E business application unit-2
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The document discusses e-business applications. It defines e-business as conducting business via the Internet, including buying and selling goods and services as well as customer support. The origins of e-business date back to the 1950s when computers were used to process internal transactions, and the 1960s-70s saw the rise of electronic data interchange between banks. Key advantages of e-business include reduced errors, lower costs, and faster processing compared to traditional business. The document also outlines prerequisites, areas, differences between e-commerce and e-business, and defines related terms like EDI, ERP.
E business application unit-2
- 2. E-BUSINESS Deals with the buying and selling of information , products and services through the computer network. Business activity which uses electronic medium. E Business (e-Business), or Electronic Business, is the administration of conducting business via the Internet. This would include the buying and selling of goods and services, along with providing technical or customer support through the Internet.
- 3. ORIGIN OF E-BUSINESS 1950s : Computers were used to process and store records of internal transactions. But information between various business continued to be exchanged on paper. 1960s : exchanging transaction information on punched cards or magnetic tapes . Later, transferring data over telephones, instead of shipping punched cards or magnetic tapes. 1970s : Introduction of Electronic Data Interchange (EDI) between the banks over a secured private network changed the financial market.
- 4. 1972 : IBM used the term ‘e-business’. E-Business became widespread within companies in the form of electronic messaging technologies i.e.,EDI and E- mail.
- 5. E-BUSINESS V/S TRADITIONAL BUSINESS Basis E-Business Traditional Reduction of data error Data goes directly from one computer to another without involving human being. Data was entered manually . This creates error Paper Work Electronic form Re-entry of data at every level Cost Initial cost high .Over a time , it is effective Involves a lot of time and if there is an error, it may lead to wastage of money.
- 6. Basis E-Business Traditional Process Cycle Time E-Business reduces the processing cycle time as the data is entered into the system. Orders are in paper format , the data is re- entered into the seller’s computer.
- 7. ADVANTAGES OF E-BUSINESS All time processing Better service Removing mediators Time saving Enhanced speed and accuracy of a product Cost saving of the product Reduces paper work Fast dissipation of information Global reach
- 8. DISADVANTAGES OF E-BUSINESS Lack of customer awareness Small Businessmen do not want to take any extra burden Legal formalities It is not free Security problems Customer satisfaction problems Data integrity problems
- 9. PREREQUISITES FOR E-BUSINESS PROCEDURE A Commercial website Products or services Shopping Carts or Purchase Order forms Current credit card account that will be accepted on e-payment An online payment gateway A secure socket layer –secure the gateway
- 10. E-BUSINESS AREAS Tourism and Travel Banking sector Health care sector Stock sector Financial sector
- 11. DEFINITION OF E-COMMERCE e-commerce is an abbreviation used for electronic commerce. It is the process through which the buying, selling, dealing, ordering and paying for the goods and services are done over the internet is known as e-commerce. In this type of online commercial transaction, the seller can communicate with the buyer without having face to face interaction. Some examples of real world application of e- commerce are online banking, online shopping, online ticket booking
- 12. KEY DIFFERENCES BETWEEN E-COMMERCE AND E-BUSINESS Buying and Selling of goods and services through the internet is known as e-commerce. Unlike e-business, which is an electronic presence of a business, by which all the business activities are conducted through the internet. e-commerce is a major component of e-business. e-commerce includes transactions which are related to money, but e-business, includes monetary as well as allied activities. e-commerce has an extroverted approach that covers customers, suppliers, distributors, etc. On the other hand, e-business has an ambiverted approach that covers internal as well as external processes. e-commerce requires a website that can represent the business. Conversely, e-business requires a website, Customer Relationship Management and Enterprise Resource Planning for running business over the internet. e-commerce uses the internet to connect with the rest of the world. In contrast to e-business, internet, intranet and extranet are used for connecting with the parties .
- 13. EDI(ELECTRONIC DATA INTERCHANGE) EDI (Electronic Data Interchange) is the transfer of data from one computer system to another by standardized message formatting, without the need for human intervention. EDI permits multiple companies -- possibly in different countries -- to exchange documents electronically.
- 14. WORKING OF EDI
- 15. ERP (ENTERPRISE RESOURCE PLANNING) Enterprise resource planning (ERP) is a category of business-management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including: product planning, cost manufacturing or service delivery marketing and sales inventory management shipping and payment