What are the benefits of e-business class 11?


What is e-business?

Conducting business activities over the internet or any other computer network is known as e-business or Electronic Business. e-business conducts all business activities, like trade, commerce, and industry; electronically. It is about using the internet and other computer networks and technologies to provide superior customer service, increase sales and reduce costs. Computer networks, which are more secure, effective, and efficient as compared to the internet are often used in e-business. examples: amazon, flipcart, messho and etc.

E-business stands for electronic business. Electronic business is also known as online business. Online business is a business where the transaction takes place online. Here, the buyer and the seller don’t meet personally. The term “e-business” was coined by IBM’s marketing and Internet team in 1996. E-business is a part of e-commerce. E-commerce means electronic commerce.


Limitations of e-business

The limitations of e-business are as follows:


1. Low Personal Touch: 

There is no personal touch in e-business even though it is very high-tech, as it lacks interpersonal touch. And because of this, it is not suitable for businesses, which require a personal touch, such as garments, toiletries, etc. 


2. Incongruence between Order taking/giving and Order fulfilment Speed: 

Physical delivery of products may take time, even after the flow of information at a single click of a mouse. So, there is an incongruence between order taking/giving and order fulfilment speed. Users are also frustrated because of technical reasons, such as websites taking an unusually long time to open, servers being unreachable, etc.


3. Need for Technology Capability and Competence of Parties to e-business: 

The parties involved in e-business should be well versed with the technologies and world of computers apart from the traditional 3 R’s (Reading, WRiting, and ARithmetic). And, this requirement leads to the digital divide, which divides society on the basis of familiarity and non-familiarity with digital technology. Many businessmen and customers who are technologically challenged are unable to grab the benefits of e-business.


4. Increased Risk due to Anonymity and non-traceability of Parties: 

It becomes difficult to establish the identity of the parties, as internet transactions occur between cyber personalities. Moreover, it is very difficult to know the location from where the parties may be operating. Therefore, it is riskier to transact through the internet. There are also additional hazards of impersonation (someone else may transact in your name) and leakages of confidential information, such as misuse of OTP and credit card details. Problems of viruses and hacking are also there in e-business.


5. People Resistance: 

There is a lot of resistance by people in the case of e-business. Stress and a sense of insecurity are caused amongst people because of the process of adjustment to new technologies and a new way of doing things. As a result, there is resistance amongst people to an organisation’s plans of entry into e-business. 


6. Ethical Fallouts: 

There are ethical fallouts in businesses because of e-businesses. Companies use an ‘electronic eye’ to keep track of the computer files, e-mail accounts, etc., of employees. Companies use such information against employees, which is unethical.


The benefits or importance are:

 1. Ease formation and lower investment requirements:

 It is relatively easy to start because legal formalities and capital is less when compared to traditional business. 


 2. Convenience: 

Electronic commerce enables customers to shop or do other transactions 24 hours a day, all year round, from almost any location. 

 3. Global Reach/Access: 

Internet is truly without boundaries. On the one hand, it allows the seller an access to the global market; on the other hand, it affords to the buyer a freedom to choose products from almost any part of the world. 

 4. Cost Effective:

 E-commerce is proved to be highly cost effective for business concerns as it cuts down the cost of marketing, processing, inventory management, customer care, etc. It also reduces the burden of infrastructure required for conducting business.