September 23, 2015 · E-Business

E-business basics

1. Innovations Made Possible by Web

Year Name      Business Model
1994 Amazon  Retailer
1995 e-Bay      Online Auction -> C2C Marketplace
1999 Alibaba   B2B Marketplace

2. E-Commerce VS E-Business

E-Commerce is exchanging products, services or information via computer networks, including internet.

E-Business including the exchanging goods and services, and also servicing customers, collaborating with partners, conducting e-learning and e-transactions within an organisation for profit or non-profit.
- Improving business performance through low cost and open connectivity.
- Revamp the operation model with technologies.

E-Commerce is a subset of E-business.
- Marketing & Sales
- Buying of products and services on the internet.

3. E-Business VS Business

Traditional Business : Local Event, Reach <50K people, Low transaction rate / store.
E-Business                : Large portion, can process millions of orders per day.

4. Web 2.0 VS Web 3.0

Web 2.0 - User generated content and semantic web.
Web 3.0 - Personalised content.

5. Drivers of Business Internet Adoption

Cost Effectiveness - Increase the cost per dispatching rate / supplies obtaining rate
Competitiveness    - Increase the range of varieties of the proposed services / goods
Typical Benefits of Online Services (6C's )
Customisation , Cost Reduction, Choice, Community, Convenience, Contents
For example : Amazon wins in the long run since AZ provides - 
Customisation Ordering Package of the proposed products , with lower pricing based on the low brick and mortar store renting rate, providing an extremely large quality of goods with recommendation , product details information plus a customer community for different product and one click order.  

6. Risks and Barriers of E-Business

Poor Online Customer Experience
Security Issues
Problems with ordering process - Missing / Delayed 
Website Load Balancing Problem
No Preserved Benefit
Lack of Trust
Uncomfortable Online Shop Learning Curve
Maintenance Cost

7. Online Business Connection

Internet - world wide network connection : 
Intranet - An infrastructure based on internet standards and technologies that supports sharing of content within a limited and well-defined group
Extranet- An intranet that partially accessible to authorised outsiders , like VPN(Tunnelling / Authentication)

8. Online Business Main Areas

Direct Marketing, Selling and services
Financial and information services
Maintenance, repair and operations

9. Intermediaries

Intermediaries are the agents that bring buyers and sellers together that provide a trading infrastructure to enhance e-business
Traditional Business - Producer -> Wholesaler -> Retailer -> Consumer
Intermediation           - Producer -> Retailer -> Consumer
Disintermediation     - Producer -> Consumer
Reintermediation      - Replace the original intermediation
Countermediation     - Intermediation of the e-business intermediation, the creation of a new intermediary by an established coop to compete via e-business ( airlines, grocery delivery, financial services, car sales)

10. E-Business Models

Business Model is a set of planned activities designed to result in a profit in a marketplace
E-business model is the way of business generates revenues on the internet.
B2B : Sells products or services between the businesses, brings multiple buyers & sellers together in a central marketplace
Systematic Sourcing : Involves buying through pre negotiated contracts with qualified suppliers
Spot Sourcing : Businesses buy transaction - oriented commodity-like products and rarely involves a long-term or ongoing relationship between buyers and sellers. ( Freelancer Marketplace)
B2C : Sells Product or services directly to consumers.
Online Retailing Companies / Subscription Model for High Value Content
C2C : Consumer sells directly to other consumers 
Auction / Online Second-hand Goods Marketplaces
C2B : Buyer names their own price for specific good or service
Demand bid, often binding
Collects the demands bids -> Participating sellers
B2G : Provides marketplaces to sell their products/services to government agencies 
B2B2C : Provides some product or service to client business, Client business maintains its own customers (without adding any value)

11. Components of Business

Business is a formal organisation, which produce products, provide service for profit.
Manufacturing and Production, Sales and Marketing, Human Resources, Finance and Accounting -> Product or Service
Includes 5 Business Entities, Suppliers, Customers, Employees, Invoices/Payments, Products and Services

12. Business Process

Business processes are logically related set of tasks and distribute the tasks into levels
Senior Management / Middle Management / Operational Management

13. Business Information Systems

Functional Perspective
Sales and marketing systems
Manufacturing and production systems
Finance and accounting systems
Human resource systems
Constituency Perspective
Transaction Processing Systems
Management Information Systems and Decision Support Systems
Executive Support Systems

14. Enterprise Systems Beneficiaries

Traditional Advantage
Integrate data from key business processes, single central data repository, speed communication of information throughout firm, enable greater flexibility
Types of Enterprise Systems
Enterprise Resources Planning System / Supply Chain Management System / Customer Relationship Management System / Knowledge Management System / Product Lifecycle Management System
ERP Advantage
Kill costly inflexible legacy systems, improve technology infrastructure, work processes and data processes for decision making
ERP Costs
Maintaining, upgrading, optimising the hardware, software and the internal staff
Hidden Cost of ERP
Training, Integration and Testing
Customisation and Data Conversion