E-Business and E-Commerce It Has More Then Your Imaginations

E- Business and e-commerce: an introduction:

Electronic Business

Electronic Business or E-Business refers to the use of digital technology and the internet to execute the major business processes in the enterprise.

Electronic Commerce

Electronic Commerce is the part of E-Business which deals with the buying and selling of goods and services on the internet.

It also encompasses activities supporting those market transactions, such as advertising, marketing, customer support, security, delivery and payment.
E-Commerce involves the use of information technology to enhance communication and transaction with all the stakeholders

E-Business and E-Commerce

Who should use the internet?

E-Business and E-Commerce

Every organization needs to consider whether it should have an internet presence.

What should be its extent of involvement?
- Two key factors to be considered
  - How many existing or potential customers are likely to be internet users? Who should use the internet?
  - What is the information intensity of a company’s products or services
What should be its extent of involvement?
- How many existing or potential customers are likely to be internet users?
  - IF…..
    - Significant proportion of a firm’s customers are internet users
    - Search cost for the product of service are on a higher side
    - Then an organization should have a web presence.
What should be its extent of involvement?
- What is the information intensity of a company’s products or services?

(an information-intense product is which requires considerable information to describe it)

If a firm’s product or service is information-intensive then the organization should have a web presence

Organizations face three critical challenges

Demand Risk
Innovation Risk
Inefficiency Risk

The internet and World Wide Web can be a device for reducing these risks.

E-commerce today:

Use of the Internet and Web to transact business; digitally enabled transactions
Began in 1995 and grew exponentially, still growing even in a recession
Companies that survived the dot-com bubble burst and now thrive
E-commerce revolution is still in its early stages?

THE GROWTH OF E-COMMERCE:

Retail e-commerce revenues grew 15–25 percent per year until the recession of 2008–2009, when they slowed measurably. In 2010, e-commerce revenues are growing again at an estimated 12 percent annually.

Why e-commerce is different – 8 unique features:

Internet/Web technology available everywhere: work, home, etc., anytime.
The technology reaches across national boundaries, around Earth
One set of technology standards: Internet standards
Supports video, audio, and text messages

The technology works through interaction with the user

Large increases in information density—the total amount and quality of information available to all market participants
Personalization/Customization:Technology permits modification of messages, goods