MID-TES E-BUSINESS

1.      DISTINGUISH BETWEEN E-COMMERCE AND E-BUSINESS

a.       e-commerce: all electronically mediated transaction between organization and the third party it deal with; exchange information across electronic network at any stage in supply chain weather within an organization. the activities of e-commerce can differ on two perspective, buy-side and sell-side. While the activities of e-business not only buy-side and sell-side but also how to interact with all company’s stakeholders. E-commerce covers outward-facing processes that touch customers, suppliers and external partners, including sales, marketing, order taking, delivery, customer service, purchasing of raw materials and supplies for production and procurement of indirect operating-expense items, such as office supplies. It involves new business models and the potential to gain new revenue or lose some existing revenue to new competitors.

b.      e-business: all electronically mediated information exchange both within organization and with external stakeholders that supporting the range of business process. E-business includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources. E-business strategy is more complex, more focused on internal processes, and aimed at cost savings and improvements in efficiency, productivity and cost savings.

An e-business strategy is also more difficult to execute, with four directions of integration: vertically, between Web front- and back-end systems; laterally, between a company and its customers, business partners, suppliers or intermediaries; horizontally, among e-commerce, enterprise resource planning (ERP), customer relationship management (CRM), knowledge management and supply-chain management systems; and downward through the enterprise, for integration of new technologies with radically redesigned business processes. But e-business has a higher payoff in the form of more efficient processes, lower costs and potentially greater profits.

2.      OUTLINE THE REASONS WHY A BUSINESS MAY WISH TO ADOPT E-COMMERCE

-         By adopt e-commerce, its potential for increasing revenue arising because of larger customers base that they have loyalty and repeat purchase.

-         By adopt e-commerce, it can reduce staff cost, transportation and distribution cost, material cost, etc.

-         By adopt e-commerce, it can increase speed ability with which supply activity, good dispatch

-         By adopt e-commerce, it can increase customer demand, improving range and quality of services offered, and avoiding losing market share.

The advantage by using e-commerce can be classified into three perspectives:

a.      advantage to organization

-         Using E-Commerce, organization can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers and suitable business partners across the globe.

-         E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.

-         E-commerce improves the brand image of the company.

-         E-commerce helps organization to provide better customer services.

b.      Advantage to customers

-         Customer can do transactions for the product or enquiry about any product/services provided by a company any time, any where from any location. 24 hours of each seven days of a week.

-         E-Commerce application provides user more options and quicker delivery of products.

-         E-Commerce application provides user more options to compare and select the cheaper and better option.

-         A customer can put review comments about a product and can see what others are buying or see the review comments of other customers before making a final buy.

-         E-Commerce provides option of virtual auctions.

-         Readily available information. A customer can see the relevant detailed information within seconds rather than waiting for days or weeks.

-         E-Commerce increases competition among the organizations and as result organizations provides substantial discounts to customers.

c.       Advantage to Society

-         Customers need not to travel to shop a product thus less traffic on road and low air pollution.

-         E-Commerce helps reducing cost of products so less affluent people can also afford the products.

-         E-Commerce has enabled access to services and products to rural areas as well which are otherwise not available to them.

-         E-Commerce helps government to deliver public services like health care, education, social services at reduced cost and in improved way.

3.      E-BUSINESS INVOLVES EVALUATING VALUE CHAIN ACTIVITIES. WHAT TYPE OF CHANGES CAN BE INTRODUCING TO THE VALUE CHAIN THROUGH E-BUSINESS?

Value chain is concept that considered how supply chain activities can add a value to product and services delivered to the customer. Value chain can consider into internal value chain within the boundaries of an organization and external value chain where activities are performed by member supply chain partner.  By analyzing the different parts of the value chain, manager can redesign internal and external process to improve their efficiency and effectiveness.

Electronic communication can be used to enhance the value chain by making value chain activities such as procurement that completed data and information between all procurement and supply chain activities. Internet technology can reduce production time and costs by increasing the flow information as way as to integrate different value chain activities. Through doing this value chain can made more efficient and services delivered to customers more readily. By creating gathering, organizing, selecting, synthesizing, and distributing information.

a.      Restructuring the internal value chain

It is the process for re-evaluated with advent of global electronic communication. There are some weakness for traditional value chain like It is most applicable for manufacturing of physical products as opposed to provide service and the internal value chain does not emphasize the importance of value network did not produce a diagram that indicate network relationship.

This value chain stars with process market, research emphasize the importance of real-time environment scanning made possible through electronic communications links with distributors and customers.

Analyzing if the value chain and looking at how electronic communications can be used to speed up the process, manufacturers have been able to significantly reduce time to market from conception of a new product idea trough to launch on the market.

b.      The value stream

It’s a concept that related to the value chain. The difference type of task can be involved by adding value.  Value stream can manage problem-solving task, information task, and physical transformation task.

c.       Value chain analyze

Its process to analyze framework for decomposing an organization into its individuals activities and determining value added.  By using the various point, the organization can increase an effectiveness from the resource. To spread positive impact there are some step that must be passed : assess the information intensively, determine the role of IS in the industry structure, identify and rank the ways in which IS might to create competitive advantage, investigate how IS might spawn new business, and the last develop a plan for taking advantage of IS.

d.      Value networking

It’s about how to re-evaluate time responsiveness and how information systems are deployed. Value networking is the process of effectively deciding what to outsource in constraint-based, real-time environment based on fluctuation.