The literal meaning of the term, “E-Business” is Electronic Business, which had been derived by the Think Tank of IBM Ltd. during the mid nineties in India. Electronic business is one of the most convenient modes of business conducted over the Internet. E-Business is one of the boons of the technological revolution in the country and it has taken the entire industry by storm. It is not only the large corporate houses and huge multinational companies that have taken up this dramatic methodology of conducting business, it has also spurred the medium and small scale industries as well as entrepreneurs to adapt to this radical type of carrying out business. The transition of the conventional method of carrying out businesses from the confines of the premises of an office and ware houses and limiting it to the comfort of a person’s residence is overwhelming. An E-Business provides an entrepreneur a farther and wider reach and therefore increases the client data base manifold in comparison to a business operated from a physical location of an office.
There are several factors which determine the success of any E-Business. One of the significant factors lies in the selection of the appropriate and latest computer hardware and software, which have proved their worth in allowing a person to run his business independently and make it a tremendous success businessmantalk.com. The entire use of both information technology and communications spell a successful business. One of the basic reasons for conducting E-Business is that the internet is one of the main conduits to a global trade. E-Business opens new vistas as well as wide horizons for an entrepreneur, who is contemplating to make global presence. The systems adopted through E-Business provide companies with the unique advantage of connecting their internal as well as their external data bases with the utmost efficacy. This connection lends the entire business with a cohesiveness and flexibility to interact with the suppliers and other partners enabling them to meet the expectations of their customers, who are the end users.
A gamut of processes is involved in the operation of E-Business which runs across the entire value chain. A value chain comprises of electronic purchases and management of the supply chain, electronic processing of customer orders, managing customer service and extending total cooperation to business partners. A host of software is presently available to carry out an e-Business successfully. The software offers dependable solutions at the same time including permissions for integration of intra or inter-firm business processes. The Intranet, Internet and extranet along with the usage of the web or a combination of these allows an entrepreneur to carry on his business effectively. The progression of data exchange between different companies is smoothened through the availability of special technical standards for E-Business. It is through the widespread use of the internet technologies that can possibly turn around any type of business to become a resounding success in terms of productivity and profitability.
A Supply Chain Management (SCM) is a process that is deemed to be significant in the management of the delivery of goods from the supplier to the purchasers. It is also considered to be as a process required for the optimization of a firm’s internal practices essential for interaction with suppliers as well as customers to usher products into the market in an efficient manner. The role of a Supply Chain takes care of the prediction of the market demand, procurement and outsourcing, warehouse management and inventory control, distribution logistics as well as other disciplines. In cases where the Enterprise Resource Planning fails, the Supply Chain Management takes up and becomes a terrific success. However, the Supply Chain Management Systems requires the database of the Enterprise Resource Planning to precisely predict inventory levels. A robust SCM encompasses the optimization and systematic organization of the operation and tactical information and techniques internally and in between these two processes. The Supply Chain Management is closely associated with the enhancement of business processes and value in every corner of the widespread enterprise starting from the supplier’s supplier to the customer’s customer. SCM has the capability of using E-Business concepts and web technologies to elevate the organization’s operations. The tactical methodology unifies all the phases in the business cycle from the initial stages of product design through procurement of raw materials right up to the delivery of the end product to the customer.
The functionality of E-Business is often deemed to as E-Commerce and the generalized terms are at times used in conjunction with each other. E-Commerce is usually considered to be buying and selling through the Internet, yet it is essentially carrying out business online. It is due to some software programs that have the capability of running the main functions of an E-Commerce website that constitute showcasing of products, online ordering and management of inventory stocks. These software programs reside on the server and perform in juxtaposition with online payments methodologies through processing payments. A typical E-Commerce takes into consideration Business to Business, Business to Consumer and Extended Enterprise Computing to be the emerging value chains. In the US economy, E-Commerce plays a major role since it helps companies with several levels of current business transactions besides formulating fresh online business avenues mostly global in content.