e business tapmi s1a

8/3/2019 e Business Tapmi s1a

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An Overview to E-Business Models

1

Prof Pankaj Roy Gupta

Vice President (Institutional Affairs)

University of Petroleum and Energy Studies, Dehradun

Head CCE University of Technology and Management, Shillong


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Objectives

To understand the concept of e-business To understand Markets and e-markets

To understand Intermediation/Dis-intermediation/

Re-intermediation

To understand the concepts of Portals To understand the concepts of e-business, e-commerce and

i-commerce

To understand the perspective of e-commerce and forms of e-Business

To understand Stovepipe Systems, value chain systems and intranete-business systems

Q & A

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B2BB2C

Forms

E-commerce

Intra-business

I-commerce

Informatics

Infrastructure

Customer-facing

ISSupplier-facing

IS

Internal

Value-Chain

Supports

Customer

Chain

Support

Supply

Chain

Support

EnvironmentElectronic MarketsInter-Organisational

IS

Intermediation

Dis-intermediation

Re-intermediation

Portals

E-business

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Definitions and meanings

Intermediation means ------- with amiddleman

Dis-intermediation means ----- Removing themiddleman. By eliminating the middlemen, companies can selltheir products cheaper and faster. Many people believe that the Internetwill revolutionize the way products are bought and sold, anddisintermediation is the driving force behind this revolution.

Re-intermediation means ------ Re-emergence of thetraditional middleman the intermediary in new forms. For example,portals such as PetroChemNet bring buyers, sellers, traders, anddistributors of chemicals together, and mediate as trusted third-partiesbetween parties that are total strangers to one another.

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Markets

Market

Company B

Company C

Sales

Order

Supplier

Shipping

Note

Customer

Shipping

Note

Customer

Invoice

Supplier

InvoicePurchase

Order

Company A

Customer

Chain

Supply

Chain

Business to Business

Commerce (B2B)

Business to Customer

Commerce (B2C)

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E-Markets

Company As

Bank

Company B

Sales

Order

SupplierShipping

Note

Customer

Shipping

Note

Customer

Invoice

SupplierInvoice

Purchase

Order

Company A

E-Market(Transaction Handler)

Company Bs

Bank

Transaction Handlers

Bank

Payment

Approval

Payment

Authorisation

Request

Electronic

Funds

Transfer

Payment

Remittance

Notice

Electronic

Funds

Transfer

Electronic

Funds

Transfer

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Intermediation/Dis-intermediation/

Re-intermediation

Traditional Intermediation

Wholesaler

Producer

GoodsData

Distributor

Retailer

Retailer

Disintermediation

Producer

GoodsData

Retailer

Reintermediation

Producer

Retailer

GoodsData

GoodsData

Electronic

Intermediarie

s

GoodsData

GoodsData

GoodsData

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Portals

Internet Portals

Horizontal Portals

Vertical Portals

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E-business/E-commerce/I-commerce

Electronic Business

Electronic Commerce

Internet Commerce

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Information Technology System

Information System

Human Activity System

Perspectives on E-commerce

Communications Perspective

Business Perspective

Service Perspective

On-line Perspective

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Generic Patterns of CommerceSearch

Negotiate

Order

Deliver

Invoice

Payment

After-Sale

Search

Negotiate

Order

Deliver

Invoice

Payment

After-Sale

Pre-Sale

Execution

Settlement

After-Sale

Repeat CommerceCredit CommerceCash Commerce

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Forms of E-BusinessElectronic Business

Electronic Commerce

Intra-Business

B2CB2B

Supplier Customer Organisation

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B2B E-Commerce

B2B E-Commerce

Invoicing

Inventory

Procurement

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B2C E-Commerce

B2C E-Commerce

Advertising

Marketing

Sales

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Intra-Business E-Business

Intra-business E-Business

Standard Interfaces

Share Knowledge

Integrate Information Systems

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IOS and Strategic IS

Competitor

Supplier Customer

Strategic InformationSystems

Inter-OrganisationalInformationSystem

InformationEconomy

Organisation

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B2C/B2B IOS

IOS

OrganisationOrganisation

Customer Customer

OrganisationOrganisation

Organisation Organisation

IOS

B2C IOS

B2B IOS

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Benefits of E-Commerce

Benefits

Quality Improvements

Cost Savings

Time Savings

Connection Improvements

Strategic Improvements

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Problems of E-Commerce

Problems

Technological Standards

Security and Privacy

Re-intermediation

Information Rich and Poor

Computer-related mistakes/errors

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E-Business Models

E-business Models

Within Informatics Service

Separate Organisation

Semi-autonomous Organisation

Fully Integrated Organisation

Parallel Organisation

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E-Business Environment

E-business Environment

Commodity Type

Dis-Intermediation

Globalisation

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E-Business Planning

E-business Planning

Organisational Analysis

Strategic Information Systems

E-business Strategy

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E-Business Management

E-business Management

Informatics Infrastructure

Maintenance

Content Management

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E-Business Development

E-business Development

Systems Integration

Iterative Development

User Involvement

Graphic Design

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Summary

E-business and e-commerce are features of e-markets. An e-marketis one in which economic exchanges are conducted using

information technology and computer networks

Re-intermediation is evident in the rise of Internet portals

Three generic forms of commerce can be identified: cashcommerce, credit commerce and repeat commerce

E-business is a superset of E-commerce. E-commerce is a superset

of I-commerce

There are three major forms of E-business: B2C, B2B and intra-

businessThe benefits of e-commerce include cost-savings and time-savings

The costs of e-commerce include issues of security and

technological standards

Planning, management and development are still critical activities

for E-business 25


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Security

Presence

On-line

CatalogueOn-line

Ordering

On-line

Payment

E-Marketing

Stages of

Growth

Technologies

Conditions

Extranets

Privacy

Customer

Relationship

Management

E-Sales

Customer-

Chain

Product

Identification

Catalogue

Search

Product

Comparison

Purchase

Information Seeking

&

Communication

Authentication

Non-repudiability

SSL

Digital

Certificates

B2C

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B2C E-Commerce

Electronic Commerce

B2C

CustomerOrganisation

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Customer Chain

Pre-SaleSale

Execution

Sale

SettlementAfter-Sale

CustomerOrganisation

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B2C Growth

Credit Commerce

Search

Negotiate

Order

Deliver

Invoice

Payment

After-Sale

B2C Growth

Information

Seeking

Marketing

Presence

On-Line

Catalogue

On-line

Ordering

On-linePayment

CRM

Cash Commerce

Pre-Sale

Execution

Settlement

After-Sale

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Information Seeking and

Communication

Organisation

Information

SeekingE-Mail

WWW

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Marketing Presence

Marketing

Home

Page

Customer

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On-Line Catalogue

Marketing

Home

Page

Customer

On-Line

Catalogue

Products

ProductData

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On-Line Ordering

Sales

Order

Processing

Distribution

Customers

Stock

AccountingSystem

Marketing & Sales

HomePage

Customer

On-Line

Catalogue

SalesOrder

Goods

Payment

Details

Customer

Invoice

Shipping

Note

Payment

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On-Line Payment

Sales

Order

Processing

Distribution

Customers

Stock

Accounting

System

Marketing & Sales

Home

Page

Customer

On-Line

Catalogue

SalesOrder

Goods

Payment

Details

Shipping

Note

Payment

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Customer Relationship Management

Sales

Order

Processing

Distribution

Customers

Stock

AccountingSystem

Marketing/Sales/CRM

HomePage

Customer

On-Line

Catalogue

SalesOrder

Goods

Payment

Details

Customer

InvoiceShipping

Note

Customer Profiling

&

Preferencing

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Secure Commerce Sites

SecurityPrivacy

Authentication

Non-Repudiation

SolutionsSecure Socket Layer

Digital Certificates

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Digital Certification

Certification

AuthorityCustomer

Customers Public Key

+ Identity Information

Digital

Certificate

Organisation

Transaction +

Digital Certificate

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B2C Information Systems

IssuesStrategic IS

Knowledge Management

Evaluation

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Summary

B2C e-commerce focuses on the IT-enablement of the key processesin the customer chain

Customer chain processes include product identification, catalogue

search, product comparison and purchase

We may think of an organisations experience of the B2C e-

commerce as moving through a number of distinct stages of

increasing complexity including information seeking and

communication, marketing presence, on-line catalogue, on-line

ordering, on-line payment and customer relationship management

Effective B2C e-commerce will involve the re-orientation of theinformatics infrastructure around a customer focus

A secure environment for B2C e-commerce should ensure privacy,

authentication and non-repudiability

B2C systems demand the same disciplines as conventional

information systems 39


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Intra-

Business

Intranet

InternetExtranet

Components

Horizontal

Vertical

Software

Hardware

Communications

Data

Internal Web

Email

Chat

Mail ListsNewsgroups

FTP

Applications

Workflow

Knowledge

Sharing

Software Distribution

Document Management

IS Portal

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S

tovepip

eSystems

Sales

M

anufacturing

F

inance

Order Entry

Invoicing

Stock Control

Production Scheduling

Accounts Payable

Accounts Receivable

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Value-Chain Systems

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Internet, Intranet and ExtranetInternet

Extranet

Organisation

Intranet

Suppliers

Intranet

Distributors

Intranet

Business Partners

Intranet

Remote Employees

Intranet

FirewallFirewall

FirewallFirewall

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Components of an Intranet

Domain

Server

WebServer

Web

Client

Web

Client

Web

Client

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Intranet Applications

ApplicationsE-mail

Internal Web

Mail Lists

Newsgroups

Chat

FTP

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Benefits of Intranets

BenefitsBetter Communication

Access to Accurate Information

Better Coordination

Easy to implement/use

Cheap to implement/use

Scalable

Flexible

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Organisational Activities

ActivitiesKnowledge Sharing

Group decision-making

Software Distribution

Document Management

IS Portal

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Summary

Intra-business e-business involves re-focusing the information

systems architecture around a process model of the organisation

The distinction between the Internet, an Intranet and an Extranet

can be made in terms of type of user, the level of access and the type

of information suppliedIntranets are used by authorised internal users for specific

organisational tasks and to access specific organisational information

An Extranet uses Internet technology to connect together a series of

dispersed intranets. Extranets are particularly used to establish links

between an organisation and key stakeholders such as suppliersOn a horizontal level an Intranet comprises a network of client and

server machines running client and web server software and storing

HTML documents

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B2BIntermediary-orientedB2B

EDIXML

Supplier-oriented

B2B

Buyer-oriented

B2B

Supply-

Chain

Search

Negotiate

OrderDelivery

Invoice

Payment

After-SalePre-Sale

Execution

Settlement

Supporting

Technology

Extranets

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B2B E-Commerce

Electronic Commerce

B2B

Supplier Organisation

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Supply Chain

Search

NegotiateOrder Deliver Invoice

Payment

After-Sale

Supplier Organisation

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B2B Systems

Purchase

Order

Processing

Supplier

Stock

Control

Supplier

Relationship

Management

Procurement

Suppliers

Accounting

Supplier

Invoice

Purchase

Order

Shipping

Note

Payment

ReplenishmentOrder

RequisitionPurchase

Details

Request

For

Quote

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Pre-Sale Activity Models

ModelsSupplier-Oriented

Buyer-Oriented

Intermediary-Oriented

E-Malls/Stores

Internet Auctions

Vertical Portals

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Benefits of B2B E-commerce

BenefitsLower Purchasing Costs

Reduced Inventory

Lower Cycle Times

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Enabling Technologies

TechnologiesExtranets

EDI

XML

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Summary

Most discussion of B2B e-commerce is directed at supporting the

repeat commerce model. Here a company sets up an arrangement

with a trusted supplier to deliver goods of a certain specification at

regular intervals

Pre-sale activity can be conducted using vertical portals, internet

auctions or e-malls

An extranet is a series of connected intranets between the

organisation and important stakeholders such as suppliers,

distributors, business partners and remote employeesThe benefits of B2B e-commerce include lower purchase costs,

lower cycle times and reduced inventory

EDI or XML can be used as standards for the electronic

transmission of documentation such as orders, invoices and

payments 56


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Q& A

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