad internet have become aspects that determine organizational output,

business performance and also act as determinants of the competitive advantage of one company

over the rivals in the intensely competitive market condition and as such, the use of the

Electronic Data Interchange (EDI) for business to business activities is of crucial importance to

revamp the patterns and practices of the business organizations and to enable harness the benefits

to the fullest extent from the modern advancements in the field of technology (Hinge, 2008).

Task 3: In this task examine e-business Supply Chain clearly analyzing the flow of

information, material and finances. Your report should illustrate this supply chain with the

help of a clear diagram. Also communicate advantages of e-procurement and benefits of

integrating electronic processes with the e-business supply chain. Prepare an analytical

presentation on the flow of information in a typical logistics operation:

Introduction:

In the wake of the modern day dynamics and the intense competition coupled with the changes in

the customer behavior and changes in the market environment the aspect of supply chain

management has emerged to have become a vital component of competitive advantage in the

present day scenario for business organizations constantly vying to gain and consolidate the

upper hand over the rivals in the market.

Supply chain management:

To state very simply, the supply chain management or SCM refers to the aspects of “designing,

planning, executing, controlling and monitoring” pertaining to supply chain activities with the

primary aim of the creation of the net value for the business organization and to streamline and

align different business processes to harness competitive advantages out of the process (Chopra

and Meindl, 2007). The concept of supply chain management involves the aspects related to

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“operations management, procurement activities, logistics and information technology” and

consolidates all of them into an integrated approach (Hugos, 2003).

Supply chain management

Source: (Idtech.com.hk, 2015)

Supply chain management, hence, includes all the aspects that lead to effective and efficient

management of the supply chain activities for the business activities and any effective and

efficient supply chain management strategy would be marked with the features of the balance

and perfect mix of the variables of “logistics, production, location, and transportation and

information technology” (Mentzer, 2001).

The advantages of e-procurement in supply chain management (SCM) activities:

The advantages of e-procurement for the business organizations are manifold and some of the

most important are mentioned below:

Streamlining of the process and reduction in transaction time:

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The buyers can scroll through the electronic databases of the goods and services from different

suppliers and compare the products vis-à-vis the prices of each of the goods offered by each of

the suppliers. Moreover, the communication and information exchange in real-time helps in

effective and timely decision making.

Better standardization of the procurement processes:

The catalogues available through the electronic media enable the businesses to compare and

match the specifications and access and gather information from a standard browser..

Better access to the suppliers:

The electronic catalogues and information brochures provided to the buyers from the quarters of

all the suppliers provide the management with the record of all the orders of the suppliers and

enables real-time comparison and matching of the goods and prices of each (Kim, 2005).

Enables global operability:

The e-procurement system is compatible with various national and international languages and

currencies, financing and accounting standards, taxation et cetera.

New supply chain and greater buying power for the purchaser:

E--procurement enables better development of both, horizontal as well as vertical trade

communities.

Lower costs:

E-procurement leads to lower cost on the part of the companies as the transaction time is saved

and speedy decision lead to better opportunities and research.

Increase in productive output:

E-procurement leads to better coordination, saving of time and costs and enables the employees

and managers to focus and concentrate in a more effective and efficient manner leading to better

performance of the various departments and the organization, as a whole. Moreover, e-

procurement system enables the business organizations to concentrate on the preferred

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relationships with other businesses leading to better and efficient decision making and policy

implementation ultimately rendering the supply chain management strategies more effective in

yielding better results (Weele, 2010).

Conclusion:

The application of the electronic and the internet aided systems for the effective supply chain

management activity, in general and the e-procurement activities, in particular, forms a vital

component of strategic activities of the various business organizations of the modern day world

(Mentzer, 2001).

The flow of information in a typical logistics operation

Source: (Scm.ncsu.edu, 2015)

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Task 4: Evaluate how Internet can be effectively used to communicate with employees and

business personnel through the exploration of the issues of trust and security and explain

how they are applied to supply chain management and other business operations.

Demonstrate a clear understanding of security and trust in SCM and examine the use of

internet in establishing effective communication with current and prospective employees.

Assess the issues of quality in e-business and review the development of the internet

technologies on B2B industry networks and B2C markets:

The advent and spread of the modern technology and internet have brought in a revolution in the

field of the information and communication management and the business organizations of the

modern day world have strived to rip off the maximum benefits from the use of the internet aided

and computer based systems to enable ease of management of the various business activities and

process and incorporate the elements of speed, accuracy and cost-effectiveness. Among the

prominent application of internet based technology in the field of business and organizational

management, the communication with the employee has been a subject that has attracted

extensive interest of researchers (McKie, 2001). The use of internet to enable two way

communication with the employees, interacting in real time and sharing their feedback have

emerged to have become valuable uses of internet in better communication with the employees

(Boone and Kurtz, 2011).

Communication through the medium of social networking sites helps employees interact in a

better and more efficient way with the managers and the managers are also able to gather

feedback from the employees and use them as inputs in the decision making processes. The

safety and security of data and information and protection of the same from manipulation and

distortion are also important aspects in communication process (Glover, et al. 2001). The aspects

of trust and rapport and forging and maintenance of long-term relationships with the suppliers,

communication of the organizational values to the same and the communication with the existing

and prospective employees can also be made better through live interaction and exchange of

knowledge and information in real time (Lientz and Rea, 2001).

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Conclusion:

The application of the modern technology and internet based systems in modern day business

activities and processes cover multiple facets of business and demand effective management of

such activities on the part of the management of the various business organizations.

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References

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Management Association.

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Winston.

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