e bussiness assignment
TRANSCRIPT
Q1. (a) E-business In India and developing countries
INTRODUCTION
E-Business is a revolution that is transforming companies round the world, and it is
impacting all the industries. E-business is much more than online purchase and
implementation of computer applications by the IT departments; or putting up a company
website.
E-business affects the whole business and the value chains in which it operates. It enables a
much more integrated level of collaboration between the different components of a value
chain than ever before. Adopting e-Business also allows companies to reduce costs and
improve customer response time. Organizations that transform their business practices
stand to benefit immensely from innumerable new possibilities brought about by
technology.
Although it's early days for e-Business in India, we believe there are greater opportunities
over the long term for India and Indian businesses. There is urgent need to usher in
farsighted policies & practices to become a major economic force in the emerging world of
E-Business.
With the growth of information technology worldwide, the use of Electronic business is
gaining momentum day by day. The Indian scenario of information technology is as follows-
Developments:
• As of September 2007, there was a PC base of 15.8 million PCs.
• More than 80 per cent of stand alone PCs sold during last two years were driven by the
need to access the Internet.
• Ninety one per cent of India’s corporate web sites are located overseas
The Internet and e-commerce industry employs approximately 82,000 people. These
include
web developers, web designers, system analysts, ISP infrastructure providers, marketing
staff, e-software professionals, etc. It is projected that by March 2003, the Internet and
e-commerce industry would employ over 300,000 people.
• India has about 1.6 million households connected to the Internet
While the global economy is said to undergo profound changes as a result of impressive
technological developments, in particular in the area of information and communication
technologies (ICTs), little is know about the actual use of ICTs in businesses and their impact
on productivity, firm competitiveness, trade and economic development, in particular in less
developed countries. As the information society gains momentum, there is an urgent need
for reliable data on ICTs and their application in business.
India had one of the world's lowest levels of basic telephone penetration, or teledensity, in
2005, with just 4.5 main lines per 100 population. Mobile-phone use is, however, growing
rapidly, and wireless subscriptions have now surpassed those of fixed lines. India's
telecommunications sector is ripe for growth. Most segments of the Indian telecoms
markets are still in an early growth stage. The mobile market in particular is in full swing,
with penetration levels remaining below the presumed potential of the market. Broadband
is still at an introductory stage
The Government of India has long recognized the need for development of IT industry and
information infrastructure as these are twin engines for growth of the economy. Deeper
penetration of IT applications in the economy, and in the society as a whole can help boost
the economy. E-commerce applications can make it easier for the country to better integrate
with the global markets, the e-marketplace. This has led the government, over the last few
years to formulate liberal policies for the development and growth of the IT industry.
Emerging E-business areas in India-
Internet application integration;
Customer Relationship Management (CRM),
Customer ServiceManagement (CSM),
Enterprise Resource Planning (ERP) and
Electronic Data Interchange (EDI) migration to web based models;
new IT frameworks and integration with business strategy (strategic IT consulting);
e-commerce training services,
business web site development and maintenance.
Factors catalyzing e-Commerce
A large number of factors, of course, have contributed to this turnaround in e-Commerce
fortunes in India.
Besides a rapidly expanding base of Internet users in the country, technology changes and
developments are also spurring e-Commerce by improving the interface between buyers and
sellers and bringing them closer. Take the instance of the big buzzword, Voice-over-IP, which
is addressing the interaction gap in e-Commerce by providing customers a direct access to
sellers, so that they can discuss information related to products and services. With VoIP,
shoppers can talk to companies at the click of a button or chat free of cost to the seller, to
close the sale. With VoIP, vendors are being able to convert their call centers to IP-based
communications centers, thereby reducing their operational costs, while adding new
services and features.
The emergence of blogging, where retailers and e-Commerce vendors have started their
blogs to provide information they could earlier not accommodate on their Web sites, is also
helping companies expand their show-windows. Business blogs also help deliver products,
services and information, besides serving as advertising and marketing tools and a source of
feedback for enterprises.
With fraud prevention technologies arriving on the scene, companies are now being able to
provide a secure and safe business experience to buyers and sellers. Robust firewall and
other technologies and helping prevent credit card frauds, identify thefts, check cheque
frauds and phishing. By making the Internet a secure destination for conducting real
business, new and innovative technologies are also revitalizing the e-Commerce movement
across India.
The e-Commerce scenario in India
According to a 2005 Report brought out by the Internet & Online Association (IOAI), India’s
Internet population has crossed the milestone 25 million mark and is expected to gallop to a
100 million by 2007. The Study also reveals the following:
e-Commerce transactions are expected to cross the Rs. 2300 crore milestone in 2006-
07, a jump of around 300 percent from the 2004-05 figure of Rs. 570 crore
the average number of online transactions has increased from 4.4 lakhs in 2004-05 to
around 7.95 lakhs per month in 2005-06, a growth of a healthy 80 percent
besides individuals, even businesses have been quick to embrace the Internet. Most
organizations, including large and SME companies have a Web presence
SMEs in fact, have found the Internet a viable platform for establishing their brand at
lowered infrastructure and marketing costs
India’s Tier II towns and cities are experiencing an increase in their online retailing
activity and increased transactional values
Clearly, the advantages offered by the Internet to Indian businesses are many. The Net
allows companies to:
address an ever rising population of online users
access unlimited shelf space
remain beyond the boundaries of operational timings and geographic distances
cater to countrywide city markets (for consumers and suppliers) at low costs
deliver digital content online
conduct online sourcing or public procurement
Take the instance of a portal like eBay, which has enabled hundreds of smaller Indian
companies and individuals to sell their products or procure them over the Net.
At the level of individual buyers, the Internet and e-Commerce enables people to access a
24-hour shopping environment, where anything can be purchased from anywhere. The
result is that consumers are transacting over the Internet and trading in goods and services,
transferring funds electronically and availing of crucial Government services.
Tracking the growth of e-Commerce
Recognizing the growing buzz around e-Commerce in India, NASSCOM recently organized a
seminar on the subject, highlighting the fact that online commerce was the way to go in the
future. Speakers, representing the vast diaspora of e-Commerce vendors in the country,
spoke about how the Internet was transforming businesses and changing the way products
and services were marketed and delivered in the digital age.
Placing the issue in perspective, Gautam Thakar, Country Manager of eBay said that
consumers were trading goods worth almost three crore rupees everyday, across the globe.
“Following the burst of innovation in e-Commerce during the 1995-2000 phase and the
subsequent dot com bust, we are now experiencing renewed momentum in the online
business world,” Mr. Thakar added.
Dividing the evolution of e-Commerce into three phases, he said that while in Phase 1,
people were buying and retailing online, Phase 2 marked the arrival of the first generation of
market disrupters. Today, in Phase 3, the older generation of online companies such as eBay
and Amazon.com were getting squeezed out by incumbents such as Walmart, which were
coming in and expanding the market, causing B2C and B2B activity to explode.
India’s e-Commerce market too was witnessing the arrival of incumbents such as Pantaloon,
travel players, etc. who were fueling its growth and making e-Commerce mainstream in the
country. Besides an increase in the numbers of pure play e-Commerce companies, India was
also seeing traditional retailers take the e-Commerce route and VCs funding young
companies focused on the online business model.
The future of e-Commerce in India
At the end of the day, there is a growing realization that the opportunities presented by e-
Commerce are big and will get bigger. Provided applications of mass usage are developed
and made available, e-Commerce can truly take off in India. The country’s citizens needed
easier access to the Net, navigation and ease-of-use, factors that are critical for the quick
adoption of e-Commerce. Convenient and secure modes of payment are a must, as is the
need to explore other facets of e-Commerce such as mobile commerce.
E-business in developing countries With developments in the Internet and Web-based technologies, distinctions
between traditional markets and the global electronic marketplace-such as business capital
size, among others-are gradually being narrowed down.
On another plane, developing countries are given increased access to the global
marketplace, where they compete with and complement the more developed economies.
Most, if not all, developing countries are already participating in e-commerce, either as
sellers or buyers.
One of the many challenges facing the countries in the Asia-Pacific today is pre-
paring their societies and governments for globalization and the information and
communication revolution.
Asia-Pacific e-commerce revenues are projected to increase from $76.8 billion at
year-end of 2001 to $338.5 billion by the end of 2004.
Brazil’s Submarino: Improving Customer Service through the Internet
Brazil’s Submarino is a classic example of successful use of the Internet for improved
customer service and support. From being a local Sao Paulo B2C e-commerce company
selling books, CDs, video cassettes, DVDs, toys, electronic and computer products in Brazil, it
expanded to become the largest company of its kind in Argentina, Mexico, Spain and
Portugal. Close to a third of the 1.4 million Internet users in Brazil have made purchases
through this site. To enhance customer service, Submarino has diversified into offering
logistical and technological infrastructure to other retailers, which includes experience and
expertise in credit analysis, tracking orders and product comparison systems.
status of e-banking in developing countries
There is an increasing growth of online banking, indicating a promising future for
online banking in the developing countries. Below is a broad picture of e-banking in three
developing countriesof Asia.
-----The Philippine Experience
In the Philippines, Citibank, Bank of the Philippine Islands (BPI), Philippine National Bank, and
other large banks pioneered e-banking in the early 1980s. Interbank
networks in the country like Megalink, Bancnet, and BPI Expressnet were among
the earliest and biggest starters of ATM (Automated Teller Machines) technology.
-----The Singapore Experience
In Singapore, more than 28% of Internet users visited e-banking sites in May 2001
Among the products offered are:
. Fund transfer and payment systems;
. Integrated B2B e-commerce product, involving product selection, purchase
order, invoice generation and payment;
. Securities placement and underwriting and capital market activities;
. Securities trading; and
. Retail banking.
-----The Malaysian Experience
E-banking in Malaysia emerged in 1981 with the introduction of ATMs. This was
followed by tele-banking in the early 1990s where telecommunications devices were
connected to an automated system through the use of Automated Voice Response
(AVR) technology.
Importance and size is e-commerce to SMEs in developing countries
For SMEs in developing countries e-commerce poses the advantages of reduced
information search costs and transactions costs (i.e., improving efficiency of operations-
reducing time for payment, credit processing, and the like). Surveys show that information
on the following is most valuable to SMEs: customers and markets, product design, process
technology, and financing source and terms. The Internet and other ICTs facilitate access to
this information. In addition, the Internet allows automatic packaging and distribution of
information (including customized information) to specific target groups.
The International Federation for Alternative Trade (IFAT) is a collective effort to empower
the agricultural sector of developing countries. It is composed of 100 organizations
(including 70 organizations in developing countries) in 42 countries. Members of the
organization collectively market about $200-400 million annually in handicrafts and
agricultural products from lower income countries. In addition, IFAT provides assistance to
developing country producers in terms of logistical support, quality control, packing and
export.
E-commerce at Work in the Service Sector---
Customer support call centers of dot-coms and other ICT/e-commerce companies are
considered one of the fastest growing components of
offshore services in these countries.
India and the Philippines pride themselves in being the major locations of offshore data
entry and computer programming in Asia, with India having established a sophisticated
software development capability with highly skilled personnel to support it.
Developing country SMEs in the services sector have expanded their market with
the increased ability to transact directly with overseas or international customers
and to advertise their services. This is especially true for small operators of tourism-
related services. Tourism boards lend assistance in compiling lists of service providers by
category in their Web sites.
E-Mail and the Internet in Developing Countries
To date, e-mail is the predominant and most important use of the Internet in developing
countries. In Bangladesh, 82% of Internet use is attributed to e-mail, vis-à-vis 5% in the
United States. The Web accounts for about 70% of Internet use in the U.S.51 This is due to
the relatively high Internet access costs in most developing countries. However, the Internet
is considered an inexpensive, although imperfect, alternative to the telephone or facsimile
machine-i.e., it is inexpensive due to the higher speed of information transmission, and
imperfect because it does not provide two-way communication in real time unlike the
telephone
Women Empowerment in Bangladesh:
The Grameen Village Phone Network is a classic example of women’s empowerment in
Bangladesh. Operators of the village phones are all poor women (who have been selected
for their clean and strong credit record). These village phones are regularly visited by
members of male-dominated villages. Notably, the women entrepreneurs (village operators)
enjoy wider discretion in expending their profits from their phone services than with their
household income.
Qs. 1 (B) Trends in e-payment and security concerns----
E-PAYMENT
What is e-payment?
Making payments on the internet is electronic versions of the traditional payment
system. In the electronic payment system everything is digital and is designed to handle
electronically. Everything about the payment is virtualised in to strings and bits. The E-
payment systems are appropriate for business, consumer and business-to-business
transactions.
E payment is a subset of an e-commerce transaction to include electronic payment
for buying and selling goods or services offered through the Internet. The Internet has the
potential to become the most active trade intermediary within a decade. The important
aspect of e commerce is prompt and secure payment, clearing and settlement of credit or
debit claims.
E-Payment 4 years ago… Cyber cash
Cyber coin
E-Cash
First Virtual
Millicent
Mondex
Net Bill
Net cash
Net Cheque
SET
Traditional Payment Methods (Credit Card, Cash on Delivery, etc.)
…and what is left today?
Millicent
Mondex
SET
Traditional Payment Methods (Credit Card, Cash on Delivery, etc.)
Categorization of Internet payment instruments
New Trend in E payment -
A number of payment innovations such as smart cards, person-to person payments, check
conversion and mobile payments have gained increased attention and could hinder future
innovation. Central to this change has been increasing use of payment networks for new or
alternative payment uses. When competition and innovation policy in the credit card market
was just beginning to be explored several decades ago, there was essentially just one
product—the credit card—and one type of network for non-recurring consumer payments—
the credit card network.
Examples of Payment networks –
Credit Card Networks.
ATM Networks. Another example of the evolution to "product-independent payment
networks" can be seen in the evolution of ATM/EFT networks. EFT networks, which
were previously regionally based, now extend across the country both through direct
ownership and through sharing arrangements.
ACH Network. -industry groups are looking into ways to use the ACH network to
convert and truncate check payments at lockbox locations. As a result, it is
increasingly clear that the clearing and settlement business is becoming a commodity
business that can be transacted over a variety of networks and clearing
arrangements.
1. Pre-paid 2. Pay-Now 3. Pay-Later
Hardware-based Quick, Geldkarte
Software-based Pay safe card Micro money (e Cash) (Cybar coins)
Cash On Delivery
Debit instrument
Mobile Payment Pay box Mobi Pay Street Cash (Pay it mobile)
E-Mail-Payments Pay pal
Credit card Unencrypted SSl SET
Credit Transfer
Billing-/Collection systems Net900 Firstgate Paysafekey
Increasing Innovation and Competition
While significant change has occurred in the use of payment networks, a number of
innovations are currently under discussion or development that would continue to leverage
existing payment networks new ways.
International ACH
The Federal Reserve has already expanded the scope of the ACH network to send payments
to Canada. Currently, a number of different associations, government agencies and private
corporations are discussing further extension of this payment system to other countries. In
particular, discussions are already under way to investigate the feasibility of expanding ACH
payments to Mexico and Europe.
P2P Payments
Third party payment providers are leveraging existing networks to provide electronic person-
to person payments on the Internet and at ATMs. Companies such as PayPal, Citibank and
eBay are utilizing the ACH, credit card and EFT networks to provide electronic P2P payments
over the Internet.
Mobile Payments
Significant investment and research has gone into investigating the creation of mobile
payment applications. In addition to leveraging telecommunications networks, these
innovations typically utilize existing payment and banking networks. In particular, Visa and
MasterCard have worked closely with third party providers and telecommunications firms.
Key Payment Systems
1. Paypal
2. TradEnable
3. e-Charge Phone
4. Mondex
5. Internet Cash
1. Pay pal
PayPal is a money transfer system that was originally launched for C2C (customer-to-
customer) transactions, but recently, X.com, the company behind the service, introduced
B2C transactions, by offering accounts for businesses. Paypal acts as a neutral intermediary
offering low risk to both seller/receiver and buyer/sender of the money.
PayPal uses e-mail to inform the receiver that a payment has been made. It accepts money
from the purchaser in one of three ways:
1. Charging the purchaser's credit card for any transactions (payments)
2. Debiting a checking account for any payments
3. The purchaser sending a check to create a positive balance in his account at PayPal,
and having any payments deducted from the account Payment recipients can use the
money in the account for online purchases or payments, can receive the payment
from PayPal by check, or can have PayPal directly deposit the money into their
checking account.
2. TradEnable (I-escrow)
TradEnable allows buyers and sellers to set terms online. After both parties agree to the
terms, TradEnable emails the buyer, asking him to pay the amount to TradEnable. The
payment can be made via credit card, personal or business check, money order, cashier's
check or wire transfer. All payments must be made in US dollars.
This is kept in an escrow account, and the seller is informed via e-mail to log-in to
TradEnable's site to get the shipping details. After the goods are received, inspected and
approved by the buyer, the seller is paid by TradEnable for the goods. If the buyer is
dissatisfied and returns the goods, the seller will also be given time to inspect and accept the
goods as returned. In this case, TradEnable returns the money to the buyer.
3. e-Charge Phone
Another alternative payment solution that is fast becoming popular is eCharge Phone
because it allows customers to bill purchases to their local phone bills. This makes it
convenient for people who do not own a credit card, or who do not wish to give their card
numbers due to security reasons. eCharge Phone can handle payments ranging from $1 to
$300, as well as recurring subscription charges, such as ISP charges. Their merchant network
currently includes such well-publicized sites as ClassMates.com and McAfee.com.
4. Mondex
Mondex electronic cash works in the same way as cash which means merchants can transact
using digital channels like the Internet, mobile phones and digital television with less risk of
fraud. Mondex operates on a smart card and is accessible to everyone, including the youth
market and those without bank accounts. The microchip contains a 'purse' in which Mondex
value is held electronically. The purse is divided into five separate pockets, allowing up to
five different currencies to be held on the card at any one time. The microchip also contains
Mondex security programs that protect transactions between one Mondex card and
another.
Security of e-payments
Security components of e-payments
• Availability
• Authenticity and authorization
• Integrity
• Non-repudiation
• Confidentiality
Technologies Aspect
• Symmetric encryption
– problem of key distribution in large networks not suitable for mass-use
• Asymmetric encryption
– addresses the problem of key distribution
– requires an infrastructure with co-operation on organizational aspects of key
management
• Legal backing and interoperability open issues
• Organizational challenges of PKI
E-signature for the security of e signature for the security of e-payments
payments
• Compared to traditional payment systems, the use of the open network has
allowed more convenient financial services but has also made the nature of risks
more complex
• There is an increasing demand for security services by banking customers, above all
by firm s, confirmed by the vast economic literature and surveys on e-
commerce and e-business
• Financial institutions are requested to supply on-line payments on open networks
with the same security levels as traditional payment instruments.
To win the challenge of the new technological environment, e-signature must be regarded as
an enabling platform, or an essential device, to offer a complete set of trust services. These
might be grouped in three levels
basic services related to validation of identity and issuance of certificates
Complementary services to e-signature, typically developed by the banking
community, such as electronic documents management systems, attribute
management, "Quality of Service" (QoS) dynamic warranty systems, secure &
certified mail.
value added services, tailored to individual customers, like "escrow services" in
business-to-business environment
Major Issues for E security
Security of data transmissions
The need for treatment of cryptography in both domestic law & international agreements
- Government access to public key codes of private cryptography; &
- Mutual recognition of cryptography standards
Privacy protection The need for explicit privacy protection laws & regulations or policies to govern the use of personal data by on-line services Digital signatures & electronic contracts The need for revising new legislation on electronic transactions Certification & Certification Authorities The need for credibility & security for EC transactions both domestic & international
Points the attacker can target
As mentioned, the vulnerability of a system exists at the entry and exit points within the
system. Figure 3 shows an e-Commerce system with several points that the attacker can
target:
Shopper
Shopper' computer
Network connection between shopper and Web site's server
Web site's server
Software vendor
Figure. Points the attacker can target.
“PAYING” IT SAFE
The FTC encourages you to take steps to make sure your transactions are secure and your
personal information is protected. Although you can’t control fraud or deception on the
Internet, you can take action to recognize it, avoid it and report it. Here’s how.
Use a secure browser — software that encrypts or scrambles the purchase
information you send over the Internet — to help guard the security of your
information as it is transmitted to a website. Be sure your browser has the most up-
to-date encryption capabilities by using the latest version available from the
manufacturer. You also can download some browsers for free over the Internet.
When submitting your purchase information, look for the “lock” icon on the
browser’s status bar, and the phrase “https” in the URL address for a website, to be
sure your information is secure during transmission.
Check the site’s privacy policy, before you provide any personal financial information
to a website. In particular, determine how the information will be used or shared
with others. Also check the site’s statements about the security provided for your
information. Some websites’ disclosures are easier to find than others — look at the
bottom of the home page, on order forms or in the “About” or “FAQs” section of a
site. If you’re not comfortable with the policy, consider doing business elsewhere.
Read and understand the refund and shipping policies of a website you visit, before
you make your purchase. Look closely at disclosures about the website’s refund and
shipping policies. Again, search through the website for these disclosures.
Keep your personal information private. Don’t disclose your personal information —
your address, telephone number, Social Security number, bank account number or e-
mail address — unless you know who’s collecting the information, why they’re
collecting it and how they’ll use it.
Give payment information only to businesses you know and trust, and only when
and where it is appropriate — like an order form. Never give your password to
anyone online, even your Internet service provider. Do not download files sent to you
by strangers or click on hyperlinks from people you don’t know. Opening a file could
expose your system to a computer virus or a program that could hijack your modem.
Keep records of your online transactions and check your e-mail for contacts by
merchants with whom you’re doing business. Merchants may send you important
information about your purchases.
Review your monthly credit card and bank statements for any errors or
unauthorized purchases promptly and thoroughly. Notify your credit or debit card
issuer immediately if your credit or debit card or checkbook is lost or stolen, or if you
suspect someone is using your accounts without your permission.
Q1(c) - Application in various industries (identifies need and scope in various
industries like finance, health care, IT, manufacturing, retail etc).
Heath Care
ABSTRACT
Electronically connecting with patients is a challenging frontier at which technical hurdles
are probably exceeded by political, legal, and other barriers. The rise of consumerism,
however, compels a response focused more on revenue and strategic advantage than on
pure cost savings. Emerging models include “free-floating” personal medical records largely
independent of the office-based physician, systems with compatible and intertwined
physician and consumer relationships using an application services provider office practice
system, and systems that connect patients and providers through e-mail, office triage,
prescription refills, scheduling, and so on.
Getting Started
The critical step in developing a successful and valuable consumer-oriented Internet strategy
is to carefully examine current workflows involving patient interactions. Simply layering new
technology atop existing processes is unlikely to yield savings to help fund the initial
investment and ongoing costs that truly worthwhile initiatives will require.
Provider-Patient Transactions
The following list illustrates the varying components of patient-provider communication
enabled by Internet technology:
• Appointments and schedules: The centre of activity and ongoing provider business is the
continual flow of patients through the operation. One challenge
is to coordinate and efficiently fill the provider’s schedule in accordance with patient
demand. Another is to respond to increasingly busy patient schedules. Electronic
communication facilitates the back-and-forth communication that is sometimes necessary to
achieve these goals and, in any case, makes the process faster and more convenient.
• Prescription refills: This common special instance of inbound triaged requests lends itself
to electronic routing, as needed. Personal physician attention may not be needed,
depending on the circumstances.
• Previsit preparation: This is the collection of data in advance of an office visit, including
the reason for the visit. This exchange can be structured using electronic forms to ensure
that important data are gathered and available when needed.
• Post-visit follow-up: Helpful in closing the loop on office visits with routine results, an
electronic communication is also an important means to emphasize advice, encourage
compliance with medications, and refer patients to Web-based sources of reinforcing or
requesting information with which the provider is comfortable.
• Chronic disease management: Continuous, on-line communication allows for patients to
provide regular data for problems such as diabetes, hypertension and obesity and receive
coaching responses by physicians or changes in a treatment regimen. • Questions and call-
backs: Patients have questions concerning their health, medications, travel, and so on that
might be handled electronically in lieu of office visits, depending on the nature of the
inquiry. As with.
Documentation.
Good systems can retain records as by-products of communications and message routing for
inclusion into the medical record and subsequent reference. The exchange is permanently
documented with regard to date, time, and content. Such documentation does not always
occur with telephone conversations; it is difficult and time consuming for providers to
dictate or transcribe notes based on verbal exchanges. The automatic trail of electronic
communications is more complete and may afford some protections from liability.
Personal Health Records.
Personal health records (PHRs) in the context of this discussion are patient-owned and
managed records in electronic form. Most are Web-based, the most interesting of which are
intended to work with a provider-based electronic record system. Nothing about an
organized and comprehensive set of patient communications precludes the use of PHRs by
patients. Some commercial solutions incorporate PHRs, patient communications, and
provider-based medical records into a comprehensive solution. They are certainly worthy of
consideration by providers but are up the scale of complexity and risk. PHRs may actually be
an evolutionary step up from simpler provider-patient communications. Providers might give
additional weight to commercial solutions that offer linked PHRs and office-based records as
an option.
--------Insurance products are particularly suited for production, administration and
distribution online. Only when a claim occurs are physical processes such as assessment and
on-site services necessary. Even these processes can be co-ordinated online with partner
company networks. In the same way Internet-based communication networks can be used in
the course of fighting insurance fraud. Last but not least, information exchange and
communication with the companies’ own sales forces and agents can be conducted more
timely, more independent of location and probably also cheaper with the Internet. E-
business processes offer small and medium-sized insurers the opportunity to network with
uniform standard interfaces compensating for disadvantages of scale. In the field of e-
commerce, they will have the best opportunities when they focus on particular customer
groups or specialist products and do so better than the large insurers.
The insurance sector is of particular interest for any study on electronic business due to its
economic importance, its decentralised organisation and a high level of personal computer
usage:
Decentralised organisation:
Since the insurance business is often organised in a decentralised manner, optimising
business processes between headquarters, agencies and salespersons is a constant
challenge. In this respect ICTs can play a vital role.
Companies’ benefits:
ICTs facilitate business processes and cut costs
ICTs can significantly contribute to improving insurance business processes, particularly in
reaching new customers and to tightening bonds with existing customers. ICT use offers a
wide range of application opportunities in the entire value creation steps example, journeys
may imply route planning and hotel reservation as well as baggage and health travel
insurance policy.
Marketing:
Product presentation on insurance firms’ websites can reduce customers’ need for personal
information and facilitate contract conclusion, saving the insurance firm the cost for running
agencies and paying commissions to agents.
Sales:
Automatic premium calculation modules allow individual contract design. Electronic
signatures may even enable customers to conclude contracts through the Internet without
requiring any paperwork through the Internet can be offered at a reduced rate.
Administration:
ICT applications allow the automation of parts of the internal workflow, thereby reducing
costs. The Internet enables customers to change data such as addresses and deductibles on
their own without an insurance agent being involved.
Asset management:
ICTs facilitate the access to information relevant to investment decisions in insurance
companies and investment transactions can be conducted online.
Claims Product development:
The availability and analysis of customer data in electronic data warehouse and data mining
applications makes it easier to create insurance products suited to the needs of particular
groups of individuals
Claims management:
Damage information can be transferred online, for example reports and digital photos.
Paperwork for underwriting and claims processing can be reduced and the firm is freed from
customers’ enquiries. Third party companies can be integrated more easily in the damage
follow-up by electronic transfer of reports, cost calculations and invoices. Finally,
settlements can also be made electronically.
E-tailing
E-tailing (less frequently: etailing) is the selling of retail goods on the Internet. Short for
"electronic retailing," and used in Internet discussions as early as 1995, the term seems an
almost inevitable addition to e-mail, e-business, and e-commerce. E-tailing is synonymous
with business-to-consumer (B2C) transaction.
E-tailing began to work for some major corporations and smaller entrepreneurs as early as
1997 when Dell Computer reported multimillion dollar orders taken at its Web site. The
success of Amazon.com hastened the arrival of Barnes and Noble's e-tail site. Concerns about
secure order-taking receded. 1997 was also the year in which Auto-by-Tel reported that they
had sold their millionth car over the Web, and Commerce Net/Nielsen Media reported that
10 million people had made purchases on the Web. Jupiter research predicted that e-tailing
would grow to $37 billion by 2002.
E-tailing has resulted in the development of e-tailware -- software tools for creating online
catalogs and managing the business connected with doing e-tailing. A new trend is the price
comparison site that can quickly compare prices from a number of different e-tailers and link
you to them. E-Tailing is emerging as an attractive alternative to the traditional brick-and-
mortar retaining. Chances are that they will co-exist profitably
Europe’s first online insurance – Ineas
Ineas is the first pan-European insurer to sell its products only via the Internet and to
consistently outsource any functions that are not part of its core competencies. In October 1999,
Ineas sold its first insurance policy in the Netherlands. At present, the firm operates in the
Netherlands, Germany, Belgium and France, where it offers private liability, household, motor
and accident insurance. The advantages for the clients are considered to be attractive prices and
increased transparency as well as 24 hour access to policies and claims settlement process.
Furthermore, Ineas offers an electronic policy and claims folder for the internet, as well as a
personal risk management service named PRIMES. This software module contains
information on risks, insurance policies and prevention measures, as well as analysis tools to
work out insurance requirements.
-----Both retailing and e-tailing are still nascent and growing. One estimate by consultants
KSA Technopak is that the organized retailing sector should be as large as Rs 5,000 crore and
e-tailing in India should be just about Rs 12 crore.
-----A retailer is restricted to a particular location, retailing is location-driven. But, an e-tailer
can go global. Being local in nature, a brick-and-mortar retailer has to identify a good
location for his operations and wait for customers. On the other hand, an e-tailer has to
virtually attract a customer to ..
----- Blue Dart plans to enter the household shipment business in a big way to serve the
needs of the online community in India. Looking at the coming e-commerce boom, Blue Dart
is targeting a 80 per cent annual jump in its business, mostly from the shipment
requirements of its online customers.
Top ten e-retailers ---
1. Amazon.com
2. Planetrx.com
3. Ticketmaster.com
4. Gateway.com
5. Barnesandnoble.com
6. Mothernature.com
7. Iprint.com
8. Hallmark.com
9. Buy.com
10. Bigstar.com
Finance---
Companies in the Internet age are finding that IT is no longer a back office support function,
but a prime source of competitive advantage. Technology is essential for delivering products
and services. For growing numbers of companies, it’s becoming an integral part of their
product and service offerings. As IT and business strategies become entwined in e-business
strategies and as the competitive environment becomes ever more complex and turbulent,
how can companies stay on track in their pursuit of cash flow and shareholder value? Most
of the world’s major companies have spent the last few years pursuing strategies to enhance
cash flow and shareholder value. Their executive teams have been preoccupied with
converging priorities: exploiting IT as an increasingly important source of competitive
advantage, focusing on core competencies by streamlining the business through shared
services and outsourcing, and participating in globalization and the search for international
partners. Many new opportunities open up on all these agendas as companies make the
transition to e-business. The result is continuing dramatic change for the business as a whole
and for the CFO and finance in particular.
E-Business application in finance
Share Trading
Electronic fund Transfer
E-Banking
Security Analysis
Tax payments
Centralized accounting system
Accepting Signatures Via Electronic Methods
Audit Trails and internal control
Reconciliation of Daily Transactions Downloaded from the Banking System
Manufacturing---- Introduction
The shift from made-to-stock to made-to-order has resulted in new manufacturing
environments that require IT frameworks able to support this new dynamism. In the e-
manufacturing era, companies will be able to exchange information of all types with their
suppliers at the speed of light. Design cycle times and inter-company costs of manufacturing
complex products will implode.
E-manufacturing is concerned with the use of the Internet and e-business
technologies in manufacturing industries. E-Manufacturing covers a single, complete set of
operational capabilities including rapid plant design and deployment, real-time ERP
connectivity, comprehensive asset management of people, products and processes, and a
seamless coupling to the entire supply chain via the Web. E-manufacturing integrates
customers, e-commerce systems, and suppliers into the manufacturing process to provide
an Internet-based strategic framework for the factory.
Companies such as Dell and Hewlett-Packard, along with their major suppliers, have
long utilized e-manufacturing to meet their customer needs.
Manufacturing sector is using technologies especially Enterprise Resource Planning
(ERP),Customer Relationship Management (CRM),Computer aided Designs(CAD), data
warehousing thus streamlining the processes, quality and cut down overall costs thus
driving the values. IT can greatly expand both the range of what can be produced and the
speed and efficiency of production.
REQUIREMENTS FOR E-MANUFACTURING SUCCESS
1. Business processes & production must be synchronized
E-manufacturers must raise the visibility of manufacturing information to optimize
performance, enhance responsiveness, and manage costs.
2. Collaboration of supply chain
Plants need to utilize supply chain planning systems and procurement systems to improve
their overall supply chain performance. The goal is to leverage this information in real time
to work against actual demand rather than forecasts of anticipated demand. Marketplaces
and trading exchanges, he believes, are the frontier for collaboration and the real-time
exchange of information across trading networks.
3. Inter & extra enterprise business processes and workflows automation
Manufacturing managers need new tools that allow them to have visibility into events as
they occur, and the ability to impact those events to add value. The business processes and
workflows within the enterprise and across the value chain needs to be automated.
4. Plant information and analysis tools dashboard
New Internet-based tools allow e-manufacturing managers to visualize information from a
variety of systems throughout the enterprise, and interpret the results in conjunction with
established performance metrics.
5. Integrate the design process among all collaborating parties
The manufacturing process begins well before the line ever starts to run. New internet-
based tools are emerging to support collaborative design and engineering processes.
6. Leverage bi-directional information with customers & suppliers
The essence of collaboration is the ability for individual plants to schedule their work in real
time based on accepted orders, and to coordinate the delivery of component materials
needed at the production level to meet those schedules. That involves sharing not only with
suppliers, but providing visibility into the manufacturing process to customers, while gaining
visibility into real-time demand from customers.
Q1(d)- Government and technology support (discuss various government
initiatives and technology treads facilitating E-Business growth).
The role of government in different parts of the world in order to investigate their role in
assisting their business enterprise to embrace & benefit from e-business. Since 1970s most
of the countries in the world have deregulated most of the business approaches & policies in
order to encourage efficiency, free & cross trade& competition in the business environment.
Despite the apparent enthusiasm among different governments in the world about e-
business & their interest in developing policies and initiatives aiming at encouraging e-
business uptake and use of their business community.
Most of the governments in the world and in developed countries specifically
acknowledged the importance of e-business to their countries and to the survival of
their businesses in the long run .Most of these governments have actively engaged in
setting out initiatives and policies to investigates the status of e-business in the
business environment and to put in place plans where e-business could be introduced
and defused amongst overall business communities in their counties.
The e-commerce policies of different governments were set broadly and, hence, were
not concentrating on business enterprise as such.
Initiative taken by the government in leadership and communication
in partnership with the private sector
Raise awareness and champion e-business through leadership and communication
(that is workshops, publications ,develop websites ,support through government
agencies ,develop key networks between businesses ,professional service provider
and the financial community)
Be informed about e-business capability through quality information and research
.Identify research and development programmes aiming at providing better statics on
the penetration of the Information and communication technology (ICT),and ICT skills
,improving the understanding of the constraints on the adoption of the e-business by
businesses to inform policy response .
Deliver better quality, cheaper, secure and faster services to its customers through
the introduction of online services and led by example through e government and e
procurement.
Ensure the continuing supply of skilled resources either nationally or internationally.
To promote e-business government has established:
A legal framework governing e-commerce transactions (including electronic
documents, signatures, and the like);
Legal institutions that would enforce the legal framework (i.e., laws and regulations)
and protect consumers and businesses from fraud, among others.
And finally, the Internet, the successful use of which depends on the following:
A robust and reliable Internet infrastructure; and
A pricing structure that doesn’t penalize consumers for spending time on and buying
goods over the Internet (e.g., a flat monthly charge for both ISP access and local
phone calls).
Security. Ensuring security of payments and privacy of online transactions is key to
the widespread acceptance and adoption of e-commerce. While the appropriate
policies are in place to facilitate e-commerce, lack of trust is still a barrier to using the
Internet to make online transactions.
A separate regulatory departments is also setup (department of information
technology) to look into the matter relating to the information technology.
(As published in Part II, Section 3, Sub-section (ii) of the Gazette of India, Extra
Ordinary, Dated the 6th January, 2004. Doc. CD-8/2004)
Policy matters relating to Information Technology; Electronics; and Internet (all
matters other than licensing of Internet Service Provider)..
Promotion of Internet, IT and IT enabled services.
Assistance to other departments in the promotion of E-Governance, E-Commerce, E-
Medicine, E-Infrastructure, etc.
Promotion of Information Technology education and Information Technology-based
education.
Matters relating to Cyber Laws, administration of the Information Technology Act.
2000 (21 of 2000) and other IT related laws.
Matters relating to promotion and manufacturing of Semiconductor Devices in the
country excluding all matters relating to Semiconductor Complex Limited (SCL)
Mohali; The Semiconductor Integrated Circuits Layout Design Act, 2000 (37 of 2000).
Interaction in IT related matters with International agencies and bodies e.g. Internet
for Business Limited (IFB), Institute for Education in Information Society (IBI) and
International Code Council - on line (ICC).
Initiative on bridging the Digital Divide: Matters relating to Media Lab Asia.
Promotion of Standardization, Testing and Quality in IT and standardization of
procedure for IT application and Tasks.
Electronics Export and Computer Software Promotion Council (ESC).
National Informatics Centre (NIC)
Initiatives for development of Hardware/Software industry including knowledge-
based enterprises, measures for promoting IT exports and competitiveness of the
industry.
All matters relating to personnel under the control of the Department.
The government has also modified its policies to promote a favorable
environment for e-business- “bridging the digital divide” or promoting access to inexpensive and easy access to
information networks;
legal recognition of e-commerce transactions;
consumer protection from fraud;
protection of consumers’ right to privacy;
legal protection against cracking (or unauthorized access to computer systems);
And
Protection of intellectual property.
FDI in telecom sectors are welcome.
It is important that government adopt policies, laws and incentives that focus on promoting
trust and confidence among e-Business participants and developing a national framework
that is compatible with international norms on e-business (covering for instance, contract
enforcement, consumer protection, Liability assignment, privacy protection, intellectual
property rights, cross-border trade, and improvement of delivery infrastructure).
E-Commerce and the Government
One of the most significant examples of successful e-Commerce deployment within the
Government sector is the instance of the Indian Railways. Today, India’s citizens can
check the availability of railway tickets, monitor their status (from standby to confirm) and
basically purchase train tickets online, greatly easing their lives. E Commerce has virtually
revolutionized the manner in which the railways deliver a part of their services to citizens,
making it convenient for ordinary people to buy tickets painlessly and effortlessly.
By using e-Commerce to improve the government-citizen interface and greatly
enhance the customer experience, the railways have emerged as a beacon in the realm of e-
governance success stories—an example for other Government departments beginning their
e-governance voyages. Addressing the audience at the NASSCOM e-Commerce event,
Mr. Amitabh Pandey, General Manager of the IRCTC said that there was a large and
growing market for B2C e-Commerce in India. ―While the absolute numbers are in the
metros, the non-metro cities are growing rapidly and should not be ignored in any business
plan. The market is not limited to the young. The serious money makers—the 30+
people—are both able and willing to transact on the Net and constitute a significant portion
of the market,‖ he said.
Mr. Pandey also pointed to the following:
market acceptance of innovations was reasonably high with the Railways’ e-
Ministry of IT has planned and taken initiatives to Promote E-Business
Enterprises-
1) Promoting innovation, supporting entrepreneurs with brilliant & commercial ideas,
providing business support, create incubation centres are some of the areas where
government with the participation of industry and other sectors have been playing a
catalytic and facilitating role.
2) MIT in association with SIDBI, IDBI and software industry has set up a corpus of Rs. 100
crores, named as National Venture Fund for Software and Information Technology Industry
(NFSIT). NFSIT is targeted to provide venture capital to start up software professional and IT
units in small scale sector.
3) In various software technology parks as well as other parks promoted by State
Government, Incubation Centres/plug & play facilities are being set up.
4) To release the Indian venture creation and incubation engines, procedures & policies are
being simplified. We need to have many more initiatives.
Some of the initiatives taken by the Government, which may directly
or indirectly boost e-Business, are as follows. The Government has enacted the Information Technology Act, 2000 which inter alia
provides legal recognition to digital signatures and electronic contracts.
High Powered Committee constituted by The Ministry of Finance to deliberate and
discuss the required amendments in tax legislation to deal with e-business
transactions has submitted its recommendations to the Government.
The Government has liberalised the tax and regulatory framework for venture capital
funds, especially foreign venture capital funds, thus paving the way for increased
venture capital funding to e-Business ventures.
The Government has permitted ISPs to set up international gateways and increased
permissible levels of Foreign Direct Investment inter alia in ISPs with Gateways and
end-to-end bandwidth providers, thereby paving the way for increased bandwidth
and resultantly, speedier internet access.
The Government has set up an Information Technology Ministry to inter alia promote
the Internet, e-Business and knowledge based industries.
The Government has also made amendments to the tax law to provide tax benefits,
most notable amongst them are:
Tax holidays for units engaged in rendering 15 prescribed categories of IT
Enabled services
Tax holidays for units providing Internet and Broadband Network services
Tax holidays for setting up Special Economic Zones.
The immediate agenda for the Government now is to enact cyber and convergence laws,
amend tax legislation and provide for legislation granting protection to intellectual property
rights (prevention of piracy, cyber-squatting etc).
Telecom developments
During the last five years, the telecom sector has seen continued liberalization. Telecom
services, which were the sole monopoly of the Government till 1994, were opened to the
private sector. The National Telecom Policy announced in 1994 separated the policy making
functions of the government from those of providing services, and allowed the private sector
to provide telecom services. It also recognized the need for the establishment of an
independent Telecom Regulator. As a result, a number of private companies were given
licences for providing mobile telephone services, and for fixed-line telephone services.
International gateways were permitted to be set up by private operators. The policy was
further liberalized in 1999. The Department of Telecommunications which was providing
telecom services as a sole monopoly was corporatized in the year 2000 and was made to
compete with the private sector on a level playing field. The National Long Distance Services
on the domestic routes, that were the sole monopoly of the government, were also opened
to the private sector.
Good successful example is the Gyandoot model of Madhya Pradesh where IT
has been taken to the rural areas that too in the tribal dominated district of Dhar by
imaginative District officers providing very valuable services by way of an intranet
connecting 31 villages. Here again the existing fund under the various rural
development scheme have been utilized. While 30 centres are funded by government, the
remaining are on a basis of franchise and employment opportunities have been created in
rural areas by using It. This success has already inspired a collected in Himachal
Pradesh to replicate the experience in her district.
Government legislation to equate electronic signature to handwritten signature is
another means to build the public’s confidence in the security of internet transaction and
promotes the use of electronic communication. Throughout 2001, the countries in the
EU will introduce such legislation based on a European Commission Directive on a
Community Framework for Electronic Signature.
Existing backbone networks of public and private companies like power grid, railways and
gas authorities have been allowed to set up national long distance carriers for data
transmission.
In January 2001, the government paved the way for unrestricted competition in basic phone
services. The move will help consolidate the position for those telecom companies that can
offer a basket of services – basic, cellular, Internet, national long distance and broadband –
to their customers with flexible tariff packages and single billing as the country moves
towards convergence. The basic telecom players will also be allowed to offer mobile wireless
in local loop (WLL) services.
The Telecom Policy also recognizes the convergence of different media, and has permitted
direct inter-connectivity among service providers. Two-way communication through cable
has been permitted for voice, data and information services. A cable service provider can
also obtain a licence as a fixed service provider. In fact, the country is moving towards full
convergence with the Convergence Bill having been introduced in Parliament. This takes care
of increasing convergence between telecom, IT and broadcasting services. The
Communications Convergence Bill, 2001 envisages the setting up of the Communications
Commission of India (CCI) to promote the plurality of different media, forms and structure
and provide access to a range of competing viewpoints and information resources, in
addition to ensuring consistent approach to regulation of new activities in the era of
convergence. These telecom policies have had a positive effect in the last few years. The
teledensity rose to5 per cent in September 2002 and is projected to grow to 7 per cent by
the year 2005 and to 15 per cent by 2010. The rural density is expected to grow from the
current level of 0.8 per cent to 4 per cent by 2010. (The urban teledensity is around 10 per
cent). The number of mobile phones is multiplying at very fast rate and is at present 8.5
million. The telecom sector saw an investment in the range of US$ 4.5 to 5 billion by the
government and its agencies alone during the last two years. By 2005, a total investment of
US$ 37 billion will be required, and this figure will rise to US$ 69 billion in the year 2010
(Department of Telecommunication, India, 2001; and Indian Express [Bombay], 7 June 2001).
Many of the private companies have set up national long distance backbone as also fibre
optic networks to wire the major cities and the trunk routes for providing all kinds of
services. A number of them have also set up international gateways for providing bandwidth
to the ISPs. Private sector companies like Reliance Telecom, Powergrid Corporation,
Railways, Bharti Telecom, BPL and GAIL are creating cross-country optical fiber networks for
broadband services. Even non-telecom players like Enron, Zee TV, and Spectranet are
making huge investments in the broadband sector. It is estimated that investments of the
order of Rs 318 billion (US$ 6.8 billion) have been made by the year 2001 (Varma, Yograj,
2001 and Das, Sanchita, 2001). International connectivity too is attracting huge investment.
Videsh Sanchar Nigam Ltd. (VSNL), which was owned by Government till recently, had a
monopoly till recently. It invested Rs 109 billion for a bandwidth of 59 gigabits per second
(Gbps). VSNL as well as Hindustan Teleprinters has since been privatized in March-April,
2002. The private investment of about US$ 1.4 billion by Bharti Telecom, Dishnet DSL has
created a bandwidth of 16.08 tera-bits per second (Tbps) connecting India with the world
through Singapore, Jakarta, Guam, Portland, Los Angels, Hawaii and Japan. Reliance Telecom
and Tata Access are also likely to provide international connectivity in near future (Varma,
Yograj, 2001 and Das, Sanchita, 2001). A number of companies are providing broadband
access over the cable. Set top boxes and cable modems can enable existing TVs to act as
Internet devices. All major cities are being wired with optical fibers to provide cable TV
services, and broadband Internet. The existing 98 million TV sets have the potential of
accessing Internet. As a result of these policies a number of ISPs have come into being which
have spearheaded the growth of Internet connectivity in a big way. Over 170 ISPs are fully
operational in the country which have taken the number of Internet connections from a
mere half a million three years ago, to 3.5 million by September 2002. Each Internet
connection is used by multiple users. The estimated number of Internet users is 17 million.
By 2005, Internet connections are expected to go up to 25 million while the Internet users
will rise to over 100 million.
The NASSCOM survey finds that there are over 400 cities that have at least 2000 Internet
connections. This number will double in the next one year. This shows that Internet has
penetrated well beyond the metros to smaller cities and towns across the country. The
current level of Internet bandwidth available in India stands at 10 Gbps. By 2004, the
bandwidth demand will be at the level of 100 Gbps. By the year 2005, data traffic which is 5
per cent today, will account for 50 per cent to 65 per cent. Wireless, broadband and
convergence of media are emerging in response to the demands of the growing number of
Internet users in the country.
Legal and regulatory framework for e-commerce
Besides developing the e-infrastructure in the country through effective Telecom Policy
measures, the Indian government is taking appropriate steps as confidence building
measures for the growth of e-commerce. It has created the necessary legal and
administrative framework through the enactment of the Information Technology IT Act
which combines e-commerce transactions and computer misuse and frauds rolled into an
Omnibus Act. While on the one hand it seeks to create the Public Key Infrastructure (PKI) for
electronic authentication through digital signatures, on the other hand, it seeks to build
confidence among the public that the frauds in the cyber space will not go unpunished. The
Controller of Certifying Authorities (CCA) has been put in place for effective implementation
of the IT Act. The Act also enables e-governance applications for electronic delivery of
services to citizens. The CCA acts as a regulator for the growth of e-commerce and e-
governance. It is responsible for the establishment of PKI the country through licensing of
certifying authorities (CAs). For this purpose, it has notified standards which are based on
international standards as adopted by the International Telecom Union, the Internet
Engineering Task Force (IETF), Institute of Electrical and Electronics
CONCLUSION
Government has now recognised the potential in the E-Business industry as a future of all
the business activities. Government is now designing the policies with an aim to encourage
individuals & organisations to go for E-business. E-governance is a major step in these
directions showing the confidence of government in e-business.
Ques.2:-Consider you are assigned a task to start a new E-Business department
for an existing brand OR a task to start an E-Business from scratch, draw an
outline of steps and process you would undertake. Discuss key elements to be
considered for starting and promoting the E-Business.
Ans: - The first question is what does the E-Business means. E-Business can be defined as
follows
E-Business is the process of buying and selling over a common electronic network. The
most popular network over which E-Business is conducted is internet. it includes
• buying and selling of goods and services
• servicing customers
• collaborating with business partners
• conducting electronic transactions within an organization
When we decide to start a new E-Business for a existing brand we will adopt the following
process
Process for developing E-Business
The significant issue faced by managers today is one of transformation: “How do I
transform the brick and mortar company of yesterday to the click and mortar economy of
today to be competitive in the inevitable digital economy of tomorrow.
A realization that has come about in today’s hyperactive e-economy is that traditional
planning horizons tend to be too long for the very fluid state of e-business. Continuous
planning with feedback has evolved as the strategy of choice for the fluid and volatile e-
environment. This method of continuous planning with feedback is structured around four
steps:
1. Knowledge building and capability evaluation: Identify and acquire a comprehensive
understanding/vision of customer needs. Develop a clear understanding of what
capabilities you need in order to address the identified customer needs.
Communicate this understanding of customer needs to all employees of the
organization.
2. Develop a comprehensive e-business design: this entails developing the competency
that lays the foundations to address the customer needs. If the customer wants self-
service, then the business design must provide and facilitate the same.
3. E-business blueprint: is what provides the vital link between the e-business design,
the business goals, and the technology foundation. If a self-service business model is
to be implemented, then the e-business blueprint helps determine the needed
application framework. It maps the projects and performance milestones that must
be achieved.
4. Application development and deployment: translate the key milestones and projects
into integrated applications. It provides for feedback loops that:
(a) At the micro level lets employees know how their individual job performance impacts
corporate objectives, and
(b) At the macro level furnishes feedback on the overall corporate objectives. It
facilitates an understanding about what is working and what is not so that
refinements/remedial actions may be undertaken.
Developing an e-business Plan
While there is no singular approach to developing an e-business plan, the following
provide a few guidelines. Making e-business a reality involves two key elements: the
business strategy formulation and the application framework. The business strategy
formulation component helps determine the facets of business that lead to customer value
creation while e-business strategy formulation is comprised of the following:
Knowledge Building: helps the organization understand what the customer is looking for
and the overall industry outlook. It facilitates an understanding of customer needs and what
they value. The following table identifies some of the key questions that will need to be
addressed prior to a foray into e-business:
Understanding the
customer
· Who are my customers?
· How are my customers’ priorities shifting?
· Which customers belong to my target market?
Customer value and
relationship trends
· How can I add value for the customer?
· What makes me my customers’ compelling choice?
· How does my product reach customers?
Technology trends · Is there a good understanding of the environment &
industry trends?
· Are the implications of the technology trends
factored in?
Competition · Who are the direct competitors? What are their
strengths/weaknesses?
Capability Evaluation: is an organizational audit of competencies. It provides the inputs for
competencies as they exist and helps develop an understanding of gaps in competencies. It
helps organizations develop an understanding of the inventory skills as they serve current
customer needs while helping plan for changing customer priorities. The following table
sheds some light on some of the key areas that may be evaluated as part of a competency
audit:
Customer
Interface
Production &
Fulfillment
Human
resource
Technology Infrastructure
Sales Manufacturing Culture Resource
planning systems
Financial
systems
E-commerce Distribution Skill Set Networks Research &
Development
Marketing Supply chain Training Web sites &
Intranets
Human
resource
Customer service Production
scheduling
Knowledge
managemen
t
Security
Channels of
Distributions
Inventory
management
Executive
commitment
IT skill set
E-business design: asks what value proposition a business must provide to take advantage of
digital capabilities. How is this value going to be packaged into products, services, or
experiences?
The e-business blueprint, or application framework strategy, helps take the “what to do”
and convert it into the “how to” of value creation. There has been a spate of innovation in this
area. Businesses that have been able to harness the power of the Internet by translating its
competencies into value for its customer now enjoy a distinct competitive advantage. The table
below identifies some of the e-business designs that have been successful and widely discussed in
the literature:
Pioneer: as the term indicates these businesses are first off the starting blocks and their success
stems from using the Internet to satisfy customer needs in a unique fashion. Besides being the first
in the marketspace, pioneers stay ahead of the competition by innovating continuously and adding
value to the exchange. Amazon.com is an example of a company that has successfully deployed
this strategy.
Disintermediation: this strategy often entails reconfiguration of the supply chain. It may entail
directly accessing the customer or realigning the marketing channel. Cisco and Dell are examples
of companies that have used the Internet to rethink the marketing channel and gain efficiencies in
the process.
Infomediary: is a strategy where customer search costs are reduced by using the Internet. This
has been very successful in instances where a customer is in the market for a homogeneous
shopping product (example: automobiles). Auto-By-Tel is an example of a company that has been
successful in using this strategy
Transaction Intermediary: entails deploying the Internet to facilitate the purchase process.
The transactional model facilitates the complete transaction from searching to after sales follow-
up. Companies that have used this strategy include: e-bay and Microsoft
Self-service innovator: entails using the Internet to provide services that an organizations’
customers can access directly. United Parcel Service (UPS) and Federal Express are two examples
of companies that have reduced manpower costs by creating Web sites that customers can query
for an array of services/information.
Channel mastery: Deploying the Internet as a sales and service channel. This strategy
supplements, the existing channel structure. Example: Charles Schwab
How to Start an E-Business
Whether we want to sell products online or just provide information about our bricks-
and-mortar business, don't let another day slip by without developing an Internet home
base for our business. These simple how-tos will provide everything we need to get
started.
A) Finding and Securing a Domain Name:-
The first step in choosing a name is obviously to try to register the name of your business with a
.com at the end. Unfortunately, this isn't as cut-and-dried as it sounds because all the good names are
most likely taken, by means of the time you read this, the name you want will most likely have been
snatched up by someone else. If the .com version of your name is gone and you can't buy it from the
owner, try .net or. Org. New domain names like .biz, Info and .us are also available but not used as widely.
If even those are taken, you can register your name in one of the more than 100 non-U.S. top-level
domains (TLDs) like .cc and .nu. The drawback is that these don't have the recognition of. Com-and your
prospects will automatically slap on a .com if your domain name hasn't imprinted itself on their noggins.
B) Choosing a Web Host:-
With your Web site authored, you need a place to stow it so visitors can access it—and you have
hundreds of choices. Many of these hosts are free, and few cost more than $20 per month. Truth is, setting
up your own host--a dedicated computer that's permanently wired into the Net--is time-consuming and
expensive and, for most small businesses, a bad idea. Better to outsource hosting to folks who specialize
in it.
While choosing the web host for our E-Business we should adopt the following parameters
How reliable is your service?
What kind of performance do you offer?
How good is your support?
What will it cost?
How do you handle security?
How much control do I have?
Can you handle the technology I'm using?
C) A to Z of Legal Issues
Copyright :- The footer of our site should display a copyright notice for the content of the site. The
notice should read "© [date] [copyright owner name] All rights reserved." We should also deposit a copy of
the site with the Copyright Office to record ownership of the site's content, look and feel.
Domain Name:- When building our Web site, domain names are an important part. Often they
are directly tied to our business name, our logos and our brand. Businesses often fail to give proper
thought to which domain name to choose. Picking a domain name should have the same careful thought
as naming other products or services. Choosing a domain name should include analysis of trademark law
in relationship to the name.
Export:- If persons from other countries use our site, then We are exporting. Depending on the
information on your site, what kind of business We do, the technology and information involved, our site
may be subject to regulations formulated by both exporting and importing countries, and We should
consult with our legal adviser about these business decisions.
Framing:- It is important to be careful how our Web site frames to other sites. There have been
trademark cases regarding consumer confusion over which site is which, and which site is the source of
the content and data.
Giveaways:- Sweepstakes, contests, lotteries and giveaways are governed by state and national
laws as to how they must be conducted.
Home Page:- On the footer of the home page of the site, We should have a link to our privacy
policy, our user agreement or terms and conditions, and our copyright notice.
Insurance:- Be sure that our business insurance covers Web site activities. Often Web site
activities are excluded from errors and omissions and other business insurance.
Jurisdiction:- One of the primary reasons for having a user agreement is to better address the
issues of jurisdiction. Under current law, Web site owners may be subject to jurisdiction and law in any
state or country where its users are located.
Linking:- When linking to other sites, we should consider two factors. One is what word or image
you are using for the link and whether it is a trademark of another site or company. If so, you need the
trademark owner's permission to post the company's trademark on your site. Second, you should always
link to the home page of a Web site since there have been "deep linking" cases claiming loss of advertising
revenue, which would have been gained if the users had been directed through the home page.
Obscenity:- Materials that are considered “obscene” by state or federal law are not permitted on
the Internet and, especially, may not be viewed by children. What is obscene is based on the local
standards of the viewing community.
Trademark:-Trade marking the name of our company, logo, mottos and domain name is an
important part of our business development and should be reflected on our Web site. our nationally
registered marks should display an ® and unregistered marks should display a ™ or SM.
User Agreement:-Having a user agreement or "terms and conditions" may be the most important
part of a Web site. A user agreement requires each user to agree to be bound by a contract governing his
or her use of the site by clicking "I agree" before being permitted to use the site.
Warranties:- Statements on our Web site about our products and services are express warranties
to customers. It is important to carefully review all Web site text to be sure that what our company
promises is true and corresponds with its other policies and advertising.
Your Risk:- The law is all about risk. The more time and money We spend following laws and
regulations governing our business, the lower our risks of fines or successful claims by government or third
parties
D) Accepting Payments
The number-one question on the minds of new Web site builders is, how do I arrange to accept
credit cards for payments? A good first place to start your search for merchant status is your own bank.
Most issue credit cards, and if you have a long-term relationship, that's a big plus. Your bank says no? Try
a few other local banks--offering to move all your accounts--and you just may be rewarded with merchant
status. You may also try other companies that specialize in issuing accounts to online merchants, including:
Card service International
VeriSign
Credit Card Processing Services
The Processing Network
21st Century Resources
Or log onto Google and search for credit card processing. You'll find many dozens of outfits, large
and small, that are on the prowl for start-ups seeking merchant accounts.
While choosing the medium or accepting the payment we should consider the following points
1) Making Customers Feel Secure
2) Fraud Prevention Tools
Other Payment Options
Money orders.
Existing checking accounts
Check cards
Electronic checks
Internet checks.
PayPal
To increase your merchant account eligibility, follow these tips:
Ensure a positive credit rating.
Be honest about previous merchant accounts, bankruptcies, liens or judgments.
Be willing to pay higher fees or accommodate special account requirements
E)How to Create a Site for Service Business
Businesses selling a service--or thinking about selling a service--over the Web face a few unique challenges that warrant special discussion.
Challenge #1: We are the product.
Challenge #2: Our time is limited.
Challenge #3: We must prove your ability to deliver measurable results, while
emphasizing flexibility.
Challenge #4: We are using a global medium to attract local business.
In order to overcome these challenges, there are several strategies we can employ
Strategy #1: Establish our credibility.
Strategy #2: Be specific about exactly what We are offering.
Strategy #3: Demonstrate our flexibility.
Strategy #4: Make it easy for leads to contact We.
Strategy #5: Network and get listed in local directories.
Strategy #6: Encourage referrals and repeat customers.
Site Design and Content
F) Designing our Site: How to Do It ourself or Hire a Designer
Countless small businesses rely on Web consultants every day to design and build their Web
sites, enhance existing sites, and put together the pieces of each company's distinctive ecommerce
strategy. If we are trying to get our company's site up and running, we can choose among independent site
developers, Web design shops, technology consulting firms, system integrators, traditional advertising and
public relations firms, and interactive agencies. Some of these outsource the Web site hosting and site
promotion functions, while others keep these functions in-house. In addition, Web design and strategic
consulting are often provided by Web hosting companies.
G) 10 Design Mistakes to Avoid
1. Not planning our site.
2. Failing to put contact information in a plainly seen location.
3. Broken links.
4. Outdated information.
5. Too many font styles and colors.
6. Orphan pages.
7. Disabling the back button.
8. Opening new windows.
9. Slow loading times.
10. Using leading-edge technology.
H) Adding Stickiness to Site
Our site is up, so now how do we make it special and filled with content that attracts visitors and
keeps them coming back? That mission consumes site-builders, both full-time professionals and part-
timers, but if there is one fact we now know to be absolutely true, it is this: Simplicity is best.
Customer Service
I) Creating a Privacy Policy
A must when building our Web site is writing a privacy policy and posting it boldly on your site--it's
a necessity today for building consumer confidence A good policy includes a description of how data is
collected and used; a way to allow users to choose not to provide data or permit their data to be shared;
and a description of the procedure for users who want to request or update data.
A good privacy policy should cover questions anybody visiting your site might have. Tell people
what's being gathered, by whom and for what purpose. Visitors should also be told their options for
participating in your information-gathering.
J) Dealing with Product Returns
Once our customers click on the "Pay Now" button and you've filled their orders, we may not be
finished with them: After receiving the product, they may decide it's not what they wanted. And getting the
product back isn't always so simple. we'll likely be in contact with them numerous times, and we'll have to
process a refund and restock the product once you've received it. There's almost more to the return than
the steps involved in the original sale. Suffice to say, customer returns can often be very time-, process-
and cost-intensive.
Marketing Your Site
K) 21 Ways to Promote Site Online and Off
Offline Promotions
1. Always put our URL on letterhead, business cards and in e-mail signatures—wherever potential
visitors are likely to see it.
2. If our employees wear uniforms, put our URL on them so every one of our customers sees a walking
advertisement of our Web site.
3. Include our URL on all promotional items we give away—coffee mugs, T-shirts, key chains and so on.
A daily reminder is a good way to get people to visit our site.
4. Be sure to include our Web address in all press releases we send out to members of the media. By
having it at their fingertips, they may be more likely to include it in articles they write about our company.
5. Don't forget to put our Web address in our Yellow Pages ad. That people see every day.
6. Do we own any company vehicles? Be sure to put your URL on the side of any car or truck that's out
there delivering your products.
7. In addition to listing your toll-free number, put our Web address on the bottom of every page of our
catalog so customers have easy access to our online store.
Online Promotions
8. Hone our search engine submission process so we can get the best exposure possible.
9. If we are still itching for more exposure, we can explore search engine marketing, wherein we pay to
have a text ad appear when visitors search for certain keywords.
10. Launch a sweepstakes that offers anyone who registers on our site or subscribes to enewsletters
within a certain time frame the chance to win a free gift.
11. Send out a weekly e-mail newsletter to registered site members that offers tips and news related to
our company or industry with links back to your site.
12. Offer free content to other sites. It's a win-win situation: The other site gets free articles to beef up
their offerings and we get a link back to our site and the cachet of being an expert.
13. Send a well-planned, customer-focused e-mail promotion to a targeted list of potential visitors and
offer a credit toward the purchase of anything from our site. Spend time on our e-mail's look and content:
We want to offer value to customers and not have it appear to be spam.
14. Create our own link exchange by asking sites complementary to ours (but that don't compete) to put
our link on their pages and we'll do likewise.
15. Hook up with Web affiliates—hundreds of sites that all link their traffic to ours—and get visitors from
sites with related content.
16. Get active in online discussion groups and chats and always include our URL in our signature.
(Don't do any hard selling, though. Most groups frown on such behavior and will think you're spamming the
group.)
17. Any time someone orders a product from our site, include a catalog with their order to get them
coming back for more.
18. Inspire our visitors to spread the word for you with viral marketing techniques, from the
aforementioned newsgroup participation to including an "e-mail this link" on every page of our site.
19. Not sure what our customers want? Try creating an online survey to get their crucial opinions on how
well our site is selling to them.
20. When creating our own ads, make sure we understand who we are targeting, the goal of our
campaign, and how to creatively use the ad confines to get viewers to click on our ad, not away from it.
21. Use other selling venues like online classified advertising or online auction sites to increase exposure
to your site and products.
L) Improving Search Engine Standings
It may seem like trying to find our Web site on a search engine or directory is like trying to find a
needle in a haystack. However, we can influence your ranking within a search engine through a variety of
ways, with the most basic aspect being proper set-up of the page being submitted--namely, the title of the
page, metatag description, metatag keywords and body text. Prior to editing the HTML of the page, do
some prep work to plan the keywords the page should be associated with. On a worksheet, put together a
list of 10 primary keywords that are strategic to our Web strategy. Order them by importance. In another
row, list derivatives of the primary keywords.
M) Pumping Up Site's Marketing Copy
We all know that well-written copy is one of the most effective methods for getting people's
attention and attracting them to your product or service, but the importance of the shortest copy is often
overlooked. A lot of people don't even realize that things like their navigation menus, links or even their
newsletter subscription offers are copy and require careful consideration.
N)Determining if Site Is a Good Sales Tool
If our Web site were one of our salespeople, would we keep that employee working for us? It
doesn't matter if we're the only "salesperson" or we have a dedicated sales team; brochures, product
sheets and a shopping cart system aren't enough to build any online or offline business. we want our Web
site to engage, enrol and compel customers. we want it to qualify prospects, present solutions and close
sales. We want it to grab a visitor's attention, create some interest, build desire and get the visitor to take
some action. we know--the stuff that salespeople do.
E-Mail Marketing
O) Creating, Managing and Increasing Opt-In List
Here's the simple truth: If our site isn't collecting opt-in e-mail addresses from our visitors, we're
losing money. I'm always blown away by the number of sites I visit that don't have a place for visitors to
leave their e-mail addresses, but I think I've finally discovered the reason why every site doesn't take
advantage of this essential marketing strategy: People are convinced that the process of adding this
function to their site is complicated. It's not! Getting set up is quick and easy: we don't have to be a
programmer to do it--and our opt-in list will quickly become our most valuable sales vehicle.
P) Boost Opt-In Rate
Just because you have your sign-up box ready to go and are prepared to handle your opt-in lists, it
doesn't mean people will automatically provide you with their e-mail addresses. You've got to give them
something in order to get something. People value their privacy--and their information--so you have to offer
them something compelling in return: an e-newsletter aimed at their interests, for instance, or a free e-book
on a subject they've told us they're interested in. However, let's assume we're already offering something
valuable in exchange for their e-mail addresses. If we're still not getting many sign-ups, it's likely our pitch
that needs polishing.