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Introduction
to eBusiness
Johanna Heinonen
johanna.heinonen@brainit.fi
14.1.2013
What is business?
•   All functions and activities in a company that
    are done in order to gather profit
What is eBusiness?
 •   "e-Business" is an integration of business
     software in order to create value for the
     enterprise, its clients, and its partners.
 •   Includes virtual companies as well as the
     traditional ones
 •   Can include Selling, Buying, Customer
     service, CRM, Collaboration, Research,
     Promotion, Communication (internal &
     external), HRM etc.
eBusiness, eCommerce and Social media?
         •   eCommerce a term for any type of business, or
             commercial transaction, that involves the transfer of
             information across the Internet (~ web shops??)

         •   eBusiness can be considered as the whole value chain in
             a company:
             •   electronic purchasing and supply chain management
             •   processing orders electronically
             •   handling customer service
             •   and cooperating with business partners
             •   It also covers the integration between software,
                 communication between customers, stakeholders, employees
                 and a company
             •   eBusiness has a strategical focus – VALUE CREATION

         •   Even though social media as such is more of a tool or
             channel for eBusiness purposes, it has also an uttermost
             importance in WoM and customer engagement
Facts of eBusiness 1
In Europe
• Online sales grow approx 15 % per year since 2009
• The number of online buyers in Europe grow from 157 million to 205 million by 2015
• Total sales reach 133.6 billion euros




             http://mashable.com/2011/02/28/forrester-e-commerce/
Facts of eBusiness 2
                                Companies saying that e-business constitutes ...
                            ... constitutes a ... constitutes    ... is not relevant
                            significant part of some part of how for their
                            how they operate they operate        operations
                                  % of firms        % of firms         % of firms
Total (10 sectors, EU-10)            15                42                  43
By Sector
Food & beverages                     7                 38                 54
Footwear                            10                 34                 56
Pulp & paper                        15                 39                 46
ICT manufacturing                   28                 42                 30
Consumer electronics                25                 47                 28
Shipbuilding and repair             13                 43                 43
Construction                         9                 39                 52
Tourism                             18                 42                 40
Telecommunication                   34                 42                 24
Hospitals activities                34                 43                 23
By Country (EU10)
Germany                             28                 47                 25
France                              11                 32                 57
Netherlands                         13                 25                 62
Finland                             10                 45                 44
United Kingdom                      14                 57                 29
USE AND USERS IN
FINLAND
• 56 % of all Finns use internet many times a day
• 73 % has searched for product/service information
  in internet during the past 3 months
• 41 % has bought something from internet during the
  past 3 months

•   42 % of all Finns are registered in some social media
•   28 % follows social media daily

• 59 % has searched for information of OR bought
  tourism services during the past 3 months
• 32 % has bought some tourism service in the
  internet during the last year

•   Others have bought clothes and tickets

•   Growth of the eBusiness has been 10 – 20 %
    annually
                    (Tilastokeskus 2010, NetTrack 2010)
Challenges of eBusiness
•   Lost purchases (it is easy just to let it
    be) quite often due to technical
    reasons
•   Marketing (SEO, multichanneling etc.)
•   Misbeliefs and mistrust among
    customers
•   WoM (reviews, blogs, etc – social
    media) and crowsourcing
•   Company attitudes
•   Changes, innovations and
    development
•   Updating
•   Follow up and measurement
•   Hackers, viruses, phishing, credit card
    frauds etc.
•   ENGAGEMENT
Future of eBusiness
•   Increades growth
•   Blurred borders
•   Technical requirements as well as demand for global logistics, invoicing and
    payments
•   Mobile and HTML5
•    Location and awareness
    (geo targeting)
•   Augmented reality
•   Learning from customers
•   Not only B2C, B2B or C2C
    separately, but together
    (group buying sites)
•   Affiliate marketing
THANK YOU!

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Introduction to e business

  • 2. What is business? • All functions and activities in a company that are done in order to gather profit
  • 3. What is eBusiness? • "e-Business" is an integration of business software in order to create value for the enterprise, its clients, and its partners. • Includes virtual companies as well as the traditional ones • Can include Selling, Buying, Customer service, CRM, Collaboration, Research, Promotion, Communication (internal & external), HRM etc.
  • 4. eBusiness, eCommerce and Social media? • eCommerce a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet (~ web shops??) • eBusiness can be considered as the whole value chain in a company: • electronic purchasing and supply chain management • processing orders electronically • handling customer service • and cooperating with business partners • It also covers the integration between software, communication between customers, stakeholders, employees and a company • eBusiness has a strategical focus – VALUE CREATION • Even though social media as such is more of a tool or channel for eBusiness purposes, it has also an uttermost importance in WoM and customer engagement
  • 5. Facts of eBusiness 1 In Europe • Online sales grow approx 15 % per year since 2009 • The number of online buyers in Europe grow from 157 million to 205 million by 2015 • Total sales reach 133.6 billion euros http://mashable.com/2011/02/28/forrester-e-commerce/
  • 6. Facts of eBusiness 2 Companies saying that e-business constitutes ... ... constitutes a ... constitutes ... is not relevant significant part of some part of how for their how they operate they operate operations % of firms % of firms % of firms Total (10 sectors, EU-10) 15 42 43 By Sector Food & beverages 7 38 54 Footwear 10 34 56 Pulp & paper 15 39 46 ICT manufacturing 28 42 30 Consumer electronics 25 47 28 Shipbuilding and repair 13 43 43 Construction 9 39 52 Tourism 18 42 40 Telecommunication 34 42 24 Hospitals activities 34 43 23 By Country (EU10) Germany 28 47 25 France 11 32 57 Netherlands 13 25 62 Finland 10 45 44 United Kingdom 14 57 29
  • 7. USE AND USERS IN FINLAND • 56 % of all Finns use internet many times a day • 73 % has searched for product/service information in internet during the past 3 months • 41 % has bought something from internet during the past 3 months • 42 % of all Finns are registered in some social media • 28 % follows social media daily • 59 % has searched for information of OR bought tourism services during the past 3 months • 32 % has bought some tourism service in the internet during the last year • Others have bought clothes and tickets • Growth of the eBusiness has been 10 – 20 % annually (Tilastokeskus 2010, NetTrack 2010)
  • 8. Challenges of eBusiness • Lost purchases (it is easy just to let it be) quite often due to technical reasons • Marketing (SEO, multichanneling etc.) • Misbeliefs and mistrust among customers • WoM (reviews, blogs, etc – social media) and crowsourcing • Company attitudes • Changes, innovations and development • Updating • Follow up and measurement • Hackers, viruses, phishing, credit card frauds etc. • ENGAGEMENT
  • 9. Future of eBusiness • Increades growth • Blurred borders • Technical requirements as well as demand for global logistics, invoicing and payments • Mobile and HTML5 • Location and awareness (geo targeting) • Augmented reality • Learning from customers • Not only B2C, B2B or C2C separately, but together (group buying sites) • Affiliate marketing