E_business

How important is the e-business in today's world and how do you think it effects decision making in business? In today's world e-business is extremely important for many reasons. Some of which is due to the fact it can speed the whole process of ordering etc. up. This then means that the lead time can be decreased because the ordering of products can be done much more quickly, particularly because the Internet is a fast running wide area network. However, despite this, the question should be asked, what does e-business mean? E-business actually means: Better procurement and supply chain, making sales teams more effective, the ability to outsource functions such as accounting, remote access to systems, linking management teams in different locations, being able to locate the lowest cost supplier, improve customer services, improved collection of customer information for databases and more effective management of remote manufacturing sites.
 * Electronic business **

  · Internet-based companies that operate wholly through the Internet to conduct their business. Examples are eBay and Amazon. · Companies that combine traditional business formats with information on the business provided via the Internet: for example, IKEA. · Companies that combine traditional business formats with the opportunity of buying online. Examples include Marks & Spencer, John Lewis, HMV, Tesco and Argos. · Companies that collect information on customer profiles and markets and sell this information to interested parties for example Experian and Mintel. · Any device used to facilitate exchange, such as 'Chip and Pin' technology, automatic ticketing, electronic ticketing, credit card transactions and so on. · <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">Business to business (B2B) activity. <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">Using the opportunities that IT presents to improve the flexibility of working patterns <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;"> <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">There are a number of benefits to e-business but in thinking about these benefits it is essential that we make the link back to our definition of marketing in order for the benefits to be fully understood. <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 140%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">The benefits can be summarized as: <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">The opportunity to reduce costs of production by reducing overheads - for example, not having a retail outlet in a busy high street location with high rents, reducing stock costs etc <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">The opportunity to increase sales <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">The opportunity to access new markets across the globe <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">The chance to target market segments more effectively <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">Provide more accurate information and improve customer service experience <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">Improves the efficiency of the supply chain <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">Improve employee motivation through more flexible working methods <span style="color: black; font-family: Symbol; font-size: 10pt; line-height: 130%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 12.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">Provides convenience and comfort for customers
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">Electronic business **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">, commonly referred to as "**e-Business**" or "**e-business**", may be defined as the application of information and communication technologies ( <span style="color: windowtext; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">[|ICT] <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses
 * <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">E-Business, therefore, can include the following: **<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">
 * <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 130%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">Advantages of e-Business **


 * <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">Disadvantages of E-Business **<span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">

<span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi;">The main disadvantage of e-business is the lack of growth in some sectors on account of product or sector limitations. The food sector has not benefited in terms of growth of sales and consequent revenue generation because of a number of practical reasons like food products being perishable items. Consumers do not look for food products on the Internet since they prefer going to the supermarket to buy the necessary items as and when the need arises.

Costly E-Business Solutions for Optimization: Substantial resources are required for redefining product lines in order to sell online. Upgrading computer systems, training personnel, and updating websites requires substantial resources. Moreover, Electronic Data Management (EDM) and <span style="color: windowtext; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi; text-decoration: none; text-underline: none;">[|Enterprise Resource Planning] <span style="color: black; font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-fareast-font-family: 'Times New Roman'; mso-hansi-theme-font: major-bidi; msoasciithemefont: major-bidi; msobidithemefont: major-bidi; msofareastfontfamily: 'Times New Roman'; msohansithemefont: major-bidi;"> (ERP) necessary for ensuring optimal internal business processes may be looked upon, by some firms, as one of the disadvantages of e-business.

<span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">http://www.coursework.info/AS_and_A_Level/Business_Studies/ICT_in_Business/How_important_is_the_e-business_in_today_L32009.html <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">http://www.bized.co.uk/educators/16-19/business/marketing/lesson/ebusiness1.htm <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">http://en.wikipedia.org/wiki/Electronic_business || <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;"> <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; line-height: 115%; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">References:- **
 * <span style="font-family: 'Times New Roman','serif'; font-size: 12pt; mso-ascii-theme-font: major-bidi; mso-bidi-theme-font: major-bidi; mso-hansi-theme-font: major-bidi;">References:- **