- E-business enables firms to reach customers globally, making the whole world a potential market.
- It allows 24-hour operations, enabling customers to place orders and make payments at any time.
- It reduces costs by lowering expenses on advertising, physical stores, and inventory management.
- Customers enjoy wide choice and convenience, as they can compare products and shop from anywhere.
- E-business improves customer satisfaction through direct contact, quick response, and secure online transactions.
Definitions [1]
Definition: E-Business
- "E-business means consumer and business transactions conducted over a network using computers and telecommunications". - Department of Treasury, USA
- "E-business refers to commercial transactions between organisations and individuals, based on the processing or transmission of digitised data, units, text, sound and visual images which are carried out over open networks, or closed networks with a gateway to open networks". - OECD
- "E-business is a general concept covering any form of business transactions or information exchange that is made by using information and communication technology". - European Union Website
- "E-business means commercial transactions in which an order is placed electronically and goods or service are delivered in tangible or electronic form". - The International Fiscal Association
- "E-business means the transactions carried out by means of electronic data interchange and other means of electronic communication in place of paper based methods of communication". - Information Technology Act, 2000
Key Points
Key Points: E-Business
- E-business means conducting business activities through the Internet and electronic networks.
- It includes all types of electronic business transactions between buyers and sellers.
- E-business is broader than e-commerce, as it covers not only buying and selling but also production, finance, HR, and inventory management.
- It is the result of the integration of information technology and communication technology.
- E-business improves efficiency, creates value, and strengthens relationships with customers and business partners.
Difference Between Traditional Business and E-Business
| Basis of Distinction | Traditional Business | E-Business |
|---|---|---|
| Formation | Difficult | Simple |
| Setting up costs | High – fixed assets required | Low – fixed assets not required |
| Operating cost | High due to fixed charges | Low as little fixed charges |
| Locational needs | Nearness to source of raw materials or markets | None |
| Physical presence | Necessary | Not necessary |
| Nature of contact with customers | Indirect through intermediaries | Direct |
| Scope for going global | Limited | Wide as no boundaries |
| Nature of internal communications | Hierarchical | Not hierarchical |
| Response time | Long | Instant |
| Personal touch | High | Low |
| Opportunity for sampling | Wide | Limited |
| Transaction risk | Low due to face to face contact | High |
| Type of staff required | Semi-skilled | High skilled |
| Business process | Sequential | Concurrent |
| Government support | Low | High |
Key Points: Nature of E-Business
- In e-business, buyers and sellers do not meet face-to-face; transactions are conducted online.
- The buyer selects products or services by browsing the seller’s website.
- Payment is made electronically through credit/debit cards, digital cash, or net banking at the time of placing the order.
- Goods are delivered through courier or post, while digital products can be downloaded online.
Key Points: Importance of E-Business
Key Points: Online Means of Conducting Business
- B2C (Business to Consumer) – Business firms sell goods and services directly to customers online, such as Amazon and Flipkart.
- C2C (Consumer to Consumer) – Consumers sell goods or services directly to other consumers through online platforms like OLX and eBay.
- B2B (Business to Business) – Online transactions take place between business firms, such as purchase of raw materials, components, and payments through EDI systems.
- Intra-Business (Intra-B) – Online transactions occur within different units or branches of the same organisation using networks like VPN.
- B2G (Business to Government) – Businesses interact online with government agencies for registration, filing returns, and obtaining approvals.
- G2B (Government to Business) – Government departments send notices, licenses, certificates, and other communications to businesses online.
- These online modes improve efficiency, reduce paperwork, and enable faster communication between firms, customers, and government.
Important Questions [11]
- State any four points highlighting the importance of e-business to the buyers.
- Write the Short Note on Dictaphone?
- With Reference to the Post Office, Expand the Following: Vpp
- With Reference to the Post Office, Expand the Following: Pin
- Answer Briefly the Following Questions: with Reference to Post Office Services, Write the Expanded Forms Of: (A) Rms (B)Tmo
- Briefly Explain Four Advantages of the Following: Telefax
- Answer the Following Question: How Does a Business Reply Card Help a Business Concern?
- Explain the Post Box Service Provided by Post Office. State Any Two Advantages to the Organisation Which Uses this Service.
- State any two benefits of e-business to the buyers.
- Expand the Following: Www
- Expand the Following: Lan
