Project Report On E-Business
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In the emerging global economy, e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs.
With developments in the Internet and Web-based technologies, distinctions be-
tween traditional markets and the global electronic marketplace such as business
capital size, among others-are gradually being narrowed down. The name of the
game is strategic positioning, the ability of a company to determine emerging op-
portunities and utilize the necessary human capital skills (such as intellectual re-
sources) to make the most of these opportunities through an e-business strategy
that is simple, workable and practicable within the context of global information
and new economic environment. With its effect of leveling the playing field,
e-commerce coupled with the appropriate strategy and policy approach enables
Small and medium scale enterprises to compete with large and capital-rich
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. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information infrastructure must be improved.
In the 50’s and early 60’s, prior to the widespread inter-networking that led to the Internet, most communication networks were limited by their nature to only allow communications between the stations on the network. Some networks had gateways or bridges between them, but these bridges were often limited or built specifically for a single use. One prevalent computer networking method was based on the central mainframe method, simply allowing its terminals to be connected via long leased lines. This method was used in the 1950s by Project RAND to support researchers such as Herbert Simon, in Pittsburgh, Pennsylvania, when collaborating across the continent with researchers in Santa Monica, California, on automated theorem proving and artificial intelligence. The Internet system was developed and ready in the Late 1980s, but The Cold War held up the progress. When it ended in 1992, the internet slowly became main stream. By the end of the decade, millions were using it for business, education and pleasure.
The Internet was designed in part to provide a communications network that would work even if some of the sites were destroyed by nuclear attack. If the most direct route was not available, routers would direct traffic around the network via alternate routes.
The early Internet was used by computer experts, engineers, scientists, and librarians. There was nothing friendly about it. There were no home or office personal computers in those days, and anyone who used it, whether a computer professional or an engineer or scientist or librarian, had to learn to use a very complex system.
WHAT IS E-BUSINESS?
E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners. One of the first to use the term was IBM, when, in October, 1997, it launched a thematic campaign built around the term. Today, major corporations are rethinking their businesses in terms of the Internet and its new culture and capabilities. Companies are using the Web to buy parts and supplies from other companies, to collaborate on sales promotions, and to do joint research. Exploiting the convenience, availability, and world-wide reach of the Internet, many companies, such as Amazon.com, the book sellers, have already discovered how to use the Internet successfully.
E-business is more than just having a web presence to facilitate buying and selling. Frank Jones, VP of IBM Corporation, provides this definition: “E-business is exploiting the combined power of the internet and information technology to fundamentally transform key business strategies and processes”.
The most common implementation of E-business is as an additional, or in some cases primary, storefront. By selling products and services online, an e-business is able to reach a much wider consumer base than any traditional brick-and-mortar store could ever hope for. This function of E-business is referred to as ecommerce, and the terms are occasionally used interchangeably.
An E-Business may also use the Internet to acquire wholesale products or supplies for in-house production. This facet of E-Business is sometimes referred to as eprocurement, and may offer businesses the opportunity to cut their costs dramatically. Even many E-Businesses which operate without an electronic storefront now use eprocurement as a way to better track and manage their purchasing. revenue from 5% in 2000 to 10% in 2007 . Asia-Pacific e-commerce revenues are projected to increase from $76.8 billion atIn addition to buying and selling products, e-business may also handle other traditional business aspects. The use of electronic chat as a form of technical and customer support is an excellent example of this. An e-business which uses chat to supplement its traditional phone support finds a system which saves incredible amounts of time while providing opportunities unavailable through traditional support. By using virtual computer systems, for example, technical support operators can remotely access a customer's computer and assist them in correcting a problem. And with the download of a small program, all pertinent information about the hardware and software specifications for a user's computer may be relayed to the support operator directly, without having to walk a customer through personally collecting the data. In the past few years, virtually all businesses have become, to some degree or another, an e-business. The pervasiveness of Internet technology, readily available solutions, and the repeatedly demonstrated benefits of electronic technology have made e-business the obvious path. This trend continues with new technologies, such as Internet-enabled cell phones and PDAs, and the trend of e-business saturation will most likely continue for some time.
International Data Corp (IDC) estimates the value of global e-commerce in 2000 at
US$350.38 billion. This is projected to climb to as high as US$3.14 trillion by 2007.
IDC also predicts an increase in Asia’s percentage share in worldwide e-commerce
year-end of 2001 to $338.5 billion by the end of 2004. 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.
The goal is to digitize transactions, which are simply defined as exchanges of information. The number of opportunities is limited only by your creativity, cost, and good business sense. The best advice is to determine the best opportunities for payback and address them first. Make sure the benefit will pay back or exceed the cost. The following is a summarized list of functions and activities where e-business applications are becoming embedded into the typical business model. Visualize, if you can, a business where each of these business activities is completely integrated with the others, to form a completely integrated e-business.
HAVING TRADITIONAL BUSINESS :
WHAT DO ONLINE CUSTOMERS SEEK
Consumer attitudes of those who shop and purchase online are significantly different from the habits and preferences of consumers who visit stores. Their purchase decisions are driven and based on a different set of factors tied to the characteristics of the e-space environment. For an e-commerce business to survive, it is absolutely necessary to establish and maintain an intimate understanding of the customers, their behavior, and the factors that drive purchase decisions. In the current e-commerce environment, online consumers are highly sensitive to the following characteristics:
Become a freelancer – Do you have any specific skill? Sell it. Go to elance.com to find the job opportunities posted there.
Start information website – Do you have a passion to research any niche topic? Gather it, process it, rewrite it and start a new informational website on the researched topic.
Participate in affiliate marketing (sell others product) – Why don’t you sell manufacturer's or marketer's product? To be precise, sell other’s product.
Sell an ad space – If you have a website or blog sell an ad space from it. If you don’t have, try having one exclusively made for selling ad space.
Sell your own old stuffs through EBay – Start selling your product or your neighbor's or friend's product through EBay.
Create a Niche blog – Do you Blog for Fun? No don’t blog it. Blog to generate income out of it, get hired by companies to write blog for them. or create your own niche blog (this might over lap with any one of the above strategy).
Sell your services – If you have a talent in any particular domain, and then sell it as a service. Be an Online service provider. Example: Online Brokers (this might also overlap)
Create e-books on any subject of your interest and sell it across various channels like EBay, Amazon, etc
IS E-COMMERCE THE SAME AS E-BUSINESS?
While some use e-commerce and e-business interchangeably, they are distinct con-
cepts. In e-commerce, information and communications technology (ICT) is used in
inter-business or inter-organizational transactions (transactions between and among
firms/organizations) and in business-to-consumer transactions (transactions between
firms/organizations and individuals).
In e-business, on the other hand, ICT is used to enhance one’s business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network. A more comprehensive definition of e-business is: “The transformation of an organization’s processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy.”
Three primary processes are enhanced in e-business :
ment of stocks; processing of payments; electronic links with suppliers; and
production control processes, among others;
forts, selling over the Internet, processing of customers’ purchase orders and
ing, internal information-sharing, video-conferencing, and recruiting. Electronic
applications enhance information flow between production and sales forces
to improve sales force productivity. Workgroup communications and elec-
tronic publishing of internal business information are likewise made more efficient.
payments, and customer support, among others; and
WHY ESTABLISH A BUSINESS ON THE INTERNET?
On techniques we have practised. We will be sharing with
you the methods we have used to establish our own internet business
rather than harping on about theories. You will be reading a real success
story written by real people. Everything you will find here can be verified
and put into practice by you.
There is no denying that the internet has brought about a revolution.
Never before have people been able to interact in such a cost effective
and comfortable way. The Internet with its multiple communication
channels also changes the world of business. Now it is possible for you to
establish your own company with a very small financial investment or in
some cases even without any start-up capital at all. The majority of
people in any country in the world do not really like their regular jobs.
Nevertheless they get up early every morning to go to work and when
they return home tired and frustrated they switch on the TV to forget all
about their problems. They often dream about a life that gives them the
freedom to do what they really like with people who are friendly,
intelligent, understanding and supportive.
When it comes to business, most people confuse their personal opinions
with facts. They believe in fact that they know something when in reality
they don't have all the data to support their beliefs.In this document section you will find factual information that is based on our experiences and our experiences
Now with the Internet available in almost every household in any developed country, it is possible to achieve the type of lifestyle you have always dreamed about. The
following facts will show why you really should consider establishing your
own internet company :
Downsizing: Let's face it — a computer is more productive than a human in business. areas such as accounting, administration, data management, calculating, statistics and many more activities. Whatever industry you name — new technologies increase productivity which, in turn, often leads to fewer jobs. To be sure new technologies also create new jobs but these require a much higher level of qualification and knowledge. A person who has been working in the same sort of job for several years is often not capable of acquiring all the skills and qualifications needed for a job in a new workplace.
Globalization: The world is becoming more and more interconnected. Even, or maybe especially after September 11, international travel activities have been increasing and this pattern will continue into the future. The number of companies that operate on a multinational scale is constantly rising because they need new market places. In Europe nations have agreed on a uniform single currency — the EURO, enabling the European Community to develop into a strong economic entity. The same sort of thing is taking place in Asia with China, Taiwan, South Korea and Japan forming a powerful economic alliance.
Information: More than 500 million people worldwide are using the internet on a
regular basis, with email and search engines as the most popular services. Information is power. People are able to influence, direct, convince, educate and manipulate others through one single tool: The distribution of information. Email and discussion forums allow people to share their thoughts, ideas and experiences with other people from all corners of the world.
Cost Effectiveness : The internet is by far the most cost effective communication tool. If you want to send a letter via conventional or so-called snail mail it will cost at least around $1 (assuming you restrict yourself to two single sheets of paper). Sending the same amount of information via email will be up to 100 times cheaper with immediate delivery.
THE ADVANTAGES OF THE INTERNET
So, let's recap. Never have the chances for setting up and running your own successful business been easier than they are today:
You can certainly list even more reasons why it is possible for anybody with a computer and access to the Internet to establish their own business. At the same time the reality is that only a very small percentage of people who do have a computer and access to the Internet, establish and run their own business. Why is this? The answer is very simple. Most people anywhere in the world, spend too much time thinking about things they do not want, instead of thinking about things they do want. As a
result there are only a few people who have their own company and they usually earn more money than somebody with a regular job. Owners of comapines usually have more personal and financial freedom than people with regular jobs. But what exactly do you need in order to own a company? Money? A University degree? The right friends? Well, maybe some of these things can help you with your business but then they are not essential and are no guarantee of success. We have analyzed a number of successful online business people and here is a list of important characteristics all of them possessed. We know that the following qualities are essential for success as a businessperson so you should take the time to go through them and check whether or not you have them. All the information about how to set up a website, how to run an email newsletter, how to get a high ranking at Google, how to generate huge traffic to your website etc. will be worth nothing if you don't have most of the following skills and qualities.
WHAT DOES IT TAKE TO BE SUCCESSFUL IN
Most people wait until someone else tells them what to do. That's the way our society is organized. You go to school and the teacher tells you what to do. You study at university and the professors tell you what to do. Your parents tell you what is right and wrong. You get a job and there you will have a boss and colleagues who tell you what to do. Now, we all have to learn from others clearly but we do have a choice about where we get advice. If you want to know how to establish your own business, would you ask your colleague who has been working in a regular 9 -5 job for 15
years or so? Think about your teachers at school or your University professors. Do you think they know how to set up a business and become an entrepreneur? If we examine truly successful people we will find that they have a high level of self-motivation. This applies to any calling in life.
Consistency, the ability to follow through
Many people who do have self-motivation, quickly get enthused and inspired by a new idea. Getting excited or even thrilled by an idea might be great for the moment. A business, however, requires constant activity. If you want to establish and develop a company you need a high level of consistency also known as stickability. Once you have made the decision to set up your business, you must follow through this decision
with consistency. Think about your life can you come up with an example where you have proved your consistency, your stickability? Did you ever want to learn to play an instrument or a sport or a learn a foreign language? How long did you stick to your plan? How much time did you spend on your project and what have you accomplished? Chances are that you started a lot of projects and half way through the course you quit because things got tough and you lacked stickability. If this is the case fear not. You are not alone. The truth is that most people quit as soon as things get more difficult. Making a long-term commitment is not easy for most people. This applies to personal relationships too
Are you the sort of person who tends to raise your voice when something doesn't go your way? Or do you even have A tendency to shout at your spouse, children or colleagues when you are under pressure? Whenever you start shouting, swearing or using negative language you are wasting your energy energy better put to use on your business venture. Swearing and grumbling kills your creativity and blocks your mind. You must be strong enough to withstand any tendency to get angry or upset or else you will never succeed in your business.
It takes great courage to make decisions and set goals because this means you have to prove to yourself that you can follow your own words through to a conclusion. Look at your friends, family and colleagues. How often do you hear somebody make a promise like «I'll call you next week.» or «I'll look this information up for you.» or «Sure I'll help you when you move house, just let me know when you need me.» Those are statements, offers, promises all based on words. Yet, how often are they followed by deeds? Do you make New Year's Resolutions such as «Next year I'll quit smoking», «Next year I'll start this business course at night school», and «Next year I'll go on a trip to Paris or Egypt with you»? How many of those resolutions and promises have you kept? How many of them did you simply forget two weeks into the New Year? It takes courage to make a real decision, as you will have to make a sacrifice to follow it through. Also, when you start up a business you will be alone, at least to begin with. There will be no-one to tell you what to do, nobody at first to motivate and support you. You will have to take responsibility for yourself and to a certain degree, for any possible partners and you can only lead others if you have your own fears under control and are willing to take risks. Many people do not set themselves goals because they are afraid of failing of admitting defeat and they think the best way to avoid defeat is to simply not set goals.
Willingness to learn and the ability to change habits
When you decide to start your own Internet business you are also deciding to go back to school again. Not in a real physical sense but mentally. You will have to trawl for every single bit of information that will get you closer to your goal. To learn means you'll need to change your habits and habits are established patterns of behaviour and thinking that everyone acquires throughout their lives. However, most people are not aware of the fact that they have to learn something new every day and that in order to learn, in order to obtain new knowledge and new skills they have to change some of these habits. If you want to learn a foreign language you have to change your daily routine. For example the habit of listening to your favourite music on the radio. Instead you could be listening to audio recordings in the language you want to learn. We all
have a tendency to get used to things that are not only comfortable but also do not require much activity on our part. We get used to watching TV in the evening and eating convenience food at the same time because this is comfortable and doesn't require any mental activity. IF you want to establish your business, you won't have much time to watch TV for entertainment. You have to change your habit of absorbing information passively into one of actively searching for information in order to analyze, filter and reorganize it.
Establishing a business means creating a product, service or system that solves a specific problem or enhances a person's life in one way or another. You can achieve this purpose when you create something new This doesn't mean that you have to re-invent the wheel though. Examine any new product development that enters the market and you will see that this «new» creation is not entirely new but has been made up by combining existing elements in a novel way. This action of rethinking existing elements is the formula of creativity. So, in order to create something new you have first to analyze an existing product to find out how it can be improved, developed or enhanced in any way so it will do a better job. Take Google — its founders examined and analyzed existing search portals, in particular Yahoo and MSN. Based on their exhaustive studies they came up with an indexing and searching system that provides a higher search term relevancy. Study people's behaviour — identify their latent needs and desires and you will tap into a never-ending supply of product ideas.
Vision is the ability to see things not as they are right now, but what they will be like in the future. Most people are so stuck in the moment, so preoccupied with their personal daily problems that they don't have the time or energy to think about how a particular market can develop in the future. Look at any successful business venture and you will find that its founder was able to project into the future, to estimate how people's behaviour will change. Your success in business is directly related to your vision capacity» and your vision capacity is determined by two factors: How far ahead are you able to see into the future and how precise are your predictions? When Larry Page and Sergey Brin founded Google in 1998, they could see well beyond the year 2003, in which they yielded A revenue of almost $ 1 billion. By 1998 Yahoo and MSN were operating worldwide known search services and no one would have thought that two students could take the lead in the industry within 5 years. Yet, Brin and Page had become excellent analysts of the web search market and they collected and recorded the necessary data to recognize a pattern in human behaviour. Based on their observations they then drew conclusions and made a prognosis. If you want to build your own business, you must be able to see into the future. You can develop «vision capability» just like you can develop any other skill. Your first step is to study and analyze human behaviour. Ask yourself this question: What are people looking for when they use the Internet?
ESSENTIALS OF E-BUSINESS
You can’t just open an online store and expect customers to flock to it. Find out if your niche market is one that you can reach through a website. How? Does your niche market have an identifiable need for your web offering? Do they have the wherewithal to pay for it? Is the niche group sizeable, i.e., will it provide enough business to produce the income you need? If the answers are yes, you have found a good niche. Now dig deep within that niche to understand the consumer behaviors that drive it. Every e-commerce operator should assume that his or her customers are sophisticated shoppers who demand prompt delivery of a product that is exactly as portrayed on their website. The most common mistake made by inexperienced web operators is to fail to be responsive to their customers’ order processing and fulfillment needs. But those services are the very underpinnings of all successful e-commerce ventures — neglect those areas and you have a business catastrophe.
To help in the follow-through, you and your customers must be able to track the status of each purchase. Most new e-commerce businesses, however, fail to integrate this necessary backend support. Another “must” is to make certain that your customers know that your web-based business will not only deliver a value online that cannot be found offline, but that it is just as responsive with customer service issues as the most well-regarded offline business.
By keeping customer service and product fulfillment as an immediate priority you can build a valuable relationship with your customer. In doing so, you earn that customer’s loyalty. That helps to stem the natural flow of attrition as customers who pursue the lowest price find that the trade-off is a void in the cut-rate business’s customer service department.
Another common problem for new e-commerce businesses is misinterpreting the power of the Web. Yes, a website with the right infrastructure can economically automate transactions. However, the real power of the Web is its role as a relationship-building magnet — through its ability to provide numerous opportunities for interactivity. If you are careless with automated processes — this very real advantage will vanish.
Use your website to provide not only useful and interesting information about your products/services, but also about your entire niche market. The group that makes up a niche market always yearns for more information. They will return time and again to your website if they are appealed to on the basis of their special interests — detailed articles and content-rich advertising specifically targeted to them.
The dot-com bust of 2000 was a failure of business plans; the concept itself has not failed. And while numerous news articles over the last few years detail how various websites lost sales and customer confidence due to inadequate prelaunch planning, there have also been many successes, especially in the small business arena.