Coit20250 E-Business Systems- The E-Commerce Assessment Answers

Answer:

This presentation is about the e-business concepts and its future. Different types of practical uses of the e-business tools, their benefits and associated challenges would be discussed in this presentation.E-business refers to conducting business on the Internet. The term e-business describes a wide range of business activities that take place on the Internet using applications that rely on the Internet.

There is a significant difference between the e-commerce and e-business. E-commerce refers to the operations like marketing, selling and buying of products and services on the internet platform. On the other hand, the e-business refers to the activities for improving the business performances through the low cost and open connectivity. These are associated with the new technologies in the value chain.

The main aims of these operations are improving the service or reducing the costs, opening new channels and transforming competitive landscapes.

E-business refers to conducting business on the Internet. The term e-business describes a wide range of business activities that take place on the Internet using applications that rely on the Internet.

In this slide, the important components of e-business have been shown:

1. E-tailing, or virtual storefronts on Web sites.
2. Online business-to-business transactions.
3. Electronic data interchange (EDI), the business-to-business exchange of data using compatible software.
4. E-mail, instant messaging, and other Web-enabled communication tools and their use as media for reaching prospective and existing customers.
5. The gathering and use of demographic, product, and other information through Web contacts.

Businesses use the web for a variety of reasons. Most frequently they serve as a marketing tool to attract customers. E-business features allow customers to shop online.

These are some of the good examples of getting success through the use of e-business.

Many of the benefits of e-commerce have come with business-to-business transactions. Companies like UPS and the Post Office use their websites to save money and time by doing business online. Companies use a variety of tools to conduct business online with partners, wholesalers and retailers.

• Business-to-business e-business (B2B)Electronic business transactions between businesses using the Internet.
• B2B transactions total $2.5 trillion.
• By some estimates, account for 90% of all e-commerce activities.
• Can reduce cost of B2B transactions by almost 25 percent.

As an example, Walmart is one of the first major corporations to adopt EDI and other technologies to gain a competitive advantage. EDI is a main reason that Walmart is so efficient. The Internet has allowed many EDI technologies to improve. Extranets use the Internet for partners and businesses to collaborate. Private exchanges are the future of extranets. These are secure web sites that allows businesses to share all types of information.

E-procurement allows organizations to streamline their procurement (purchasing) processes. Electronic exchanges are online marketplaces that bring together buyers and sellers of a specific industry. Electronic exchanges are focused on procurement.

Customers have a growing concern regarding safety on the Internet. There have been a constant technology developments to address shopping online. The Security Standards Council, which was started by credit card companies, exists to enhance payment account data security.

• Through encryption, data is encoded for security purposes.
• Many companies use Secure Sockets Layer (SSL)technology to encrypt information and verify senders and receivers.
• An electronic walletcontains credit card and identification information. Customers can avoid retyping purchase information.

Selling to customers directly over the Internet. There are millions of goods for sale online. There are a variety of retail stores that make the Internet one big cybermall.

These are advantages of the B2C e-business models.

• Business-to-consumer (B2C)
• E-tailing accounts for 4% of all U.S. sales.
• Growing at a rate of 18%.
• Services like banking and brokerage are key aspects of e-tailing
• Many retailers have electronic storefronts.
• Growth of broadband is aiding e-tailing.

Web sites are frequently used for marketing to attract visitors/customers.Businesses use the web for a variety of reasons. Most frequently they serve as a marketing tool to attract customers. E-business features allow customers to shop online.

• Increase a firm’s visibility, promote its offerings, and provide information to interested parties.
• Build customer goodwill and assist retailers and other resellers in their marketing efforts.
• Disseminate financial information to investors.
• Enable prospective employees to apply online for jobs.
• Provide e-mail communication.

Consumers note many reasons they shop online. For some consumers these are singular benefits, while combined, they create a strong benefit for a growing number of consumers.

Lower Prices

• Many products cost less online.
• Internet allows customers to easily compare prices from multiple sellers.

Convenience

• Can order products from around the world anytime, day or night.
• Can register customer information to streamline transactions.
• Emphasis on personalized, one-on-one marketing to increase repeat purchases.

There are some more advantages of the e-business:

• Generate additional revenues
• Reduce costs
• Customer retention
• Improve brand image
• New opportunities

 In addition to credit card transactions online, privacy is a growing concern for consumers. Consumers worry that the information about them will be available to others without their permission. Although online shopping is growing, consumers are very concerned about providing credit cards and personal information online.

Internet fraud is another challenge of e-business. High-tech scams that use authentic-looking email or phone systems are reported to the Internet Crime Complaint Center. Phishing has evolved into a more advanced form of Vishing that uses phone systems and voice technology.

For firms to attract customers and keep them, they must meet buyers’ expectations. A well designed website is important. Many customers get frustrated with delivery and return procedures. A good example of proactively reducing channel conflict is Mattel – you can only purchase specialty dolls from their website.

Companies have long-used email and it has served as a key by-product of the Internet. The volume of email today exceeds regular mail by ten to one. Communication is a key purpose of the web and includes entertainment, information, e-business and communication.

Web promotion is an efficient way of reaching out to more customers in e-business. Use of blogs, wikis and podcasts are used for this purpose.Web-based promotions are another way for businesses to reach customers. Click ValPak Marketing to view their searchable coupon site.

E-business provides a global opportunity for organizations. The US leads in Internet users but the US does not still maintain the most popular website in every country.Internet access around the world is growing, but Internet presence in other countries can cause problems.

The graphs shown in the slide is showing the analysis.

Business websites serve multiple purposes. It is imperative that websites are good. Different websites serve different purposes; therefore, success may mean different things. Popularity for a news web site that sells advertising is important, while a website that is selling goods requires a streamlined transaction process. The planning of the website is the first step. The content that is included on a website determines whether visitors return to a site. The cost of a site is an important consideration. Costs include variable costs like development expenses, maintenance, updating and promotion.

Managers measure their website by click-through rates and conversion rates. Web site measurement is continuing to evolve. It is important as firms can gauge sales potential and learn about their customers.While developing an efficient website for the e-business the developers should follow these:

The website should be able to broaden the customer base

Should be able to provide immediate access to the current catalogs

The website should also be able to accept and process orders and offer personalized customer service

The steps of developing a good website are following:

Define Your Strategy

 Prioritization

 Defining “Success”

Define The Organization Behind The Initiative

 Implementing a Solution

 Monitor, Support & Enhance Developing an e-business platform is dependent on the Contents of the website and the available resources.The points shown in the slides are the current trends in the e-business.Some more trends have been shown in this slide.

Strategic implications of marketing in the e-business in the 21^st century are given in the above slide.

Use of the cutting edge technology is helping the marketers to have a bright future.

These are the references used for the preparation of this slide.