IRACST – International Journal of Commerce, Business and Management (IJCBM), ISSN: 2319–2828

Vol. 3, No. 2, April 2014

E- Business – a new paradigm in Business

Management
Pooja Sharma, Research Scholar, Department of Commerce,
Delhi School of Economics, University of Delhi,
Delhi-110007, India
Email: pooja26.s@gmail.com

Abstract— Electronic business primarily means integrating areas where computerization can transform a brick and mortar
Information Technology (IT) into the traditional business model of doing business:
model. The concept of E business is slowly catching up. There 1) Marketing and Selling Products
has been deep penetration of technology into the modern
business enterprises. Efficient E Business implementation is a
key to achieve competitive advantage and hence companies Internet as medium of communication has blurred the
cannot ignore its growing presence. The present paper geographical boundaries and made way to market and
attempts study the various aspects E business models. It also sell products on a global platform. By means of
highlights advantages and challenges in adopting one. Electronic Commerce, national and international
markets are now accessible to seller to promote and
Key words: E Business, Internet, Business Processes increase their sales by increasing the visibility of their
product. Informal and formal media both provides a
means to reach the customers. Every company
I. INTRODUCTION nowadays has an electronic existence with its own
Technology plays a very important part in our lives today. website in order to make public aware of their
Everything ranging from education to profession, from products and services. Additionally various social
healthcare to managing day to finances, from communication media websites are used to promote the products and
to entrainment from sports to shopping, everything is inviting customer feedback on their experience by
technology driven. The innovations are taking place at very availing a service or using their products. Selling
fast pace which has changed the way people pursue their lives. products by making them available on online
E business models are a new paradigm in the corporate sector. shopping portals at discounted prices makes a
The present paper attempts study the various aspects E shopping on the internet a unique experience for
business models can be incorporated in a company setup and customers and various companies are adopting such
the advantages of the same a company could reap. The paper practices to enhance their sales of the product.
also highlights the challenges which a company may face
before adopting E business mechanism along with its some
recent examples.
2) Managing Human Resources

II. THE CONCEPT OF ELECTRONIC BUSINESS OR E- There is a huge scope of using technology in various
BUSINESS HR functions in to the organisation. By adopting
Electronic business primarily means integrating Information Human Resource Information System (HRIS)[1] each
Technology (IT) into the traditional business model. It implies function of HR can now be performed with more
making a business electronically accessible. The concept of E speed. For the purpose of workforce planning, an
Business is wider than Electronic Commerce or E-Commerce electronic record of all the employees presently
which basically involves selling products online. It construes employed in the organisation along with their
digitization of information records, using internet as a qualification and experience can help determine the
communication medium and incorporating various computer recruitment needs. For advertising the posts, again
applications to streamline business processes. The concept of various job portals can be used for attracting suitable
E business is slowly catching up and most corporations have employees. Websites like Linkedin provide a great
now realized it is more of a necessity than a luxury. source of identifying suitable candidates for the job.
Again in the process of recruitment, from receiving
III. SCOPE OF E-BUSINESS resumes online to conducting tests and interviews can
Technology has changed the way organizations are operated. save time and fasten the process of selecting
There has been deep penetration of technology into the candidates.
business processes. A great deal of automation now exists in
various levels of business organization. Following are the

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Vol. 3, No. 2, April 2014
With help of E-Performance management system [1], raw material suppliers, transport companies, and
evaluation job performance of employees is now vendors located at various places for smoother
easier. Productivity of employees can now be gauged operations. Similarly, Business to Customer (B2C)
on information available on real time basis for networks for directly reaching the customers at their
example, sales targets met by a salesperson in a doorsteps and providing personalised services helps
month. Also, appraisal of performance by managers in maintaining better Customer Relationship
by online monitoring and feedback makes appraisal Management (CRM).
accurate and effective activity.

Training programs can also be administered online by

web based training. Training by the way of DVDs, or
online training programs or webinars and podcasts
can reduce the training cost and cater to employees
needs effectively [1]. Similarly Compensation
mechanisms can also be automated which includes E
payrolls for designing pay packages for employees.
IV. ADVANTAGES OF E-BUSINESS

3) Infrastructure
1) Synergistic Effects

Nowadays the boundaries of an organisation have

been redefined. With all data electronically available, Integrating technology into the business helps in
employees can access data from virtually anywhere. bringing synergy in various business processes by
Concept of virtual offices is now a reality and making them more efficient with lesser time and
employees are not restricted by geographical energy required in routine operations such as data
boundaries for working in an organisation. management, maintenance of files etc.

2) Helps building Competitive Advantage

4) Streamlining business processes

With efficient data management, the managers can
concentrate on core competencies of their business by
Digitised Financial databases, customer information introducing new innovative ways of producing the
and electronic communication has made corporate products and catering their customers in better ways,
work environment paperless. Everything is operated
on computers with help data warehouses within the
company’s own secured intranet channels. Activities
such Customer care services and financial analysis
are conducted with help of suitable software. 3) Helps meeting competition
Management information systems help in infusing
efficiency in to the day to day operations by
integrating various departments such as production With high quality products and better services, a firm
and sales department, sales and marketing is able build better customer relations which makes
department, in the organisation. the company first choice for consumers.

4) Cost and time effectiveness

5) Effective value chain networks
E- Business promotes paperless environment. It
eliminates the need for physical maintenance of
Extranet channels helps in building Business to records. Moreover, with techniques like e-recruiting a
Business (B2B) networks for effective supply chain
management. This allows developing a channel of

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Vol. 3, No. 2, April 2014
lot of time is saved in sorting of application and acceptance of the new system and willingness to
conducting tests which can easily administer online. adopt change is perquisite for successful
implementation of E business model.

5) Helps meet challenges of Globalisation VI. EXAMPLES OF E BUSINESS MODELS OR STRATEGIES

With increased competition, both national and ADOPTED IN VARIOUS ORGANISATIONS
international players in the market pose a challenge in Having dwelled into the concept of E business, its scope and
order to survive in the market. Therefore, it is challenges let us now look how international and national
necessary to keep pace with dynamic business firms have benefitted by adoption of E business strategies.
environment and break the shackles of the old ways
of doing business. 1) Bank Services
Banks have tremendously benefitted by adopted E
business strategies into their business. Nowadays
V. CHALLENGES OF ADOPTING E BUSINESS MODEL
customers can operate their bank accounts from their
homes only. Transactions like payment of bills, fund
transfer facility are available through internet. Even
1) Sophisticated Infrastructure opening of bank accounts and request of cheque
Since E business primarily involves use of books is now available on bank’s website. Banks
internet and various computer applications, a providing such facilities include State Bank of India
cohesive computer network needs to be built and HSBC.
within the firm connecting the whole office
space with Local Area Network (LAN).
Additionally, installation of requisite software 2) Online Shopping Portals
and regular updating is needed.

2) Trained personnel Online shopping portals allow customers to purchase

In order to operate the business model products online and have them delivered at their
specialized software is required to be adopted doorstep. Such business models have been successful
into the business model. However, for operating because of the ease with which customers are able to
these software trained personnel are required to view their product online, compare with similar
efficiently handle huge amounts of data. products, get the best bargains, make payments at
their door step and even return the product if not
3) Data Security Issues satisfied having getting it picked up from their home.
Companies like E-bay and Flipkart do not have any
physical presence and operate and conduct business
With all data electronically available, there purely online.
always risks of losing the data or data misuse.
Appropriate security mechanisms must be
incorporated to ensure data is not accessed by
unauthorised people and that regular backup of 3) Supply Chain Management
data is taken to avoid loss of data.

Dell Inc. is famous for its efficient supply chain

management policy which includes customised
4) Change Management personal computers according to individual needs and
meeting them in record time by sourcing those from
varied suppliers and assembling them as customer’s
Transforming a brick and mortar model of specification.
business into E Business requires Management
support and acceptance by the employees
working in the organisation. Though E business
model require initial investments but in the long 4) Electronic news paper and news websites
run it proves to be cost effective mechanism for
the firm. Therefore, management support is
essential. Along with that employees need to In order improve readership and viewership, News
accept that the changed way of handling the channels and newspapers have an web portal
operation. Along with required training, providing news on real time basis. Also various

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Vol. 3, No. 2, April 2014
magazines have made their issues available creditors, suppliers, employees. It helps in catering customers
completely online to encourage subscription. more efficiently, streamlining processes and managing staff. It
is also helpful in meeting competition and reducing in cost and
builds efficient supply chain management. However, it
5) E- Human Resource Management requires management support, secure data networks and
trained workforce to effectively implement a successful E
business model. The concept of E Business is here to stay. An
Various computer applications can be incorporated in integrated approach can help an organization to reap its
a business process to streamline the HR functions. benefits in the long run.
One such popular software is Systems and
Application Software or SAP. SAP HR is a integrated
software application which acts as a database for
varied information including employee work
schedules, details regarding their pay packages,
attendance and tax records. It also stores data for
recruitment and selection of candidates.
REFERENCES
[1] Richard D. Johnson and Hal G. Gueutal SHRM Foundation’s Effective
Practice Guidelines Series Sponsored by ADP The Use of E-HR and
6) Virtual private networks HRIS in Organizations.
[2] Kalakota Ravi and Robinson Marcia E-business 2.0: Roadmap for
Virtual Private Network or VPN helps employees to Success, 2001, Addison Wesley, retrieved from
access office intranet from remote locations. With http://books.google.co.in/books?hl=en&lr=&id=fkXSp2Me0KAC&oi=fnd&p
g=PR15&dq=e+business&ots=4BMjDo6vhn&sig=Hog66Z26Q3ugVvNqgAd
VPN it is possible for employees to work from home lm6BFVpk#v=onepage&q=e%20business&f=false
or access company databases while travelling. It also [3] https://www.onlinesbi.com/personal/disclosure.html
ensures data privacy as the data is encrypted and can [4] http://www.whatishumanresource.com/e-hrm
be accessed only with help of a designated username
and password.

AUTHORS PROFILE
Author is currently pursuing Ph.D from Department of Commerce,Delhi
School of Economics,University of Delhi. Previously the author was
VII. CONCLUSION teaching undergraduate courses in University of Delhi for more than a
year.
Electronic Business or E- Business means using internet as a
medium to conduct business. It includes moving from tradition
brick and mortar business models to using electronic means
for promoting and selling products, dealing with customers,

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