Information Technology for Managers
Content
Information Technology for Management
INTRODUCTION
In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. E-business promises better business for organizations and sustainable economic development for countries.
E-BUSINESS DEFINITION
E-business does not mean only buying or selling products online, but also leads to significant changes in the way products are customized, distributed and exchanged and the what consumers search ad bargain for the products and services and consume them. The goal of any E-business solution is to create value, which can be created in the following manner.
Increased Profitability: - E-business helps in reducing the production costs by:
Expanding the marketplace to national and international markets Decreasing the cost of creating, processing, distributing, storing and retrieving paper-based information Reducing the time between the outlay of capital and the receipt of products and services
More satisfied customer:- Helps in providing customized products and
services leading to customer satisfaction. It also helps in providing real-time connectivity to its customers and suppliers. Enables customers to shop or do other transaction 24 hours a day, all year round form almost any location. Provides customers with less expensive products and services by allowing them to shop in many places and make quick comparisons Allows customers to interact with other customers in electronic communities and exchange ideas as well as compare experiences
Increased Employee Motivation: - Helps in interconnecting employees and
providing transparent work environment t by sharing overall organization strategy,
policies and culture. It helps promoting team work between local and dispersed group of employees.
Better supplier Relationship: - Helps in building strong relationships with
suppliers, distributors, retailers and other business partners. Helps in creating justin time manufacturing process by sharing customer orders and also other resources.
Characteristics of E-Business
E-business has multiple characteristics, which makes the concept different from the traditional methods of doing business. It adds lot of flexibility and adaptability to the business framework, which forces many organizations to integrate E-business into their business strategies. The basic technol90gical framework used is Internet, which is available across the globe on 365X24X7 model. The power of Internet offers an opportunity to e-business organizations to extend their market across the globe which can be accessed at anytime from anywhere. This helps in increasing customer value. It is a medium that allows customization/personalization and tailoring of various offering. This would help organization in implementing one-to-one marketing.
CATEGORIES OF E-BUSINESS SOLUTIONS
Business organizations have created different categories of E-business solution to meet their business needs. The major categories of E-business solutions that have been implemented by the different organization worldwide.
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Business-to-business (B2B) means a commercial relationship between businesses. This is the category of E-business that deals with relationships between and among business. In this, business is originated by the business (organization) and selling is to the business (organization). This is also referred to as Business to Government or Government to Business as Government is also a business. Business-to-Consumer (B2C) means a relationship between a business and consumer. It is also referred to as online retail as it deals with relationships between organizations and its customers. This is also called electronic commerce, as it covers all possible exchanges between a company and its customers. In this business id originated by the business (organization) and selling is to consumer. This is also referred to as businessto-employee, as employee is also a consumer.
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Consumer-to-Consumer (C2C) means a relationship between two or more consumers. It is also referred to as customer-to-customer; peer to peer. This is the category of e-business, which allows consumers from dispersed locations to exchange and/or trade with each other. Mobile Commerce (M-Commerce) means the use of wireless digital devices to conduct business transaction over the web. M-commerce involves the use of wireless devices like mobile phones, hand-held devices and networks like wire or wireless or mobile. Instead of using computer based Internet connectivity, it uses the mobile based Internet connectivity,. Once connected, the user can conduct the business transaction in the same manner as it does using computers. Since the penetration of mobile technology is increasing faster as computed to computer penetration, Mcommerce has become quite popular among users who are more on the move.
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E-B USINESS MODELS:Number of business models have evolved over the period, some of which are specific to B2B, some to B2C and some to other e-business categories,. Most of these e-business models actually fit with the business strategy being followed by the organization. Though we try to classify these e-business models into broader categories, but there is no clear cut process of classification. The basic idea of this section is to sensitise the reader with deffe45ent models that are prevalent in the marker. Some models are quite simple, whereas some are complex. It all depends on how the e-business organization is generating revenue. Some of the major e-business models are discussed in the following paragraphs. The models are implemented in a variety of ways, as described below. Some of the organizations have followed a hybrid approach and combined the different models to achieve the business benefit. • Broker Model: Brokers are third party service providers which bring buyers and sellers together and facilitate transactions. Brokers play an important role in almost all categories of e-business. Broker revenue model is dependent on the commission or broker fee, which may vary from service provider to service provider. Action Brokers: Auction brokers conduct auction for buyer or seller and charge brokerage. There ar4e two types of auctions-forward and reverse auction. in forward auctions, bidders quote in such a way that price line goes upwards. In reverse auctions, bidders similarly 2quote such that price line goes downwards.
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Advertising Models: - The web advertising model works in similar manner as the traditional broadcast model works. The e-business organization creates an e-business model comprising of website and mobile interface. On the website, organizations may also create an advertising space for the advertisers to advertise and charge advertising fee from the advertiser. The advertising model works best when heavy traffic is moving to the website. Portal : portal is a powerful concept to attract more and more number of users on to the website and allowing them to remain there for longer time by providing them with wide variety of services like e-mail, new, games,. Sports, stocks, calendar, shopping, music, etc. portals are always viewed as one stop solution for all needs or it is also referred as shopping malls of online space. Infomediary Models:- infomediaries are information intermediaries that support the buyer and seller with correct and reliable information. Some of the experts refer these service providers as content providers. Content providers are the one that distribute information content in digital form like information, music, video, photos, etc. Merchant Models: Merchant models are either retailers or wholesalers driven, where sales transaction between two parties takes place. Sales can be either transaction based or through auction process. Online retail stores, often called e-tailers, are available in all sizes. E-tailers either have a global presence or might have a presence in a defined locality. Community Models: The community model is based on collection and organizing the like-minded users across the globe to interact with each other. The viability of the community model is based on user loyalty. Revenue of these models is based on hybrid revenue generation model like transaction fee based, the sale of ancillary products and services or voluntary contributions; or revenue may be tied to contextual advertising and subscriptions for premium services. E-procurement: E-procurement is the collaborative term for arrange of technologies that can be used to automate the procurement process. E-procurement broadly splits into e-sourcing and e-purchasing and applies to both the internal and external processes associated with strategic sourcing and purchasing. There are number of reasons why an organization would like to implement e-procurement process.
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INTRODUCTION
In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. E-business promises better business for organizations and sustainable economic development for countries.
E-BUSINESS DEFINITION
E-business does not mean only buying or selling products online, but also leads to significant changes in the way products are customized, distributed and exchanged and the what consumers search ad bargain for the products and services and consume them. The goal of any E-business solution is to create value, which can be created in the following manner.
Increased Profitability: - E-business helps in reducing the production costs by:
Expanding the marketplace to national and international markets Decreasing the cost of creating, processing, distributing, storing and retrieving paper-based information Reducing the time between the outlay of capital and the receipt of products and services
More satisfied customer:- Helps in providing customized products and
services leading to customer satisfaction. It also helps in providing real-time connectivity to its customers and suppliers. Enables customers to shop or do other transaction 24 hours a day, all year round form almost any location. Provides customers with less expensive products and services by allowing them to shop in many places and make quick comparisons Allows customers to interact with other customers in electronic communities and exchange ideas as well as compare experiences
Increased Employee Motivation: - Helps in interconnecting employees and
providing transparent work environment t by sharing overall organization strategy,
policies and culture. It helps promoting team work between local and dispersed group of employees.
Better supplier Relationship: - Helps in building strong relationships with
suppliers, distributors, retailers and other business partners. Helps in creating justin time manufacturing process by sharing customer orders and also other resources.
Characteristics of E-Business
E-business has multiple characteristics, which makes the concept different from the traditional methods of doing business. It adds lot of flexibility and adaptability to the business framework, which forces many organizations to integrate E-business into their business strategies. The basic technol90gical framework used is Internet, which is available across the globe on 365X24X7 model. The power of Internet offers an opportunity to e-business organizations to extend their market across the globe which can be accessed at anytime from anywhere. This helps in increasing customer value. It is a medium that allows customization/personalization and tailoring of various offering. This would help organization in implementing one-to-one marketing.
CATEGORIES OF E-BUSINESS SOLUTIONS
Business organizations have created different categories of E-business solution to meet their business needs. The major categories of E-business solutions that have been implemented by the different organization worldwide.
•
Business-to-business (B2B) means a commercial relationship between businesses. This is the category of E-business that deals with relationships between and among business. In this, business is originated by the business (organization) and selling is to the business (organization). This is also referred to as Business to Government or Government to Business as Government is also a business. Business-to-Consumer (B2C) means a relationship between a business and consumer. It is also referred to as online retail as it deals with relationships between organizations and its customers. This is also called electronic commerce, as it covers all possible exchanges between a company and its customers. In this business id originated by the business (organization) and selling is to consumer. This is also referred to as businessto-employee, as employee is also a consumer.
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Consumer-to-Consumer (C2C) means a relationship between two or more consumers. It is also referred to as customer-to-customer; peer to peer. This is the category of e-business, which allows consumers from dispersed locations to exchange and/or trade with each other. Mobile Commerce (M-Commerce) means the use of wireless digital devices to conduct business transaction over the web. M-commerce involves the use of wireless devices like mobile phones, hand-held devices and networks like wire or wireless or mobile. Instead of using computer based Internet connectivity, it uses the mobile based Internet connectivity,. Once connected, the user can conduct the business transaction in the same manner as it does using computers. Since the penetration of mobile technology is increasing faster as computed to computer penetration, Mcommerce has become quite popular among users who are more on the move.
•
E-B USINESS MODELS:Number of business models have evolved over the period, some of which are specific to B2B, some to B2C and some to other e-business categories,. Most of these e-business models actually fit with the business strategy being followed by the organization. Though we try to classify these e-business models into broader categories, but there is no clear cut process of classification. The basic idea of this section is to sensitise the reader with deffe45ent models that are prevalent in the marker. Some models are quite simple, whereas some are complex. It all depends on how the e-business organization is generating revenue. Some of the major e-business models are discussed in the following paragraphs. The models are implemented in a variety of ways, as described below. Some of the organizations have followed a hybrid approach and combined the different models to achieve the business benefit. • Broker Model: Brokers are third party service providers which bring buyers and sellers together and facilitate transactions. Brokers play an important role in almost all categories of e-business. Broker revenue model is dependent on the commission or broker fee, which may vary from service provider to service provider. Action Brokers: Auction brokers conduct auction for buyer or seller and charge brokerage. There ar4e two types of auctions-forward and reverse auction. in forward auctions, bidders quote in such a way that price line goes upwards. In reverse auctions, bidders similarly 2quote such that price line goes downwards.
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•
Advertising Models: - The web advertising model works in similar manner as the traditional broadcast model works. The e-business organization creates an e-business model comprising of website and mobile interface. On the website, organizations may also create an advertising space for the advertisers to advertise and charge advertising fee from the advertiser. The advertising model works best when heavy traffic is moving to the website. Portal : portal is a powerful concept to attract more and more number of users on to the website and allowing them to remain there for longer time by providing them with wide variety of services like e-mail, new, games,. Sports, stocks, calendar, shopping, music, etc. portals are always viewed as one stop solution for all needs or it is also referred as shopping malls of online space. Infomediary Models:- infomediaries are information intermediaries that support the buyer and seller with correct and reliable information. Some of the experts refer these service providers as content providers. Content providers are the one that distribute information content in digital form like information, music, video, photos, etc. Merchant Models: Merchant models are either retailers or wholesalers driven, where sales transaction between two parties takes place. Sales can be either transaction based or through auction process. Online retail stores, often called e-tailers, are available in all sizes. E-tailers either have a global presence or might have a presence in a defined locality. Community Models: The community model is based on collection and organizing the like-minded users across the globe to interact with each other. The viability of the community model is based on user loyalty. Revenue of these models is based on hybrid revenue generation model like transaction fee based, the sale of ancillary products and services or voluntary contributions; or revenue may be tied to contextual advertising and subscriptions for premium services. E-procurement: E-procurement is the collaborative term for arrange of technologies that can be used to automate the procurement process. E-procurement broadly splits into e-sourcing and e-purchasing and applies to both the internal and external processes associated with strategic sourcing and purchasing. There are number of reasons why an organization would like to implement e-procurement process.
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