2. What is e-Business?
• E-Business presents a broader dimension of e-
Commerce as it represents the use of electronic
technology, especially web and other network
technology, for business.
• E-Business represents:
– 1. A range of online tools and processes that transform a
company’s value proposition by using
• sophisticated data warehousing to target customers more
effectively, networks to link companies with suppliers,
distributors and other business partners; and flexible
organisational infrastructures that adapt to change.
– 2. A way for companies to participate as part of a larger
networked community of providers, each bringing
specialised skills and new levels of performance to an e-
market place.
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3. Useful e-Business Terms
Business-to-Business (B2B)
• Interaction between businesses either in an established supply chain, or with
trading partners. The ability to electronically link your business with that of
your suppliers could lead to faster restocking times, lower stock levels, and
lower costs. If you have been considering engaging in business-to-consumer
e-commerce, give some thought also to ways in which you could lower costs
or increase your efficiency by engaging in business-to-business e-commerce.
Business automation
• A contact manager, job activity and job tracking system that allows fast and
flexible communications with a mobile workforce.
Content Management System
• A software package that creates and maintains content on a website by
providing a set of tools for creating, editing and publishing the webpages and
directories that makes up a website.
E-CRM (electronic Customer Relationship Management)
• An integrated sales, marketing and service strategy that is used to identify,
attract and retain an organisation’s customers through innovative Internet
technology.
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4. eMarketplace (electronic marketplace)
• An online trading forum where companies buy and sell products
and services using different trading and purchasing
mechanisms, including catalogues, auctions, reverse
auctions, requests for quote (RFQ) and requests for tender (RFT).
eProcurement (electronic procurement)
• A business-to-business (B2B) purchasing system that offers
electronic purchase order processing and enhanced
administrative functions for buyers and suppliers.
Extranet
• An intranet partially accessible to authorized outsiders. Whereas
an intranet resides behind a firewall and is accessible only to
people who are members of the same company or
organisation, an extranet provides various levels of accessibility
to outsiders.
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5. Intranet
• A worldwide network of computers that facilitates data communication
services such as remote login, file transfer, electronic mail, newsgroups and
the World Wide Web.
Local Area Network (LAN)
• A network of computers communicating over short distances in restricted
areas, such as a campus of a university. Many LANs have connections to larger
networks.
M-Commerce
• The use of a wireless terminal, such as a mobile phone or personal digital
assistant (PDA), and a network to access information and conduct
transactions that result in the transfer of value.
Online networking
• Uses Internet, intranet and extranet technology to collaborate amongst
certain groups of users, such as employees or partners.
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6. E-Business Infrastructure Requirements
• Web Hosting
– Domain Name Services
– Storage and Backup
– Server Speed and Reliability
– Management Information
– Security
– Technical Support
– Advanced Solutions
– Pricing
• Selecting an Internet Service Provider
– Location
– Price
– Internet Tool Kit
• Broadband Internet Access
– Narrowband
– ISDN (Integrated Services Digital Network)
– Broadband
• Faster Uploads and Downloads
• Affordability
• Speed
• Constant Internet Access
• Reliability
• Internet Security
– Internet Security Software
– Anti-Virus Software
– Firewall
• Privacy Policy
– The Privacy Amendment
(Private Sector) Act 2000
– Legal statement
– Data sharing
– Log files
– Email addresses
• The Spam Act 2003
– Spam Act 2003
– Spam Act 2003: A practical
guide for business
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7. Smart Tips and Demystifying e - Business Myths
• Developing your Website (Content Management Systems)
– Utilize your existing website in Content Management System
– Avoid high external rates for content changes
• Supply Chain Management/ Online Process Automation
– Remove steps in repetitive processes!
– Incorporate customers and suppliers access in the design
• eMarketing
– Search Engines
– Email Marketing is simple
• Buying and Selling Online
– Clearly state Warranty and Refund policies
– Look for Testimonials and Customer Service email
• Broadband Infrastructure Requirements
– Demonstrate your business with streaming video
– Reduced broadband prices
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8. • Approaching Export
– Provide access to a currency converter
– Tracking for Fulfillment
• Wireless and Mobile Applications
– SMS is a simple mobile application
– Wireless Devices increase customer time
• Knowledge Management (Using Intranets)
– Intranets bring together branch offices
– Intranets help workflow
• Electronic Customer Relationship Management
– eCRM is not costly
– Attend User Groups
• eSecurity and Trust
– Keep your Anti-Virus Software current
– Website Privacy Polices
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9. Understanding eBusiness Costs
Establishment and Start Up Costs
• Computer, modem (often internal), printer and
• scanner (recommended)
• Software:
– Word processor
– Web browser, e-mail software
• Telecommunications - extra telephone line
– Dial up account with ISP, 1 e-mail address
– Broadband account with ISP, 1 e-mail address
– Domain name (www.yourbusiness.com.au)
– Domain name (www.youbusiness.com)
• Website hosting at ISP:
• 25 Megabyte Disk Space
• 2 Gigabyte traffic per month
• 1 mailbox
• SSL Access/ Database access
• Detailed site statistics
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10. Developing Website
• Website development:
– DIY package (e.g. Frontpage 2000)
– By professional website developer
• Hosted website ‘solution’ (pre-built, templatedriven websites that allow you to control your own content)
– Training - each basic course per person
• Operating Costs
– ISP fees (for e-mail and web surfing, often
– includes some hosting allocation for a website)
• Telephone line rental and calls
– Web site:
• Hosting by ISP
• Maintenance & upgrade by developer
– Computers & software
• Maintenance & support
• Training (per course per person)
• Administration (staff time cost)
• E-Commerce - Secure Selling Online
• planning your eBusiness initiatives.
– Online shopping cart and e-commerce merchant technology
– Online credit card payment processing:
• Bank Internet merchant fees
• Credit card payment approval
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11. • Security Internet Software
• planning your eBusiness initiatives.
– Antivirus – 1 user licence of Norton AntiVirus
– Antivirus – 5 user licence
– Firewalls:
• All in one ADSL Modem/Firewall Router
• ADSL Wireless 11g Firewall/Router
• Electronic Customer Relationship Management
• planning your eBusiness initiatives.
– Contact Management Solution software – 1 user licence of ACT or Goldmine
– Antivirus – 6 user licence
– Quickbooks or MYOB Link to ACT
– ACT for Palm Operating System
– CRM which integrates with Microsoft Office – 1 user to 5 user licence
Wireless and Mobile Applications Costs
• planning your eBusiness initiatives.
– SMS Campaign Manager – 1 user licence of
• Bond Wireless
– SMS to Email Infrastructure software
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12. eMarketing Costs
• planning your eBusiness initiatives.
• Search Engine Marketing
– Search engines charge for keyword advertising
– Search Engine Optimisation – employing a range of technical
techniques to ensure your website is found ahead of your
competitors’.
– Prices vary depending on the traffic to a website, agencies
commissions and positioning of the advertisements.
– Please note that some websites require a minimum monthly spend.
– planning your eBusiness initiatives.
• Online Advertising
• Many websites accept paid advertising, on any of a flat, ‘per impression’
(view) or ‘per click’ basis.
• Advertisements can be plain text, banners, buttons or ‘pop-ups’.
• Cost per Thousand (CPM)
– Cost per Thousand is the price paid by advertisers to a website to
display a banner advertisement one thousand times.
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13. • Cost per Click (CPC)
• The price paid by advertisers to acquire a single customer and occurs
when a user clicks on an advertisement and is transferred to the
organisation’s website.
• Cost per lead or sale
• New technology allows a click on an advertisement to be traced back to
the originating website.
• Instead of earnings based on the impression or click, advertising hosts
are paid if that referral results in an appointment or sale.
• Sponsorship
• Flat fee – Approximately $100 to $10,000 per month, depending on the
type and popularity of website or email.
• Email Marketing
• Costs for permission email marketing vary depending on the email
format and size, the quantity of recipients, the level of reporting and
additional services required.
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