E-Business – Technology and Networks What is E-business? [ E-business (electronic business) is the conducting of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners. [ The processes and tools that allow an organization to use Internetbased technologies and infrastructure, both internally and externally, to conduct day to day business process operations. [ Stands for electronic business and refers to any kind of sales, services, purchasing or commerce on the Internet. [ A new-tech jargon word used more for marketing than for technical description. Most commonly it broadly refers to conducting business over the Internet (email and web) by communicating and perhaps transacting (buying and selling) with customers, suppliers, and business partners. What is E-business? Web Universal Access Standards e-business Using internet technologies to transform key business processes IT Data Applications Core business processes Reliability, security e-business = Web + I/T and availablitiy Major Benefits of eBusiness • • • • • • • • Global reach Reduced cost Convenience Higher productivity and efficiency Inventory reduction Faster trading cycles Cash flow improvement Enhanced Image 1-1-4 E-Business E-Business is about enabling organizations to cohesively bring together their processes and Internet technologies for cost effectiveness, efficiency and better relationships between partners. 1-1-5 E-Business E-Business is the electronic connection of business operations to customers, suppliers, employees and other partners. It includes, but not limited to, product marketing, order entry, inventory tracking, order fulfillment and after-sales support. 1-1-6 E-Commerce E-Commerce has a narrower definition and only involves buying and selling goods and services over the Internet. It is normally limited to catalogs, order entry, authorization and delivery confirmation. 1-1-7 The E-Business Network Network Software Intranet and Extranet Network Hardware E-Business Network Enabling Technology Networking Vendors ECommerce Application s 1-1-8 eBusiness: Technologies and Skills • • • • • • Web technologies Database technologies Integration technologies Networking technologies Security technologies CIW Tracks: – Designer – Developer – Administrator 1-1-9 What is Important in an E-Business Network? • • • • • • Functionality Reliability Security Speed Scalability Access Control 1-1-10 Why Does an E-Business Network Matter to a User? • To share knowledge and reap productivity gains by finding information faster • To communicate faster with clients and suppliers • To provide options for teleworking • To implement web services • To enable teams to work collaboratively irrespective of geography • To better automate business procedures 1-1-11 Why Does an E-Business Network Matter to an Enterprise? • To create fundamental changes in business processes • To enable fast responses and agile maneuvering • To negotiate more effectively with suppliers • To create competitive advantage • To provide instant access to global markets • To lower costs • To enable the convergence of voice, data and video • To use the e-business as a key to business operations 1-1-12 E-business types: C2C B2B B2C CONSUMERS BUSINESS ADMINISTRATION What is Consumers to Consumers (C2C) ? [ [ Consumer-to-consumer commerce : commerce with no middle business people. The most notable examples are Web-based auction and classified as sites. Exp: eBay and Classifieds2000 C2C stands for consumer to consumer electronic commerce. The Internet has facilitated new types of C2C although it is important to note that this kind of commerce -- in the form of barter, yard sales, flea markets, swap meets, and the like -- has existed since time immemorial. Notably, most of the highly successful C2C examples using the Internet actually use some type of corporate intermediary and are thus not strictly "pure play" examples of C2C. What is Business to Business (B2B) ? [ B2B stands for "business-to-business," as in businesses doing business with other businesses. The term is most commonly used in connection with e-commerce and advertising, when you are targeting businesses as opposed to consumers. [ On the Internet, B2B (business-to-business), is the exchange of products, services, or information between businesses. B2B is e-commerce between businesses. B2B Communication using XML over HTTP B2B - the basics [ Business-to-business electronic commerce (B2B) typically takes the form of automated processes between trading partners and is performed in much higher volumes than business-to-consumer (B2C) applications. What is Business to Consumers (B2C) ? [ [ [ Refers to businesses selling products or services to end-user consumers. B2B stands for transaction activities involving two business entities (business-to-business transaction). B2C stands for transaction activities involving a business and a consumer (business-to-consumer transaction). Electronic commerce comprises commercial transactions, involving both organisations and individuals. From the technical point of view ecommerce is the processing and transmission of digitised data. E-commerce decreases the distance between producers and consumers. Consumers can make their purchase without entering a traditional shop. What is Business to Administration (B2A) ? [ Short for business-to-administration, also known as e-government. B2A is the idea that government agencies and businesses can use central Web sites to conduct business and interact with each other more efficiently than they usually can off the Web. FindLaw is an example of a site offering B2A services -- a single place to locate court documents, tax forms and filings for many different local, state and federal government organizations E-business category [ [ [ [ [ [ [ [ E-banks E-trade E-consulting E-engineer E-learning E-mail E-marketing E-transactions An example for e-bank An example for e-trade An example for e-consulting An example for e-engineering An example for e-learning An example for e-mail An example for e-marketing E-business infrastructure HARDWARE SOFTWARE INTERNET ACCESS, SERVICES, E-payment, CERTIFICATES, ADVERTISEMENT Virtual Markets goods, services, deadline and circumstances Needed, measure price offer buyers seller mediators buyers Goods A Goods B buyers seller seller finished orders orders Virtual connections to other markets The path of the deal buyers seller buyers seller buyers seller How safe are e-Business financial transactions? New security technology like 128-bit SSL encryption ensures the safety and privacy of both you and your customers, and is built into the latest e-Business software tools. Your security and privacy is a top priority with all e-Business providers. Secure VPN INTERNET Consumer SSL SERVER WEB WEB SERVER WEBSERVER [ Merchant Merchant Merchant Storefront Storefront Storefront Acquiring BANK Credit Card Network VIRTUAL POS PAYMENT GATEWAY Can my business benefit from eBusiness? [ Reduce administrative and operating costs [ Reduce inventory costs [ Reduce the cost of procurement [ Improve customer service and satisfaction [ Streamline procurement procedures [ Increase communication efficiency and interaction with employees, vendors, customers and strategic partners [ Increase revenues and profit margins E-Business Model-Storefront Model • The storefront combines transaction processing, security, online payment and information storage to enable merchants to sell their products on the Web. • This is a basic form of e-commerce where the buyer and the seller interact directly Shopping-cart Technology • This order-processing technology allows customers to accumulate items they wish to buy as they continue to shop. • Supporting the shopping cart is a product catalog, which is hosted on the merchant server E-Business – Technology and Networks Case Study Comparative Study of Various EBusiness Model