| In context of the electronic revolution taking place in | | | | - Access accounts round the clock, even on |
| our economy we must recognize these changes take | | | | weekends |
| place in a larger economic context. Global competition, | | | | - See balances online and find out clearance of |
| interest rates, laws and regulations, social concerns, | | | | cheque deposit |
| industry traditions, consumer preferences etc., are all | | | | - Transfer funds between accounts |
| part of environment affecting business activities. | | | | - Download information directly into personal finance |
| Besides, electronic and non electronic businesses | | | | software |
| share available economic resources including natural | | | | - Receive or pay bills online |
| resources, equipment, telecommunication | | | | The Reserve Bank of India constituted a working |
| employees’ skills etc. E-business, globalization and | | | | group on Internet Banking. The group divided the |
| internet are interdependent. The more global players | | | | internet banking products in India into 3 types based |
| exist, the more business they want to do which will | | | | on the levels of access granted. They are: |
| attract more people to get direct internet access. | | | | ü Information Only System General Purpose |
| There are many categories of e-business such as | | | | information like interest rates, branch location, bank |
| e-commerce, e-marketing, e-mailing, e-auction, and | | | | products and their features, loan and deposit |
| e-supply and so on. The integration of these | | | | calculations are provided in the banks website. There |
| categories through internet enhances existing | | | | exist facilities for downloading various types of |
| business or to create new virtual business. | | | | application forms. There is no interaction between the |
| E- business commonly referred to as "e-Business" or | | | | customer and bank's application system. No |
| "e-business enable companies to link their internal and | | | | identification of the customer is done. In this system, |
| external data processing systems more efficiently | | | | there is no possibility of any unauthorized person |
| and flexibly, to work more closely with suppliers and | | | | getting into production systems of the bank through |
| partners, and to better satisfy the needs and | | | | internet. |
| expectations of their customers. | | | | ü Electronic Information Transfer System The |
| In practice, e-business is more than just e-commerce. | | | | system provides customer- specific information in the |
| While e-business refers to more strategic focus with | | | | form of account balances, transaction details, and |
| an emphasis on the functions using electronic | | | | statement of accounts. The information is still largely |
| capabilities, e-commerce is a subset of an overall | | | | of the 'read only’ format. Identification and |
| e-business strategy. E-business involves business | | | | authentication of the customer is through password. |
| processes spanning the entire value chain: electronic | | | | The application systems cannot directly access |
| purchasing and supply chain management, processing | | | | through the internet. |
| orders electronically, handling customer service, and | | | | ü Fully Electronic Transactional System This |
| cooperating with business partners. E-business can be | | | | system allows bi-directional capabilities. Transactions |
| conducted using the Web, the Internet, intranets, | | | | can be submitted by the customer for online update. |
| extranets, or some combination of these. | | | | This system requires high degree of security and |
| Benefits of e-Business | | | | control. It comprises technology covering |
| ü Expand Market Coverage E-Business eliminates | | | | computerization, networking and security, inter-bank |
| these limitations of geography and time zones. The | | | | payment gateway and legal infrastructure. |
| whole world is the available market, 24 hours a day,7 | | | | - Automated Teller Machine (ATM) It is operated by |
| days a week, 365 days in a year. Worldwide business | | | | plastic card with its special features. The plastic card |
| professionals, buyers, and decision-makers have | | | | is replacing cheque, personal attendance of the |
| access to the Internet, spanning all time zones. The | | | | customer, banking hour’s restrictions and paper |
| buyer conducts business "where" and "when" they | | | | based verification. ATMs used as spring board for |
| want to without traditional limitations. So, with | | | | Electronic Fund Transfer. It can provide information |
| e-Business a firm creates a global, "365x24x7" | | | | about customers account and also receive |
| availability to its customers. | | | | instructions from customers .It is capable of handling |
| The firms can offer complimentary and | | | | cash deposits, transfer between accounts, balance |
| supplementary products, and add-on promotions as | | | | enquiries, cash withdrawals and pay bills. It may be |
| buyers make selections. This leads to a larger volume | | | | on-line or 0ff-line. |
| of ordering, creating a higher revenue stream at a | | | | - Credit Cards/Debit Cards The Credit Card holder is |
| marginally low cost per transaction. It makes | | | | empowered to spend wherever and whenever he |
| previously uneconomical markets attractive. This | | | | wants with his Credit Card within the limits fixed by |
| increases the size of the available market by turning | | | | his bank. Credit Card is a post paid card. Debit Card, |
| marginal segments into profitable ones. This ability to | | | | on the other hand, is a prepaid card with some |
| turn frogs into princes is powered by | | | | stored value. Every time a person uses this card, the |
| e-Business’s low variable costs for addressing | | | | Internet Banking house gets money transferred to its |
| marginal segments. The power of the add-on | | | | account from the bank of the buyer. The buyers |
| products can also be sold into these previously | | | | account is debited with the exact amount of |
| unprofitable segments, turning them into substantially | | | | purchases. The customer can never overspend |
| profitable ones. | | | | because the system rejects any transaction which |
| ü Reduce Costs The major cost-reduction | | | | exceeds the balance in his account. The bank never |
| benefit is the promise of changing the distribution of | | | | faces a default because the amount spent is debited |
| products and services to customers. Products | | | | immediately from the customers’ account. |
| requiring little or no experience in the buying cycle can | | | | - Smart Card Banks are adding chips to their current |
| be purchased by the customer on the Internet and | | | | magnetic stripe cards to enhance security and offer |
| delivered directly without intermediaries. The | | | | new service, called Smart Cards. Smart Cards allow |
| elimination of various layers of distribution is the | | | | thousands of times of information storable on |
| major cost reduction benefit to the market. | | | | magnetic stripe cards. In addition, these cards are |
| The National Association of Purchasing Management | | | | highly secure, more reliable and perform multiple |
| outlines the following benefits: | | | | functions. They hold a large amount of personal |
| - Reduction in process variations | | | | information, from medical and health history to |
| - Reductions in costs and errors | | | | personal banking and personal preferences. |
| - Vendor sourcing strategy support | | | | E-stock trading Companies such as e-trade, |
| - Improvements in process capability | | | | datek.online allow us to trade stocks, bonds, mutual |
| - Procurement paradigm shift from passive to acti | | | | funds etc .on the internet. These companies offer to |
| - Elimination of unwanted paper trail | | | | trade at a small cost compared to discount brokers. |
| - Improved access to information | | | | The steps involved are-place a request to trade-the |
| - Reduction in costs and cycle times | | | | system responds with current prices on the |
| ü Strengthen Customer Relationships | | | | web-confirm trade or cancel. |
| The purpose of a business is to find and keep | | | | The benefits of such trading are |
| customers. E-Business has the ability to deliver | | | | -Reduced cost |
| benefits that can address both aspects of this | | | | -Convenience of trading from anywhere |
| statement, by delivering better purchase experiences | | | | -Access to variety of information in different sites |
| to the buyer. Buyers are migrating to Internet buying | | | | E-employment Several kinds of services are provided |
| in situations when it’s faster, better, and cheaper | | | | here |
| than traditional methods. | | | | -sites give advice on developing our resumes and to |
| Faster e-Business assures faster delivery of products | | | | post our resumes on the web |
| and services by speeding up order fulfillment, and | | | | -recruiters use website to post available jobs |
| delivering into just-in-time upstream processes, | | | | -match making facilities for jobs and jobseekers |
| particularly in Business-to-Business environments. | | | | based on a specifications |
| Better Paper and client-server based systems with | | | | -use of agents to do the search |
| their "version control" limitations created problems | | | | E-retailing offers the following benefits |
| that set limits to their efficiency. The "write-once, | | | | -Provision of online catalogue to browse different |
| read-many" environment of e-Business assures that | | | | categories of goods |
| internal and external audiences see and work with | | | | -Provision of search engine |
| the same up-to-date, accurate data. Additionally, | | | | -Provision of shopping cart |
| where little customer-vendor interaction is required, | | | | -Personalization of store layouts deals, promotions |
| e-Business creates an opportunity for virtual | | | | -Distribute digital goods directly |
| self-service counters. | | | | -Online salesperson to help customers to navigate |
| Cheaper The Internet turns every vendor into an | | | | through the site |
| equal in a competitive bid. The customer now has | | | | -An order status checking facility |
| more choice in suppliers. The customer has more | | | | A mechanism for creating and submitting order |
| alternate vendors, and lower prices are anticipated in | | | | Secure e-payment facility for purchases |
| all e-Business driven markets. | | | | Decide suitable distribution mechanism |
| E-commerce is the process of buying, transferring, or | | | | E-stores and e-malls sell a large number of product |
| exchanging products, services, and/or information via | | | | lines rather than very few. In an e-mall, cyberspace is |
| computer networks, including the internet, seeks to | | | | rented out to cyber e-stores that wish to sell their |
| add revenue streams, build and enhance relationships | | | | goods. Several product lines can be present in a single |
| with clients and partners and to improve efficiency. | | | | e-mall in an e-mall; each store is under its own |
| E- Commerce that is conducted between | | | | management. Mall management is responsible only for |
| businesses is referred to as business-to-business or | | | | creating the cyber sites that- can be rented and can |
| B2B. B2B can be open to all interested parties (e.g. | | | | support services and marketing of the mall. It |
| commodity exchange) or limited to specific, | | | | provides webhosting services. They also provide |
| pre-qualified participants (private electronic market). | | | | software tools, which can be utilised by a |
| Electronic commerce that is conducted between | | | | prospective e-store-to create and maintain its |
| businesses and consumers, on the other hand, is | | | | e-store. The advantage is that it is grouped together |
| referred to as business-to-consumer or B2C. This is | | | | with other stores in a well known e-mall site. |
| the type of e- commerce conducted by companies | | | | E-brokers Brokers provide comparison shopping, |
| such as E- Commerce is generally considered to be | | | | ordertaking and fulfillment and services to a |
| the sales aspect of e-business. It also consists of the | | | | customer. The models of e-brokers include |
| exchange of data to facilitate the financing and | | | | -Provide registration service |
| payment aspects of the business transactions. | | | | -Directory search facilities-payment facilities |
| E- mail is a method of exchanging digital messages. | | | | -Ascertain requirement such as price |
| E-mail systems are based on a store-and-forward | | | | -Provide comparison -shopping between products. |
| model in which e-mail computer server systems | | | | E-CRM solutions can be deployed and managed to |
| accept, forward, deliver and store messages on | | | | provide increased revenues and reduced costs. |
| behalf of users, who only need to connect to the | | | | E-CRM goals can be achieved with internet business |
| e-mail infrastructure, typically an e-mail server, with a | | | | strategies, web based CR M specification |
| network-enabled device for the duration of message | | | | development, web system design and project |
| submission or retrieval. Email advertising becoming | | | | management electronic publishing and interactive |
| widely used as a means of distributing advertising | | | | interface. |
| messages to people on internet. Email advertising is | | | | They are valuable to companies face the following |
| being tied to the use of promotions and gimmicks. | | | | circumstances |
| The main advantage of email advertising is that it is | | | | -Business is driven by mission-critical customer service |
| cheap to implement and can include feedback facility. | | | | requirements |
| E-mailing Postal services and telecommunications | | | | -Current costs for crm run high |
| companies are losing market share to the electronic | | | | -Large volume of information is distributed |
| communication, especially, e-mail. It combines the | | | | -A complete customer care solution is required |
| strength of a phone call is its immediacy and th3e | | | | E-directories Telephone directories with white pages |
| letter has the advantage that everything is in written | | | | for private telephone numbers and the yellow pages |
| form. The internet enables instant communication in | | | | for the businesses is essential to locate a person of |
| written form, either by e-mail or on line | | | | business. Now the telephone companies allowed |
| chat. More and more businesses are | | | | people to call in and ask for information. The data |
| talking digitally to each other. Other than a phone call, | | | | base is located in a single place providing a centralized |
| e-mails can contain more than just a text. It is | | | | functionality, offering to anyone at anytime, thus |
| possible to attach files like formatted documents, | | | | making a decentralized solution. The internet |
| presentation, images or sound. Information can be | | | | facilitates replication of phone directories without |
| shared much more easily-mail does also change the | | | | hassles. The internet makes the retrieval easier as |
| way to people communicate. Instead of writing down | | | | well as more difficult. |
| every aspect in a single letter; thoughts may be | | | | E-engineering has also changed dramatically in the |
| spread over multiple e-mails. | | | | recent years.Internet changed the speed of the |
| E-procurement The registered users look for buyers | | | | design. It enabled electronic collaboration to much a |
| or sellers of goods and services. They may specify | | | | higher degree than n before. The location of the |
| costs or invite bids. Transactions can be initiated and | | | | engineer s has become easier. The internet |
| completed. Ongoing purchases may qualify customers | | | | changed the speed of the design. It enabled |
| for volume discounts or special offers. E-procurement | | | | electronic collaboration to a much higher degree than |
| software may make it possible to automate some | | | | was possible ever before. The location of the |
| buying and selling. Companies can control inventories | | | | engineers does not play a role anymore. Everyone |
| more effectively, reduce purchasing agent overhead, | | | | with an internet connection is able to take part in the |
| and improve manufacturing cycles. | | | | development. New tools concurrent development has |
| There are seven main types of e-procurement | | | | been developed to support the possibilities of the |
| ü Web-based ERP Creating and approving | | | | internet. Through the internet has also become |
| purchasing requisitions, placing purchase orders and | | | | possible to develop continuous engineer ring by letting |
| receiving goods and services by using a software | | | | engineers participate from all overt the world. Open |
| system based on Internet. | | | | source development is done that way very |
| ü E-MRO (Maintenance, Repair and Overhaul) | | | | efficiently. Anybody is able to take part and can |
| same as web-based ERP except that the goods and | | | | donate a piece of code whenever there has been |
| services ordered are non-product related MRO | | | | some time to programme it. This will vary for every |
| supplies. | | | | person involved. |
| ü E-sourcing Identifying new suppliers for a | | | | E-franchising The re-sellers are called franchising |
| specific category of purchasing requirements using | | | | partners. By offering a set of products and brands |
| Internet. | | | | the franchising company guarantees a certain success |
| ü E-tendering Sending requests for information | | | | for the retailer as people tend to like buying these |
| and prices to suppliers and receiving the responses of | | | | products, as the brands are well known. The |
| suppliers through Internet. | | | | advantage of the franchising companies is that they |
| ü E-reverse auctioning Using Internet to buy | | | | do not need to invest in shop personnel, for |
| goods and services from a number of known or | | | | example, the franchising g partners is responsible |
| unknown suppliers. | | | | or the employees and financial success of the single |
| ü E-informing Collection and distribution of | | | | outlet. Electronic franchising works very similarly. It |
| purchase information both from and to internal and | | | | has become much easier on the internet. Moving |
| external parties. | | | | digital products, processes and brands is |
| ü E-market sites buying communities can access | | | | extremely easy. The affiliation programmes of the |
| preferred suppliers' products and services, add to | | | | large book sellers on the internet have their own |
| shopping carts, create requisition, and seek approval, | | | | store. But they allow franchising partners to |
| receipt purchase orders and process electronic | | | | exclusively distribute their products on the |
| invoices with integration to suppliers' supply chains | | | | partner’s websites. The advantage of this |
| and buyers' financial systems. | | | | system is that there is no distribution costs involved. |
| The e-procurement value chain consists of Indent | | | | It is possible to link to the original products without |
| Management, e-Tendering, e-Auctioning, Vendor | | | | letting the customers know. |
| Management, Catalogue Management, and Contract | | | | E-gambling Although there is a moral issue about |
| Management. Elements of e-procurement include | | | | gambling, it is one of the most profitable businesses |
| Request For Information, Request For Proposal, | | | | on the internet. In the real world gambling is |
| Request For Quotation, RFx (the previous three | | | | restricted by many laws, making it difficult to access |
| together), and eRFx (software for managing RFx | | | | the casinos. The owners of the games often need to |
| projects). | | | | pay high taxes to the state, which makes it so |
| E-shopping is the process of purchasing products or | | | | difficult to create competition. Gambling is still not |
| services over the Internet. An online shop, e-shop, | | | | legal in some states and the taxes are still high in |
| e-store, internet shop, web shop, web store, online | | | | these states, but the business has moved to places |
| store, or virtual store evokes the physical analogy of | | | | where gambling is legal and only low taxes need to |
| buying products or services at a bricks-and-mortar | | | | paid. The companies who operate the gambling |
| retailer or in a shopping mall. The metaphor of an | | | | websites are able to provide the full program of |
| online catalogue is also used, by analogy with mail | | | | games, without any restrictions. As the owners have |
| order catalogues. All types of stores have retail web | | | | their companies in countries where gambling is legal, |
| sites, including those that do and do not also have | | | | they are able to operate without fearing the |
| physical storefronts and paper catalogues. Online | | | | intervention of the state. But other than the real |
| shopping is a type of electronic commerce used for | | | | world casinos which are restricted to the geographical |
| business-to-business (B2B) and business-to-consumer | | | | location, online casinos are able to attract gamblers |
| (B2C) transactions | | | | from all over the world with a mouse click. |
| E-auction is a type of auction in which the roles of | | | | E-learning is a revolutionary way to empower, a work |
| buyers and sellers are reversed. In an ordinary | | | | force with the skills and knowledge it needs to turn |
| auction which is also known as a forward auction, | | | | changes to on advantages .It is faster chapter and |
| buyers compete to obtain a good or service, and the | | | | more productive then class room instruction |
| price typically increases over time. In a reverse | | | | .Electronic learning educating employees using web |
| auction, sellers compete to obtain business, and | | | | enabled materials deployed via the net offers in its |
| prices typically decrease over time. A buyer | | | | most sophisticated incarnations such bells and whistles |
| contracts with a market maker to help make the | | | | as streaming audio and video, built –in power |
| necessary preparations to conduct the reverse | | | | point presentation, hot links to related information the |
| auction. This includes: finding new suppliers, training | | | | web, animation, flipbooks and self-running |
| new and incumbent suppliers, organizing the auction, | | | | screen-capture display programme. E-learning is a |
| managing the auction event, and providing auction | | | | significantly cheaper and more protective and can be |
| data to buyers to facilitate decision making. Reverse | | | | delivered with more timeliness than either classroom |
| auction is a strategy used by many purchasing and | | | | learning or traditional computer-enhanced teaching. |
| supply management organizations for spend | | | | E-Marketing is a traditional marketing using electronic |
| management, as part of strategic sourcing and overall | | | | methods affecting traditional marketing in two ways. |
| supply management activities. | | | | It increases efficiency in established marketing |
| The prices that buyers obtain in the reverse auction | | | | function and transforms many marketing strategies. |
| reflect the narrow market which it created at the | | | | Internet serves as efficient marketing tools for both |
| moment in time when the auction is held. Thus, it is | | | | secondary and primary data collection. In addition |
| possible that better value - i.e. lower prices, as well as | | | | electronic technologies affect the 4ps. |
| better quality, delivery performance, technical | | | | - Product Internet technologies spawned a variety of |
| capabilities, etc. - could be obtained from suppliers not | | | | innovative product for creating, delivering and reading |
| engaged in the bidding or by other means such as | | | | messages as well as services such as reverse |
| collaborative cost management and joint process | | | | auctions, business to business (B 2 B), market |
| improvement. | | | | exchanges and interactive games. |
| The buyer may award contracts to the supplier who | | | | - Pricing The net turned pricing strategies upside |
| bid the lowest price. Or, a buyer could award | | | | down .Bartering, bidding, dynamic pricing, and |
| contracts to suppliers who bid higher prices depending | | | | individualized pricing are now quite on line. |
| upon the buyer's specific needs with regards to | | | | - Place The e-marketers used the net for direct |
| quality, lead-time, capacity, or other value-adding | | | | distribution of digital productsand for electronic |
| capabilities. | | | | retailing. |
| Reverse auctions are used to fill both large and small | | | | - Promotion The net assists with two way |
| value contracts for public and private commercial | | | | communication; one to one web pages-mail |
| organizations. Buyers, sellers, and market makers | | | | conversations, and e-main conferencing via news |
| should adhere to auction rules and industry codes of | | | | group and mailing lists.E- marketers also use the net |
| conduct for the use of reverse auctions, if they | | | | for promotions, and sending electronic coupons and |
| exist. Problems arise when one or more parties fail to | | | | digital products samples directly to consumers. |
| conform to auction rules. Buyers should not assume | | | | E-Operational Resource Management Beside the |
| that reverse auctions will, in every case, deliver | | | | goods that are needed for production, companies |
| savings - either on a unit price or total cost basis. | | | | need to buy operational resources, these are the non |
| Reverse auction savings can range from negative to | | | | production goods are services that are required and |
| neutral to positive savings. | | | | managed on a daily basis to run the day- to –day |
| E-auctioning benefits include | | | | business. Operational resources allow |
| - Helps to reduce prices up to 35% | | | | companies to manage operational resources more |
| - Shorten the negotiation process | | | | strategically, by using the internet and its connectivity |
| - Comprehensive dynamic pricing engine | | | | to provide a communication infrastructure, where |
| - Multi attribute multiproduct, multi language and | | | | buyer and supplier can together on a direct basis |
| multicurrency | | | | without losing control over the spending. |
| - Several auction timing models to fit our needs on an | | | | E-Supply Manufacturers, logistics companies, senders, |
| auction basis | | | | receiver and retailers all work together to co-ordinate |
| - Full support of total cost of ownership calculations | | | | the order generation and order taking. The order |
| - Free training support tools | | | | fulfillment and the distribution of the products, |
| - Customizable to suit our company image | | | | services, or information are organized together by |
| E-banking means any user with a personal computer | | | | the supply chain management. By digitalizing the |
| and a browser can get connected to his bank -s | | | | products, the processes and the communication the |
| website to perform any of the virtual banking | | | | internet has a great potential linking and managing this |
| functions. All the services that the bank has | | | | organization. |
| permitted on the internet are displayed in menu. Any | | | | E-Trading Before the internet, buying and selling |
| service can be selected and further interaction is | | | | stock war restricted to people with access to |
| dictated by the nature of service. Once the branch | | | | financial network. The internet has changed the way |
| offices of bank are interconnected through terrestrial | | | | stocks are traded. E-trading also called E-brokering |
| or satellite links, there would be no physical identity | | | | offers the real –time stock price to every desk |
| for any branch. It would a borderless entity | | | | throughout the world. People are able in real time to |
| permitting anytime, anywhere and anyhow banking. | | | | change in the stock market. Every one with on |
| The network which connects the various locations | | | | internet bank account is able to buy and sell stock. |
| and gives connectivity to the central office within the | | | | This enables anyone to participate in the stock |
| organization is called intranet. E-banking facilities include | | | | market and earn money by investing. |