Applications & Strategies of

E-Business
Unit-4
Topic-1
 Outline
• E-Business Applications
• E-Business Stratagies

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 Objectives
• To gain insight about E-Business, and its
applications
• To understand various strategies of E-Business.

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 Introduction
Electronic business (e-business) refers to the use of
the Web, Internet, intranets, extranets or some
combination thereof to conduct business. E-
business is similar to e-commerce, but it goes
beyond the simple buying and selling of products
and services online. E-business includes a much
wider range of businesses processes, such as supply
chain management, electronic order processing and
customer relationship management. E-business
processes, therefore, can help companies to
operate more effectively and efficiently.

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 E-Business
Electronic business is a broader term that
encompasses other common terms such as e-
commerce and e-tailing. As more of companies'
sales, marketing and other internal business
processes are conducted digitally, electronic
business processes such as customer relationship
management (CRM), enterprise resource planning
(ERP), and content management are becoming
increasingly important. This shift has also been
facilitated by improved security measures for online
transactions

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 E-business applications
E-business applications are web-based applications
that can be implemented to perform tasks for
businesses. These applications are not just for
online businesses, but also for traditional ones.
Behind the scenes, e-business applications usually
rely on relationships between company servers and
end user computers. Common e-business
applications provide some way for a company to
interact with consumers on the web or to perform
tasks related to meeting consumer needs (such as
online tracking of postal shipments).

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 Application Server
One example of an e-business application is a when
a company builds an e-business application in
which users interface with the application only
through a web browser. The application server is
responsible for returning HTML content
(information) to users based on their requests. This
server also collects information entered by users in
their web browsers. The exchange of information
between client and server and server and client
always occurs through a web server.

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 Business Suite
Another type of e-business application is a business
suite offered by a company like Oracle or IBM. This
suite of applications interfaces with the company's
existing information systems. For example, financial
transaction data can be transferred to the
company's accounting system with a financial
application. An e-business suite might help a
company to perform transactions such as collecting
online payments, managing inventory, tracking
sales patterns, planning routes of distribution,
posting product descriptions to web pages and
managing customer information in a database.
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 Enterprise Content Management
Systems
An enterprise content management system (ECMS) helps
a business that needs to manage a large amount of web
content. Content may consist of many types of digital
files, including text, audio, video, graphics, and financial
data. A business uses a large database (sometimes
powered by many servers) to manage information
collected through web-based forms. For example,
Memorial Health System in Colorado Springs partnered
with IBM to create a Physician Link service using an
ECMS. A local physician logs into Physician Link using a
web browser located anywhere. She can view a patient's
laboratory test results on the web and then phone in
prescription orders to a hospital nurse on duty.

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 E-Business Strategies
Even with the Internet constantly evolving,
online businesses have mostly settled into a few
categories of e-commerce. Several strategies
have proven successful to drive revenue and
promote a company both online and off.
Choosing the best e-business strategy for either
an established company or a startup involves
making decisions about where money should
come from and how the website can bring in the
most traffic.
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 Types of E-Business Strategies
Marketplace Hosting
Many e-businesses succeed by hosting a site for auctions
and online stores on which member can place items for
sale. In this model, the website owner takes a flat fee or a
percentage of sales in exchange for promoting the online
marketplace and assisting in processing the transaction.
Some businesses combine this option with their own
warehouse, offering both their own goods and
advertising members' listings for the same items.
Additional revenue for the website owner can come from
members paying additional fees to spotlight their
offerings on the main website.

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 Continued……..
Turnkey Businesses
A turnkey business functions with a pre-existing template
for its given industry. These websites may offer anything
from diet pills to a dating network for a particular city.
The turnkey model requires less work than others but
also faces stiff competition. The operator must do some
legwork to produce the site's content and sell ad space to
generate more income. Marketing mostly relies on the
optimizing the website to appear on as many search
engine result pages as possible.

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 Continued……..
Ad-Supported Content
Some websites develop into effective e-businesses
without directly selling anything at all. With enough
worthwhile content and frequent updates, blogs and
similar informative sites can succeed simply by selling ad
space. The profitability depends on the motivation and
talent of the people producing the content. A
combination of entertaining the reader and drawing in
references to appropriate consumer products can
potentially generate enough advertisements and revenue
sharing to support the site as a business.

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 Continued……..
Freemium
The freemium model for e-business involves
offering some content for free while charging
membership dues or other fees for special access or
materials. Often in combination with another
business model, a freemium site caters to both
casual visitors and devoted fans. The site can offer
all content for free at its beginning to generate
interest and later begin charging for membership,
or the site can permanently divide its content
between free and paying members.

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 Continued……..
Warehouse Sales
For an existing company, a new company starting
with a surplus of product or a company liquidating
merchandise from retail industry, an e-business can
function as a sales point for a warehouse of
inventory. For companies with physical stores, the
website can offer overstocked items, popular items
selling at high volume or obscure items unlikely to
sell at single locations. An online store can also
serve to liquidate leftover merchandise bought at
closeout from various suppliers.

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 Continued……..
Social Media
While allowing users to register accounts and
contribute their own information and content, a
social media site can create revenue from ads on
the site as well as selling the members' information
as marketing data. The website can have either a
broad scope or a very specific one with a
geographical, cultural, or interest-based theme. The
site entertains and informs its users, who can
receive targeted ads based on what information
they've entered on the site.

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 Summary
Electronic business is a broader term that
encompasses other common terms such as e-
commerce and e-tailing. As more of companies'
sales, marketing and other internal business
processes are conducted digitally, electronic
business processes such as customer relationship
management (CRM), enterprise resource planning
(ERP), and content management are becoming
increasingly important. E-Business has got many
applications and different strategies.

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 Thank You

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