EMERGING
MODES OF
BUSINESS
INTRODUCTION
Over the past decade, business practices have undergone significant changes,
often called the "mode of business." These changes are ongoing and likely to
continue. Three key trends shaping modern business are:
Digitisation: This refers to the conversion of content like text, sound, images, and
videos into digital formats (ones and zeros) that can be transmitted electronically.
Business Process Outsourcing (BPO): Companies are increasingly outsourcing
various business functions to external providers, often in different regions, to
save costs and improve efficiency.
Internationalisation and Globalisation: Businesses are expanding their reach
beyond domestic markets, accessing global resources, customers, and
opportunities.
INTRODUCTION
Emerging Modes of Business:
Reflect fundamental changes in how business is conducted.
Key trends include digitization, outsourcing, and internationalization.
Drivers of New Business Modes:
Continuous improvement in business processes.
Increased competition and evolving consumer demands.
Leverage of emerging technologies.
Focus on Value Creation:
Businesses strive to enhance value creation and delivery through improved
processes.
E- BUSINESS
E-business Definition:
Conducting industry, trade, and commerce using computer networks
(primarily the internet).
Includes both internal and external business functions.
E-business vs. E-commerce:
E-business is a broader term encompassing all electronically conducted
business activities.
E-commerce specifically refers to online transactions with customers
and suppliers.
E-business Functions:
Include e-commerce, as well as production, inventory, product
development, accounting, finance, and HR.
SCOPE OF E- BUSINESS
Almost all type of e- business
functioned with production,
finance, managerial skills, etc
But another way to look at it
was parties involved in the
transaction
SCOPE OF E- BUSINESS
A firm’s electronic transactions and
networks can be categorised into 3
types namely
B2B which is a firm’s interaction
with other businesses
B2C which is a firm’s interaction
with its customers
Intra-B or a firm’s internal
processes
B2B COMMERCE
B2B e-commerce focuses on transactions
between businesses.
Key applications:
Supply Chain Management:Sourcing
components from multiple vendors.
Real-time inventory tracking and
replenishment.
Improved distribution through real-time
control.
Customized production based on
customer specifications.
Facilitating Business
Processes:Expediting information and
document flow.
Enabling faster money transfers.
Historical Roots:
Initially, primarily focused on using EDI for
exchanging commercial documents (e.g.,
purchase orders, invoices).
B2C COMMERCE
B2C E-commerce Key Points:
Focuses on transactions between businesses
and individual customers.
Not just online shopping: Includes marketing
activities like identifying customer needs,
promotion, and sometimes delivery (e.g.,
digital goods).
Benefits:Lower cost compared to traditional
methods.
Faster transactions (e.g., ATM analogy).
Customization: Tailoring product features and
offering convenient delivery/payment options.
24/7 customer connection: Businesses can
gather feedback and provide support.
Not one-way: Customers have options (C2B
commerce, call centers).
The beauty of the process is that, no need of
setting up calling, centers, it can be
outsourced
ATM, B2C APPLIANCE
1. E-Commerce greatly facilitates and
speeds up the entire B2C process.
2. Withdraw of one’s own money from
banks was, for example, a tedious
process in the past.
3. One had to go through a series of
procedural formalities before he or she
was able to get the payment.
4. After the introduction of ATMs, all that
is fast becoming a history now.
5. The first thing that occurs is that the
customer is able to withdraw his
money, and the rest of the back-end
processes take place later
INTRA-B COMMERCE
Focus: Interactions and dealings among
departments within a business firm.
Enablers: Intranet, computer networks.
Benefits:Flexible Manufacturing: Customized
products based on customer requirements.
Improved Efficiency: Efficient inventory/cash
management, better plant/machinery
utilization, effective order handling and HR
management.
Enhanced Communication: Multimedia
communication, faster decision-making,
better coordination.
B2E Applications:Employee recruitment,
training, and development (e-learning).
Employee self-service (accessing information,
submitting reports).
Remote work (VPN technology).
Online meetings (tele/video conferencing).
C2C COMMERCE
C2C Commerce:
Consumer-to-Consumer transactions.
Ideal for goods without established markets (e.g., used
items).
Facilitated by the internet's global reach.
Provides market security for anonymous transactions.
Examples of C2C Platforms:
eBay: Marketplace for consumers to buy and sell
goods.
Uses seller ratings to build trust.
Supporting Technologies:
Payment Intermediaries: (e.g., PayPal)
Hold funds until buyer receives goods.
Enhance transaction security.
Consumer Forums and Pressure Groups:
Enable customers to share experiences and warn
others.
Leverage collective action to address grievances.
Scope of E-business:
Highly diverse and encompasses various applications
E-BUSINESS VS TRADITIONAL
BUSINESS
Traditional business:- Refers to companies
that operate through physical storefronts,
and face-to-face interactions, relying on in-
person transactions and local customer bases.
An example of a traditional business is a
‘’Bakery”
E-business(electronic business):- It involves
conducting business transactions over the
Internet. Allows companies to reach global
markets, offering convenience, and a wide
variety of services. An example of e-business
is ‘’Amazon'.
ADVANTAGES
Ease of Formation & Lower Investment:
Simple startup, low initial costs.
"Networked individuals" more valuable than "net-worth."
Example: Online restaurant platform connecting customers to
local eateries.
Convenience:
24/7 accessibility for businesses and customers.
Remote work flexibility.
Speed:
Fast information exchange and order fulfillment.
Reduced cycle time.
Instantaneous electronic payments.
Global Reach:
Access to worldwide markets for both buyers and sellers.
Key driver of globalization.
Paperless Society:
Reduced reliance on paperwork.
Streamlined government processes.
E-filing of returns and reports.
CONFIDENTIALITY
Lack of Personal Touch:
Limited human interaction unsuitable for products requiring personal
engagement (e.g., garments, toiletries).
Order Fulfillment Delays:
Discrepancy between fast order placement and slower physical delivery.
Website loading speed issues can frustrate users.
Technology Dependency:
Requires digital literacy, contributing to the "digital divide."
Increased Risks:
Anonymity and untraceability of parties.
Identity theft, data breaches, and cyber threats.
People Resistance:
Employee resistance to new technology and work processes.
Ethical Concerns:
Invasion of privacy through employee monitoring.
Ethical implications of data collection and usage.
LIMITATIONS
ONLINE TRANSACTIONS
Online Shopping Process (Customer Viewpoint):
1. Registration: Create an account with the
vendor.
2. Browsing: Add items to your virtual shopping
cart.
3. Checkout: Choose payment method.
4. Payment: Options include:
Cash-on-Delivery (CoD)
Cheque
Net-banking Transfer (IMPS, NEFT, RTGS)
Credit Card
Debit Card
Digital Cash (explained later)
ONLINE TRANSACTIONS
Online Transaction Stages:
Pre-purchase/sale: Advertising, information
search.
Purchase/sale: Negotiation, closing deal,
payment.
Delivery: Physical goods delivery (except for
digital products).
Benefits of Online Information Exchange:
Faster and cheaper than traditional methods
(face-to-face, phone, mail).
SECURITY AND SAFETY OF E-TRANSACTIONS
Online transactions includes various types
of risks that can lead to financial
reputational or psychological looses to
the parties involved in the transaction.
Due to higher risk the probability of such
risk in online transactions security and
safety becomes crucial concern.
Key risks includes:-
1. Transaction risks
2. Data storage and transmission risks
3. Risks of threat to intellectual property
and privacy
DATA STORAGE AND TRANSMISSION RISK
Data stored in the system are often exposed to numerous risks, including theft
or modification for malicious purposes. One of the risks is computer viruses,
which can replicate themselves across systems. The acronym "VIRUS" stands
for Vital Information under Siege. A virus can cause different levels of damage:
Level 1: On-screen display disruptions.
Level 2: Destruction of system functionality.
Level 3: Damage to critical data.
Level 4: Complete system destruction.
To protect against such threats, it's important to update antivirus software and
scan files and disks regularly. Data in transmission can also be intercepted, and
“cryptography” can be used to protect it. Cryptography converts readable data
into unreadable ciphertext, which can only be decrypted by those possessing a
secret key, ensuring secure communication and data protection.
RISKS OF THREAT TO INTELLECTUAL PROPERTY AND PRIVACY
The internet is an open and free space for everyone around the world where
once the information is shared it becomes hard to keep it private or protect it
from being copied. This makes personal data more unsafe especially during
online transactions.
For example, your data could be shared or sold, leading to unwanted emails or
spam. On one hand, sharing information on the internet allows for quick access
and convenience, but on the other hand, it raises concerns about privacy and
security.
One potential solution to minimize spam is to use email filters or spam-blocking
software, which can reduce unwanted messages. However, while these tools
can help manage spam, they may not catch everything and can sometimes filter
out legitimate emails. Additionally, using more secure websites or encrypted
connections for transactions can improve privacy.
TRANSACTION RISKS
Key Risks in Online Transactions:
Transaction Risks:Order Disputes: Seller/buyer denying
the order.
Delivery Issues: Wrong/missing/delayed deliveries.
Payment Disputes: Seller not receiving payment, buyer
claiming payment.
Data Storage & Transmission Risks:
Data Theft/Modification: Viruses(VITAL INFORMATION
UNDER SIEZE), hacking.
Data Interception: During transmission.
Intellectual Property & Privacy Risks:
Data Misuse: Copying, sharing, spamming.
Privacy Violations: Data breaches, unauthorized access.
TRANSACTION RISKS
Mitigating Transaction Risks:
Verification: Identity, location, order confirmation, payment
authorization.
Reputation Systems: Seller ratings, established platforms.
Payment Security: Credit card encryption (SSL), secure payment
gateways.
Mitigating Data Risks:
Anti-virus Software: Regular updates, system scans.
Cryptography: Encryption/decryption for secure data transmission.
Mitigating Intellectual Property & Privacy Risks:
Data Protection Policies: Clear terms of service, user consent.
Privacy Controls: Opt-out options, data minimization.
In essence, online transactions require robust security measures to
protect both buyers and sellers from various risks.
RESOURCES REQUIRED FOR SUCCESSFUL E BUSINESS IMPLEMENTATION
E-business requires unique resources:
Beyond traditional resources (money, manpower, machinery),
e-business necessitates resources for website development,
operation, maintenance, and enhancement.
Website: A firm's online presence:
A website represents a company's virtual location on the
World Wide Web (www).
It's not a physical space but an online collection of content.
THANK YOU
