Explores the role of ICT in the world of Business
The digital economy is also sometimes called.
Business activities in Reverse Auction
- The buyer creates an auction where he described his intent to purchase a relatively precise service or good.
- Each seller will then place their bid (offer), and compete against each other on prices but also on more immaterial aspects such as their location, reputation, etc.
- The buyer will compare each bids and select which one seems best fitted to his needs.
- In reverse auction the buyer will compare more than the price alone.
Benefits of Online Reverse Auctions
- Significantly reduce the cost of the products
- Save substantial amounts of time
- Competitors are required to disclose their prices to each other, which then contemplates multiple rounds of bidding
- It is quick (competitors normally have only minutes to do their bidding)
- It expects and even encourages competitors to focus on each others pricing
Reverse Auctions Web Sites
Why Group Purchasing?
Main Components of E-Marketplaces
- Front end: The portion of an e-sellers business processes through which customers interact, including the sellers portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway.
- Back end: The activities that support online order-taking. It includes fulfilment, inventory management, purchasing from suppliers, payment processing, packaging, and delivery.
- Examples : amazon.com and ebay.com
The role of IT in HRM
- Conduct necessary training through online courses
- Conduct employee evaluations through the intranet facility available.
- Calling applications online for recruitment and processing them effectively.
- Speed-up and increase the efficiency of all the attached processes by conducting them online.
The role of IT in SCM
- Communication is essential to the business world, and information technology gives your company the resources it needs to communicate quickly and effectively.
- IT department in an organization can contact your employees with email, using video conferencing equipment or internal chat rooms.
- They always have an efficient way to conduct business and communicate.
Analyses the relationship between ICT and business operations
- It is accepting credit and payments over the net, doing banking transactions using the Internet, selling commodities or information using the World Wide Web and so on.
- e-business is not just about e-commerce transactions
- It’s about re-defining old business models, with the aid of technology to maximize customer value
- e-business is the overall strategy and e-commerce is an extremely important facet of e-business
- When a product is purchased for business use, the end user is called an industrial user.
- When a product is purchased for personal use, the end user is called a consumer.
- e-Procurement enables distributed but controlled purchasing.
- It automates the process from requisition to payment – to streamline operations, shorten cycle times and reduce costs.
- Vertical Exchanges: An exchange whose members are in one industry or industry segment. It trades only in materials/services unique for that industry.
- Horizontal exchange: An exchange that handles materials used by companies in different industries. Examples : employease.com.au
- The community of an exchangee: Flow and access to information.
- Examples : Portal , E-tailer, Content provider, Transaction Broker, Market Creator, Service Provider, Community Provider
- Portals are gateways to the Internet
- Provide an integrated package of content (news, weather forecasts,currency rates,stock quotes, phone and map information) and services (E-mail accounts, Entertainment, Chat, Community forum, Game, Downloads, Shopping-auction, E-card, Sms service, and search) all in one place
- Examples are: superonline.com, e-kolay.com, yahoo.com, msn.com, and aol.com
- There are many types of e-tailers:
- Virtual merchants: online retail store only, eg. amazon.com
- Clicks and bricks: online distribution channel for a company that also has physical stores
- Auction, reverse auction, or fixed price marketplaces
- Typically uses a transaction fee as a revenue model
- They do not have inventory or production cost
- Examples are: www.eBay.com, and www.priceline.com
- Typically utilizes : subscription, pay for download, or advertising revenue model
- The success factor is owning the content
- Examples are: Online books, online periodicals, broadcasters of TV and radio and www.youtube.com
- Primary value proposition saving of time and money by providing timely, accurate information and opinion
- Typical revenue model transaction fee
- Examples are: Travel services, Job placement Services
- Alliances like Linux, Java, and Naspter can be classified as community provider
- Examples : www.eBay.com and Blogs (Allows interchanges of information for special interest groups)
B2E portal is customized home page or desktop for everyone within an organization
- One URL for everyone within the organization.
- A mixture of organization specific and employee-defined components
- The potential to be customized and altered to suit the needs of a particular employee
- Other examples are: Online insurance policy management, cooperate announcements, online supply requests, etc.
- Examples are: Sri Lankan Government official e-Services portal srilanka.lk
- Provide hardware, software, networking, security, e-commerce software systems, payment systems, databases, hosting services, etc.
- Worldwide presence: A firm engaging in e-business can have a nationwide or a worldwide presence
- Cost-effective Marketing and Promotions: Using the web to market products guarantees worldwide reach at a nominal price. Advertising techniques, like pay per click advertising, ensure that the advertiser only pays for the advertisements that are actually viewed.
- Curtailing of Transaction Cost: The nature of online business is such that, the costs incurred for every transaction to go through smooth and sound, there is no acting middleman.
- Sectoral Limitations: The main disadvantage of e-business is the lack of growth in some sectors on account of product or sector limitations. The food sector has not benefited in terms of growth of sales and consequent revenue generation because of a number of practical reasons, like food products being perishable items. Consumers do not look for food products on the Internet, since they prefer going to the supermarket to buy the necessary items as and when the need arises.
- Costly E-business Solutions for Optimization: Substantial resources are required for redefining product lines in order to sell online. Upgrading computer systems, training personnel, and updating websites requires substantial resources.
- Question of Safety.
- Data Security: To carry out online transactions, the websites ask for your email address and other contact details. Customers brake at the mention of providing personal details, lest defiling of some nature occurs.