How are e business and eCommerce similar

how are business relationships transformed through e-commerce and how can e-business help achieve success and how e-business has affected operations management
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Dr.DouglasPatton,United States,Teacher
Published Date:26-07-2017
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eBusiness MAKING YOUR BUSINESS COMPETITIVE IN THE DIGITAL WORLD A PRACTICAL GUIDE FOR SERBIAN SMALL AND MEDIUM BUSINESSES AND ENTREPRENEURS This project is funded by the European Union Republic of Serbia Republic of Serbia Ministry of trade, tourism Ministry of economy and telecommunicationsProject: E-business Development National Project Director: Željko Rakić, Ministry of Trade, Tourism and Telecommunications Project Director: Sarah Shreeves, Exemplas ltd. Project Team Leader: Leszek Jakubowski, Exemplas ltd. Project Benefi ciaries: Ministry of Trade, Tourism and Telecommunications Ministry of Economy National Agency for Regional Development Author: Siniša Begović, short term expert, E-business Development Project Editor: Leszek Jakubowski Contributors: Željko Rakić, Ministry of Trade, Tourism and Telecommunications Bojana Amanović, Ministry of Trade, Tourism and Telecommunications Vladimir Jovanović, National Agency for Regional Development Jelena Uzelac, National Agency for Regional Development Snežana Pavlović, E-business Development Project Production: MaxNova Creative Print - run: 100 copies ISBN: 978-86-80388-01-4 This publication has been produced with the assistance from the European Union. The contents of this publication are the sole responsibility of the E-business Development Project and do not necessarily refl ect the views of the European Union. The project is implemented by the consortium led by Exemplas, in cooperation with ACE Consultants, European Profi les, Imorgon, Seidor and Teamnet International.eBusiness MAKING YOUR BUSINESS COMPETITIVE IN THE DIGITAL WORLD A PRACTICAL GUIDE FOR SERBIAN SMALL AND MEDIUM BUSINESSES AND ENTREPRENEURSCONTENTS Foreword 6 Introduction 7 1. 1. Defining e-business 9 What is e-business and what is e-commerce? 9 Why should I care about e-business? 10 What are the advantages of e-business? 10 2. 2. E-services for serbian businesses 12 B2G Government e-services 12 B2B: Electronic signature 13 B2B: Electronic certificates 13 B2B: Banking services 15 B2C: Online recruitment 16 3. 3. Assessing your needs and readiness for e-business 17 Am I already using e-business? 17 Is e-business the right way forward for my business? 17 Am I ready for e-business? 21 4. 4. Investing in e-business 23 What are the main reasons to invest in e-business? 23 What is the cost of doing e-business? 25 5. 5. Finding business information online 27 How can I find business information online? 27 Finding products and services for your business 27 Online sources for business information 28 Online market research 28 6. 6. Addressing e-business challenges 30 How can I overcome the challenges of adopting e-business? 30 7. 7. Working with e-business providers 32 Who provides e-business services? 32 4 What is “cloud computing”? 34 How can I find the right e-business services provider? 35 How can I work effectively with my e-business service provider? 36 8. 8. Protecting your business – privacy, security and legal issues 37 How can I minimise privacy and security risks? 37 What are the key legal issues? 39 9. 9. Creating a web presence 42 How do I create a website? 43 How can I market my website? 46 How can I use social media networks to improve my business? 50 KHow can I market my business to smart phone and tablet owners? 50 10. 10. Online ordering on your website 52 What do I need to consider for online ordering? 52 What are my options for payment-processing? 52 What are the product delivery methods? 53 What are the trading rules? 54 11. 11. Integrating e-business into your overall business activities 56 What do I need to consider? 56 “Investors in People interactive” 57 Enterprise Resource Planning 58 12. 12. Top five things to do when adopting e-business 60 13. 13. Where can i get support and information to develop e-business? 61 Network of Regional Development Agencies 61 References 63 Other sources of information and free e-business tools 63 Annex Glossary of e-business terms 64 5 FOREWORD Nowadays, it is impossible to run a business without the use of modern technologies and tools and without a modern way of thinking, regardless of sector or organisational function. E-busi- ness is not something that will happen in the future; it is already here and we must be aware of it if we want to be competitive in the domestic and foreign markets. The rapid growth of the digital economy in recent years has led to many dilemmas among busi- nesses. On the one hand, they can keep their old business model that has functioned well up till now; on the other hand, they can modify the current model by implementing e-tools and technology and make a shift towards embracing the inevitable e-business changes. Keeping the old business model is usually much easier in the short term, but in the long run, it will certainly mean a decline in efficiency and productivity in comparison to other more advanced and more competitive rivals. This book addresses many topics and provides you with a practical guide with concrete exam- ples and guidelines which will assist you in applying various e-business tools in your organization. E-business is not just about online marketing or e-commerce – it includes the use of technology to make every area of your business more efficient by cutting costs and increasing sales and profits. The Government of Serbia is committed to building a dynamic business environment where all businesses – especially small and medium-sized enterprises and entrepreneurs – can fully engage in e-business. This book describes a range of leading-edge electronic tools and appli- cations which will help you to do that. Rasim Ljajić Željko Sertić Deputy Prime Minister and Minister of Trade, Minister of Economy Tourism and Telecommunications 6 INTRODUCTION E-business is the use of internet and mobile technology to facilitate doing business. The objec- tive is to improve a business’s efficiency, competitiveness and profitability through the use of technology. This guide for Serbian small and medium businesses and entrepreneurs shows that e-business activities do not have to be complex or costly to achieve substantial benefits. If you are new to the world of e-business, you will find information and tools to help you get started. Examples of Serbian small and medium businesses and entrepreneurs successfully using e-business are included and a glossary of common e-business terms is also provided to help you understand the ideas and e-business technology. This guide will help you to answer the following questions: • What is e-business? • Is e-business right for my business? • Am I ready for e-business? • What are the main reasons to invest in e-business? • What are the costs of doing e-business? • What online services are available for my business? • How do I find and work with e-business service providers? • How can I minimise risks with respect to privacy, security and legal issues? • How do I establish my own website? • How can I establish online ordering on my website? • How can I integrate e-business solutions into my overall business? The way e-business is conducted changes very rapidly because of new technological develop- ments driven by changing technology, so SMEs cannot ignore new trends and possibilities to make their businesses more competitive such as: • Using social networks to target customers. • Using video for a variety of purposes from marketing to training. • Using mobile applications to reach new customers. • Using cloud computing to save money and increase productivity when out of the office. 71. 1. DEFINING EBUSINESS What is e-business and what is e-commerce? E-business is the use of information and communication technologies (ICT) to support busi- ness activities. It allows companies to connect business processes and greatly simplify rela- tions with customers and suppliers. E-commerce is a sub-set of e-business which uses the internet as a medium for transactions – the purchase, transfer or exchange of goods, services and/or information over the internet. An example of e-commerce is a web shop, which cannot operate without the internet. E-business is wider and can include communications, promoting your business, getting busi- ness information, buying and selling online, online banking and dealing with the government (such as online tax payment). E-business is much more than just having a website or portal. The point of e-business is to enhance the competitiveness of a company, extend its market and increase the number of customers. E-business is not just about technology – it combines technology, processes, organisation and a new way of thinking. Examples of e-business include: • Impr oving internal communications thr ough your company’ s w ebsite. • Using lo w-cost models for business marketing such as social netw orks and Google mar- keting tools. • Sear ching online portals for business information. • Using alr eady established online shops like • T racking shipments of goods. • Online r ecruitment of staff . • Online market r esear ch. 9Why should I care about e-business? E-business can: • Enhance services and access to customers beyond your local market. • Help you market your business cost-effectively . • Help you or ganise your business pr ocesses mor e efficiently . • Give you fast access to a netw ork of businesses. • Allo w you to compar e pr oducts and prices to find the best offers. • Allo w your business to keep pace with or overtake your competitors. • Lo w er the costs of business transactions. • Enhance your visibility and accessibility for your customers and suppliers. • Allo w you to communicate or conduct transactions when out of the office. • Mak e easier your communications with partners such as suppliers, banks and govern- ment. • Make it easier to or der supplies. What are the advantages of e-business? The advantages of e-business over non-electronic business models include: • Ne w business models which incr ease income, • Fl exibility and efficiency: the ability to handle complex information, pr oduct ranges and customer profiles. • Extended hours: 24 hours a day , 7 days a w eek, 365 days a year . • Updated company materials • Reduced costs and time: less labour , paper , data entry , lead times and deliveries. • Impr oved customer r elations and sales using marketing techniques on the internet. • Impr oved cooperation with business partners. • Easier business r esear ch, analysis and for ecasting. • T w o-way communication with customers. • Ne w markets at home and internationally . • Reduc ed communications costs by using V oIP (V oice over Internet Pr otocol) technology such as Skype ( ), ooV oo ( and Viber ( 10 Skype The most popular VoIP system is Skype. You can make free video calls from your computer or smart phone to anyone else in the world if they have Skype and access to internet. You can also make conference calls and (for a fee) call landline or mobile numbers. Other features available include: • SkypeOut: call a “real” phone number from Skype • SkypeIn: able to call your Skype account from a phone • File Sharing: fi le exchange • Text messaging: use Skype to send text messages to any mobile phone in the world • Skype Click to Call: customers with Skype click an icon on your website to call you. Skype is very easy to use – download the software for your computer from or the Skype application for your mobile phone.2. 2. E SERVICES FOR SERBIAN SMALL AND MEDIUM BUSINESSES AND ENTREPRENEURS B2G Government e-services A wide range of online services are already available to Serbian businesses from both the public and private sectors. The list of all current e-services can be found on the e-Government Internet Portal of the Republic of Serbia: 12B2B Electronic signature Serbian businesses have to comply with government regulations on accounting and finance, including producing invoices in a particular format and documenting all sales using POS (point of sale) technology. They are also required to send regular financial reports to government for taxation purposes and to pay social insurance for employees. All these processes are made easier by using e-business solutions. But a prerequisite is that businesses have digital signatures – a form of identification in the virtual world. Electronic signature A digital signature, like a handwritten signature, is used as evidence of authorship or agreement with the content of a signed document. A person who wants to sign a document digitally can do so using his or her private key (known only to that person). A person who receives the document can decode it using the public key of the person who signed it. An advanced electronic signature is an electronic signature which is associated solely with the signatory and created by means solely under his or her control. Advanced electronic signatures have the same legal force as handwritten signatures or stamps. Security requirements ensured by a digital signature are: • Undeniability: sender cannot deny that a message was sent. • Integrity: the sent message arrives unchanged from sender to recipient. • Authentication: participants in communication are really who they claim to be. Electronic certificate Electronic certificate is an electronic document issued by a certification authority. This is an electronic confirmation which verifies the link between the electronic signature data and the identity of the signatory. The electronic certificate can be perceived as a digital identification document since it contains information about the certificate user as well as the information about its issuer. 13The certification authority is a legal entity which provides electronic certificates issuing ser- vices to other legal entities and individuals, as well as other services associated with this activity. At the moment, there are four registered certification authorities in the Republic of Serbia, whose websites describe the procedures for electronic certificates issuance, as well as the software necessary for their use. Electronic certificate installation A prerequisite for electronic certificate installation of the four registered certification author- ities is the installed driver for smart ca rd r eader or a USB token. Issuing of qualified electronic certificates By means of Decision of the Ministry of Telecommunications and Information Society (MTID), No. 345-01-00084 / 2009-01, dated 11th September 2009, the Certification Authority of Chamber of Commerce and Industry of Serbia (CCIS CA) was entered in the Register of Certification Au- thorities for issuing qualified electronic certificates, with the reference number 2 (two). The certification authority (CA) is a legal entity which issues electronic certificates in accord- ance with the pr ovisions of the Law on Electr onic Signatur e. Electr onic certificates of CCIS CA are intended for all electronic business participants in the Republic of Serbia. Electronic certificates have been formatted in a standard format (X.509 standard) and they in- clude: the name of the certificate owner, public key (formed on the basis of asymmetric cryp- tographic systems) and additional information such as the date of issue, expiration date, and the name of the CA that issued the certificate. The CA as an “entrusted third party” which guaran- tees that a given public key belongs to a defined user and its signature certifies that this is true. The qualified electronic certificate is issued for a period of three (3) years. CCIS CA concludes the Contract on issuance and use of qualified electronic certificate with a user. The contract regulates the conditions under which the CCIS CA issues the qualified electronic certificate to the user. CCIS CA issues the following types of certificates: • Qualified electr onic certificates • Electr onic certificates for web servers 14The users of qualified electronic certificates can be: • Authorized individuals (natural persons authorized by the responsible person to represent the legal entity in certain cases), • Natural persons In addition to e-banking, qualified electronic certificates can also be used for all other applica- tions, as well as for services which require their use within the Republic of Serbia. The qualified electronic certificates issued by Halcom CA are designed for e-business users for: E- banking E-invoicing SBRA, signing of financial statements Tax Administration, E-taxes Central Registry of Compulsory Social Insurance WARP miniMAX & iCenter - internet bookkeeping Republic Fund for Health Insurance, Electronic registration eGovernment Portal National Bank of Serbia Customs Administration, eBusiness Ratel, e-counter Encryption of documents (MS Office, PDF, Outlook ...) Banking services Essential to e-invoicing and also selling online is online banking, now used by most Serbian businesses. Online banking enables customers to make and review their financial transactions and balances via the secure website of the bank. Any company can become an online banking user. E-banking can be used upon obtaining the necessary approval and certificate from the bank. The benefits of online banking for businesses include: • Availability 24 hours a day, 7 days a week, 365 days a year • Accessible from any location in the world by internet • No waiting times 15• Easier to make international payments • Easier international payment transactions Some banks also offer certain services (such as checking balances) to mobile phone users. More information on the specific online and mobile services they offer is available on each bank’s website. B2C Online recruitment Recruitment portals give you the opportunity both to advertise for new staff directly to those seeking employment and also search for staff with the specific skills and experience you need. Some of the most popular sites in Serbia are:,,, www.poslovi.rs3. 3. ASSESSING YOUR NEED AND READINESS FOR EBUSINESS Am I already using e-business? You may already be using e-business for business purposes without having given it much thought. That shows how simple getting started in e-business can be. Ask yourself the following questions: Yes / No 1. Do I use e-mail for business purposes? 2. Do I search online for products or services for my business? 3. Do I use online banking services? 4. Does my company have a website? 5. Do I use social media like Facebook for promoting my business? 6. Do I use online networks like Skype to save on telephone bills? 7. Do I use my mobile phone for more than just phone calls? If you answered “yes” to some of the above questions, you are already enjoying some of the benefits of e-business and should now consider using it in other areas, as explained in this book. Is e-business the right way forward for my business? There are three key reasons why e-business could be the right way forward for your business. It can help you to: 17• Organise your internal business and communication processes better. • Market your business to existing and potential customers more effectively. • Make easier transactions with other businesses. The following checklists allow you to test how e-business can help you to meet these three key needs. Using e-business for organization of business communication processes The following checklist allows you to test how e-business can help you to organize your business communication processes more efficiently. Using e-business for communication processes To help assess your e-business needs with regard to business communication processes, say whether you agree or disagree with the following statements. Agree/ Disagree Do I need a business e-mail account? 1. I want to communicate more efficiently with staff, customers and suppliers. 2. Employees, customers or suppliers say they want to use e-mail to communicate with me. Do I need a computer network? 3. Staff say they want to share information and ideas more easily. 4. A computer network would save costs on purchasing software. 5. A c omputer network would save costs on purchasing equipment, such as printers. 6. I want a convenient way of sharing information with staff. 7. I want staff to be able to work on shared files and easily complete forms. 18If you agree with statements 1 or 2, you should set up an e-mail account for your business. If you agree with any statements from 3 to 6, consider introducing a computer network in your company. Using e-business to organise business processes Please say whether you agree or disagree with the following statements relating to your busi- ness processes. Agree/ Disagree 1. I want to make my bookkeeping more efficient. 2. I want to make my tax reporting more efficient. 3. It is difficult to ensure my company’s regular business operations are consistent with the online system. 4. It is difficult to keep track of phone and online orders. 5. Online sales are an increasingly important part of my business. 6. My business has problems tracking shipments. 7. Customers or suppliers complain that they are receiving online orders late. If you agree with statement 1 or 2, consider using e-business accounting, financial management and tax software programmes. If you are already conducting e-commerce and you agree with any of the statements 3 to 7, consider how best to integrate your business operations and online systems. Using e-business to market your company to customers You can market your business through your own website or by advertising on other websites. This checklist will help you assess whether a website is right for your business. Establishing a website for customers Say whether you agree or disagree with the following statements. 19Agree / Disagree 1. I want to expand my business beyond the local market. 2. My competitors have websites. 3. My customers ask if I have a website. 4. I want to provide information about my business and products in an efficient manner. 5. I want to enhance customer service. 6. I want to make my business easier to contact. If you agree with any of these statements, you should think about setting up a website for your business. Selling online to customers You can start with a simple information-based website to test the market before deciding wheth- er you should invest in a more complex website. Use the checklist below to find out if you require more advanced website needs. If you agree with any of these statements, consider adding an online ordering and sales feature for customers to your website. Agree / Disagree 1. My current customers want to order and purchase online. 2. Potential customers may be interested in purchasing online. 3. I want to increase my sales beyond the local market. 4. My competitors have websites which allow online ordering and sales. 20

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