Need for e-business (Electronic Business) | Factors stressing the need

Need for e-business (Electronic Business) | Factors stressing the need

Table of Contents

• 1 Need for E-Business
• 2 Factors stressing the need for e-business
  • 2.1 1. E-Business helps in Cost Reduction
  • 2.2 2. E-Business helps in Customer satisfaction
  • 2.3 3. E-Business helps to acquire Just-In-Time Information
  • 2.4 4. E-Business helps in Transaction Efficiency
  • 2.5 5. Ease of Access to Global Market through E-Business

Need for E-Business

The rapid changes in telecommunication and computing technologies evidenced in the internet and World Wide Web paved way for new range of business applications, process and structure. E-business is essential for existing business organizations and for the new entrants.

The organization that do not possess a website are considered to be “brick and mortar businesses” and organizations that own a website are considered to be “click and order businesses‘”.

E-business provides cost and transaction efficiency and helps business organization to enjoy economies of scale. Today, online presence along with physical presence is required for business organizations. Companies that have been conservative in the use of computers are rushing to have their presence in the internet world.

E-business generates revenues and increases the productivity of the country. Following factors point out the need for e-business.

Factors stressing the need for e-business

1. E-Business helps in Cost Reduction

1. E-business enables business organizations to advertise products, receive orders, collect payments and deliver goods at lower cost.

2. E-business is very cost effective as it helps eliminate the role of the middlemen.

3. Advertisements on internet enable a better customer to cost ratio. They enable business organization to spend less by cutting down the cost.

4. The total overhead cost required to run e-business is comparably much cheaper than traditional business. Hosting a website reduces the cost incurred on labour, office rent and maintenance.

5. Lack of information about product schedules of the buyers results in high inventory build up for the seller. The speedy flow of information between the buyers and sellers in electronic market helps to eliminate unnecessary inventory cost.

6. E-Business organizations can enter international market at lower cost; the primary benefit of e-business is global accessibility at marginal cost.

7. Web enables a business organization to introduce and market a new product without incurring huge investment.

2. E-Business helps in Customer satisfaction

1. E-business allows business organizations to have intimate relationship with customers.

2. E-commerce enables the customers to choose and order products according to their specifications.

3. E-business allows customers to perform online shopping. The convenience, flexibility and speedy flow of information help the business organizations to provide improved customer service.

4. Advertisements placed on internet attract customers from domestic and global market.

5. The gains obtained in e-business are passed on to customers through lower prices or as additional features of products or services, this provides customer satisfaction.

6. Customer satisfaction helps to increase the customer base.

7. E-business enables a business organization to keep the doors open for business, whenever a customer requires it.

8. Up-to-date information available on an organization’s website provides more information to customer, thus educating them better.

3. E-Business helps to acquire Just-In-Time Information

1. E-business enables business organizations to have direct links with suppliers, distributors and customers through improved information systems.

2. Speedy flow of communication paves way for quick processing of orders.

3. The cost incurred on communication in e-business environment is low and allows instantaneous communication between anyone from anywhere from the world.

4. E-business enables instant flow of communication regarding goods, services, transmission of orders and the status of delivery. The services of the organization are available 24 hours a day and 365 days a year.

5. E-business helps to deliver just in time information and removes communication barriers between employees, customers, suppliers and business associates.

4. E-Business helps in Transaction Efficiency

1. Business process is automated. Reduction in operational waste and the automation of business process and practices lead to transaction efficiency.

2. The time taken to complete business transactions is very less in electronic environment.

3. E-business enables business organizations to have direct links with customers and this enables to a business to become more customer-focused.

4. E-business helps to streamline the operating processes and enables to integrate the various business activities of an organization.

5. Ease of Access to Global Market through E-Business

1. Internet provides the basis for global communication. Advertisements placed on internet helps to attract customers from anywhere in the world.

2. E-business allows business organizations to enter international markets easily and effectively.

3. The information about the organization, products, services, features are available online. The information and price transparency allow business organizations to expand their business globally.

E-commerce and e-business involve the creation of new value chains and business relationship between an organization and its customers and suppliers, as well as within the organization itself. There are lot of organizational obstacles in developing an e-business strategy. It involves major and potentially disruptive organizational change.

E-business has got a wider scope than e-commerce. E-commerce is a subset of e-business. It is essential for all companies to have an e-commerce strategy. But some companies need to move beyond e-commerce and form e-business strategies especially large companies that already have links to Electronic Data Interchange networks or have completed major Enterprise Resource Planning implementation. Companies that are successful in implementing e-commerce have a bright chance of being successful in an e-business strategy.

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What is E-commerce and What are its Applications

E-commerce is the most popular method of exchanging products and services. Nowadays, an increasing number of individuals choose to purchase publications over the internet and other aided technologies. Social media, advancements in e-commerce app development, growing demand for mobile shopping, and other digital modalities are key elements driving this e-commerce revolution.

But first, let's look at how e-commerce software may benefit your organization. Let's start with the fundamentals.

What are the e-commerce applications?

E-commerce applications is a somewhat confusing terminology since it may lead to two different interpretations: one that refers to the use of e-commerce as a marketing medium; retail and wholesale; auctioning; e-banking; booking, and so on.

E-commerce applications is a slightly confusing phrase since it leads to two different perceptions: one where it refers to the use of e-commerce as a medium of marketing; retail and wholesale; auctioning; e-banking; booking, and so on.

The second concept that comes to mind is a software program like Amazon, eBay, Groupon, etc. It might be a web application or applications of e-commerce (now popularly known as m-commerce applications). Mobile e-commerce applications are just an extension of e-commerce. Mobile app concepts are the driving force behind any successful business app, whether a cab booking app or a food delivery app.

Some Popular E-commerce Applications

We briefly discussed the two perspectives on e-commerce applications in the preceding section. Let us now dig into them in greater depth.

1. Retail

E-retailing, often known as online retailing, is the sale of products and services by businesses to customers via online stores. This is done through the use of tools such as virtual shopping carts and e-catalogs. There are several e-commerce applications in this industry.

2. Accounting

Finance and e-commerce are more intertwined than ever before. Banks and stock exchanges make extensive use of e-commerce in their operations. Balance checks, bill payments, money transfers, and more services are available through online banking. Online stock trading allows users to trade stocks online by providing information about equities such as performance reports, analysis, charts, and so on via websites.

3. Production

In the manufacturing industry, e-commerce serves as a platform for firms to conduct electronic transactions. Groups of firms can carry out their activities more smoothly by combining purchasing and selling, exchanging market conditions, inventory check information, etc.

4. Trade

Applying e-commerce to trade elevates it to a higher level, allowing individuals to participate without regard for geographical borders. This encourages more participation, more bargaining and contributes to the success of the trade.

5. Advertising

Development and commercialization strategies like pricing, product characterization, and customer relationship can be boosted by utilizing e-commerce. This will give consumers a more enriched and personalized purchasing experience. Digital marketing tactics have grown in importance as a means of promoting enterprises.

6. Digital Shopping

People's buying habits have shifted dramatically in the previous several years. "Go online" has become a success mantra for all enterprises. Online shopping is easy, pleasant, and, in most cases, inexpensive. The success of online shopping applications like Flipkart and Amazon demonstrates this.

7. Web and mobile applications

Mobile commerce or m-commerce application is a subset of retail e-commerce. Mobile or web application development has become a must-have for companies looking to showcase their skills. Purchases are made by the consumer using mobile or web applications that are optimized for the merchant. These programs also provide payment security by utilizing secure e-payment mechanisms.

8. Digital Reservations

Travel and tourism is a flourishing sector today, and online booking is a developing e-commerce application. Online booking allows customers to buy travel necessities such as train/flight tickets, book hotel rooms, get tourism packages, transportation services, and so on. It makes people's trips comfortable and easy because everything can be set at the tip of their fingertips.

9. Digital Media

E-books and digital periodicals are gradually displacing traditional printed publications. It has numerous advantages, including portability, lightweight, accessibility from anywhere, and so on. They are also environmentally friendly because they assist in reducing paper use and saving forests. Because of these factors, internet publication, often known as e-publishing, has grown in popularity.

10. Internet Banking

E-Banking, often known as online banking, is an e-commerce program that has streamlined people's time-consuming and complex banking operations. It allows bank customers to do transactions online without having to wait in lengthy lines at banks. To provide virtual banking services to their consumers, most of the banks now have their web applications.

• Evolution of e-Commerce Applications

How do these e-commerce apps function? What are the many components of an e-commerce application? Let's take a look at their anatomy and go through it in depth.

The e-Commerce market is primarily constructed on three major elements:

• Market Prerequisites
• Customer Segmentation
• Frequently Occurring Trends in the Industry

How can you enhance your e-commerce website marketing strategy? Everything you do has an impact on the marketing of your own internet business.

Following a meticulous structure will work wonders for your business website.

• Research

Evaluate the results and current developments in the specialized industry. The product makes a significant impact in gathering as much data as possible on a specific sector. To pass flawless judgments, it should be more detailed and to the point.

• Recognizing Consumer Data

Demography is usually beneficial to the company. Determine the region, economics, and specifics of possible clients. Maintain track of customer surveys, consumer reports, and social media audiences regularly.

• Exploration

The most effective approach to enhance a firm is via research. There are several rivals even a minor decline implies severe market weakness. Investigate your rival's domination, strengths and weaknesses, company goals, insights, and so on.

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