What is the E-Business
The e-business denotes a major trend in the management like any other trends such a s the supply chain management, mail order service or the service economy. The e-business is done by many asynchronous experts across the globe. The suppliers, customers and also the competitors coordinate the e-business and you will know about the dynamic nature and process of e-business in an international scenario. The different models of e-business and various strategies adopted are discussed. the until also includes the global challenges and obstacles faced by e-business.
Nature of E-Business
E-business can be defined as “the use of networks and information technology in order to electronically design, market, buy, sell and deliver products and services worldwide”. E-business, meaning ‘electronic-business’, deals with application of information and communication technologies, in short an electronic medium in support of all the activities of business.
The e-business mainly stands for the internet enabled business. There are four entities in the internet enabled business. These four entities are as shown in the figure.
The four entities of internet enabled business are explained as follows:
Information (Access to data) We often use internet for retrieving the information. This low cost data access is provided for a wide number of people across the world. For many of the organisations the internet is required to list down the things in the e-pages. To find any information on the net, the customer must use search engines like the well known and widely used Google, Yahoo, MSN and portals like AOL, iGoogle, MSNBC, and Netvibes.
Communication (Bi or Multilateral exchange of information) – internet is a basic mode of communication. The bilateral exchange of information involves communication between two people exchange of information. The multilateral exchange of information involves one person communicating one or two person. The multilateral exchange of information can be explained by considering the conference calls that helps to communicate with two or many number of people at the same time. Bi or multilateral exchange of information is possible by e-mail based services that act as the customer interaction center for the customer questions as well as the complaints. It helps business people to keep in touch with their business partners across the world.
Community ( Mutual support by knowledge transfer ) – Internet plays an important role in sharing knowledge as well. This is helpful for processes like the research and development of systems, development of open source projects, and also the development of software. The members of the community such as the participants in the open source projects will help in the mutual transfer of the information.
Commerce ( Contract based transactions with the customers ) The internet hepls in facilitating the transactions. The aim of commerce is to satisfy the needs of the customers. This further helps the customers to pay their bills online.
In e-business, the initial stages are tentative and not very secure. As we all know that most of the business process work in an insecure environment, the pressure is more on the traditional business, the trust plays an important for performing business with other sectors.
As the e-business is growing rapidly, it is becoming difficult to establish and maintain the trust during all stages of the business process. There are more chances of losing trust in e-business as it lacks face to face interaction. When it comes to trust in e-business, Daugherty (2001) has suggested some conditions that consumers expect while performing e-business or purchasing things online. These conditions include:
The general reputation of the company.
The expectations of the customers for security, and confidentiality.
The assurances that the supplier must provide like certifications, guarantees, and so on.
The reports of the other customers and if the customers has the history of previous transactions then additional factors that are considered include:
Accuracy in fulfilling the placed order.
Timeliness of order fulfillment.
The kind of interactions with customer relations.
There are some factors that build a good trust that include good media, brand name, and logo. Many of the companies have become successful organisations because of the new business environment that they have adopted specially with the electronic and ethnological development. The companies become due to the consumer trust. There are some situations where there is a lack of trust in the e-business sector and information online transactions include the actions like encryption and developing the digital certificates which adds the security.
There are many risks that are associated with online transaction, hence can be minimized by technical process like encryption and developing the digital certificates.