Chapter 5 Flashcards
e business vs e commerce
e business is a broader term that e commerce
e business: elaborate term and compromises various business transactions and functions conducted electronically
e commerce: Covers the firms interactions with its customers and suppliers over the internet
Explain B2B commerce
Example is a automobile company buying various parts from various dealers and keeping records and placing orders through online forms
Explanation: here both the parties involved in the transactions are various firms/ business
Explain B2C commerce
Example is many things that happen daily including even buying from a petty shop since the goods are transferred from the business to the consumers
Explanation: the two parties involved in the transactions are one the firm and two the business and the transaction is hapening from the business to the customer
Explain intra B commerce
Example is using gmail and other internet facilities to allow the marketing department to contact the finance department for new info
Explanation: these are the transactions or communications that occur within one business with the higher officials and employees or within employees o different departments
Explain C2C commerce
Example is OLX , where OLX is just a platform for two consumer to meet and to get both their desire of selling and buying fulfilled
Explanation: it is between two consumers who have two different needs that meet up to fulfil them or have an intermidirries agency to help them fulfil their wants
Difference between traditional and e business - ease of formation
Traditional business: difficult
E - business : simple
Difference between traditional and e business - locational requirements
Traditional business: proximity to the source of materials or the market for the products
E - business : None
Difference between traditional and e business - physical presence
Traditional business: required
E - business : not required
Difference between traditional and e business - cost of setting up
Traditional business: high
E - business : low as no requirement of physical facilities
Difference between traditional and e business -Operating cost
Traditional business: High due to fixed investment and etc…
E - business : Low because relied more on network of customers that fixed investments
Difference between traditional and e business - nature of contact between supplier and customer
Traditional business: indirect through intermidierries
E - business : Direct
Difference between traditional and e business - shape of the organisational structure
Traditional business: Vertical due to hirarchy
E - business : horizontal due to directness of command
Difference between traditional and e business - nature of internal communication
Traditional business: hierarchieal from top level to bottom level magaement
E - business : non hierarchiel allowing direct communication
Difference between traditional and e business - response time to customers
Traditional business: Long
E - business : Instant
Difference between traditional and e business - business processes and length of cycle
Traditional business: sequential the entire stage of one good should be done before the next batch is produced
E - business : process cycle is shorter because they do different stages and different times simultaneously
Difference between traditional and e business - Oppurtunity for physical pre sampling of the products
Traditional business: much more
E - business : less to zero unless electronic products like sampling of e books before buying it
Difference between traditional and e business - oppurtunity for inter personal touch
Traditional business: Much more
E - business : Less
Difference between traditional and e business - ease of going global
Traditional business: Less
E - business : Much, due to cyber space
Difference between traditional and e business - government patronage
Traditional business: Shrinking
E - business : much as the IT sector is flourishing the most and is the priority of the government
Difference between traditional and e business - nature of human capital
Traditional business: semi skilled and not skilled workers needed too
E - business : highly skilled and valued people needed
Difference between traditional and e business - transaction risk
Traditional business: Low due to face to face contact most of the times
E - business : High due to distance and annonimity of purchaser and seller
benefits of e business - Ease of formation and lower investment
It is easy to start as you can d it from home you can also run a website or a home business at your convinience and cheaper costs without much investment
benefits of e business - convinience
Shops may have a time limit but internet is 24X7 , 7 days a week all year so customers can place an order anytime and get it delivered
list the benefits of e business(5)
- Ease of formation and lower investment
- convinience
- speed
- Global reach
- Movement towards paperless society
benefits of e business - speed
The internet works at unimaginable speeds you can text from one country to another and reach the message within seconds and so payment and placing orders are faster and more convinient
benefits of e business - Global reach
Since it is online with enough global reach techniques the business can have reach to any consumer market around the globe
benefits of e business - Movement towards paperless society
Doing things online mean no paper menu or reciepts and more digitalisation which will reduce the paper usage in the globe
Limitations of e business - Low personal touch
Low personal touch between buyers and sellers, not suitable for high touch products like garments
Limitations of e business - late between order taking and order fulfilment
Order can be placed easily but the physical delivery takes time and can contain mistakes too which may annoy the customer further
list the limitations of e business (6)
- Low personal touch
- late between order taking and order fulfilment
- Need for technological capabilities
- Increased risk due to annonimity
- People resistence
- Ethical fallouts
Limitations of e business - Need for technological capabilities
Both business owners and staff and the customers should be familiar with the technology for smooth flow of business with profits
Limitations of e business - Increased risk due to annonimity
The seller wont know the customer and the customer wont know the seller thus the annonimity can cause risks of one person saying i have delivered when the good has not reached and the other saying i have paid eventhough they havent
Limitations of e business - People resistence
Not everyone is tech savvy enough to be shopping online
Limitations of e business - Ethical fallouts
Internet stalking within company your managers having a look on your work emails and work accounts
Different stage of online purchase
- Registration
(creating an account for example a flipkart account with your gmail) - Placing an order
(You can pick your items and place them in the cart like in a real store and them proceed to pay) - Payment mechanism
What are the different payment mechanisms (5)
- cash on delivery
- cheque
- net banking transfer
- credit or debit cards
- digital cash
Explain the payment mechanism - Cash on delivery
The payment is made when the courier guy hands over the goods to the customers when delivering and collects the cash from them
Explain the payment mechanism - cheque
customer writes a cheque and a person comes once to collect the cheque and then again to deliver the goods or the customer is advised to deliver the cheque to the bank
Explain the payment mechanism - net banking transfer
For amounts greater than 2-3 lakhs can be done through NEFT or official apps of banks like SBI app, but payment first then delivery
Explain the payment mechanism - credit or debit cards
credit card : borrow from the bank to pay first and then pay back the bank with interest later
Debit card : using the money in your bank in a card form
Explain the payment mechanism - Digital cash
for small amounts, apps like Gpay or phonepe
Explain transaction risks
main types of risks :
- Seller denies that the customer ever placed the order
- Delivery does not take place, delivered at wrong place etc…
- Seller does not get the payment and the customer claims to have
Explain data storage and transmission risks
The data of the sellers and customers stored might be hacked or leaked which is dangerous as it can reach the wrong hands and information is power in the wrong hands
Explain risks of threat to intellectual property and privacy
Internet is an open space so if things like your email id gets onto a private domain you may constantly get junk emails and etc..
Resources required for successful e business implementation
- money, men and machines
- for developing, operating, maintaining and enhancing a website
What are the three things shaping business now
- Digitalisation
- outsourcing
- nationalisation and globalisation
Business means ?
A wide range of activities comprising industry, trade and commerce
e business means?
conduct of industry, trade and commerce using computer network
Explain B2E commerce
example of B2E commerce is employees taking advantage of technology and having to work from home and not come to office everyday
Explanation: it is the interaction between the firm and its employees could be their approval letter, salary increment letter
Explain C2B business
Example is a customer withdrawing or depositing money into the bank
Explanation: C2B commerce is normally involved with services where the flow is such that the customer askes for the service and the business provides it
difference between e commerce and e business in intra B context
- e commerce comprises of a business firms interaction with its suppliers, distributers, business firms and customers over the internet
- e business is wider term that also includes the use of intranet for managing interactions and dealings amongst various departments and persons within the firm
changes to reduce the de merits of e commerce
- Websites are becoming more and more interactive to reduce low touch problems like ask me anything bot
- Improved speed and quality of communication through internet
