Chapter – 5
EMERGING MODES OF BUSINESS
E-Business: E-Business may be defined as the conduct of industry, trade and commerce
using the computer networks. Almost all types of business functions as well as managerial
activities like production, inventory management, product development, accounting and
finance, human resource management etc. can be carried out over computer networks.
E-Commerce: Commercial transactions conducted electronically on the internet is called E-
Commerce. It covers a firm’s interactions with its customers and suppliers over the internet.
It is only a part of e-Business.
Scope of e-Business: Firm’s e-business transactions can be seen in the following four ways:
1. B2B Commerce: In this commercial transactions take place between different business
organizations. It includes placing of purchase orders, invoices, quotations etc.
Business to Business(B2B) form major share of total e-commerce volume.
2. B2C Commerce: It means Business to Customers transactions. It include selling of
goods, call centers, ATM facility....
3. Intra-B Commerce: Here the transactions take place within the firm. It includes use of
computer networks in marketing, finance, production, purchase, human resource,
Research and Development departments.... It also includes interaction of business with
its employees (B2E) like salary payment, seeking suggestions from employees etc.
4. C2C Commerce: It means Customer to Customer. This type of commerce is best suited
for dealing in goods for which there is no established market mechanism. The vast
space of the internet ( eBay.com, olx.com, amazon.com, flipkart etc.) allows persons to
globally search for potential buyers.
Differences between Traditional and e-Business.
Basis Traditional Business e-Business
1. Ease of Formation Difficult Simple
2. Physical presence Required Not required
3. Location requirement 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
7. Business process and length Long time Shorter
of cycle
8. Interpersonal touch More Less
9. Ease of going global Less More
10. Employees Semi-skilled or unskilled Technically
qualified
and professionally
11. Transaction risk Low due to face to face High due to lack of personal
contact contact
Ajith Kanthi @ Ajith P P SKMJ HSS Kalpetta Business Studies I Ch – 5 Page 1
EMERGING MODES OF BUSINESS
E-Business: E-Business may be defined as the conduct of industry, trade and commerce
using the computer networks. Almost all types of business functions as well as managerial
activities like production, inventory management, product development, accounting and
finance, human resource management etc. can be carried out over computer networks.
E-Commerce: Commercial transactions conducted electronically on the internet is called E-
Commerce. It covers a firm’s interactions with its customers and suppliers over the internet.
It is only a part of e-Business.
Scope of e-Business: Firm’s e-business transactions can be seen in the following four ways:
1. B2B Commerce: In this commercial transactions take place between different business
organizations. It includes placing of purchase orders, invoices, quotations etc.
Business to Business(B2B) form major share of total e-commerce volume.
2. B2C Commerce: It means Business to Customers transactions. It include selling of
goods, call centers, ATM facility....
3. Intra-B Commerce: Here the transactions take place within the firm. It includes use of
computer networks in marketing, finance, production, purchase, human resource,
Research and Development departments.... It also includes interaction of business with
its employees (B2E) like salary payment, seeking suggestions from employees etc.
4. C2C Commerce: It means Customer to Customer. This type of commerce is best suited
for dealing in goods for which there is no established market mechanism. The vast
space of the internet ( eBay.com, olx.com, amazon.com, flipkart etc.) allows persons to
globally search for potential buyers.
Differences between Traditional and e-Business.
Basis Traditional Business e-Business
1. Ease of Formation Difficult Simple
2. Physical presence Required Not required
3. Location requirement 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
7. Business process and length Long time Shorter
of cycle
8. Interpersonal touch More Less
9. Ease of going global Less More
10. Employees Semi-skilled or unskilled Technically
qualified
and professionally
11. Transaction risk Low due to face to face High due to lack of personal
contact contact
Ajith Kanthi @ Ajith P P SKMJ HSS Kalpetta Business Studies I Ch – 5 Page 1
