What is E-business
Electronic Business (E-Business) is the administration of conducting any business using the internet, extranet, web, and intranet. This would include buying and selling of goods or services using commercial transactions conducted electronically along with providing customer or technical support with the help of the internet. E-business is similar to E-commerce but it is more than just a simple act of buying and selling services or goods online. In fact, it is the method of utilizing digital information and advanced communication technologies to streamline different business processes – from the initial to the implementation phase. E-business includes a lot of business processes including online order processing, CRM (Customer Relationship Management), supply chain management, and many more. E-commerce is a part of e-business, so let me give you a comprehensive detail about what is e-business.
Components of E-Business
E-business has several components including BI (Business Intelligence), CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), SCM (Supply Chain Management), Collaboration, online activities, and electronic transactions within the firm. But following three areas have great importance for e-business:
1. E-Procurement
It is also known as supplier exchange in which business to business, business to government, business to consumer, and sales of services are made with the help of the internet. Basically, e-procurement is a way adopted by companies to reduce costs and efforts by sourcing products or services electronically.
2. Online Stores
Online stores are also known as e-shops, internet shops, web-store, virtual stores, web-shop, m-commerce, and online storefront. The main purpose of these online stores is to save precious time and money.
3. Online Marketplace
It is electronic commerce that connects the buyers and suppliers to the services or products over the internet. Keep in mind, that the operator of an online marketplace only presents the inventory of other people and provides the transaction facility.
Moreover, the following are also known as e-business areas
4. Online Communities
It is used between individuals and organizations to prepare transaction decisions.
5. Online Companies
It is electronic business cooperation that connects the individual companies and forms a virtual business with a common transaction offer.
Order Fulfillment Process
The order fulfillment process is based on all the activities needed for a customer to get his ordered product or service including the related customer services. What is e-business and how the orders are processed are discussed with the help of particular figures?
1. Product inquiry
You are surfing the website of any well-reputed business brand manufacturing laptops, desktops, or monitors, and able to view their all products.
2. Sales Quote
Laptop prices, screen size, or usage are clearly mentioned on the website for the sales quotation for customers.
3. Order Configuration
Once the customers select what they proposed to purchase, the number of products is easily adjusted or canceled during this phase.
4. Order Booking
This phase includes the booking of products available on the website, such as desktops, laptops, or necessary accessories.
5. Order Confirmation
This process ensures the details of the order such as prices and quantities are accurate.
6. Billing
Billing is the process that enables customers to pay for the products by Visa, cheque, ATM, or other available payment methods.
7. Order Planning
Every customer has different options for delivery, so the order will be delivered accordingly.
8. Order Processing
Once the order is confirmed, the company ensures the right item in the right quantity, time, place, price, and condition to the right customer.
9. Shipment
According to the customers’ requirements, the products will be delivered by means of an express, Air-to-Sea initiative, and so on.
10. Delivery
The products will be delivered within a given time slot at the right address.
11. Settlement
It is the method to settle all the remaining charges, like delivery costs or extra products care expenditure.
12. Returns
Most of the companies offer the returns option with their particular terms and conditions. So, any customer who has received the products with any technical or physical problems of products, can easily return their products within a specified period.
E-Business Model
What is electronic business model and its components? In fact, it is a way that describes how a company functions to provide the services or products and how it generates profits. Moreover, it also defines how a company will create and adapt to new technologies or markets. All components of a business model work together for successful business operations.
