Key Notes: Emerging Modes of Business | Business Studies (BST) Class 11 - Commerce PDF Download

Introduction

• Online booking of railway and air tickets as an example of the convenience of e-business.
• The evolution of e-business and its impact on traditional business.

Basic & Key Concepts

• E-Business: Conducting business activities electronically through the Internet.
• Virus: Stands for Vital Information & Resources Under Siege.
• E-Trading: Online buying and selling of securities and financial instruments.
• Digital Cash: Electronic currency existing only in cyberspace.
• Sweat Shopping: Outsourcing to reduce costs using low-cost manpower.
• E-Commerce: Firms' interactions with customers and suppliers over the Internet.
• Secure Sockets Layer (SSL): Technology for encrypting and securing user information.
• E-Procurement: Internet-based sales between business firms in digital marketplaces.
• Business Process Outsourcing (BPO): Outsourcing non-core activities to third parties.
• Online Trading: Buying and selling anything online.
• E-Bidding: Conducting online auctions.
• Call Centres: Outsourcing customer support to third-party providers.
• Captive BPO units: Outsourced units under the outsourcing firm's control.
• Horizontals: Third parties handling outsourcing contracts from various firms.
• Verticals: Specialized third parties for specific non-core activities.
• B2B Commerce: Electronic business transactions between businesses.
• B2C Commerce: Electronic business transactions to customers.
• Intra-B Commerce: Electronic business transactions within a business firm.
• C2C Commerce: Electronic business transactions between consumers.

E-Business vs. Traditional Business:

• E-Business encompasses all electronically conducted business activities.
• E-Commerce refers to interactions with customers and suppliers over the Internet.

Scope of E-Business:

• Includes B2B Commerce, B2C Commerce, Intra-B Commerce, and C2C Commerce.

Benefits of E-Business:

• Easy to form.
• Requires less investment.
• Convenience (24/7 access).
• Speed (instant transactions).
• Global reach/access (no boundaries).
• Movement toward a paperless society.

Limitations of E-Business:

• Low personal touch.
• Delayed delivery.
• Need for technological competence.
• Risk of non-traceability.
• People's resistance to change.
• Ethical concerns.

Online Transactions:

• Three stages: Pre-Purchase/Sale, Purchase/Sale, Delivery.
• First two stages can be conducted online.

Steps Involved in Online Purchase:

• Registration (creating an account).
• Placing an order.
• Payment options (COD, cheque, net-banking transfer, credit/debit cards, digital cash).

E-Business Risks:

• Transaction risks (default on order, delivery, payment).
• Data storage and transmission risks (viruses, interception).
• Threat to intellectual property and privacy.

Outsourcing:

• Outsourcing non-essential or key functions to third-party specialists for expertise and efficiency.

Features of Outsourcing:

• Involves contracting out non-core activities.
• Non-core activities may be outsourced to captive or third-party units.
• Processes can be outsourced to improve efficiency.

Scope of Outsourcing:

• Includes contract manufacturing, contract sales, contract research, and informatics.

Need for Outsourcing:

• Focusing attention on core activities.
• Quest for excellence.
• Cost reduction.
• Growth through alliance.
• Fillip to economic development.