E-Business

•It’s the administration of doing any business using Internet,Intranet,Extranet and WEB.
•This includes pre sales, sales and post sales activities being conducted on e-platform.
•E business is the combination of various processes which are integrated and complement each
other for smooth transactions.
•E business enables the organizations to link the internal and external data processing systems
more efficiently and effectively, it allows to work more closely with external
environment-suppliers/partners .Hence resulting in better service delivery and more satisfied
customers.

Advantages of E- Businesse as a concept

● Faster buying process
● Store and product listing creation
● Cost reduction and quality products combination
● Affordable advertising and marketing
● Flexibility for customers
● No reach limitations
● Product and price comparison
● Faster response to buyer/market demands
● Several payment modes
● Abundance of information
● Creates targeted communication
● Create e-commerce store for niche product
● Remains open all the time
● Reduction in labor litigation
● Minimum interference of local powers
● Generates faster revenue for the government
● Promotes go green and insulated fro force majeure

E-Commerce
•Part of E-Business.
•It’s a stage in e- business cycle which deals with exchange of goods and services from
producer to customer.
•It comprises of dealing with transactions having commercial
value-Goods,Services,Technology,Consultancy etc.
•It deals with both intangible and tangible transactions
•It consists of buying and selling over e-platform.

Traditional Cycle; Pre Production ,Production, Post Production-Distributors, Wholesalers,

Retailers and Customers.

E Commerce: Company to Customer.

Advantages/Salient Features.
•Low entry cost
•Highly efficient
•Right Product
•Reduced Transactional cost
•Access-Domestic & Global Market
•Traffic Management
•Lower Prices and Lower Discounts
•24*7 operational
•Wide Range and multiple products
•Highly Scalable
•Low Advertisement Cost
•Legal issues of employees

Differences
E commerce
•Subset of ebusiness
•It’s a narrow Concept
•Focus-Commercial activities and transactions over internet
•It follows B2C model
•Buying/Selling and monetary transaction takes place over internet
•Internet is sufficient

•Its associated with outside environment

E Business
•Superset of ecommerce
•It’s a broad concept
•It’s a complete business package based on e- medium
•Its not limited to any Special model
•It includes preproduction, production and post production activities also CRM and ERP is part
of e business
Internnet,Intranet,extranet,web all these methods are utilized
•Its associated with both outside and inside environment

Channels of ebusiness

Click-Payments
Brick and Click
Click and Deliver –Home,Specificpoints.
Conventional
Trends and Business
Trend: It’s a momentum showing a direction or repeat patterns

•Market is full of noises

•Trends segregate the noise from authentic pattern/direction
•Trends generate signals for business to act.

Trends and Business:

•Trends help business to look into the future
•Business-Evaluate trends-to understand positive and negative impact
•Incorporate the deductions in company’s strategy. Treat trend as an opportunity for the
business.

Customer Trends:
Faster Service
Value based service
New product choices
Integrated Solutions- Walmart,GAP etc ( Customize Solutions):

Service and Process Trends:

•Integrate service and sales
•Seamless support
•Integrated and dependable purchase, delivery and service Mechanism-Electronic stores
•Increase process visibility-Customized products
Employees:
•Hiring the best skills
•Retaining the best skills
Technology Trend:
•Solutions must appear non technical
•ERP based functioning-Error free solutions and functioning

Organisational Perception Trends:

•Getting right things done first time
•Entertaining and Engaging experience
•One Stop Shop Solution: Organizations must perceive problems and have readymade
solutions available

Types of Business
Manufacturing:
•Processing Raw Material into finished goods-Use of tools,machinery,labor,Chemical process
etc.
•Finished products are sold at a higher cost than the manufacturing cost
•To run a business the manufacturer needs to cover costs, meet demand and make a product in
line with the market requirement.

Service
•In service business the organization extends professional support to its clients.
•Unlike manufacturing tangible products- are not produced
•It’s a skill based activity that helps its customers in there domian-Accounting, Consultancy,
Hospitality, Maintenance etc.
•Services are given both physically and on e-platform.

Retail:
Considered as a last leg of any business cycle
Quantities sold is in small size
Customers buys goods for consumption and not for reselling

Wholesale:
Procurement and selling happens in large quantities: Retailers and customers
Bulk discounts are given by companies and wholesalers also get bonus points
Enjoy direct access to companies and its Management

Franchise:
•A franchise (or franchising) is a method of distributing/selling products or services.
• Involving a franchisor and franchisee
•Franchisor: Establishes the brand's trademark and name, product/service and a business
system.
•Franchisee, who pays a royalty and often an initial fee for the right to do business under the
franchisor's name and is permitted to use Franchisors systems and gets support from
Franchisor for the conduct of business
•Location and Territories are allotted.

Principles of WTO
MLM:
•Network based marketing
•Pyramid Structure
•Direct Selling of products
•Every sale generates revenue for all involved in the network

Hybrid;
•Its a promotional approach that combines traditional business model and digital business
model.
•Hybrid business merges and promotes online platforms and in person touch points..
•Extensive and wide market coverage.

E Business-Society and Nation Building

•Employment and Skill Development
Bridges the gap between job seekers and employers
Organizations are available on internet
Independence of working place
Training and education imparted across globe
•Cordial Relations:
Language/Religion/Caste/Region/Country barrier is broken due to communication flexibility and
closeness/proximity
•Wealth of information and online education
Small payments can make human resources be a part of knowledge based society
•Less Polution and promotes go-green-Beneficial for health and conducive living environment.
Health Care: Medical care and counseling. Doctors and nurses-information and update
themselves with the latest health care technologies. This equips the doctors to provide good
health care to their patients at a lower cost.
•Reducing Regional Imbalance: Setting up call centers in remote and rural areas- lot of
employment opportunities. The revenues generated-are allocated towards the development of
infrastructure in the rural areas. It brings balanced regional development in the developing
countries.
•Ecomonic Development: Business organizations are able to attract customers from anywhere
in the world. Increase in customer base results in increased production. This generates greater
revenues to the organizations and fosters expansion in national income. Expansion of national
income and increase in the volume of production and services accelerate economic growth.
Availability of goods:
Through internet people can buy goods from anywhere in the world. The goods which are not
available locally can be purchased from any part of the world. The needs of the customers are
met by accessing the internet. So, business organizations cannot ride on customers by citing
shortage of goods in the local market as the reason.

E-Business
E Courts & E Governance

E Courts
E Courts policy was conceptualized basis of the National policy and action plan for
implementation of Communication and Information technology in the Indian judiciary in -2005
under E- Committee of supreme court.
•E Court mission project is the PAN India project, monitored and funded by department of justice
ministry of Law, Government of India for district courts across the country.
•To provide time bound and efficient citizen centric services delivery as detailed in court project
litigants charter.
•To develop, install and implement decision support system in the court
•To automate and make the system more transparent for its stake holders.
•To enhance Judicial Productivity, both Qualitatively and Quantitatively to make justice delivery
system more affordable, accessible, cost effective,predictable,reliable and transparent.
Phase 01- High Courts, District Courts and Subordinate Courts with adequate infrastructure.
•Phase 02- Approved by E-Committee of supreme court in 2014 to further enhance the IT
infrastructure. It has computerized almost 19,000 courts in India. In the phase -02 complete
transformation of Indian courts on E-platform-E-pay, E-Summons, E Hearing and E-Judgments.
•It is also proposed to establish connectivity between courts, police and prison for speedy trial of
case-by tracking the unavailability of undertrials, witnesses and lawyers.
•Phase 03 is in draft stage - proposes the transcription of courts hearing audio/video/physical
into digital record for transparency. It also proposes live streaming and sharing recorded
proceedings.
•Court Registry-Digital court registry-Unique identity number will be allotted to each
case-tracking the case and avoids re-filing of cases as it moves from lower to higher court
•It also proposes use of AI-24/7 window for litigants-filing of cases anytime and anywhere-for
digital hearing
•AI will also help in scheduling the cases by coordinating the schedules of different
actors-Judges, lawyers and litigants. Feedback mechanism of litigants is also built-In.

E Governance
E Governance: By using information an communication technology for delivering government
services, exchange of information, communication transactions, Integration of various stand
alone systems.
•It’s the use of electronic means, to promote good governance. It connotes the implementation
of information technology in the government processes and functions so as to simple, moral,
accountable and transparent governance.
•The basic aim is to simplify processes for all government, citizens and businesses at national,
state and local level.

Types of E Governance:
•G2G: Connect all governments-all levels- Exchange of information and Participation in various
government activities and initiatives
•G2B: All information pertaining to business policies and activities(E-Tender, any business
reforms etc.
•G2C: Exchange of information, on line voting, tax filing etc.(All government agencies have
websites health, home etc.
•G2E:The objective of G2E is agencies to be able to improve effectiveness and efficiency,
eliminating delays in processing and improving employee satisfaction and retention. Internal
efficiency and effectiveness, adopting commercial best practices in government operation in
areas such as supply chain management, financial management and knowledge management.
Benefits:
•Reduce Corruption
•High Transparency
•Increased convenience
•Growth in GDP
•Participation of citizens
•Reduced overall cost
Sections:
•Sec 4: Rules pertaining to electronic records
•Sec 5: Rules pertaining to electronic signature
•Sec 6 : Rules pertaining to usage of electronic records and signatures-It provides for filing
documents online with governmental authorities, grant of licenses /approvals and
receipt/payment of money etc.
Sec6A: Delivery of service by service provider(Government can appoint any service provider for
any services)
•Sec 7: Rules pertaining to retention of documents
•Sec 7A :Audit of documents maintained in electronic form
•Sec 8:Publication of rules and regulations in electronic gazette
•Sec9: Confer rights to any person to insist documents in electronic form.
•Sec 10: Central government-power to make rules-electronic signature
•Sec 10 A : Validity of contracts made though electronic form.

Ecom /E Bus legal Issues

•Client Privacy-Data Compromised
•Advertising On-line-Traceability,Communication w/o permission
•Copy Right Infringent
•Trademerk Security
•Net Neutrality
•Incorporation problems
•Transaction issues
•Privacy law adherence

Environmental Forces
Pestel Analysis
•Political
•Economic
•Social
•Legal
•Technology
•Environmental
Evolution of Sales and Chain Management
•Sales is the last phase of Marketing Strategy
•Its considered the most important part as it generates revenue
Evolution:
•Primitive Family Economy-Producing for self and family.-No concept of sales
•Barter System for trading- No concept of sales- Value to product could not be assigned
•Introduction of Money- Value to good could be assigned but Trader was the seller/buyer-Hence
no formal sales structure was introduced.
•Emergence of small scale industries -Introduced the concept of selling-Limited skills, scope, no
knowledge of business environment, limited area covered.
•MNC- Up skilled the Sales Force- International exposure, understanding of Marketing
dynamics, Relationship building, delivering value based service.( Value based selling)

Sales Management:
Hiring and developing sales force
Strategy and coordinating sales activities
Developing new sales techniques-To be more visible. The sales techniques depends on the
business environment

Nature of sales:
Its pervasive in nature
It’s a continuous process
Variety of work is involved
Establishes relationship
Functions of Sales Management:
Budgeting and Forecasting
Strategizing Sales
Coordination, Directing and Controlling Sales.

Factors affecting sales:

Increase in competition
Sales Management process
Better informed customers
Differentiation factor- Products standardized
Customer Expectation
Trade Unions-stall production
Sales Volume-Dead stock
Access stock available in market –how to place your product
Expensive advertisesment
Sales promotion-Customer Loyalty towards brand

Trends and Business

Upselling is the practice of encouraging customers to purchase a comparable higher-end
product than the one in question, while cross-selling invites customers to buy related or
complementary items. Though often used interchangeably, both offer distinct benefits and can
be effective in tandem.

Upselling is a sales strategy when a customer is encouraged to buy anything that would make
their primary purchase even better. It’s like an upgrade to an existing order. Marketers often use
this tactic in their campaigns to generate more sales.

The upselling technique also provides value to customers because it offers them to pay a little
more but wind up with a better product. It's a mutually beneficial deal. Marketers will never
suggest buying the last iPhone model if a person is looking for a cheap smartphone. But will be
offered a phone that's 10-15% more expensive but equipped with a better camera, for example.
At times we have experienced upselling many times, perhaps, even not realizing that. When
you buy a big latte at a coffee shop, seller may suggest paying extra for chocolate crisps and
vanilla syrup. As a result, you get an A1 coffee, and the Seller earns more..

Cross-selling is another great practice to attract customer to buy more.Customer is shown a

variety of products that complement their needs. For instance, you are purchasing a pillow. The
related products will be a set of sheets or pillowcases.
In e commerce, cross-selling is used all the time. You can see complementary items on the
product pages, in the shopping cart or during the checkout process. You may also be emailed a
list of additional products that would perfectly suit your order.

In physical locations as well. For example, at McDonald’s, you are likely to be offered French
fries along with your cheeseburger.

Benefits of Upselling and Cross Selling

•It Personalizes the Customer Experience.
•It Boosts Revenues.
•It Optimizes the Value of Every Sale.
•It Allows Customers to Leverage a Complete Solution and Boosts Retention.
•It Provides Unparalleled Convenience to the Customer.

Corporate Social Responsibility

•Jobs,Ethical means,honesty,charity,environment-with a aim to better human life.
•What Is Corporate Social Responsibility (CSR)
The term corporate social responsibility (CSR) refers to methodologies adopted by corporations
that are aimed to have a bring positive change in the environment. The core aim behind CSR is
for corporations to pursue other pro-social objectives, in addition to maximizing profits.

Examples:
Using renewable energy sources or using carbon offsets
Managing supply chains to reduce cost for customers voluntarily
Eradication of child labor
Funding hospitals/Funding sports events and charitable activities.

Why Should a Company Implement CSR

•Many companies view CSR as an integral part of their brand image, believing that customers
will be more likely to do business with brands that they perceive to be more ethical. In this
sense, CSR activities can be an important component of corporate public relations. At the same
time, some company founders are also motivated to engage in CSR due to their personal
convictions
•Give back to society is .elementary foundation of human nature
•Positive atmosphere in the organization which influence employees to be more humane in their
approach-Ethical, Honest, self-giving etc. This has a large impact on the productivity, product
and services.

Special Patronage
In 2010, the International Organization for Standardization (ISO) released ISO 26000, a set of
voluntary standards meant to help companies implement corporate social responsibility. Unlike
other ISO standards, ISO 26000 provides guidance rather than requirements because the
nature of CSR is more qualitative than quantitative, and its standards cannot be certified.
ISO 26000 clarifies what social responsibility is and helps organizations translate CSR
principles into practical actions. The standard is aimed at all types of organizations, regardless
of their activity, size, or location. And, because many key stakeholders from around the world
contributed to developing ISO 26000, this standard represents an international consensus.

Corporate social responsibility (CSR) is a self-regulating business model that helps a company
be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social
responsibility, also called corporate citizenship, companies can be conscious of the kind of
impact they are having on all aspects of society, including economic, social, and environmental.
Companies Involved Examples:
• Starbucks-5000 veterans and 10,000 refugees employment
• Mahindra and Mahindra- Nanhi kali
•Tata- Cancer hospitals, sponsoring sports teams.

CRM
•CRM-Customer relationship management
•It’s a process based on technology for managing relationship with customers, Interaction with
customers and potential customers(Greetings, New Product Information, Company's
performance, future plans,organising events etc)
Aim:
• Retain customers
• Repeat orders and brand loyalty
• To convert potential customers into actual buyers
• Streamline processes for cost effective business
• Improve profitability-Sales and Marketing efforts
• Help organization to become coveted brand name
CRM plays a pivotal role, it helps business to understand the customers desire, behavior
patterns, the likely trends which may appear due to customers outlook, so that the organization
can modify/ adapt to new challenges of business environment.

HOW?
•It is achieved by extensive surveys, pre and post product launch
•Purchasing habits of customers
•Opinion of customers on product and substitutes
•Preferences

TECHNIQUES TO BUILD CUSTOMER LOYALTY

•Communication should be simple and exciting
•Show empathy towards customers
•Never criticize your competitor, instead focus on your product
•Fulfill your promises
•Always make customer delighted
•Treat customers feedback as your feedback
•Avoid inconsistent behavior and untimely delivery
•Establish trust
•Reward loyalty

BENEFITS OF CRM
•Increase revenue and decrease overhead
•Increase in repeat orders
•Conversion of potential customer into real customer
•Market optimization
•Increase collaboration with internal and external environment
•Improve data science and analytics

Benefits to customer:
•Enhanced ability to segregate and look after profitable customers
•Integrated assistance across channels
•Since the sales force is equipped with useful data. It increases its efficiency and effectiveness-
Accurate Information, Commitment and details of product
•Customize products and services
•Improves customer service and efficiency to deliver(Focused training is imparted to deal with
problems)
•Tailor Made campaigns can be made
•Bring customers and channels on single platform.(Automated Guidance Mechanism and
Interaction with knowledgeable sales team CRM)

Note
;Decrease in service demand means increase in customer satisfaction.

Strategic Implications:
•Helps in creating customer centric culture
•CLV(Customer life Time Value)

Customer Profiling:
•It helps in customer profiling: Demography,bhaviour,lifestyle and culture
•It helps in making customer focused decision
•It helps in making business plans around your customers requirement and helps you make
better customer centric decision.

Customer life Cycle

The customer lifecycle refers to the process.

• Prospective clients become aware of the product Making a purchase from a brand,

Eventually becoming a company's longtime customer. It gives marketing, sales, and customer
service teams a complete picture of the customer's journey and highlights areas for
improvement.

The process is made up of five stages:

● Reach
● Acquisition
● Conversion/Develop
● Retention
● Loyalty/Advocacy

Reach:
Your marketing material and content needs to be in places where consumers will find it.
Its should be easily accessible to customers.
Reach is the first step in the lifecycle because it develops awareness purpose

•Acquire:
Reaching potential customers won't yield much w/o relevant content or messaging.
Understanding of your brand, the products you offer and what type of person will buy them will
help with acquisition.
Contacting them directly with personalized communication improves the odds of a future
conversion.

Develop/Nurture:
Once that first purchase is made, your business needs to keep in contact with the customer to
develop a relationship with the buyer.
Ensure that they're fully satisfied with their initial transaction.
Back-end analytics can be used to predict what else they may like based on what they bought
the first time around.
Feedback also helps develop the relationship; customers like that their opinion is valued.

Retention:
Send relevant and meaningful messaging to a customer, the chances that they return and make
another purchase are higher.
Retention begins with satisfying a consumer's needs, caring for them and cultivating the
relationship.
Customer's feedback and use it to improve a product or service, you make them feel as if they
were a part of the process. Performing a customer feedback analysis is key in finding actionable
insights that can lead to a stronger customer relationship. This type of trust is valuable to
customer retention.

Advocacy:
Once the retention stage of the lifecycle is reached, you want these customers to become a
brand advocate for your business.
If they are truly satisfied, they will be forthcoming in advocating your products or services to
friends and family.
Spreading awareness amongst social circles is easy to do once a customer is loyal to a brand,
and if they continually spread positive recommendations, their extended network is more likely
to convert as well.

PLC
•The product life cycle is the process starting from introduction a product, when it is first
launched into the market until it declines or is removed from the market.
•The life cycle has four stages—introduction, growth, maturity, and decline.
•While some products may experience prolonged maturity
•All products eventually phase out of the market due to several factors including saturation,
increased competition, decreased demand, and dropping sales.

Introduction
•Once a product has been developed, the introduction stage of the PLC begins.
•Product is launched into the market for the first time.
•The release of a product is often has high-stakes attached to it. Although it does not
necessarily make or break the product's eventual success.
•During the introduction stage, marketing and promotion are at a high, and the company often
invests money and bit of effort in promoting the product
•Product recognition is key to success. In this stage company’s get the sense of how customer
respond to the product
•Costs are generally very high during this stage, and with little competition.
•The principal goals of the introduction stage are to build demand for the product and get it into
the hands of consumers, hoping to later cash in on its growing popularity.

Growth
•During the growth stage, consumers start buying it.
•The product concept is established and is liked, as it becomes more popular, and sales
increase.
•Other companies become aware of the product and its space in the market as it begins to draw
more attention and gain revenue.
•If competition for the product is especially high, the company may still heavily invest in
advertising and promotion of the product to beat competitors.
• As a result of the product growing, the market itself tends to expand. Products are often
tweaked during the growth stage to improve their functions and features.

Maturity
•When a product reaches maturity, its sales tend to shrink, signaling a largely saturated market.
• Sales may start to drop. Pricing at this stage tends to get competitive, so profit margins shrink
as prices begin to fall due to the weight of outside pressures like increased competition and
lower demand.
•Marketing at this point is targeted not to promote product but to defeat competition,
•Companies shift focus towards to develop new or altered products to reach different market
segments.
•Given the highly saturated market, weak companies are often pushed out of competition. This
is known as the "shake-out point."
•In this stage, saturation is reached and sales volume peak out. Companies begin innovating to
maintain or increase their market share, changing or developing their product to satisfy new
demands.

Decline
•Although companies generally attempt to keep their product alive in the maturity stage as long
as possible, eventual decline is inevitable.
•In the decline stage, product sales drop significantly, and consumer behavior changes, as there
is less demand for the product. The company's product loses more and more market share, and
competition tends to cause sales to deteriorate.
•Marketing in the decline stage is often minimal or targeted at already-loyal customers, and
prices are reduced.
•Eventually, the product is retired out of the market altogether unless it is able to redesign itself
to remain relevant or in-demand.
•For example, products like typewriters, telegrams, and muskets are deep in their decline stages
(and in fact are almost or completely retired from the market).

Supply Chain Management

Understanding Concept
Supply chain management

•Control and Flow of goods and services

•Includes-Transform of Raw Material into final products till delivery
•Streamlining business supply side to maximize customer value and gain competitive edge in
the market place.
Supply chain management (SCM) is the centralized management system/process of the flow of
goods and services and includes all processes that transform raw materials into final products
and delivery
•By better management of the supply chain, companies can cut excess costs and deliver
products to the consumer faster.
•Efficient supply chain management saves companies from media attention,, and expensive
recalls, and lawsuits.
Supply chain management (SCM) represents an effort by suppliers to develop and implement
supply chains that are as efficient and economical as possible. Supply chains cover every stage
from production to product development.
•Typically, SCM attempts to centrally control or link the production, shipment, and distribution of
a product.
• By managing the supply chain, companies can cut excess costs and deliver products to the
consumer faster(JIT Concept).
• This is done by keeping tighter control of internal inventories, internal production, distribution,
sales, and the inventories of company vendors.
•SCM is based on the idea that nearly every product that comes to market results from the
efforts of various organizations that make up a supply chain. Although supply chains have
existed for ages, most companies have only recently paid attention to them as a value-add to
their operations

Revenue Estimation in Supply Chain

Sup-01+Sup02+ Sup 03+Manufacturer+Whole Saler+Retailer-Product Cost

-Till manufacturing-value is due to processing and Manufacturing

After Manufacturing-value is due to Marketing and Logistics activities.
-Takeaway: Efficient Supply Chain Management and Reduction of wastage = More profit
generation.

Types of supply chain

•Manufacturers – Wholesalers – Retailers –Customers.
•Manufacturers- Retailers-Customers(Big Bazar, Reliance Mart).
•Manufacturers – Customers (BHEL- State Government or Union Territories)

Note; (Two Brands don’t compete with each other but two supply chains compete with each
other)

Components of supply chain

-Plan: Strategic part of supply chain: Designing and Monitoring Metrics

-Source: Choosing the best suppliers for raw material
-Make: related to manufacturing –production,testing,packaging and preparation
-Deliver: Logistics and landing of goods
-Return: Return of defective and excessive and unsold products

Flows in supply chain : To and From Customer

Information(Product availlability,Feedback from customers)

Product ( LPG Cylinder, Glass bottles of coke,pepsi)

Funds(Money Invested and Money earned from sales)

Inference
•All stages involved, directly or indirectly, fulfilling customers needs.
•Includes Manufcturers,suppliers,transporters,warehousehouse,retailers and customers.
•Integration of demand and supply
•Within each company all functions are involved directly or indirectly in value generation for
customers (Product development,marketing,operations,procurement,finance,IT,Security
Etc).

Electronic supply chain management (e-SCM) is the introduction of technology in part or full to
ameliorate the operations of supply chain activities as well as the management of supply chain.

SCM involves counter checks of materials, information and finances as they move in a process
from supplier to manufacturer to wholesaler to retailer to consumer. It involves coordinating and
integrating these flows both within and among companies.
-Extranet, intranet, Internet are used in e-supply chain. Extranet helps to connect the
participating companies. It may be the supplier or the customer. A customer can check the order
status. Likewise, a supplier can collect data about inventory to know about the replenishment of
the inventory.
-With the help of internet, a company can advertise about the product and accept online orders.
With the help of intranet, an organization can maintain communication within the boundaries of
the company. It is said that the ultimate goal of any effective SCM is to reduce inventory.
-E-supply chain enables to link the supplier with the customer by exchanging information
instantaneously. The organization has sufficient inventory when required. There will not be any
shortage or surplus of inventory. Shortage of inventory brings down the reputation of the firm.
Likewise, excess inventory blocks the funds of the firm unnecessarily

Companies implementing E-SCM can enjoy the following advantages:

1. It improves efficiency
2. It reduces inventory
3. It reduces cost
4. It helps to take competitive advantage over competitors.
5. It increases ability to implement just-in-time delivery, increases on-time deliveries, which
enhances customer satisfaction.
6. It reduces cycle time, increases revenue, by providing improved customer service.
7. It improves order fulfillment, order management, decision making, forecasting, demand
planning, and warehouse/distribution activities.
8. It reduces paperwork, administrative overheads, inventory build-up, and the number of hands
that handle goods on their way to the end-user i.e., the customer.
SCM -IMPLEMENTATION
Supply chains management has become the basic framework for any organization and evolved
as a complex network covering all major functions.
•Over the past 03 decades especially, movement of goods and products around the world on a
mass scale has grown significantly with globalization, inventions like containerization,
barcoding, and artificial intelligence.
•linear supply chain has almost vanished and is replaced by a complex web of partners and
activities that span time zones, cultures, and political landscapes.
•This is why a good SCM has appeared to be a game changer. Industry leaders- predict that in
future, more businesses will adopt fully integrated, digitized solutions in order to streamline their
activities to secure a competitive advantage.
Need:
New software- Understand your business needs, both in the short and long-term. Conduct an
audit of existing systems and processes, collect information from staff and stakeholders,
develop a clear vision for the future of your business and your supply chain.

Shortlisting:
Rich availability of products are in the market,finalise product best suitable for your requirement.
Preferably, have one solution for company, it may be too complex, simple, or bespoke.
Shortlist the products which suits the requirement, meet the suppliers, to find out exactly what
they can offer. Contact your industry colleagues for opinions and recommendations, and check
online reviews.

Map the risks and considerations

Include key stakeholders-identify list of the issues that may appear. Resistance from staff not
wanting to change, software, incompatibility with the existing infrastructure and likely disruptions
in your supply chain activity as you change over.

After identification of the risks understand the consequences and make plan to mitigate these
risks. It’s an important exercise as it gives clear visibility of pitfalls and forces serious
involvement of all stakeholders.

Make a realistic/implementable plan:

Implementing a new system is a complex, lay out a roadmap and define what success
parameters. Include objectives, milestones, key activity, and timelines. Map role key
stakeholders and their contribution in the process.

Include metrics to measure success, like the accuracy of demand forecasting, revenue growth,
and customer experience.
Realistic approach towards timelines and budget –to avoid delays and extra cost-generally
companies fail in these areas. Conduct a thorough costing and timings exercise to help
anticipate the most likely scenario.

Train your staff

System Success=Training Imparted .Best system would fail due to lack of professional training.
Have a robust, ongoing training programme as part of the process that starts as early as
possible.

Appoint some internal champions for the software. – the more super-users there are, the more
access staff will have to help and guidance.

Many software providers also develop their own training videos and courses. Check what
training resources your preferred suppliers offer before you make your final decision.

Communication (and onboarding) is key

This is true for every stage of the process, including before you’ve chosen a new system. Get
senior management on board from the start to make sure they support the change.
Develop a business case. Gather specific evidence showing why the current system is no
longer suitable– both for the company-inefficiencies, waste, or errors and for staff’s ability to do
their jobs well with reasonable ease - lack of access to information, siloed working, outdated
systems)- Then demonstrate how a new system would solve these issues.
Continue to communicate through every stage of the process. The more staff know, the more
prepared they will be to adopt the system. Don’t forget to include external stakeholders in your
communications plan as well.

Testing:

Test it before it goes live, and repeat testing it throughout the implementation phase. Make sure
key staff are involved in the process and appreciate their feedback.

Proactively check in with them as well – speak with staff one on one, and/or set up a forum for
people to discuss how things are progressing. This is an important way for users to work out
minor issues between themselves, and to identify which are more substantial or need
escalation.

Monitor your system’s progress

The work won’t end when the roll-out is finished. It’s important to continually monitor how the
system is working, what impact it’s having on your supply chain, and how staff on the frontline
are finding it.
Lay out a monitoring plan and keep the lines of communication open for feedback from staff and
external partners. What you don’t know you can’t solve and issues that go unchecked for too
long can grow into serious problems.

Advantages and Disadvantages of SCM

Advantages
Aim:
Optimizing all process of business which will bring down the production cost, packaging cost,
warehousing and transportation cost. Avoids any wastage of goods by facilitating timely delivery
and over production.
Works towards efficiency to reduce operating expenses and enhances the overall profitability.
Cost Efficiency
Supply chain management- cost efficiency within the organization.
Enhance Output:
The concept of supply chain management aims at maximizing the overall productivity of
business. Supply managers monitor all production processes and ensure that all resources are
efficiently utilized. Any wastage of resources is avoided which lead to maximize the overall
output.

Avoids Delay In Process

Preventing any delays of business process is one of the major advantage of supply change
management. Supply chain manager ensure that all materials are timely acquired for facilitating
uninterrupted production of products. Also, they regulate all delivery and logistics services of
business which promote delivery at right time at right location thereby avoiding any delays.
Better Collaboration
Process of supply chain management bring better collaboration among distinct parties of
business. It focuses on developing a proper communication channel within the business for
avoiding any confusion or disputes. Smooth flow of information among all stakeholders like
employees, customers, suppliers and distribution enhance understanding which leads to create
a better collaboration.

Identify Problem Areas

Helps in identifying issues that are adversely impacting its reputation and profitability.
Managers can easily track the performance of every department and identify which one is not
maintaining delivery standards.
In absence of this concept, it will be difficult to detect the issues and no department will take the
ownership of the failure..

Disadvantages

Expensive To Implement
Major limitation of process of supply chain management is that it is quite expensive to
implement. It requires large investment in terms of time, money and other resources that
become unaffordable for small businesses.
Complicated
Process of supply chain management involves numerous complexities as it involves several
departments within the organization. It may lead to create confusion and hamper the normal
functioning of business. Employees may feel hesitant and demotivated to accept this concept as
it is new to them thereby giving rise to several other difficulties

Lack Of Co-Ordination Among Departments

The concept of supply chain management functions properly only if there is better coordination
among departments of departments. Establishing a coordination among several departments
within big corporate is a quite difficult task where this concept may eventually fail to perform.
Requires Trained And Personalized Staff
Supply chain management requires qualified and trained human resources for its effective
execution within the company. Company need to incurs heavy expenses for acquiring such
taskforce that is professional and highly skilled. Small companies may find it unfavorable for
their implementation.
Lack Of Reliability
Supply chain management lacks of reliability as it is completely dependent upon the mode of
information exchange among several departments. If there is any instance of inaccurate
information sharing by any of the department, then it will have adverse effects on performance
of whole supply chain.

Use of Computer In Business Analysis

Introduction: For Business- productivity and revenue generation is the main focus area and this
is the major role of computer application in business. Changing business environment and
market dynamics necessitate the use of Computers.

Advantages:

Information Gathering:
Accessing information is the key to success-researching different markets, competitors, new
trends, etc. All of these can build your client base and eventually, improve your business
prospects, Search engines and other platforms are utilized for this purpose.

Speed
Computer applications offer one major advantage that’s speed. This ensures that you pace-up
ad defeat the competition ad remove lethargy from the system. Multiple tasks can be doe
simultaneously w/o compromising on over all efficiency..

Communication
Communication is very essential to the success of every business. This is so, because every
department needs to be synchronized for every project to come into fruition. Also, it’s a great
way to collaborate with different experts and brands across the world.
So, whether it’s just for conveying important information about a job, or tutoring your staffs on a
new skill, applications like Skype are great.

Better Organization
If there’s one thing every business need, it’s premium organization skills. Keeping your
inventory, books and other factors organized is vital for the smooth running of your business.
With computer applications/tools like Trello, Asana, Penzu, etc., you can properly organize your
business documents with ease.

Scope of Computer Application:

•Inventory Management
The first area in which computer applications are necessary is in inventory management. As a
business owner, record keeping is vital to prevent loss. Hence, applications like Ordoro and
Veeqo were created to make this process much easier and faster.

Production Management
Production management involves designing and monitoring the process of production of goods
and services. It further supports the operations involved in delivering these goods and services
to final consumers. There are several types of production management;
•Job Production.
•Batch Production
•Mass Production

Accounting System
•In the finance departments, accuracy of accounting is very important to avoid misreporting and
avoid losses. Accounting software helps in recording and processing transactions easily.
A lot of accounting systems nowadays come with in built functional modules like a general
ledger, trial balance, payroll, etc.

Document Processing
•The next aspect in which computer applications are necessary is document processing.
Document processing involves converting a specific document from one form to another. It
could be a handwritten note to a Microsoft Word format or a Microsoft Word Format to a
Portable Document File Format.
•Other formats also exist; Open documents, Portable Network Graphics etc.

Information Storage
•Another vital scope of computer application in business is storing and retrieving information.
Regardless, small or large scale business, storing information is so much easier with computer
applications.
•Computer applications- you can process a lot of data at a faster speed and stored digitally
which is available for ready reference.

Training Processes
•Every staff needs exposure ad training in expanding organization. With computer applications,
your staff can access any information about a new course easily.
•Also, training can be imparted regardless of your location.

Electronic Mail Service

•Every organization uses an electronic mail service for communication between staff & clients.
Emails involve the exchange of electronic messages between two or more online service
provider users.