E Business

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Types of E commerce

Ecommerce can be broken into four main categories: B2B, B2C, C2B, and C2C.

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B2B (Business-to-Business)

In this type of ecommerce, both participants are businesses. As a result, the volume and value of B2B ecommerce can be huge.

Companies doing business with each other Eg.

Manufacturers selling to distributors and wholesalers selling to retailers.

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B2C (Business-to-Consumer)

Businesses selling to the general public typically through catalogs utilizing shopping cart software.

C2B (Consumer-to-Business)

A consumer posts his project with a set budget online and within hours companies review the consumer's requirements and bid on the project.

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C2C (Consumer-to-Consumer)

There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell thanks to online payment systems like PayPal where people can send and receive money online with ease.

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Other categories of ecommerce

G2G (Government-to-Government), G2E (Government-to-Employee), G2B (Government-to-Business), B2G (Business-to-Government), G2C (Government-to-Citizen), C2G (Citizen-to-Government) are other forms of ecommerce that involve transactions with the government--from procurement to filing taxes to business registrations to renewing licenses. There are other categories of ecommerce out there, but they tend to be superfluous.

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What is Value Chain?

Interlinked value-adding activities that convert inputs into outputs which, in turn, add to the bottom line and help create competitive advantage.

A value chain typically consists of(1) inbound distribution or logistics,

(2) manufacturing operations,

(3) outbound distribution or logistics,

(4) marketing and selling, and

(5) after-sales service. These activities are supported by

(6) purchasing or procurement,

(7) research and development,

(8) human resource development,

(9) and corporate infrastructure.

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Electronic Commerce support Systems

A business interested in setting up a system to support electronic commerce has three options: 

. Using a Web server with a toolkit to build its own system. 2. Purchasing a packaged commerce Web server system. 3. Outsourcing the system to an e-commerce service provider.

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Value Chain Analysis

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What is Value Chain?

Value Chain analysis was first suggested by Michael Porter (1995) as a way of presenting the construction of value as related to end customer.

the process or activities by which a company adds value to an article, including production, marketing, and the provision of after-sales service.

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The Value Chain

To analyze the specific activities through which firms can create a competitive advantage, it is useful to model the firm as a chain of value-creating activities. Michael Porter identified a set of interrelated generic activities common to a wide range of firms. The resulting model is known as the value chain and is depicted below:

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What is Value Chain Analysis?

Examination of the value chain of an enterprise to ascertain how much and at which stage value is added to its goods and/or services, and how it can be increased to enhance the product differentiation (competitive advantage).

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What is the Difference between value chain and supply chain? Supply chain consists of series of activities in which a product

or a material is just transfer from the one point to the final point. while in the value chain, instead of just transferring we add certain values to it.

eg-

suppose a supply chain is therefarmers- wholesaler-retailer-consumer

if the apples just passes through same channels with out any grading sorting then its a supply chain.

while if at each stage, we add some values to the apples like grading, sorting, packaging, cool storing. then this is called value chain.

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Cont..

The goal of these activities is to create value that exceeds the cost of providing the product or service, thus generating a profit margin

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Cont..

Inbound logistics include the receiving, warehousing, and inventory control of input materials.

Operations are the value-creating activities that transform the inputs into the final product.

Outbound logistics are the activities required to get the finished product to the customer, including warehousing, order fulfillment, etc.

Marketing & Sales are those activities associated with getting buyers to purchase the product, including channel selection, advertising, pricing, etc.

Service activities are those that maintain and enhance the product's value including customer support, repair services, etc.

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Cont..

Any or all of these primary activities may be vital in developing a competitive advantage. For example, logistics activities are critical for a provider of distribution services, and service activities may be the key focus for a firm offering on-site maintenance contracts for office equipment.

These five categories are generic and portrayed here in a general manner. Each generic activity includes specific activities that vary by industry.

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Support Activities

The primary value chain activities described above are facilitated by support activities. Porter identified four generic categories of support activities, the details of which are industry-specific

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Procurement - the function of purchasing the raw materials and other inputs used in the value-creating activities.

Technology Development - includes research and development, process automation, and other technology development used to support the value-chain activities.

Human Resource Management - the activities associated with recruiting, development, and compensation of employees.

Firm Infrastructure - includes activities such as finance, legal, quality management, etc.

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Cont..

Support activities often are viewed as "overhead", but some firms successfully have used them to develop a competitive advantage, for example, to develop a cost advantage through innovative management of information systems.

Supply Chain Management

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What is Supply chain management (SCM)?

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.

Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.

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What is Supply Chain Management?

All facilities, functions, activities, associated with flow and transformation of goods and services from raw materials to customer, as well as the associated information flows

An integrated group of processes to “source,” “make,” and “deliver” products

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What is Supply Chain Management?

" Is the strategic management of activities involved in the acquisition and conversion of materials to finished products delivered to the customer"

SupplierManagement

Schedule /Resources Conversion

Stock Deployment Delivery

CustomerManagement

Material Flow

Information Flow

Leads to Business Process Integration

10 Apr 2023 28Supply Chain Illustration

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Supply Chain for Denim Jeans

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Supply Chain for Denim Jeans cont..

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Supply Chain Management (SCM)

Managing flow of information through supply chain in order to attain the level of synchronization that will make it more responsive to customer needs while lowering costs

Keys to effective SCM information communication cooperation trust

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E-business and Supply Chain

Cost savings and price reductions

Reduction or elimination of the role of intermediaries

Shortening supply chain response and transaction

times

Gaining a wider presence and increased visibility for

companies

Greater choices and more information for customers

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E-business and Supply Chain cont..

Improved service as a result of instant accessibility to services

Collection and analysis of voluminous amounts of customer data and preferences

Creation of virtual companies Leveling playing field for small companies Gaining global access to markets, suppliers,

and distribution channels

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Supply Chain Challenges

1. Customer service

2. Cost control

3. Planning and Risk Management

4. Supplier/partner relationship management

5. Talent

The Internet

A network of networks, joining many government, university and private computers together and providing an infrastructure for the use of E-mail, bulletin boards, file archives, hypertext documents, databases and other computational resources

The largest network of networks in the world. Uses TCP/IP protocols and packet switching . Runs on any communications substrate.

What is the Internet?

The Internet

The Internet was developed in 1969 for the U.S. military and eventually spread to universities and civilian researchers.

In 1990 a scientist named Tim Berners-Lee created a software program that he called the World Wide Web which allowed people to find documents on the Internet much more easily.

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The Internet

The Internet is best described by what it isn't. There is: No single computer No single control source No single entry point No single type of application

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The Internet contd..

The Internet consists of computers spread all over the world, connected through wired and wireless transmission media, which contain software codes that allow them to talk to each other.

Small businesses and individuals connect to the Internet through Internet Service Providers (ISP)

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Internet Technology and Capabilities

Capability Functions Supported E-Mail Person-to-person messaging; document sharing

Usenet newsgroups

Discussion groups on electronic bulletin boards

LIST Servers Discussion groups using e-mail mailing list servers

Chatting Interactive conversations

Telnet Log on to one computer system and do work on another

FTP Transfer files from computer to computer

Gophers Locate information using a hierarchy of menus

World Wide Web Retrieve, format, and display information (including text, audio, graphics, and video) using hypertext links

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Advantages of the Internet

Information on almost every subject imaginable. Powerful search engines Ability to do research from your home versus research

libraries. Information at various levels of study. Everything

from scholarly articles to ones directed at children. Message boards where people can discuss ideas on

any topic. Ability to get wide range of opinions. People can find others that have a similar interest in whatever they are interested in.

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Contd..

The internet provides the ability of emails. Free mail service to anyone in the country.

Platform for products like SKYPE, which allow for holding a video conference with anyone in the world who also has access.

Friendships and love connections have been made over the internet by people involved in love/passion over similar interests.

Things such as Yahoo Answers and other sites where kids can have readily available help for homework.

News, of all kinds is available almost instantaneously. Commentary, on that news, from every conceivable viewpoint is also available.

Intranets and Extranets

Intranets and Extranets are basically the same thing as the Internet and use the same operating methods.

Intranets are restricted to the internal members of an organization and Extranets are limited to certain users outside of an organization who are given special access to the Web site.

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Intranets and Extranets contd..

Access to Intranets and Extranets is controlled through the use of usernames, and passwords, plus firewalls, security software programs that keep unauthorized users out of the network.

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Benefits of Intranets

Connectivity: Accessible from most computing platforms Can be tied to legacy systems and core transaction

databases Can create interactivity applications with text, audio, and

video Scalable to larger or smaller computing platforms as

requirements change Easy to use, universal Web browser interface Low start-up costs Richer, more responsive information environment Reduced information distribution costs

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Internet Benefits to Organizations

Connectivity and global reach

Reduced communication costs

Lower transaction costs

Reduced agency costs

Interactivity, flexibility, and customization

Accelerated distribution of knowledge

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Disadvantages of the Internet

1. There is a lot of wrong information on the internet. Anyone can post anything, and much of it is garbage.

2. There are predators that hang out on the internet waiting to get unsuspecting people in dangerous situations.

3. Some people are getting addicted to the internet and thus causing problems with their interactions of friends and loved ones.

4. Pornography that can get in the hands of young children too easily.

5. Easy to waste a lot of time on the internet. You can start surfing, and then realize far more time has passed than you realized. Internet and television together of added to the more sedentary lifestyles of people which further exacerbates the obesity problem.

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Contd..

Internet has a lot of "cheater" sites. People can buy essays and pass them off as their own far more easily than they used to be able to do.

There are a lot of unscrupulous businesses that have sprung up on the internet to take advantage of people.

Hackers can create viruses that can get into your personal computer and ruin valuable data.

Hackers can use the internet for identity theft. It can be quite depressing to be on the internet and realize

just how uneducated so many people have become in today's society.

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What is a browser?

Short for Web browser, a software application used to locate, retrieve and also display content on the World Wide Web, including Web pages, images, video and other files.

As a client/server model, the browser is the client run on a computer that contacts the Web server and requests information.

The Web server sends the information back to the Web browser which displays the results on the computer or other Internet-enabled device that supports a browser.

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Contd..

A web browser (commonly referred to as a browser) is a software application for retrieving, presenting and traversing information resources on the World Wide Web. An information resource is identified by a Uniform Resource Identifier (URI/URL) and may be a web page, image, video or other piece of content.[1] Hyperlinks present in resources enable users easily to navigate their browsers to related resources.

Although browsers are primarily intended to use the World Wide Web, they can also be used to access information provided by web servers in private networks or files in file systems.

The major web browsers are Google Chrome, Mozilla Firefox, Internet Explorer, Opera, and Safari.

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Web server

The term web server can refer to either the hardware (the computer) or the software (the computer application) that helps to deliver web content that can be accessed through the Internet.

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Licensed ISPs in Sri Lanka

Lanka Internet Services Ltd (LISL) Sri Lanka Telecom (SLT) ITMIN Eureka Pan Lanka Ceycom (CCOM) Lanka Communication Services

(Lankacom