Emerging Modes of Business

Emerging modes of business refer to the new ways of conducting business activities using modern technology, especially the internet and computer networks. These modes are not new types of business but innovative methods to carry out business functions more efficiently and effectively.

Key Definitions and Features

• e-Business: Conduct of industry, trade, and commerce using computer networks. It encompasses all electronically conducted business functions such as production, inventory management, product development, accounting, finance, and human resource management.
• e-Commerce: Buying and selling of goods and services over the internet.
• e-Procurement: Sales transactions conducted between business firms electronically.
• e-Bidding / e-Auction: Online bidding for goods and services.
• e-Tendering: Submission of tender quotations online.
• e-Communication / e-Promotion: Online publication of catalogues, advertisements through banners and pop-ups, consumer surveys, and video conferencing for meetings.
• e-Delivery: Electronic delivery of digital products such as software, photographs, videos, e-books, and e-journals.
• e-Trading: Online buying and selling of shares and other financial instruments.

Illustrative Examples

• Business-to-Business (B2B) Commerce: An automobile manufacturer purchasing wheels and accessories from suppliers online.
• Business-to-Consumer (B2C) Commerce: A manufacturer selling products directly to consumers through an online platform.
• Intra-B Commerce: Transactions and communications within different departments of a company using computer networks.
• Consumer-to-Consumer (C2C) Commerce: Individuals selling used books or clothes to other consumers via online marketplaces.

Practice Set

Level 1 – Easy

• Define e-business and e-commerce with examples.
• List any three benefits of e-business.

Level 2 – Moderate

• Explain the difference between B2B and B2C commerce with suitable examples.
• Describe the scope of e-business in modern organizations.

Level 3 – Challenging

• Discuss the limitations of e-business and suggest measures to overcome them.
• Analyze how e-business has transformed traditional business operations with real-life examples.

Answer Key

• e-Business: Conducting business activities using computer networks. Example: Online inventory management.
• e-Commerce: Buying and selling goods/services over the internet. Example: Online shopping websites.
• Benefits of e-business: Ease of formation, 24/7 availability, speed, global reach, and movement towards paperless transactions.
• B2B vs B2C: B2B involves transactions between businesses (e.g., manufacturer and supplier), whereas B2C involves business selling directly to consumers (e.g., online retail store).
• Scope of e-business: Includes production, finance, marketing, personnel administration, and managerial activities like planning and controlling.
• Limitations: Low personal touch, technology dependency, risk due to anonymity, resistance to change, and ethical concerns. Measures include improving technology literacy, enhancing security, and customer engagement strategies.
• Transformation: E-business enables faster transactions, wider market access, cost reduction, and improved customer service compared to traditional business.

Quick Reference

• e-Business: All business activities conducted electronically.
• e-Commerce: Online buying and selling.
• B2B: Business to Business transactions.
• B2C: Business to Consumer transactions.
• C2C: Consumer to Consumer transactions.
• Intra-B: Internal business transactions.

Glossary

• Browsing: Retrieving information on the internet.
• URL (Uniform Resource Locator): The web address specifying a particular site or page on the internet.
• e-Procurement: Electronic purchase of goods and services.
• e-Tendering: Online submission of bids or quotations.
• Video Conferencing: Conducting meetings through live video communication over the internet.