Week 10-11

Introduction to E-business & E-Commerce

What is Business?

Business refers to an enterprising entity or organization that carries out professional activities.
They can be commercial, industrial, or others. For-profit business entities do business to earn a
profit, while non-profit ones do it for a charitable mission. Business ownership includes
partnerships, sole proprietorships, corporations, etc. Businesses can be small-scale or large-scale.
Some of the biggest businesses in the world are Amazon and Walmart.

Any legal and regular activity which is done for the purpose of earning profit is called business.

What is E- business?

E-Business (electronic business) is any process that a business organization conducts over a
computer-mediated network. Business organizations include any for-profit, governmental, or
nonprofit entity.

What is E-commerce?

Ecommerce is a method of buying and selling goods and services online. The definition of
ecommerce business can also include tactics like affiliate marketing. You can use ecommerce
channels such as your own website, an established selling website like Amazon, or social media
to drive online sales.

Difference
Types of E-Business:

E-business encompasses a wide range of activities and can be classified into various types based
on the nature of the transactions, target audience, and industry focus. Here are some common
types of e-business:

1. Business-to-Consumer (B2C):

- B2C e-business involves transactions between businesses and individual consumers.

- Examples include online retail stores, e-commerce platforms, and direct-to-consumer brands
selling products or services to end-users.

2. Business-to-Business (B2B):

- B2B e-business involves transactions between businesses, where one business sells products
or services to another business.

- Examples include online marketplaces, wholesale e-commerce platforms, and procurement

portals used by businesses to purchase goods and services from suppliers.

3. Consumer-to-Consumer (C2C):

- C2C e-business involves transactions between individual consumers, facilitated by an online

platform or marketplace.

- Examples include online auction sites, classifieds platforms, peer-to-peer lending platforms,
and sharing economy platforms where individuals buy, sell, or exchange goods and services with
each other.

4. Consumer-to-Business (C2B):

- C2B e-business involves transactions where individual consumers offer products or services
to businesses.

- Examples include freelance marketplaces, crowdsourcing platforms, and influencer marketing

platforms where individuals provide services such as graphic design, content creation, or product
reviews to businesses.

5. Business-to-Government (B2G):

- B2G e-business involves transactions between businesses and government agencies or

departments.

- Examples include online portals for government procurement, licensing and permitting
systems, and electronic tax filing and payment platforms.
 6. Government-to-Business (G2B):

- G2B e-business involves transactions where government entities provide services or

information to businesses.

- Examples include online portals for business registration, regulatory compliance, and
accessing government resources or data.

7. Business-to-Employee (B2E):

- B2E e-business involves transactions where businesses provide products, services, or

information to their employees.

- Examples include employee self-service portals, internal communication platforms, and

online training and development programs.

8. Mobile Commerce (M-commerce):

- M-commerce involves conducting e-business transactions using mobile devices such as

smartphones and tablets.

- Examples include mobile shopping apps, mobile banking, mobile ticketing, and mobile
payment services.

These are just some of the common types of e-business, but the landscape continues to evolve
with emerging technologies and business models. Businesses may engage in multiple types of e-
business activities simultaneously, depending on their objectives and target markets.

E-business Categories:

E-business can be divided into the following categories.

 Business to Consumer(B2C)
 Business to Government(B2G)
 Consumer to Government(C2G)
 Business to Business(B2B)

Business to Consumer (B2C):

During the first wave of e-business much of the media attention was focused on the B2C market.
At the time it appeared logical, as consumers were using applications such as email and bulletin
boards, and performing research. Despite the success of B2C firms, the actual and projected
growth of B2B dwarfs B2C markets.
Business to Government (B2G):

In most of the countries government has embedded a program aiming at the prosperous up-
liftment of the country to become a world leader in the knowledge economy revolution. The e-
commerce group is tasked with enabling e-commerce for the as a whole by developing an e-
commerce framework that is conducive to developing a confident and skilled population. It is
expected that this will be achieved by helping businesses get the skills and the technologies they
need and by closely monitoring ecommerce activity.

Consumer to Government (C2G):

The government has developed a policy for the taxation of e-commerce and is hoping to resolve
and clarify particular technical issues. The Government recognises that e-commerce presents
both challenges and huge opportunities for taxation and tax administration for the public.

Business to Business (B2B):

The broad definition of B2B e-business helps explain why the marketplace is expected to
continue to grow so quickly. According to Cunningham the B2B definition can include:

‘Transactions conducted over public or private networks, including public and private
transactions that use the Internet as a delivery vehicle. The transactions include financial
transfers, online exchanges, auctions, delivery of products and services, supply-chain activities
and integrated business networks.’

E-business opportunities

E-business opportunities abound in today's digital landscape, offering entrepreneurs and

businesses various avenues for growth, innovation, and profitability. Here are some key e-
business opportunities across different industries and sectors:

1. E-commerce Expansion:

- With the increasing popularity of online shopping, there are ample opportunities to start or
expand e-commerce businesses, selling products across various categories such as electronics,
fashion, health, beauty, home goods, and more.

- Niche markets and specialty products can provide opportunities for differentiation and target-
specific customer segments.

2. Digital Services and Subscription Models:

- Offering digital services such as software subscriptions, online courses, digital downloads
(e.g., eBooks, music, software), and memberships can generate recurring revenue streams.
 - Opportunities exist in providing specialized expertise, training, or content in areas such as
education, professional development, fitness, wellness, and personal finance.

3. Online Marketplaces and Platforms:

- Building online marketplaces or platforms that connect buyers and sellers in specific
industries or niches can be lucrative. Examples include freelance marketplaces, job boards, real
estate platforms, and specialized B2B procurement platforms.

- Opportunities also exist in developing platforms for sharing economy services, peer-to-peer
lending, and collaborative consumption.

4. *Digital Marketing and Advertising:*

- Providing digital marketing services such as search engine optimization (SEO), social media
marketing, content marketing, email marketing, and paid advertising management can help
businesses improve their online visibility and reach.

- Opportunities exist in serving small and medium-sized businesses (SMBs) that may lack the
expertise or resources to manage their digital marketing efforts internally.

5. *Mobile Commerce (M-commerce):*

- Capitalizing on the growing trend of mobile usage, opportunities exist in developing mobile
commerce apps, mobile payment solutions, and location-based services.

- Offering mobile-first experiences and personalized recommendations can enhance customer

engagement and drive conversions.

7. *Healthcare Technology (Healthtech):*

- Leveraging technology to improve healthcare delivery, patient care, and wellness

management presents significant opportunities. This includes telemedicine, digital health
platforms, health tracking apps, wearable devices, and remote patient monitoring solutions.

- Opportunities also exist in healthcare data analytics, electronic health records (EHR), and
personalized medicine.

8. *Green Technology (Greentech):*

- Meeting the growing demand for sustainable solutions, green technology offers opportunities
in renewable energy, energy efficiency, waste management, water conservation, and eco-friendly
products.

- Innovations in clean energy, electric vehicles, smart grid technologies, and circular economy
solutions can drive positive environmental impact and economic growth.
9. *Artificial Intelligence (AI) and Machine Learning:*

- AI and machine learning technologies present opportunities for automation, predictive

analytics, natural language processing, and personalized experiences across various industries.

- Applications include chatbots, virtual assistants, recommendation engines, fraud detection,

predictive maintenance, and autonomous vehicles.

10. *Supply Chain and Logistics Optimization:*

- With the rise of e-commerce and globalization, opportunities exist in optimizing supply
chain and logistics operations. This includes last-mile delivery solutions, warehouse management
systems, inventory optimization, and supply chain visibility platforms.

- Addressing challenges such as sustainability, transparency, and resilience in supply chains

presents additional opportunities for innovation.

These are just a few examples of e-business opportunities, and the landscape continues to evolve
with advancements in technology, changes in consumer behavior, and emerging market trends.
Entrepreneurs and businesses that identify and capitalize on these opportunities can drive
growth, create value, and remain competitive in today's digital economy.

E-business risks and barriers to business adoption

E-business adoption can be accompanied by various risks and barriers that organizations may
face. These risks and barriers can hinder the successful implementation and operation of e-
business initiatives. Here are some common e-business risks and barriers:

1. *Cyber security Threats:*

- E-business systems are susceptible to cyber security threats such as hacking, malware,
phishing attacks, and data breaches. Security vulnerabilities in software, networks, and
infrastructure can expose sensitive information and disrupt operations.

2. *Data Privacy Concerns:*

- Collecting, storing, and processing customer data in e-business systems raises concerns about
data privacy and compliance with regulations such as GDPR, CCPA, and HIPAA. Mishandling
of personal information can result in legal consequences and damage to reputation.

3. *Technological Challenges:*

- Rapid advancements in technology can pose challenges for organizations to keep up with
evolving e-business tools, platforms, and infrastructure requirements. Legacy systems,
compatibility issues, and technical complexities may impede the adoption of new technologies.
4. *Cost of Implementation:*

- Implementing e-business initiatives involves significant upfront investments in technology

infrastructure, software development, training, and integration. High implementation costs can be
a barrier for small and medium-sized enterprises (SMEs) with limited financial resources.

5. *Resistance to Change:*

- Resistance from employees, management, and stakeholders to adopt new e-business

processes and technologies can hinder organizational transformation. Fear of job displacement,
lack of digital skills, and cultural inertia may impede change initiatives.

6. *Lack of Strategic Alignment:*

- E-business initiatives may fail to align with the organization's strategic objectives, resulting in
misalignment between technology investments and business goals. Lack of a clear e-business
strategy and vision can lead to inefficiencies and wasted resources.

7. *Regulatory Compliance Issues:*

- E-business operations must comply with various regulations and legal requirements
governing data protection, consumer rights, online transactions, and industry-specific standards.
Non-compliance can result in fines, penalties, and legal liabilities.

8. *Supply Chain Disruptions:*

- Dependencies on external suppliers, vendors, and logistics partners can expose e-business
operations to supply chain disruptions caused by natural disasters, geopolitical events, trade
disputes, or supplier issues. Disruptions in the supply chain can impact product availability,
delivery times, and customer satisfaction.

9. *Quality of Service Concerns:*

- Ensuring the quality and reliability of e-business services, such as website performance,
customer support, and fulfillment processes, is essential for meeting customer expectations. Poor
service quality, including slow response times, errors, and outages, can lead to customer
dissatisfaction and churn.

10. *Market Competition:*

- Intense competition in the e-business landscape can pose challenges for organizations to
differentiate their offerings, attract customers, and maintain market share. Competitors may
leverage similar technologies and business models, making it challenging to stand out in
crowded markets.
11. *Digital Divide:*

- Disparities in access to digital technologies and internet connectivity, particularly in rural or

underserved areas, can create a digital divide that limits the adoption of e-business solutions.
Lack of infrastructure and digital literacy among certain demographics may exclude them from
participating in online commerce.

12. *Intellectual Property Risks:*

- E-business activities involving digital content, intellectual property, and online transactions
may be susceptible to infringement, piracy, counterfeiting, and unauthorized use. Protecting
intellectual property rights and enforcing copyrights can be challenging in digital environments.

Addressing these risks and barriers requires proactive risk management, strategic planning,
investment in cyber security measures, stakeholder engagement, regulatory compliance efforts,
and ongoing monitoring of market trends and technological developments. Organizations that
effectively navigate these challenges can unlock the benefits of e-business and gain a
competitive edge in the digital economy.

MANAGEMENT RESPONSES TO E COMMERECE

Management responses to e-commerce involve strategic decisions and actions taken by

businesses to leverage opportunities, mitigate risks, and maximize the benefits of online
commerce. Here are some key management responses to e-commerce:

1. *Developing an E-commerce Strategy:*

- Management should formulate a comprehensive e-commerce strategy aligned with the

organization's overall business objectives. This strategy should define goals, target markets,
competitive positioning, product offerings, pricing strategies, marketing tactics, and technology
investments.

2. *Investing in Technology Infrastructure:*

- Management should invest in robust technology infrastructure, including e-commerce

platforms, website development secure payment gateways, inventory management systems, and
customer relationship management (CRM) software. Scalable and flexible technology solutions
are essential to support growth and adapt to changing market demands.

3. *Enhancing Online User Experience:*

- Management should focus on creating intuitive, user-friendly online experiences that engage
customers, streamline navigation, and facilitate seamless transactions. This involves optimizing
website design, mobile responsiveness, page load times, checkout processes, and customer
support channels.
5. *Expanding Product Assortment and Market Reach:*

- Management should leverage e-commerce to expand product assortments, reach new

customer segments, and enter new geographic markets. This may involve diversifying product
offerings, targeting niche markets, and establishing partnerships with online marketplaces or
distributors.

6. *Optimizing Digital Marketing and Customer Acquisition:*

- Management should invest in digital marketing strategies to drive traffic, generate leads, and
acquire customers online. This includes search engine optimization (SEO), pay-per-click (PPC)
advertising, social media marketing, email marketing, content marketing, influencer partnerships,
and affiliate marketing.

7. *Personalizing Customer Engagement:*

- Management should leverage data analytics and customer insights to personalize marketing
messages, product recommendations, and promotional offers based on individual preferences,
behavior, and purchase history. Personalization enhances customer engagement, loyalty, and
retention.

8. *Ensuring Data Security and Privacy Compliance:*

- Management should prioritize data security and privacy compliance to protect customer
information, prevent data breaches, and build trust with online shoppers. This involves
implementing robust cyber security measures, encryption protocols, access controls, and
compliance with relevant regulations such as GDPR, CCPA, and PCI DSS.

9. *Monitoring Performance and Analytics:*

- Management should track key performance metrics and analytics related to e-commerce
operations, including website traffic, conversion rates, average order value, customer lifetime
value, and return on investment (ROI). This data enables data-driven decision-making,
optimization of marketing campaigns, and identification of growth opportunities.

10. *Adapting to Market Trends and Technology Innovations:*

- Management should stay informed about emerging market trends, consumer preferences, and
technology innovations in the e-commerce landscape. This may involve experimenting with new
technologies such as augmented reality (AR), virtual reality (VR), voice commerce, chatbots,
and artificial intelligence (AI) to enhance the online shopping experience and gain a competitive
edge. By implementing these management responses to e-commerce, businesses can capitalize
on the opportunities presented by online commerce, drive revenue growth, and strengthen their
competitive position in the digital marketplace.
 WEEK 12&13
E-Business Infrastructure

1. Internet:
The network formed by the co-operative interconnection of millions of computers, linked
together is called Internet. Internet comprises of :
 People: People use and develop the network.
 Resources: A collection of resources that can be reached from those networks.
 A setup for collaboration: It includes the member of the research and educational
committees worldwide.
2. Intranet:
It is an internal private network built within an organization using Internet and World Wide
Web standards and products that allows employees of an organization to gain access to
corporate information.
3. Extranet:
It is the type of network that allows users from outside to access the Intranet of an
organization.

History of Internet:
- The history of the internet dates back to the late 1960s with the development of ARPANET,
a research network funded by the U.S. Department of Defense. ARPANET pioneered packet-
switching technology and laid the foundation for modern internet protocols. In the 1980s, the
adoption of TCP/IP protocols standardized networking and enabled the creation of
interconnected networks, leading to the birth of the internet as we know it. The invention of the
World Wide Web by Tim Berners-Lee in 1989 revolutionized information access and ushered
in the era of the commercial internet. Since then, the internet has experienced exponential
growth, evolving into a global network connecting billions of users worldwide.

Web Technology:
- Web technology refers to the technologies and standards used to create, design, develop,
and maintain websites and web applications. This includes programming languages such as
HTML, CSS, JavaScript, and server-side languages like PHP, Python, and Ruby. Web
technologies also encompass web development frameworks, content management systems
(CMS), databases, web servers, APIs, and protocols such as HTTP/HTTPS. Advances in web
technology have enabled the creation of dynamic, interactive, and responsive websites and web
applications that deliver rich user experiences across various devices and platforms.

Internet-access Software Applications:

- Internet-access software applications are programs or tools that enable users to access and
navigate the internet. This includes web browsers such as Google Chrome, Mozilla Firefox,
Microsoft Edge, and Safari, which allow users to view websites, search for information, and
interact with online content. Other internet-access applications include email clients (e.g.,
Microsoft Outlook, Gmail), instant messaging applications (e.g., WhatsApp, Slack), FTP
clients (e.g., FileZilla), and remote desktop software (e.g., TeamViewer). These applications
facilitate communication, collaboration, and access to online services and resources.
Electronic Mail (E-mail):
- Electronic mail, commonly known as email, is a method of exchanging digital messages
over the internet or other computer networks. Email allows users to send, receive, and manage
messages, attachments, and other digital content asynchronously. It provides a fast, convenient,
and cost-effective means of communication for individuals, businesses, and organizations
worldwide. Email clients, such as Microsoft Outlook, Gmail, and Apple Mail, allow users to
compose, send, receive, organize, and search for emails. Email protocols, such as SMTP,
IMAP, and POP3, govern the transmission and retrieval of email messages between servers
and clients.