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Internet and E-business

Introduction to Internet and e business

Internet has become an inseparable element of the business. All firms are performing their operation by using the internet and its applications. The purpose of this report is to understand the scope of the e-business. It will explain how the internet works and how its components add value to the business. It will also discuss different types of e-business models and their implications. At last the report will end in describing how the website of an company can work and offer great features to the customers.

Task 1: Understand The Scope Of E-Business

1.1 Describe the environment in which e-business is conducted along with types of business transaction

Currently Ideal DIY store is facing many issues with its suppliers and it is unable to fulfil the demands of customers because of not having web presence. In the absence of web, this store is losing connectivity with the suppliers and customers. It is essential that it should adopt e-business solution for the business. Its old business can be transformed into click and mortar business model by establishing an online platform where it can connect easily with the stakeholders (Ahmed, 2013). It is required to adopt effective customer relationship management techniques so that needs and expectations of the customers can be evaluated easily. Supply chain management will help the store to develop better relations with its suppliers. Intranet and extranet will facilitate a smooth flow of information and a good communication will be established within organization (Hall, 2010). There is a need to convert the passing of information in an electronic form. This will make the communication and networking faster and it will also promote sound decision making as well. It can make use of components such as client server system, web applications and internet protocols such as TCP/IP, HTTP and HTML/XML to eliminate the business issues.

1.2 Explain the benefits and barriers to businesses considering an online presences

Major benefits associated with the e-business are as follows:

Costs reduction - Online presence will improve the costs of operations for IDS. It can track millions of customers at a single platform, reducing its costs that are related to land based business (Jones, 2008).

Easy availability of customers - Online presence will help in identifying millions of customers in a very quick span of time. Company can get these customers at a single platform only.

Better control and flexibility – It will be able to maintain adequate control along with avoiding several kinds of confusions and errors (Jones, 2008). Lots of flexibility and transparency can be seen in the business as it will be easy to track each and every aspect.

Security issues - It is one of the major issues in E-Business world. It is related with hacking of important and confidential information related to the business. It may cause damage to the reputation of company as well (Lee, 2000).

Increasing competition - These days all business firms are driving towards establishing online presence in its operations. In such scenario, it can be very difficult for a company to create a distinctive impression among the minds of

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