Welcome to business studies ppt: Welcome to business studies ppt 1. Emerging Modes of Business : 1. Emerging Modes of Business TOPIC Emerging Modes of business: Emerging Modes of business Introduction Modern world is the decade of Globalization, change and technology. In response to this, business throughout the world is changing its organisations, Way of working and use of technology, business processes are being redesigned. The major change in mode of business is emergence of e-business , e-commerce and business processing outsourcing. MEANING OF e-BUSINESS: MEANING OF e-BUSINESS E-business refers to “carrying on business activities through internet.” Business activities comprise of Industry, Commerce and Trade. E- business means conduct of industry, trade and commerce activities Through commerce. Firms use not only general Internet facilities for e-business but they also prefer to have their private and personal internet facilities for their internet functioning. Scope of Business: Scope of Business The business includes carrying on planning organising, marketing, productions etc. electronically through internet. There are various people and parties involve in electronic transactions. These transactions are extended into four directions. These are :- 1. B2B Commerce :- Transactions taking place between business units are known as B2B Commerce. These transactions may involve: Creation of utilities Collaborations Commercial negotiations Inviting trends Distribution of goods from manufacturer to various distributors. The transaction taking taking place between business units and customers are known as B2C transactions. B2C enables the businessman to remain in touch with his customers on round the clock basis. BSC also gives scope for C2B transactions also i.e., the customer can also make use of call centers set up by mobile companies. B2C transactions may involve : a) Selling and distribution b) after sale service c) promotion and other marketing service d) lodging of complaints by customer etc.: The transaction taking taking place between business units and customers are known as B2C transactions. B2C enables the businessman to remain in touch with his customers on round the clock basis. BSC also gives scope for C2B transactions also i.e., the customer can also make use of call centers set up by mobile companies. B2C transactions may involve : a) Selling and distribution b) after sale service c) promotion and other marketing service d) lodging of complaints by customer etc. B2C Commerce C2C Commerce The transactions taking place between customers and customers are known as C2C. In this set up business firm i.e., seller is also customer and buyer is also customer. C2C transactions may involve : a) selling used books, clothes etc. b) selling antique items c) warning customers about fraudulent suppliers. d) information about the quality and durability of products etc. : C2C Commerce The transactions taking place between customers and customers are known as C2C. In this set up business firm i.e., seller is also customer and buyer is also customer. C2C transactions may involve : a) selling used books, clothes etc. b) selling antique items c) warning customers about fraudulent suppliers. d) information about the quality and durability of products etc. Intra B- Commerce: Intra B- Commerce This refers to transactions between the parties or persons who are the part of one firm only. It is transaction within the firm that is why it is known as intra-firm. Generally, a firm has a deal with its supplier, customers, employees etc. these are called intra B-commerce interaction. The intra B-commerce transaction make it possible for firm to improve their speed & efficiency. Intra B-commerce improves coordination, faster decision & speedier work flow. Intra B-commerce also helps the firm to interact with their employees, recruitment & selection of employees etc. They can send reports to office through E-mail. Employees need not to came to rather office goes to them. PowerPoint Presentation: Supplier S1 S2 S3 . . . Sn Customer C1 C2 C3 . . . Cn Intra B - Commerce BSB -> B2B -> C 2 C E-BUSINESS V/S. E-COMMEREC: E-BUSINESS V/S. E-COMMEREC E-business is a wide term. It includes e-commerce. As commerce is a the branch of business acti vity , similarly e-co mm erce is a branch of e-business. E-commerce deals exclusively in distribution of goods & services whereas e-business involves production, sales & distribution, after sale, inter and intra firm business transactions such as accounting, management etc. BENEFITS OF E-BUSINESS: EASY TO FORM & LOWER INVESTMENT IS REQUIRED :- It is very easy to start e-business. The benefits of internet technology are that with little investment and more contacts one can do better in business. CONVENIENCE :- With the help of e-commerce shopping can be done conveniently sitting at home. Millions of people exchange information in the world through e-commerce. BENEFITS OF E-BUSINESS PowerPoint Presentation: 3. SPEED :- Through e-commerce information can be exchanged and buying & selling can be done In just one click of mouse. This benefit is more in case of products like – software, movies, music, books etc. through electronic fund transfer even money is defined as electronic pulse at high speed. 4. GLOBAL REACH :- Through e-commerce the businessman can reach each and every person who access to internet. The good can be traded in worldwide where there is access to internet. In e-commerce customers have wide choice. For customers whole world can be shop of goods from all countries can be traded through internet. PowerPoint Presentation: COST SAVING :- T rading through e-commerce is more economical as compared to other trading because in e-commerce the businessman are not required to own a showroom for display their goods. There is direct sale as generally manufacturers set up their website for direct sale to customers, cost involve I in advertisement in saved. Cost involves in carrying the products for display purpose is also saved. MOVEMENT TOWARD PAPERLESS SOCIETY :- U se of internet has reduced the paperwork. Many companies has started the electronic form which can be processed faster. LIMITATIONS OF E-BUSINESS: LOW PERSONAL TOUCH :- e-business is not suitable for sale & purchase of commodities which required personal touch such as garments. DELAY IN DELIVARY :-In e-business order is placed by click of mouse, but it takes time foe vendor to process the order & goods. This may frustrate the buyer. REQUIREMENT OF HARDWARE :- A proper hardware set of computer networks is necessary for e-business and even the seller and buyer both knows the process of internet. LIMITATIONS OF E-BUSINESS PowerPoint Presentation: 4. RISK :- In e-business transactions there is no direct relationship between the two parties so there are more chance of frauds. There are also problem of virus, hacking, etc. 5. LOW ETHICS :- In e-business there is less ethical behavior followed by business. The important information may leaked out or read by any on one by reading e-mails. ON-LINE TRANSCTIONS: e-business refers to shopping through internet or on-line. On-line shopping opens the world as one shop. The world wide web has expended the international marketplace which gives the customers unlimited choice. Due to on-line transaction e-commerce has created a new and large space in which their buyer & seller can exchange information and also enter into their business dealings. There are 3 phases of doing business in e-business :- ON-LINE TRANSCTIONS PowerPoint Presentation: REGISTRATION :- Before on-line shopping one has to register with online vendor by filling up registration form. In this form one has to give password to protect your account otherwise any one can log in your I your account. PLACING AN ORDER :- In online transaction the order can be placed by picking and dropping the items in shopping cart. Shopping cart is an online record of what you have picked up while e-shopping. After being sure that what you have to buy and then choose your payment option. PowerPoint Presentation: PAYMENT MECHANISM In on-line purchase payment is made through: CASH ON DELIVARY :- It means the buyer makes payment in cash when good are delivered to them. THROUGH CHEQUE :- The on-line seller may send his representative to pick up cheque from the buyer. PowerPoint Presentation: NET BANKING :- Modern banking provides facility of electronic fund transfer over the net. The buyer can transfer fund from his account to seller`s account. CREDIT CARD :- These cards are most commonly used medium of on-line payment. 95% of on-line payment are made through credit cards. DIGITAL CASH :- This is a cash which exist only in cyberspace. The users of this cash has to deposit funds in the bank, then bank issue a special software that allows you to withdraw digital cash. SECURITY PROBLEMS RELATED TO e-BUSINESS: The security problems of e-commerce can be broadly in following 3 categories :- Transactional Risk . The common transactional risk of on-line are :- Default on delivery : Sometimes good may be delivery at wrong address or good other than order may also be delivered. Default on payment : Sometimes seller may does not get the payment for good supplied whereas customer claims that the payment was made. SECURITY PROBLEMS RELATED TO e-BUSINESS PowerPoint Presentation: 2. Storage Risk . Vital information can be stolen or modified to pursue some selfish motive. Virus : Some of the computer virus are deadly. The delete all the information stored in the computer memory. The virus can enter in your computer through e-mail, disk or USB. Virus bring the things to a standstill, causing huge loss of revenue and employee time. Hacking : Hacking refers to unauthorised entry into a website. Hackers often destroy the data and information which causes huge loss to owner because it would interrupt the business transaction . PowerPoint Presentation: 3. Risk of Threat to Intellectual Property and Privacy. Internet is a open space. It becomes very difficult to keep the information secret. Data can be supplied to others to other who may misuse the information. RESOURCE REQUIRED FOR SUCCESSFUL IMPLEMENTATION OF e-BUSINESS : Computer Hardware : The business enterprises must get a computer with proper technology before starting a e-commerce trading. Technically Qualified Staff : Under e-commerce all the business transactions are carried through internet. To carry out trading, the businessmen must have well qualified and capable workforce who are able to handle internet easily. Well Designed Websites : The firm must develop a comprehensive website to communicate effectively with customers and business partners. The website must provide complete information regarding price of products, contents & use of product. RESOURCE REQUIRED FOR SUCCESSFUL IMPLEMENTATION OF e-BUSINESS PowerPoint Presentation: Computerised System of Receiving Payment : For the success of e-commerce, the business enterprises needs to develop an efficient system of receiving payment for the good sold. For this the businessman have to make arrangement with commercial banks & credit card agencies. Telecommunication Facilities : E-commerce will succeed only if adequate telephones lines and Internet facilities are available and there is no interruption in these services. OUTSOURCING CONCEPTS: OUTSOURCING CONCEPTS Over the last decade a new type of business within services sectors has become popular in the world. It is called Business Process Outsourcing(BPO). BPO refers to getting a business task accomplished through an outside agency. ADVANTAGES OF B.P.O.: ADVANTAGES OF B.P.O. Help to avoid labour problems : The outstanding services reduce the need of employing more number of employees as the need of employing more number as the outsourcing agencies take up the responsibilities of performing routine jobs. Reduction in Cost : The outsourcing agencies perform the task for different companies. So client companies get benefit of economies of scale; generally they save 10 to 20% Benefit of latest development : The outsourcers maintains world class information technology infrastructure. The out sources act as a consultant for the particular function and perform that function in a specialised way. The client company can get benefit of latest technology. Concentration on Core Competence : By outsourcing the routine task the companies can concentrate on more crucial matters. Disadvantages of B.P.O.: Disadvantages of B.P.O. Confidentiality : In outsourcing the partners company share it`s secrets with the outsourcing company and if outsourcing company does not maintain confidential information then there can be a problem for the partners company. The outsourcing company may even start a competitive business. Protest in home country : When companies outsource there activities along with the work they are indirectly outsourcing even the employment opportunities other country. Ethical Concerns : Generally companies outsource the activities because in the outsourcing country labour is cheap. By doing so they are encouraging unethical behavior of low wages payment, child labour etc. Types of Outsourced Services: Types of Outsourced Services Following are the common types of outsourcing services which business firm are increasingly options for : Financial services - Big companies often need services of specialists for managing firm. Under financial services the outsourced also help in valuation of property of companies, assets and liabilities if company is planning to buy or merge with any other company. Advertising services - The business firm hand over the task of designing and carrying on advertisement campaign to outsourcing firms. These firm design the advertisement, select the models, the media and all releated things but for do all these company required to invest huge amount of finance. Thats why companies prefers to outsource the services to specialist and experts in this field.