E-business

E-BUSINESS				CRM’s are also claimed to be able to improve
AUTHOR :-				customer relationships Proponents say this can be
1). SHRIKANT SURESH KULKARNI.				done by:
ABSTRACT :- Today’s world needs a fast				• CRM technology can track customer interests,
access of every thing , without leaving his desk . So				needs, and buying habits as they progress through
to fulfill all the requirement of people the need found				their life cycles, and tailor the marketing effort
to start online business i.e. E-business . E-Business can				accordingly. These way customers get exactly what
be defined as "Achieving Business objectives through				they want as they change.
use of electronic communications technology." This				• The technology can track customer product use
electronic communications technology includes:				as the product progresses through its life cycle, and
Internet, e-mail, E-books, database, and mobile phone				tailor the service strategy accordingly. This way
. Maintaining the customer relationship is one of the				customers get what they need as the product ages.
important goal in business in e-business the customer				• In industrial markets, the technology can be
relation is maintained with the help customer				used to micro-segment the buying centre and help
relationship management (CRM) . E-Business provides				co-ordinate the conflicting and changing purchase
supply chain so it removes intermediaries from the				criteria of its members
company to customer which is beneficial for both				When any of the technology driven improvements in
company and customer . Success in E-Business is				customer service (mentioned above) contribute to
mostly depend on the security in e-business and the				long-term customer satisfaction, they can ensure
Security e-business is mostly depend on network				repeat purchases, improve customer relationships,
security which involves secure data transfer , proper				increase customer loyalty, decrease customer
information provide to customer , protect companies				turnover, decrease marketing costs (associated with
important files from virus etc .				customer acquisition and customer “training”),
INTRODUCTION:				increase sales revenue, and thereby increase profit
E-Business means electronic business in which all the				margins .
transactions from customer to seller and seller to				SECURITY IN E-BUSINESS :
customer are done electronically . Basically e-business				Security in E-Business is mainly depend on the secure
happens when financial transaction, buying and selling				network . On a superficial level, E-business follows a
of merchandise are involved. The ‘e’ in front				similar structure to the physical world. A
simply means electronic where people buy and sell				company’s goods and services become online
product using Internet connection or even WAP				transaction data. Vendors, suppliers and customers
services. WAP is another type of connection where it				connect via the Internet and extranets rather than in
is normally available in mobile phone . The road to				person. Inventory becomes data moved between
information is via the computer systems. Business has				vendors, customers, suppliers and fulfillment houses.
turned into E-Business What is E-Business? When				Revenue continues to flow in electronic form from
asked the above question, most people reply,				the store to banking networks to the home office,
"E-Business is just selling your products over the				and back again. As a result, E-businesses are
Internet." While partially correct – E-Business				dependent on an ISP and the Internet backbone
usually does use the Internet to sell goods - this				itself for availability and convenience . In E-Business
definition oversimplifies the basic principle. More				the information like customer account number,
accurately, E-Business is a fundamentally new way of				product name or number which he want to order etc.
conducting business electronically using the latest				is encrypted before transferring it over internet . But
technologies, such as the Internet. It also involves				Encryption only protects data while in transit. It is still
moving away from conventional business thinking in				at risk before transmission and after it is arrived.
order to effectively compete in a new and dynamic				Even worse, the encryption stream can be disrupted,
environment: cyberspace. E-Business is a rich,				corrupting traffic and causing expensive data integrity
complex mixture ranging from massive commodity				repairs. Secure E-business delivers increased revenue,
exchanges to auction sites to mom-and-pop shops				maximized profitability and increased customer
looking for a low-cost way to increase sales.				satisfaction through:
Electronic business is any information system or				1 . Enhanced data integrity, availability and protection .
application that empowers business processes. Today				2 . Increased employee productivity .
this is mostly done with web technologies. The				3 . Extended security expertise .
E-Business can be useful for different kind of users				4 . Adaptive security management, measurement and
like:				metrics .
• All users of the internet				5 . Lowered legal liability .
• Only the employees on the intranet				6 . Improved and accelerated corporate portal return
• A specified targeted group of users of an				on investment .
extranet (like customers, partners etc.)				As E-business uses internet the advantages of using
E-BUSINESS - PROVIDE SUPPLY CHAIN :-				the Internet for business, could be with regards to
E-business removes intermediaries from the supply				using applications and features such as email . which is
chain, creating a direct, efficient link from producers				great because it is a quick and cheap way of sending
to consumers.				information, combined with the ability to attach files
Fig 1). Supply Chain in E-Business				and send them onto another user. However, despite
In the above diagram , a manufacturer sells directly				having many advantages of the Internet, there are,
to customers, increasing profitability while reducing				unfortunately disadvantages too. For example,
consumer costs by eliminating warehouse and reseller				Viruses are often spread over the Internet, which
markups. Primary contact for service and support				can normally be done via email. Even having a virus
also moves through online channels, reducing				scanner does not protect your computer/system
overhead and speeding service response. In other				100% because they do not always recognize new
cases, E-business introduces an intermediary in order				virus which it does not yet know about . Other
to create a market where none has existed before.				disadvantages of the Internet may include hackers
Prominent examples of this form of online business				being able to access your system and therefore all
include auction houses and online brokerages. By				of the companies secrete files , are lost and this is
opening their networks to ordinary consumers, these				very dangerous for company performance .
organizations create investing and merchandising				E-business is based on the assumption that data
opportunities that were previously impossible.				integrity is intact and that online systems are always
E-business supply chains create new opportunities for				available when needed. Ensuring the availability of
streamlining business processes, creating a new,				these key components is critical to online commercial
expanded customer base, and establishing the agility				success. When data is corrupt and systems are
necessary to react rapidly to new markets and				under attack, customers take their money elsewhere.
business models. It generates a rapid return on				In other words, no organization can deliver reliably
investment through improved data integrity,				available E-business systems if it is not actively
enhanced systems availability and intensified				monitoring the E-business security environment.
confidentiality across the online supply chain.				Information is the basis for competitive and strategic
E-business creates a secure and confident				advantage. Therefore, managing the risk of exposure
environment for developing innovative online business				for online information assumes legal importance.
opportunities. The use of an operational database will				Secure E-business should also include E-business
help an E-Business enterprise store detailed data				insurance to bridge the gap between an achievable
needed to support their process and operations. The				security management solution and truly
kinds of databases found in this setting are human				comprehensive protection against business
resource databases, customer databases, and				interruption losses. These E-business insurance policies
inventory databases, etc . This new method of				can easily mean the difference between disaster and
purchasing and receiving is popular for good reason.				a quick recovery . Secure E-business follows a simple
Online vending can significantly reduce the cost of				set of principles:
sales by reducing the number of staff required to				1. Understand your networks, and the business
service a given account. Orders can route directly to				objectives they support. Some systems and
fulfillment, cutting delivery times to the bare minimum.				information resources are more valuable than others,
Finally, customers and partners can				and not all of it needs to be protected equally.
“self-help” with web-based databases, video				2. Develop a thorough and achievable security policy,
help guides and similar online knowledge transfer				implement it and update it at regular intervals. Use
technologies.				this process to streamline and automate operations
SUPPLY CHAIN MANAGEMENT :				and enhance cross-platform integration and
Customers want more quality, design, innovation,				distribution.
choice, convenience and service, and they want to				3. Enhance point solutions such as firewalls,
spend less money, effort, time and risk. The supply				authentication and encryption with adaptive
chain of a company consists of different				technology that maximizes effectiveness and helps
departments, ranging from procurement of materials				prevent premature obsolescence.
to customer service. Supply Chain Management				4. Purchase infrastructure products and assessment
means transforming a company’s "supply chain"				tools from different manufacturers. An independent
into an optimally efficient, customer-satisfying				source of assessment products is much more likely
process, where the effectivity of the whole supply				to provide an unbiased evaluation of overall
chain is more important than the effectivity of each				E-business security performance.
individual department Supply Chain Management				5. Consider outsourcing some or all security
allows a company to improve its competitive position				management operations. Doing so allows an
by achieving lower costs and accelerating the time to				organization to focus internal resources more directly
market of new products . Achieving successful chain				on core business competencies.
management requires restructuring the way products				Firewalls, encryption servers, card keys, VPNs and
are designed , manufactured , and sold . In				similar technologies do not eliminate risk so much as
today’s rapidly changing business environment,				they shift it from one part of the network to
ever-greater demands are being placed on business				another. Poorly chosen passwords, borrowed card
• To provide products and services quicker .				keys and misconfigured network devices easily foil
• With greater added value .				access control and authentication. One important
• To the correct location .				issue in secure E-Business is to provide a proper
• With no relevant inventory position				information of product to the customer e.g. the
USE OF INTERNET IN BUSINESS: -				information of product is not properly provided on
During the 1970's and 1980's , corporate information				website so the customer not interested in such
systems were often centralized and mainframe				product. Therefore on the management level of the
based . For executives and managers desiring to				company , it must ensure that all the information of
receive immediate information on inventory, sales,				companies product is properly provided to the
and financial or purchasing data , special programming				customer .
requests in a computer language such as COBOL had				CASE STUDIES :-
to be written . Further complicating this data output				1). Case Study -1 :-
was the fact that this needed information rarely				American Airlines :-
could be provided in real time .				American Airlines provides an excellent example of
With the emergence of PC based information				online company that was able to increase brand
networks and the development of improved graphical				recognition and cement customer loyalty by
user interfaces in the mid of 1990's the concept of				successfully bringing it’s brand online . American
enterprise information system (EIS) was established				Airlines was the first airline to establish a website on
warehousing company data through the use of PC				May 17 , 1995 . It was grown to be one of the top
based networks , EIS , and company intranets				airline site in terms of unique visitors and awards . As
allowed users to collect data by almost any category				of February 2000, it was logging over 1.9 million
and , along with online analytical processing (OLAP) ,				visitors per month . It has 2.1 million subscribers to
could provide a vital information to a wider range of				it’s weekly NetSAAver Fares e-mail list (the
people in the organization - and often in real time . As				most popular e-mail travel product on the web) .
a result , organizations could become flatter in their				Gross sales were $575 million in the 1999 calendar
decision - making processes , react more quickly to				year . A key to American’s success is to
market changes and reduce the amount of time				creating an online brand has been it’s ability to
devoted to administrative . For example by				differentiate itself from competitors by being first .
implementing a highly integrated information system's				Examples include the following :
applications for customer service , inventory , sales ,				1 First to have a service-oriented website (May 1995)
accounting and procurement . By doing so , a				.
company would be more able to focus on servicing				2 First to launch the E-mail services of discounted
customer needs . For example the prospective				fairs-NetSAAver Fares (March 1996) .
customer may either call a company's toll-free line or				3 First to offer real-time flight information (1996) .
visit it's website to order the product .The computer				4 First to offer airline reservation system online (June
system either through a customer service				1997) .
representative or web screen interface - would then				5 First to offer high personalization for consumers
provide the information to the customer on his or her				(June 1998) .
individual accounts , the prices of the individual				Finally , with respect to brand recognition , the
products to be ordered , and the availability of the				American site receives high marks for relevancy ,
product in the stock . Managers at the company				distinctiveness , consistency and memorability .
would know which product are selling well and see				Case Study-2 :-
the financial results of their daily operations .				Monster .Com :-
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) IN				is a great example of an online company that has
E-BUSINESS :				succeeded by branding itself in both online and offline
The generally accepted purpose of Customer				environments . Monster is a metamarket switchboard
Relationship Management (CRM) is to enable				that offers employment services to both job
organizations to better serve its customers through				seekers , monster aims to serve as a “lifelong
the introduction of reliable processes and procedures				career network” offering not only job and
for interacting with those customers. CRM enables a				resume postings but also chats message boards and
company to provide customer service in real time by				expert advice on career management .
focusing on relationship development with each				Monster launched in 1994 as 454th website in the
individual customer through the effective use of				world Monster was a true “early entrant “
individual account information .It typically involves				into the commercial world of the internet . According
three general areas of business. They are a customer				to media matrix it has well over 50 % of the online
service system, a marketing information system and				recruitment advertising market revenue increased
a sales force management system. The marketing				from $6.9 million in 1996 to $133.5 million in 1999 . The
information part provides information about the				site’s traffic – averaging overall 3.6 million
business environment, including competitors and				visitors in January 2000 translated into a reach over
industry trends. The sales force management part				5% of all U.S. internet user
automates some of the company's sales and sales				SUMMARY :-
force management functions. It keeps track of				The e-business is thus very successful in today’s
customer preferences and buying habits and also				world , because of the advantages such as high
sales staff performance. The customer service part				speed, direct approach to customer, cost effective ,
automates some service requests, complaints,				centralized data storage , quick information availability
product returns, and information requests. Successful				etc . Also futuristic and reliable techniques involved
CRM is defined as an integrated sales , marketing ,				under E-Business provide a good service to customer
and service strategy that depends on coordinated				.
actions by all departments within a company rather				BIBLIOGRAPHY :-
than being driven or managed by one single ,				1). E-COMMERCE - 1). Jeffery F. Rayport
functional department .				` 2). Bernard J.
IMPROVING CUSTOMER RELATIONSHIPS :

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