E-BUSINESS,

E-COMERCE
AND
E-PROCUREMENT
JEEVESH VISWAMBHARAN,
MBA, S4, KITTS-TVM
 E-BUSINESS
 Electronic business commonly referred to as E-business may be defined
as the utilization of information and communication technologies(ICT) in
support of all activities of business.

 E-business refers to a broader definition of e-commerce,

not just the buying and selling of goods and services, but also servicing
customers, collaborating with business partners, conducting e-learning,
and processing electronic transactions.

IBM in 1997, was one of the first to use the term ,defined e-business as
“the transformation of key business processes through the use of internet
technologies.”
E-BUSINESS – TRANSACTION MEDIUM

 Most e-commerce is done over the Internet. But EC can also be conducted on
private networks, such as value-added networks (VANs, networks that add
communication services to existing common carriers), on local area networks
(LANs) or wide area networks (WANs)
 E BUSINESS ADVANTAGES
ADVANTAGES FOR ADVANTAGES FOR
SELLERS BUYERS
Increased sales opportunities Wider product availability

Decreased costs Customized and personalized information

and buying options
24 hours a day, 7 days a week sales 24 hours a day, 7 days a week shopping

Access to global markets Access to global markets

Increased speed and accuracy of Quick delivery of digital products and

information delivery information
Data collection and customer Access to rich media describing
preference tracking products and services
 E- BUSINESS DISADVANTAGES
DISADVANTAGES FOR
SELLERS
Growing competition from other e-
businesses
Rapidly changing technologies
Greater telecommunications capacity or
bandwidth demands
Difficulty of integrating existing business
systems with e-business transactions
Problems inherent in maintaining e-
business systems
Global market issues: diverse
languages, unknown political
environments, and currency
conversions
DISADVANTAGES FOR
BUYERS
Difficulty differentiating among so many
online sellers
Unpredictable transaction security and
privacy
Dealing with unfamiliar, possibly
untrustworthy, sellers
Inability to touch and feel products before
buying them
Unfamiliar buying processes and
concerns about vendor reliability
Issues with state sales tax charges and
logistical difficulties of product returns
E-BUSINESS- THE CASE OF
ACCOR GROUP
 With a corporate representation throughout the world, Accor
Hotels (Accor) have become one of the largest players in the
industry. It is an intricate organization with multiple brands
and qualifications of hotels, as well as supplementary
products and services.
 Accor finds it important to incorporate the small and
medium-sized hotels in managing customers’ needs and
requests as they are the direct link to the customers.
 The small and medium-sized hotels could also contribute in
improving the financial situation of the organization as a
whole, by selling at the right price, at the right time, to the
right customer.
 E-COMMERCE
 Electronic commerce, commonly known as e-commerce ,
consists of the buying and selling of products or services over
electronic systems such as the Internet and other computer
networks.
 E-commerce (or electronic commerce) is any business
transaction whose price or essential terms were negotiated over
an online system such as an Internet, Extranet, Electronic Data
Interchange network, or electronic mail system.
 E-commerce describes the process of buying, selling,
transferring, or exchanging products, services, and/or
information via computer networks, including the Internet.
 "Electronic commerce (e-commerce) is often thought simply to
refer to buying and selling using the Internet; people
immediately think of consumer retail purchases from
companies such as Amazon. But e-commerce involves much
more than electronically mediated financial transactions
between organizations and customers. Many commentators
refer to e-commerce as all electronically mediated transactions
between an organization and any third party it deals with. By
this definition, non-financial transactions such as customer
requests for further information would also be considered to be
part of e-commerce.”

 - Dave Chaffey
 APPLICATION OF E-COMMERCE
IN PRODUCT DISTRIBUTION IN
TOURISM
 To provide channels for product distribution
 To provide travel information services
 Personalized e-commerce distribution
 Change in traditional travel distribution model
 Reduces distribution link in tourism
 Enabling distribution to obtain economies of scale
E-COMMERCE MODELS

A company can carry out E commerce projects based on 5

different models :-
 Business-to-Business (B2B) is one of the major forms of e
commerce. Here the seller and the buyer participate as business
entities. Here the business is carried out the same way a
manufacturer supplies goods to a wholesaler.
 Business-to-Consumer (B2C) In this case transactions take
place between consumers and business houses. Here
individuals are also involved in the online business
transactions.
 Consumer-to-Consumer (C2C) model is applicable when the
business transaction is carried between two individuals. But for this
type of e commerce, the individuals require a platform or an
intermediary for business transactions.
 Peer-to-Peer (P2P) is another model of e-commerce. This model is
technologically more sound than the other e commerce models.
During this type of transactions, people can share computer
resources. Here it is not required to use a common server; instead a
common platform can be used for the transactions.
 M-Commerce is the latest e commerce model. The e
commerce sites can be specially optimized and programmed so
that they can be viewed and used through mobiles. Here two
mobile users can contact each other to carry out the business
transactions
 B2B
 Business-to-business (B2B) describes commerce transactions
between businesses, such as between a manufacturer and
a wholesaler, or between a wholesaler and a retailer. 
 The volume of B2B (Business-to-Business) transactions is
much higher than the volume of B2C transactions. The primary
reason for this is that in a typical supply chain there will be
many B2B transactions involving sub components or raw
materials and only one B2C transaction, specifically sale of the
finished product to the end customer
 The term "business-to-business" was originally coined to
describe the electronic communications
between businesses or enterprises in order to distinguish it from
the communications between businesses and consumers (B2C).
 EXAMPLE- An automobile manufacturer makes several B2B
transactions such as buying tires, glass for windscreens, and
rubber hoses for its vehicles. The final transaction, a finished
vehicle sold to the consumer, is a single (B2C) transaction

 
 B2C
 Business-to-consumer (B2C, sometimes also called Business-
to-Customer) describes activities of businesses serving end
consumers with products and/or services.
 While the term e-commerce refers to all online transactions,
B2C stands for "business-to-consumer" and applies to any
business or organization that sells its products or services to
consumers over the Internet for its own use.
 An example of a B2C transaction would be a person buying a
pair of shoes from a retailer. The transactions that led to the
shoes being available for purchase, that is the purchase of the
leather, laces, rubber, etc. However, the sale of the shoe from
the shoemaker to the retailer would be considered a (B2B)
transaction.
 When most people think of B2C e-commerce, they think
of Amazon, the online bookseller that launched its site in 1995
and quickly took on the nation's major retailers.
 In addition to online retailers, B2C has grown to include
services such as online banking, travel services, online
auctions, health information and real estate sites.
 An extension of B2C, B2I has been coined. Whilst B2C
includes all manners of a business marketing or selling to
consumers, B2I is specifically targeted towards an individual.
 B2I requires specific Personalization for that individual. B2I
requires Insight in order to create the personalized experience
 CONSUMER TO CONSUMER (C2C)
 Consumer-to-consumer (C2C) electronic commerce involves the
electronically-facilitated transactions between consumers through
some third party.
 The sites are only intermediaries, just there to match consumers.
They do not have to check quality of the products being offered.
 C2C ventures provide a way for consumers to sell to each other
with the help of an online business.
 The first and best example of this type of business is eBay.com
utilizing a market creator business model. In return for linking like
minded buyers and sellers, e Bay takes a small commission.
 A common example is the online auction, in which a
consumer posts an item for sale and other consumers bid to
purchase it; the third party generally charges a flat fee or
commission.

The most prominent examples include-

 eBay
 Craigslist
 PEER –TO- PEER (P2P)
 P2P ventures link users , enabling them to share files and computer
resources without a common server.
 The focus of P2P companies is on helping individuals make
information available for any one’s use by connecting users on the web.
 The challenge for P2P ventures is to develop a viable business model
that will enable them to make money.
 Two prominent examples of P2P business models are Napster.com and
My MP3.com
 MP3 makes money through advertising and charging for some
downloads .
 M-COMMERCE
 Mobile Commerce, also known as M-Commerce is the ability to
conduct commerce using a mobile device, such as a mobile
phone, a smart phone, or other emerging mobile equipments.
 The major advantage of m-commerce is that it provides access to
any one, anytime and anywhere , using wireless devices.
 Mobile commerce was born in 1997 when the first two mobile-
phone enabled Coca Cola vending machines were installed in
the Helsinki area in Finland. The machines accepted payment
via SMS text messages.
 The first mobile phone-based banking service was launched in
1997 by Merita Bank of Finland, also using SMS.
 Since the launch of the iPhone, mobile commerce has moved
away from SMS systems and into actual applications.
 APPLICATIONS

 Mobile ticketing
 Mobile vouchers, coupons and loyalty cards
 Content purchase and delivery
 Information services
 Mobile banking
 Mobile Browsing
 E-PROCUREMENT
 E-procurement is the use of electronic means (the internet,
web, e-mail) to enable the purchase of products and services
over the internet.
 E-procurement (electronic procurement, sometimes also
known as supplier exchange) is the business-to-business or
business-to-consumer or Business-to-government purchase
and sale of supplies, Work and services through the Internet as
well as other information and networking systems, such as
Electronic Data Interchange and Enterprise Resource
Planning.
 E-procurement is done with a software application that
includes features for supplier management and complex
auctions. The new generation of E-Procurement is now on-
demand or a software-as-a-service.
 TYPES OF E-PROCUREMENT
 Web-based ERP (Enterprise Resource Planning): Creating and
approving purchasing requisitions, placing purchase orders and
receiving goods and services by using a software system based on
Internet technology.
 e-MRO (Maintenance, Repair and Overhaul): The same as web-
based ERP except that the goods and services ordered are non-
product related MRO supplies.
 e-sourcing: Identifying new suppliers for a specific category of
purchasing requirements using Internet technology.
 e-tendering: Sending requests for information and prices to
suppliers and receiving the responses of suppliers using Internet
technology.
 e-reverse auctioning: Using Internet technology to buy goods
and services from a number of known or unknown suppliers.
 e-informing: Gathering and distributing purchasing information
both from and to internal and external parties using Internet
technology.
 e-market sites: Expands on Web-based ERP to open up value
chains. Buying communities can access preferred suppliers'
products and services, add to shopping carts, create requisition,
seek approval, receipt purchase orders and process electronic
invoices with integration to suppliers' supply chains and buyers'
financial systems.
 ADVANTAGES
 The main benefit of e-procurement are an increase in firms’
competitiveness through cost reduction and/or boosted
efficiency with inbound logistics.
 E-procurement can provide real-time business intelligence to the
vendor as to the status of a customer's needs.
 Companies can track purchases being made in all departments
and ensure compliance to standards.
 The benefits can materialize in a reduction of purchasing
transactions costs, order fulfillment and cycle time, a reduction
of the number of suppliers or even a reduction in the price paid
and the number of staff to support purchase transactions.
 TANGIBLE AND INTANGIBLE
BENEFICTS
TANGIBLE BENEFITS:
 Increase in sales
 Stock turnover
 Transaction costs reduction
 Quality (e. g. number of mistakes per million products)
 Lead times
INTANGIBLE BENEFITS:
 Improved image of a company
 Satisfied employees
 Better team-work…
 REFERENCES
 Dave Chaffey, E-Business and E-Commerce Management,4th
edition, Marketing Insights Ltd.
 Beynon-Davis .P.(2004) , E-Business, Palgrave,Baringstoke
 E-Commerce Business. Technology. Society, Kenneth.C.Laudon,
Carol.G.Traver
 Electronic Business in Tourism, Key Issues, Case Studies and
Conclusion, Sector Report no:7-II
 www.accorhotels.com