05 emerging modes of business

Emerging Modes of Business

New ways of conducting business using technology and the internet.

Digitisation

Converting information into digital form.

Outsourcing

Giving some business activities to outside specialists.

Globalisation

Expanding business across countries.

E-business

Conducting business activities using the internet and other electronic networks.

E-commerce

Buying and selling goods and services online; a part of e-business.

B2B (Business to Business)

Transactions between businesses.

B2C (Business to Consumer)

Transactions between a business and consumers.

C2C (Consumer to Consumer)

Transactions between consumers.

C2B (Consumer to Business)

Individuals provide products or services to businesses.

Intra-B (Intra-business)

Electronic transactions within the same business.

Benefits of E-business

Easy to start, convenient shopping, faster transactions, global reach, paperless operations, lower costs.

Limitations of E-business

Less personal contact, delivery time, requirement of internet access, security risks, technology resistance, ethical issues.

Traditional Business

Requires physical presence with limited geographical reach and more paperwork.

E-business vs Traditional Business

E-business uses the internet for transactions whereas traditional business requires physical locations.

E-procurement

Buying materials and supplies online.

E-bidding and E-auction

Inviting bids or conducting auctions electronically.

Online Transaction Stages

Pre-purchase, Purchase, Delivery.

Methods of Online Payment

Cash on Delivery, Cheque, Net Banking, Credit Card, Debit Card, Digital Cash.

Transaction Risks

Default on order, default on delivery, default on payment.

Data Risks

Viruses, unauthorized access, information interception.

Cryptography

Securing information using mathematical techniques.

Outsourcing

Contracting certain business activities to an outside organisation.

BPO (Business Process Outsourcing)

Giving specific business processes to an outside service provider.

Reasons for Outsourcing

To reduce costs, obtain specialized services, focus on core activities, improve efficiency.

Benefits of Outsourcing

Reduces costs, access to experts, focus on core activities, improves efficiency.

Limitations of Outsourcing

Loss of control, risk of leaks, dependence on providers, quality differences.

Benefits of Outsourcing to India

Creates jobs, earns foreign exchange, grows IT and service sectors.

Encryption

Converting readable information into an encoded form.

Decryption

Converting encoded information back into readable form.