Benefits Of E-Business And E-Commerceâ€Free Samples For Students

Question: What Is The Benefits Of E-Business And E-Commerce? Answer: Introduction Today millions of users access and use the Internet for various purposes throughout the day. They use the Internet for searching, browsing, writing communication, listening, watching news, videos, publishing copying, printing, discussions, trading and selling etc. E-commerce or Electronic commerce refers to the process of selling and buying of products, transferring products, services using the Internet. Due to the term commerce, many people think that E-commerce involves the transactions between businesses and organizations only and thus uses E-business. E-Business or Electronic Business is much broader term than E-Management and it includes collaboration between different entities like suppliers and manufacturers, e-learning, video conferencing for business meetings, internal business processes like calculating on time delivery of stocks, accounts reconciliation using internet and technology and not just mere trade of goods and services (Turban, King, Lee, Viehland, 2002). This i s a basic difference between them, however many people and books uses these terms interchangeably. Background Any business consists of product, process and method of delivery of product to their customers. In olden days, all these i.e. product, process and delivery method are physical i.e. people visit the stores physically, pick the products and it is delivered to them. However, in modern days, things are moving towards digital and the level of electronic commerce is defined by the degree of digitalization involved in the business (Chaudhury, Kuilboer, 2001). For example, if the product is ordered online from Starbucks, product and delivery is physical but process involves internet and thus this model is partially using electronic commerce. On the other hand, if someone orders e-book from Amazon, the product, process and delivery method, all of them uses internet and thus is pure electronic commerce. Most of the businesses today are using partial electronic commerce because products and delivery method is physical but business processes of all the companies are using internet in this age o f cloud computing and digital revolution. Organizations which uses all of the 3 i.e. process, product and delivery method are pure physical organizations and also known as brick and mortar organizations while companies using E-commerce are referred as virtual organizations. Also, Most of the organization uses physical product and physical delivery method and but take the order online and that is why they are known as click and mortar organizations Parties involved in E-business There are many types of E-business classified based on the type of parties involved. Most Common one are as follows: Business-to-business (B2B): In it. Both the seller and buyer party are actually corporate organizations and this is one of the most common. For example manufacturing company buys raw material from the supplier online using e-procurement. Business-to-consumers In it, buyers are the end customers while sellers are the business corporate organizations. Walmart, Amazon selling material online using internet to end consumer are example of this type of e-commerce. Intra-business commerce In it, organizations use internet and electronic commerce to improve its operations and productivity. For example, employees are applying leave online, Material availability of stocks and inventory is calculated using software like ERPs. Mobile commerce In it, business is done using mobile phones and apps. Taxi aggregator Uber is an example of this type of commerce Consumer to consumer In it, end consumer is selling his product to other end consumers who require that product and use internet to find prospective buyers. There are many internet companies that have created forums to enable consumer to consumer business. AirBnB is example of this type of commerce. Consumer to business In this consumer sells product or service to business. For example, many good bloggers who have huge traffic on their blogs sells their space in blogging for advertisement to businesses Collaborative commerce In this business corporations collaborate with each other to for their mutual benefit. For instance, distributors and manufacturers often collaborate to improve the supply chain effectiveness. They collaborate by sharing forecasts. E-commerce models There are numerous models like viral marketing, affiliate marketing, bartering online, auction, reverse auction, online direct marketing, tendering and so on. Each model is suitable based on the parties involved. Let us look into details at most common models: Electronic- Auction: This method is not new but going on from generations however the method changed over a period of year. While traditionally, it occurs in offline method, in fast paced environment of today, it become real time and online (Carlton-Foss, 2003). In this, seller places their products and buyers make bids. There are 2 common types of auctions: Forward auction: In it, sellers use channels to sell their products to prospective buyers. Once items are ready for bidding, buyer bids and highest bidder will actually become the buyer. E-bay is one of the most common example that uses forward bidding technique. Reverse auction: In this, there is only 1 buyer usually a large company who release tenders for buying some kind of products or services. Different suppliers bids for the products and the supplier with the lowest bid is awarded the contract provided other conditions remain the same. Bartering: In this goods are exchanged without monetary transaction. This becomes possible by several intermediaries who matches the partner online (Turban, Whiteside, King, Outland, 2017) E tailing: electronic retailing refers to the selling of products to end customers usually by organizing a catalog on Internet or through electronic stores. Amazon is the largest player in e tailing. Benefits of E-Business and E-commerce There are numerous benefits of E-business for all the stakeholders, which are business organizations, consumers and society as a whole. For organizations, it helps the company to reach to the global customers and help in globalizations without having physical presence in various countries, shortens the distribution channel and improves the communication with customer that helps in the requirement gathering. Consumers get the product at an attractive price because there is no margin of various middlemen as in traditional way of doing business (Turban, King, Lee, Liang, Turban, 2015). For society, it enables people to spend less time in household chores, which results in less traffic and helps the environment Limitations of E-Business and E-commerce There are so many hackers around and people who make online purchases often become victim of their credit card details steal by some hacker. Also, manufacturing companies find it difficult to launch their products in stores and get customer attention because fewer people visit stores. Thus, companies often suffer due to this model (Dehaki, Movehead, 2014) in launching their new products. E commerce and Information Technology Human resource Team can use IT for recruitment, interviewing the people online, reference check, organizing training for the employees, managing their pay check, leaves and appraisal systems.Finance team can check revenue accounting, reconcile Account payables and Account receivables activities and can use IT for their month/quarter/year end activities. They can also allot budget for different department and maintain the records and usage of budget online. They can also create report on demand in IT systems to evaluate the business Key performance indicators. Marketing team can use social media for organizing online campaigns as well as in connecting with the customers. Procurement team can use IT for organizing e-auction and e-procurement. With the option of e-procurement, they will have the benefit of access to numerous suppliers worldwide and thus will have the better bargaining power over the suppliers. This will be very critical for the credibility for the organizations and all businesses should be thus very active in checking if their customers are receiving mails, which they are not sending. Way Forward: E commerce and social media Simple defined, social media are computer-mediated technologies that facilitate the creation and sharing of information, ideas, career interests and other forms of expression via virtual communities and networks. The most common form of social media is Facebook, Twitter, LinkedIn, etc. The current days organizations have realized that social media or social media platforms can also be used work business perspective. In the entry stage of social media, the social media platforms were used only for personal purpose. However, with time, organizations and businesses also realized the importance of social media platforms. In the long term, organizations can also integrate their e-commerce strategies with their social media strategy. Conclusion This case study talks about the basics terminologies of e-commerce and e-business by using numerous examples. The Internet makes such models of businesses conducted over the Internet possible and their business models are also different. Some of the common models like online auction were discussed using examples. Also, models are designed according to parties and other things. References Turban, E., King, D., Lee, J., Viehland, D. (2002). Electronic commerce: A managerial perspective 2002.Prentice Hall: ISBN 0,13(975285), 4. Chaudhury, A., Kuilboer, J. P. (2001).E-business and E-commerce Infrastructure: Technologies Supporting the E-business Initiative. McGraw-Hill Higher Education. Carlton-Foss, J. (2003).U.S. Patent No. 6,647,373. Washington, DC: U.S. Patent and Trademark Office. Turban, E., Whiteside, J., King, D., Outland, J. (2017). Business-to-Business E-Commerce. InIntroduction to Electronic Commerce and Social Commerce(pp. 101-135). Springer International Publishing. Turban, E., King, D., Lee, J. K., Liang, T. P., Turban, D. C. (2015). E-commerce: mechanisms, platforms, and tools. InElectronic Commerce(pp. 51-99). Springer International Publishing. Dehaki, E. S., Movahed, M. M. (2014, April). Progress of e-government in Iran, strengths weaknesses. Ine-Commerce in Developing Countries: With Focus on e-Trust (ECDC), 2014 8th International Conference on(pp. 1-7). IEEE.