Chapter 5 Emerging Modes - 1.5

Class 11
Business Studies
Chapter - 5
EMERGING MODES OF
BUSINESS
Ajith Kanthi Wayanad

www.hssplustwo.blogspot.com
E-Business
E-Business
Business operations such as industry, trade

and commerce using computer networks are
called E-Business
E-Business
Business functions as well as managerial activities
like production, inventory management, product
development, accounting and finance, human
resource management etc. can be carried out
through computer networks
E-Commerce
E-Commerce
Commercial transactions conducted
electronically on the internet
It is only a part of e-Business

E-Commerce
It covers a firm’s interactions with its
customers and suppliers over the internet
Scope of
E - Business
Scope of E-Business
Four types of E-Business Transactions
B2B B2C
INTRA-B C2C
B2B
Business To Business
B2B Commerce
In this case, commercial transactions take place
between different business organizations
Eg: Placing of purchase orders, invoices,

quotations etc.
B2C
Business To Customers
B2C Commerce
It means Business to Customers
transactions
It include selling of goods, call centers,

ATM facility etc.
Intra - B
Within the Business
Intra – B Commerce
Here the transactions take place
within the firm
It includes the use of computer networks in marketing,

finance, production, purchase, human resource, Research
and Development departments etc.
Intra – B Commerce
It also includes interaction of business with its
employees (B2E) like salary payment,
seeking suggestions from employees etc.
C2C
Customer To Customer
C2C Commerce
It is best suited for dealing in goods for
which has no established markets
eBay.com, olx.com, etc. allows persons to

globally search for potential buyers
Differences between
Traditional & E-Business

Traditional Vs. E-Business
1 Ease of Formation
Traditional E-Business
Difficult Simple
2 Physical presence
Required Not required

3 Location
Important Not Important

4 Cost of setting up
High Cost Low Cost

5 Operating cost
High Low
6 Contact with suppliers and customers
Indirect through
intermediaries Direct
7 Business process and length of cycle
Long time Short time

8 Interpersonal touch
More Less
9 Ease of going global
Less More
10 Employees
Semi-skilled or Technically and
unskilled professionally
qualified
11 Transaction risk
Low due to face High due to
to face contact lack of personal
contact
Basis Traditional Business e-Business
1. Formation Difficult Simple
2. Physical Presence Required Not Required
3. Location Important Not important
4. Cost of setting up High Low
5. Operating Cost High Low
6. Contact with suppliers and Indirect through

Direct
customers intermediaries
Basis Traditional Business e-Business
7. Business process and length of

Long time Shorter
cycle
8. Interpersonal touch More Less
9. Ease of going global Less More
10. Employees Semi-skilled or unskilled Technically qualified
11. Transaction risk Low High

Benefits of
E-Business
Benefits of E-Business
1 Ease of formation
It is very easy to start due to less legal

formalities and with a limited investment.
2 Convenience
Internet offers the convenience of

24 hours business
3 Speed
Internet allows faster services.

4 Global reach
It provides a boundary less market

5 Movement towards a paperless
society
Use of internet has considerably reduced

dependence on paperwork
1.Ease of formation
2.Convenience (24 hours service)
3.Speed
4.Global reach
5.Movement towards a paperless society
Limitations of
E-Business
Limitations of E-Business
1 Low personal touch
There is no face to face contact between the

seller and buyer
2 Incongruence between
order and supply
Order taking is very fast, but the delivery of

product takes time
3 Need for technology
To access e-business, it requires familiarity with

computer and internet
But it is not accessible for all people because of
digital divide
4 High risk
Impersonation, Leakage of confidential information

such as credit card details, passwords etc. are
the reasons for high risk
5 People Resistance
Adjustment with new technology creates stress

and a sense of insecurity to the employees
6 Ethical fallouts
Information exchanged through internet may be

stolen or misused by dishonest people for illegal
activities
1.Low personal touch
2.Incongruence between order and supply (one is
speedy and the other is slow)
3.Need for technology – digital divide
4.High risk
5.People Resistance – employees
6.Ethical fallouts – personal information may be
misused for illegal activities
Online Transactions

Stages involved in
Online Transactions
Stages in Online Transactions
1 Pre purchase/sale stage
Advertising, collection of information etc.

2 Purchase / sale stage
Price negotiation, finalizing the deal and making

payment
3 Delivery stage
Dispatching goods to the buyers

Procedure for
Online Transactions
Procedure for Online Transactions
a Registration
Before online shopping, one has to register with the

online vendor by filling-up a registration form
b Placing an order
Here we can add the items in the shopping cart

Shopping cart is an online record of what you have
picked up while browsing the online store
c Payment mechanism
Payment for the purchases through online shopping may be

done in a number of ways
Cash on Delivery(CoD), cheque, net banking, credit/debit
card, digital cash such as Paytm,
Jio money, e-wallets etc.
Procedure for
Online Transactions
1. Registration with the online vendor
2. Placing an order
3. Payment mechanism
Security and Safety of
e-Transactions

Safety & Security of e-Transactions
1 Transaction risks
In e-business, risk may arise for the seller or the

buyer on account of default on order
taking/giving, delivery as well as payment
2 Data storage and transmission risk
Vital information may be stolen or modified for selfish

motives or for fun
VIRUS, Hacking, Brand hijacking etc. are some of risks in
e-business
VIRUS
Vital Information Resources Under Siege (attack)
A Virus is a program that attacks the computer system

and destroys or corrupts the data
Installing and updating anti-virus programs is the
solution
Hacking
It refers to unauthorized access into website
Hackers often destroy the data and information

which causes huge loss to the business
Cryptography and Cipher Text
It is an act of protecting information by
transforming it into an unreadable format
called cipher text (secret language)
Cryptography and Cipher Text
Cryptography relates to the study of encryption
Encryption is translation of data into

secret codes
Cipher text is encrypted text
3 Risk of threat to intellectual property
and privacy
Once the information is published over Internet, it is

difficult to protect it from being copied as it is an open
space
1. Transaction risks
2. Data storage and transmission risk
3. Risk of threat to intellectual property and
privacy
Resources required
for E-Business
Resources for E-Business
a Adequate computer with
Telecom network
b Technically qualified and
trained work force
c Well developed websites
d Well developed
telecommunication facilities
e A good system of making payments
using credit instruments
1. Adequate computer with Telecom network
2. Technically qualified and trained work force
3. Well developed websites
4. Well developed telecommunication facilities

5. A good system of making payments using
credit instruments
Prepared by: Ajith Kanthi @ Ajith P P
SKMJ HSS Kalpetta Wayanad Kerala
Ph: 9446162771, 7907712665
www. hssplustwo.blogspot.com

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Class 11

Ajith Kanthi Wayanad

Business operations such as industry, trade

It is only a part of e-Business

Eg: Placing of purchase orders, invoices,

It include selling of goods, call centers,

It includes the use of computer networks in marketing,

eBay.com, olx.com, etc. allows persons to

Ajith Kanthi Wayanad

Required Not required

Important Not Important

High Cost Low Cost

Long time Short time

1. Formation Difficult Simple

2. Physical Presence Required Not Required

3. Location Important Not important

4. Cost of setting up High Low

5. Operating Cost High Low

6. Contact with suppliers and Indirect through

7. Business process and length of

8. Interpersonal touch More Less

9. Ease of going global Less More

10. Employees Semi-skilled or unskilled Technically qualified

11. Transaction risk Low High

It is very easy to start due to less legal

Internet offers the convenience of

Internet allows faster services.

It provides a boundary less market

Use of internet has considerably reduced

There is no face to face contact between the

Order taking is very fast, but the delivery of

To access e-business, it requires familiarity with

Impersonation, Leakage of confidential information

Adjustment with new technology creates stress

Information exchanged through internet may be

Ajith Kanthi Wayanad

Advertising, collection of information etc.

Price negotiation, finalizing the deal and making

Dispatching goods to the buyers

Before online shopping, one has to register with the

Here we can add the items in the shopping cart

Payment for the purchases through online shopping may be

Ajith Kanthi Wayanad

In e-business, risk may arise for the seller or the

Vital information may be stolen or modified for selfish

A Virus is a program that attacks the computer system

Hackers often destroy the data and information

Encryption is translation of data into

Once the information is published over Internet, it is

2. Technically qualified and trained work force

3. Well developed websites

4. Well developed telecommunication facilities

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