01. Introduction
- Traditional business involved face-to-face interactions, physical presence, and manual operations.
- With advances in Information and Communication Technology (ICT), new modes of business have emerged—especially e-business and outsourcing.
2. E-Business (Electronic Business)
Meaning
E-business refers to conducting business activities like buying and selling goods and services, processing orders, interacting with customers, and collaborating with business partners through the internet.
Scope of E-Business
E-business includes:
- B2B (Business to Business): Transactions between businesses. E.g., a manufacturer purchasing raw materials online.
- B2C (Business to Consumer): Businesses selling to customers directly. E.g., Amazon, Flipkart.
- Intra-B (Intra-business): Internal operations within a business using online systems. E.g., inventory management, payroll.
- C2C (Consumer to Consumer): Consumers selling to other consumers. E.g., OLX, eBay.
Benefits of E-Business
- Global reach
- Cost-effective operations
- Convenient and 24/7 availability
- Faster delivery of goods and services
- Better customer service
- Efficient supply chain management
Limitations of E-Business
- Lack of personal touch
- Security and privacy concerns
- High risk of fraud
- Technical issues and system failures
- Resistance from traditional customers
3. Online Transactions
Steps in Online Transaction
- Registration
- Placing an order
- Payment mechanism
- Delivery of product/service
Payment Mechanisms
- Credit/debit cards
- Net banking
- Mobile wallets (e.g., Paytm, Google Pay)
- Cash on Delivery (COD)
- UPI (Unified Payments Interface)
4. Security and Safety of E-Business Transactions
Threats
- Hacking
- Phishing
- Data theft
- Malware and viruses
Security Measures
- Encryption
- Digital signatures
- Secure Socket Layer (SSL)
- Strong passwords and firewalls
- Use of anti-virus and anti-malware software
5. Outsourcing
Meaning
Outsourcing means getting certain business processes or services done from outside vendors rather than doing them in-house.
Examples
- BPO (Business Process Outsourcing)
- KPO (Knowledge Process Outsourcing)
- IT Outsourcing
- Legal and HR outsourcing
Types of Outsourcing
- BPO: Non-core activities like customer support, data entry, call centers.
- KPO: High-end services like research, data analysis, legal advice.
- Offshoring: Outsourcing to companies in other countries.
- Onshoring: Outsourcing within the same country.
Advantages
- Cost reduction
- Focus on core activities
- Access to expert services
- Improved efficiency
- Flexibility and scalability
Disadvantages
- Loss of control
- Dependency on third parties
- Quality issues
- Data security risks
- Communication gaps
6. Difference Between Traditional Business and E-Business
| Basis | Traditional Business | E-Business |
| Physical Presence | Required | Not required |
| Operating Time | Fixed working hours | 24/7 availability |
| Interpersonal Contact | Direct | Indirect (via technology) |
| Cost of Setup | High | Relatively low |
| Speed | Slower | Faster |
| Global Reach | Limited | Worldwide |
7. Resources Required for Successful E-Business
- Computer system
- Internet connection
- Trained workforce
- Online platform/website
- Cybersecurity systems
- Payment gateway
8. Future of E-Business and Outsourcing
- Rapidly growing due to globalization and technology
- AI, cloud computing, and IoT are shaping the future
- Startups and small businesses find it easy to enter online space
