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E- Business

E- Business. Learning Objectives. 1. What is E business? 2. Difference between E Commerce and E business 3. Advantages and Disadvantages of E Business 4. Top most popular companies 5. Models of E business 6. Business to Business (B2B) 7. Business to Customer(B2C)

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E- Business

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  1. E- Business

  2. Learning Objectives 1. What is E business? 2. Difference between E Commerce and E business 3. Advantages and Disadvantages of E Business 4. Top most popular companies 5. Models of E business 6. Business to Business (B2B) 7. Business to Customer(B2C) 8. Customer to Customer (C2C) 9. Customer to Business (C2B) 10. Business to Government (B2G)

  3. 1. What Is E Business? E business, is the application of information and communication technologies (ICT) in support of all the activities of business. E Business is the practice of selling goods and services and carrying on other business activity by computer especially over the internet Or A company that uses the internet to carry out its business activities or to sell its products on services

  4. Scope Of E Business Business Information Management E Commerce E Business Supply Chain Management Customer Relationship Management Enterprise Resource Management

  5. E Business E Commerce 2. E Commerce and E Business 1. It is a superset of E commerce. 2. It is a broader term. 3. There are many things besides selling including marketing, procurement of raw material and goods etc. 4. E business is to bring and retain customers and educate them online about the product or service. 5. Its strategies are more complex. 6. It bears a higher risk of failure. 1. It is a subset of E business. 2. It is a narrower term. 3. It essentially involves monetary transactions that lead to transfer of ownership or rights to use goods & services. 4. E commerce is to sell online. 5. Its strategies are a part of e business strategies. 6. It bears a low risk.

  6. 3. Advantages & Disadvantages ADVANTAGES 1. Worldwide Presence2. Cost-effective Marketing and Promotions3. Developing a Competitive Strategy 4.Better Customer Service 5. Curtailing of Transaction Cost 6. Overhead Costs Are Reduced

  7. DISADVANTAGES 1. Sectoral Limitation 2. Costly E-business Solutions for Optimization 3. Question of Safety 4. Data Security 5. Site Integrity 6. System Up gradation 7.Momentary Intangibility

  8. E Business ModelThe e-business model aims to use and leverage the unique qualities of internet and the world wide web.DIFFERENT E-BUSINESS MODELS :ONLINE SHOPFRONTS : Online shops are designed to provide information about products and services online and to accept orders online.CLICK AND MORTAR MODEL : Combines a website with a physical store.

  9. BUILT TO ORDER MERCHANT MODEL : a manufacturer use this model by offering goods or services and the ability to order customized versions. SERVICE PROVIDER MODEL : some service providers provide advertising based access to their services, hoping to recover the cost through revenue from the advertisers. SUBSCRIPTION BASED ACCESS MODEL : typical for accessing databases with articles, news and patents as well as online games or adult web sites.

  10. PREPAID ACCESS MODEL : gives users greater control over how much to spend over the service. BROKER MODEL : brokers are the market makers. These can be B2B, B2C, C2C etc. ADVERTISER MODEL : a website offers free access to something and shows advertisement on every page. PORTAL SITE MODEL : it allows visitors to personalize the interface and then target its ads based on personalization.VIRTUAL MALL MODEL : a site that hosts merchants, service providers, brokers and other businesses. A virtual mall can act as intermediary.

  11. Business To Business (B2B) • B2B refers to the transcation between businesses conducted electronically over the internet , extranet or private network . These transcation may take place between a business and its supply chain partners as well as between two bussinesses .

  12. FEW EXAMPLES OF B2B Flipkart Snapdeal Naptol.com India Mart.com Myntra Eximdeals.com

  13. HOW DOES B2B WORKS ???

  14. First of all , the wholesaler orders the product over the website which have a direct link with the business organisation. Finally , the business organisation supplies the product to the wholesaler . In this b2b model , the customer is not invovled whereas the transcations take place between two businesses conducted electronically .

  15. TYPES OF B2B E-BUSINESS MODELS

  16. 1. BUYER ORIENTED B2B In this b2b e-business model the buyer provides information about the product or service to the seller . Mostly the buyer want to buy the product in bulk and this is most popular in govt. sector

  17. 2. Supplier oriented b2b In this b2b e-business model the seller provides information about the product to the buyer . Generally the seller display the product through advertisement .

  18. 3. INTERMEDIARY ORIENTED B2B In this b2b e-business model the agent who act as a intermediary that deals between the seller and the buyer . Neither the buyer nor the seller have the direct contact .

  19. ADVANTAGES OF B2B • Lower administration cost • Reduces inventory cost • Lower transcation cost • Lower search cost • Decrease product cycle time • Improve the quality of product • Create greater transpirancy in price • Increase the opportunities for collaboration • Increase production of employees • Enables customised online catalogues • Create new sale opportunity • Effective customer services

  20. DISADVANTAGES OF B2B Sale processes might get complicated Lacking from the side of govt. department Inverted power structure

  21. Business To Customer (B2C) • A business that sells online merchandise to individual customers is categorised as B2C. It refers to the business communicating with or selling to an indvidiual customer rather than a company.

  22. HOW DOES B2C WORKS ???

  23. PROCESS OF BUYING IN B2C MODEL • The first step in the process the customer need / obligation. • The customer will search for required product or service on the website. • Comparison of the similar product on different websites. • Placement of the order. • Bill payment • Receiving the order on the prescribed delievery date. • Seeking after sale service.

  24. ADVANTAGES OF B2C • Easier business administration. • Frees your staff. • More efficient business relationship. • Workflow Automation. • Economical . • Unlimited market place. • 24 hours store reduced sale cycle. • Lower cost of doing business. • Eliminate middlemen. • Secure payment systems. • Customer will love it.

  25. DISADVANTAGES OF B2C Catalog inflexibility High marketing expenses Limit market place Require higher cost of doing business Require a middleman Inefficient business administration Need to employ no. Of staff High sales cycle.

  26. Customer To Customer (C2C) In c2c model a consumer directly sells goods or services to another consumer absence of intermediary makes this model unique as consumer can directly interact and transact business by the use of technology. Generally, in this model website provide space to consumer to sell their products to other consumers through auctions etc.

  27. FEW EXAMPLES OF C2C E-Bay OLX Bazee.com Quikr

  28. HOW DOES C2C WORKS ???

  29. ADVANTAGES OF C2C Lowest cost is involved Elimination of intermediary Direct interaction Profit is highest Large no of buyers Elimination of wastage of time

  30. DISADVANTAGES OF C2C Fake communities can be created in this system Product quality is suffered Question of security Fake products which leads to scams

  31. Customer To Business (C2B) Definition The C2B model involves a transaction that is conducted between a consumer and a business organization.The C2B model has ivolved as a result of decreased cost of technology where individual has access to various technologies. C2B model is based on a business transaction originated by the customer,who establishes the transaction,conditions from the start.Instead of responding to a specific product or service offer by the company,it’s the customer who makes a proposal and collaborates. In this system individual offers are made and here the customer personalization is taken to the extreme. It works very well in the leisure and tourism industries.

  32. C2B,is the most recent E-Commerce business model. In this model, individual customers offer to sell products and services to companies who are prepared to purchase them. This business model is the opposite of the traditional B2C model. C2B has become about as a result of two major changes. One is that the traditional media used to be unidirectional, but the internet is bidirectional, making this type of relationship[C2B] possible. Second is the decline in the cost of technology which means that individuals now have to access to technologies such as powerful computer systems, audio and video capture systems and other digital technologies that were once the exclusive province of large companies.

  33. In C2B model, a consumer approaches website showing multiple business organization for a particular service. Consumer places an estimate of the amount he\she wants to spend for a particular service. For e.g. comparison of interest rates of personal loan etc. provided by the banks via. Websites. • Certain examples are: • Bank Bazar.com • Policy Bazar.com • Go Ibibo.com

  34. This model also includes the category where the individuals offer their services to the organisations.For example Monster.com & Naukri.com are such websites on which consumer can post their bio-data for the services they can offer. Any business organization that is interested in deploying their services, can contact and employee them if suitable. • GENERAL FEATURES OF C2B MODEL • Direct action • Collaborative consumption • Interaction • Reciprocity • Bi-directionality

  35. These days consumption habits are changing, and so are consumers. Companies must adapt the new behavior otherwise they may not survive. So business models are appearing which are implemented by the companies. Consumers/Customers can choose the product or service and then decide how to sell it online. These are several options, but only one of them is right for anybody. • CONSUMER TO BUSINESS[C2B] REVOLUTION Over the past few years there has been a lot of press aroundB2C[Business to consumer] and B2B[Business to business] business models. EBay introduced C2C[consumer to consumer] which has proven to be another successful business model. Today B2E[business to employees]and C2G[Consumer to Government]models have become the new trend. The latter model includes applications like internet based or electronic voting.

  36. C2B is a business model in which consumers [individuals] offer products and services to companies and the companies pay them. This business model is a complete reversal of traditional business model where companies offer goods and services to consumers. • This kind of economic relationship is qualified as an inverted business model. The advent of the C2B scheme is due to major changes • Connecting a large group of people to a bidirectional network has made this sort of commercial relationship possible. The large traditional media outlets are one direction relationship whereas the internet is bidirectional one.

  37. Decreased cost of technology Individuals now have to access to technologies that were once only available to large companies[digital printing and acquisition technology, high performance computer, powerful software.

  38. Customer to Business

  39. Business To Government (B2G)It refers to businesses selling products , services or information to governments or government agencies. B2G is also referred to as public sector marketing . It can usually include following steps : - DETERMINATION AND EVALUATION OF GOVERNMENT - AGENCY NEEDS. - CREATING A PROPOSAL .- SUBMITTING THE PROPOSAL .- COMPLETION OF PROPOSED WORK .- PAYMENT OF THE WORK .

  40. B2G e-commerce network allows businesses to bid on government requests for proposals in a reverse auction fashion. The government are the big buyers in the world. Web based purchasing policies increase the transparency of the procurement process and reduce the risk of irregularities. It will be wise for the governments to use online market places to take advantage of their enormous buying power and reduce prices across the board.

  41. Thank You

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