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Introduction to E-Business

Discuss about the E-Business for Business Process Redesign.

E-business is the abbreviation of the ‘Electronic Business’. This is a derived term from the terms like “E-mail”. ‘E-business’ refers to the conduction of the business or initiation of the business process through the internet. It also refers to the electronic transaction of money between two business parties. The main aim of the “e-business” is to gain the positive reputation of the organization and improve the quality of service. In this case, the internet is used to promote the business and helps in the growth of the business. The use of internet in the “e-business” also useful for connecting with the partners of the business.

The use if ICT helps in the enhancement of the business. This includes all the process that governmental or privately owned organizations accomplish through the dedicated internet connection.

The “e-business” can be defined as the way of providing better services to the customers along with the understanding the demand of the customers using the technologies of the new age generation. There are three processes that improves the process of “e-business”-

    1. Process of production which includes maintaining the stocks, processing of the purchased goods, electronically link with the stakeholders of the process.
    2. Consumer centered process which includes the promotion and the marketing of the goods, process of the orders of the customers and providing the customer support efficiently. 
  1. The management of the internal process includes managing of the employees in the organization. This refers to the training of the employees, effective internal information sharing and new recruitments. The use of the technology in the organization enhances the flow of information between the production team and the sales team in order to increase the productivity.

E-business has gained positive responses from the executives, industry experts and the investors. The e-business helps to regenerate the ‘business process redesign’ (BRP). The companies take the advantage of the internet technology to redesign the business process in order to gain the competitive advantage. The successful implementation of the “e-business” fetches more options for the improvement and opportunities. The expansion of the ‘e-commerce” has made people believe that a new era of technology and business is coming. The Chairman of Microsoft, Bill Gates has expressed concerned, that his company has to face competition with the unknown competitor who can used advanced technology. This can become the failure of the Microsoft.  The most successful companies are those who have included the internet technology in all the enterprise value activities.

There are three principal categories of e-business-

  1. E-market place or Electronic market: Buying and selling of goods using internet ass medium.
  2. Inter organizational system: Improves the inter-organizational flow of goods, information and communication.
  3. Customer service: Helping the customer, taking their complaints and listening to their demands.

The development of the internet technology causes the need of technical advantages in the business process design. Most of the organization uses the information technology for redesigning their business processes in order to get competitive advantage. Many organizations can encompress the supply chain, data integration, customers and distribution channel in the B2B environment. The effectiveness f the e-business is great, and many of the experts think that it can determine the future of any business organizations. Intel Chairman Andy Grove said in 1998 that -‘‘within 5 years, all companies will be Internet companies or they would not be companies’’. It has been proves that the use of new technologies helps to improvise the communication between the different stakeholders within the organizations and the professional world, which includes-

  • Relationship between the organization and its clients.
  • Internal work flow of the organization which includes the relationship between the employees and the organization.
  • Relationship between the organization and its different partners and suppliers. 

Impact of E-Business on Business Process Redesign

The objective of the e-business is clear and the plans that can be taken in order to achieve the goals. This can play as a motivational factor to the employees. It also helps to determine the progress of the business organization to its aim. The objectives of the e-business are-

  • Improvement of the service
  • Saving the time which includes the time taken by the consumers and the time taken by the customers and the business process.
  • Reduction of the process errors.
  • Reduction of cost for the core service processes.
  • Availability of the free staff for providing the value added services
  • Improvement of the morale.
  • Giving people time and tools as per their requirement.

There are some criteria for the effective e-business-

S-Specific The specification of the aims and objective of the organization, e.g. a hotel can have the objective to fill 60% of its room at night during October. It is a objective specified to the business.

M-Measurable- The business of the organization may put a value for the objective,e.g. for the next half year treading the sales should be of €10,000.

  • The decisions are needed to be agreed by the all people who are concerned about the 

      R- Realistic- The objective needs to be challenging by it should be realistic and can be achieved through the available resources.

T- Time specific- The timeframe for achieving the organizational goals, e.g. end of the year.

The main objective of the business:

Survival - Short-term objectives of relatively small companies, specially, when they are just entering into the market or the involvement of the new farm at the time of market crisis.

Maximization of the profit- Trying to make the most of the profit as it is desirable by the most of the stakeholders and owners of the company.

Satisfaction by earning the profit:  Trying to make much profit so that the owners can be satisfied and comfortable, especially for the small businesses where the stakeholders do not want to work for long time.

Growth of the sales:  It means the organization will try to make the sales as many as possible. This is because, the managers of the organizations believe that in order to survive in the market the companies are needed to be large and large business can also gain the benefits from the economy.

There are some kinds of business conflicts that an organization can face-

  • Profit versus growth: As for example, aiming higher sales in the short time span can reduce short-term profit.
  • Long-term versus short-term: As for example- an organization may adopt the decision of the lower flow of cash in the short-time, whilst it can invest largely on the new products and services.
  • Qualifies investors in the Stock Exchange are often accused for giving preference to the short-term investment rather than long-term investment. 

The introduction of the e-business has the purpose of searching of the new business partners and exploring the more opportunities. It can be used for attracting the potential consumers and maintaining good relationship with the old consumers. The business relationship between the consumers and the organizations is made through the Internet. A marketer can approach to the client in order to expand the business. The online presence should be made by the marketer in order to expand and establish the business. This can be achieved by creating the website for the company. The optimization of the content size will help the client to access the engine.

Types of E-Business

In order to do this, rich keywords can be used. The image of the company is reflected though the website of the company. Therefore, the website should be rich it keywords along with the relevant presentation. This can attract the potential consumers and other business partners towards the organization. The design of the website should permit the consumers to access the website. The advancement of the technology along with the growing phase of the e-commerce has given a boost to the online shopping. The trader can make interesting offers on his products or services in the websites. The payment for the order can easily be done through the internet. One can also provide the contact details to the customer care of the company for further contact.

These details help to serve the consumers in case of payment difficulties. The production presentation should be attractive to the consumers. In order to do this the trader should do the market research and identify the target consumers. The online presence helps the marketer to boost its services and sales.

There are some differences between the implementation structure of the e-business and the implementation structure of the traditional client –server model.

Many inexperienced e-business managers think that making a web site will be enough for the e-business conduction. The tightening deadlines and the requirement for fulfilling the demand of the clients make the project managers to overlook some of the important stages of the development life cycle. This can lead problems in the future. Such approach leads to the failure of the business, as the skipped stages may contribute the quality and efficiency of the final product.

The difference between the old businesses with the new one can be done using the e-business.

From the above figure, it can be said that, in the old economy, the consumers are not connected to the trader directly, so there was a lack of closeness for the traders. The retailers were the medium between the consumers and the traders. In new economy relationship the consumers can directly connect with the traders and the traders can interface with the consumers. In this case, there is no third party involved and the consumers are not dependent on the retailer. 

The close observation of the new economy indicates s that it can expand and connect with the consumers beyond the organizational boundaries and can expand globally. However, without the proper planning and the objective the e-business will fail.  Implementation of solid methodology does not always take longer time in creating the suitable working system. Complete methodologies can elp to improve the deadline meeting criteria. In some cases meeting deadline does not hold the highest priority, in that cases the solid methodology will help the consumers to understand about the ownership of the time span issues.

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