Applied Business Tools and

Technology
CBUSTECH
Electronic Business
Learning Objectives
• Differentiate e-business from e-coomerce
• Identify functions of electronic business
• Describe the various e-business markets
• Understand the e-business models and its framework
• Identify the importance of e-cash
E-business E-commerce

• Use of the internet to network • Buying and selling, marketing

and empower business and servicing of products and
processes, electronic commerce, services via computer networks.
organizational communication
and collaboration within a
company and the stakeholders.
Function of E-Business
• Structural value
• An online offer achieves an overview of large quantity of information
• Selection value
• Provides specific database information upon request
• Matching value
Makes it possible to merge inquiries from supplier and buyers more efficiently
Function of E-Business
• Transaction value
• An online offer makes a business more efficient
• Coordination value
• Allows different providers to better combine their services
• Communication value
• Improves communication between different consumers
E-commerce business model
• Business to business
• Otherwise known as B2B. It sells products to an intermediate buyer who sells
the product to the final customer.
E-commerce business model
• Business to consumer
• Otherwise known as B2C. It sells products to directly to a customer. A
customer can view the products shown on rh website. The website will then
send a notification to the business organization via email will dispatch the
product or goods to customer.
E-commerce business model
• Consumer to consumer
• Otherwise known as C2C. Consumer helps consumers to sell their assets like
residential property by publishing their information on the website, website
ay or may not charge the consumer for its services.
E-commerce business model
• Consumer to business
• Otherwise known as C2B. Consumer sell their services to business. It is
roughly same as sole proprietorship serving a larger business.
E-commerce business model
• Business to government
• Otherwise known as B2G. Such websites are used by the government to trade
and exchange information with various business organizations. Such websites
are accredited by the government and provide a medium to businesses to
submit application forms to the government.
E-commerce business model
• Government to Business
• Otherwise known as G2B. Governments use G2B model websites to approach
business organizations such as website support auctions, tenders, and
application submission functionalities.
E-commerce business model
• Government to Citizen
• Governments use G2C model websites to approach citizen in general. Such
websites support auction of vehicles, machinery, or any other material. Such
website also provides services like registration of birth, marriage, or death
certificates.
Types of E-models
• Portal model
• give the visitors the chance to find almost everything they are looking for in
one place.
• Electronic retailing
• The sale of goods and services through the internet which includes b2b and
b2c sale of goods and services.
Types of E-models
• Auction model
• Auction sites searches the lowest prices available items.
• Bartering retailing
• The seller makes an initial offer with the intention of bartering to reach a final
agreement.
• Group buying model
• Group buying business model functions in such a way that subscribers of
group buying websites make use of discount offers reaching them online,
making payments and waiting determined min number of people sign up for
the same offer.
Types of E-models
• Affiliate revenue model
• Online distribution solution which is based on the principle of commission.

• Subscription model
• Users are charged periodically for premium content.
Firms must:
• Design programs that take advantage of the internet network effects
and other disruptive attributes to achieve a critical mass installed
customer base

• Leverage on a single set of digital assets to provide value across many

different disparate markets

• Build trust relationships with customers through-business

communities to increase their costs of switching to other vendors
Firms must:
• Build trust relationships with customers through e-business
communities to increase their costs of switching to other vendors

• Transform value propositions and organizational structures for

enhanced value creation

• Generate synergy effects on e-commerce product and service

offerings
Critical factors
• Understand and exploit the e-marketspace characteristics
• Add value to customers
• Achieve economic viability
E-cash

Advantages Disadvantages
• Cheaper and more efficient • Anonymous and no audit trail
• Enables transfers with low rates • Maybe obtained illegally
• Does not require authorization • Security issues