Thursday, 20 June 2019
Tips on How to Succeed in doing Online Business
Online Business or e-business is any kind of business or commercial transaction that includes sharing information across the internet.
Electronic business is taking over from the supply chain economy where product took the central place and determine d market and market places. In e - business, the consumer takes the central place; the customers wishes drive the activities of this demand network. The driving force in this circumstance is the network economy. It is a flexible process that enables every one in any geographical area to partake actively in business around the world. It is one essence of the global economy.
There are various aspects of this network economy such as e-business, e-commerce and e-trading. While e-business involves any form of business with transaction including abstract and real objects, e-commerce deals directly with the exchange of goods and other payments facilitated by electronic transaction. E-trading deals with selling of financial instruments such as stock, bonds and treasuries. These aspects are further categorized to more specific details.
The network economy is developing rapidly all over the world . How ever, it's impact is felt more in developed economies where virtually all transactions are conducted electronically. This is made possible by the availability of requisite infrastructure or what is referred to as a degree of electronic readiness. This is measured by many variables including the number of persons per 100 who possess computer, the percentage of gross domestic product that is spent on ICT infrastructure, among many other indicators.
Techniques of the Network Economy
E-business is any business transaction that takes place via digital process over a network. It involves more than just selling products online. It is also an enabling technology that allows business entities to increase the accuracy and efficiency of conducting business. The driving force behind e-business is the Network Economy. As opposed to the supply chain economy, in which the product has central position and consumer's choices are strongly determined by the product positioning, in the network economy, the consumer's position is central. The individual's wishes drive the activities of the total demand network. This can also be described as a push versus a pull strategy.
E-Business and its impact
E-business can be looked at from different points of view and , as a consequence, there are many definitions:
1. The commercial exchange of goods, services, information and / or ideas between two or more parties enabled by electronic medium.
2. A collapse of time and space between business partners. This is a fresh way of looking at e-business. Just think of what you can do if time and place are no longer hindrance.
3. The transition to the 'new world' the network economy, having impact on how businesses are organized and deal with their customers and partners.
4. Creating the web Enabled Enterprise. The web - enabled enterprise defines the changes that web technology will bring to the organizations.
It is about extending the current IT- architecture across the borders of the company to intensify the different relations that organization have with their customers, their partners and their own employees.
Basics of E-business: E-business in an Organization context is about business irrespective of the type of business. Certain basics of E-business need to known:
a. The parties (actors) you are dealing with
b. The resources you should have at your disposal:
1.Investment Funds: setting up
3.Organization and personnel
4.Strategy and Policy: applying your resources
5.(External) Rules and Regulations: setting boundaries
c. Business functions to be performed:
1. Delivery: fulfilment and customers trust
2. Providing information
3. Acquisition and Sales
6.Product or Service Development (including technology)
In essence, the business functions are the activities a company performs using it's resources to fulfill the needs of, of the obligations the company has towards the actors. In other words: you need to know what your e-business must do in dealing with your customers, partners or employees, and what means are used to do so.