Traditional business VS E-Business
Give a definition of traditional business and e-business.
Traditional business is a type of organization that operates using conventional methods and practices, typically relying on brick-and-mortar locations and face-to-face interaction with customers.
E-business refers to the conducting of business activities using the internet and other digital technologies.
What E-Business and E-commerce refer to?
E-Business: The process of using different types of online work to conduct business.
E-Commerce:The process of selling and buying goods and cervices via the Internet.
Which components does e-business include?
CRM, SCM, BI, EDI.
Name 5 features of traditional business.
Shoplifting, rigid opening hours, limited choice of products, product damage, real-time customer experience.
What are the E-Commerce models?
B2B: business to business
B2C: business to consumer
C2C: consumer to consumer
C2B: consumer to consumer
What is the objective of using E-Business components?
To maximize profit received from sales made online.
Which challenges do companies face using CRM system?
Some common challenges that companies face when using a CRM system include data quality issues, resistance to adoption, cost of the system, identity issues, user adoption and engagement.
What analytical methods does BI encompass?
Business Intellegence methods include data mining, predictive analysis, text mining, statistical analysis, big data analytics.
Name 5 features of E-Business.
Identity theft, available 24/7, no geographical barriers, delivery issues, logistics of returns, cost-effective.
What are the E-Business models? Describe them.
Pure play: Business that focuses only on one channel or line of business.
Brics-and-clics: Integration between E-Commerce and physical store.
What is the SCM and the objective of it?
It is the management of the flow of goods and services, including all the processes that transform raw materials into the final product. By managing it companies can cut costs and deliver products to the customer faster and more efficiently.
What is EDI? What is it used for?
Electronic Data Interchange is the exchange of business documents in an organisation internally, between its various departments or externally with its suppliers, customers or subsidiaries.
EDI is used to electronically transfer documents such as purchase orders, invoices, shipping requests, acknowledgements and payments.
What are the disadvantages of traditional business.
Traditional businesses have limited flexibility in terms of operating hours, as they are generally open during set hours each day.
Traditional businesses typically have higher overhead costs, such as furnishing, rent, energy and other establishment costs, employing staff and advertising.
There is a risk of shoplifting and product damage, as customers come through your business every day.
What are the differences between Internet, Intranet and Extranet?
The Internet is a global network of interconnected computers and servers that allows people to communicate and access information from anywhere in the world.
An Intranet is a private network accessible only to employees within an organization. It is used to share information, resources, and applications within a company, and it is protected by firewalls and other security measures to ensure that sensitive data is not accessed by unauthorized personnel.
An Extranet is a network that allows people outside the organization to access certain information and resources. Access is restricted and controlled, so only authorized users can use the network.
Why is it essential for a company to build strong relations with customers?
Building strong relationships with customers is essential for a company because it leads to increased customer loyalty, higher levels of customer satisfaction, improved brand reputation, competitive advantage, and ultimately, increased profitability. By understanding and meeting customer needs and preferences, companies can retain customers, attract new ones through positive word-of-mouth, and differentiate themselves from competitors. These strong relationships contribute to long-term success and growth for the company.
What are the negative aspects of using EDI?
There could be issues with information leak, accesibility (EDI is available with the Internet connection and specific software), fraud issues.
This model works 24/7 and overcomes both geographical and timing barriers.
This business unit is more cost-effective in terms of start-up capital compared to traditional brick-and-mortar businesses.
This business approach uses existing technologies to reduce expenses, gather data and provide a better customer experience.
E-businesses can offer a wide range of payment options for customers, such as credit card payments, digital wallets, and cryptocurrency, making it more convenient for customers to make purchases online.
What E-сommerce is responsible for?
E-commerce is responsible for business relationships with its buyers, and refers to the performing of online commercial activities via the Internet. It includes activities like buying and selling products, making monetary transactions over the Internet.
What are the main benefits of SCM?
The main benefits of SCM include cost savings, higher efficiency rate, enhanced delivery methods, better inventory management, increased customer satisfaction. SCM helps businesses optimize processes, reduce expenses, streamline operations, and enhance overall performance within the supply chain.
What are the differences between BI and BA?
BI uses past data to inform current decisions for current success. It adresses to "what" and "how".
BA uses both past and current data to explain current data and predict what will happen in the future. It adresses to "why" and "what next".