Today we are going to discuss the new chapter of business studies CBSE class 11 that is the emerging modes of business class 11.
Also, we are going to give you study notes, video lectures, and also PDF of handly lecture notes. Firstly, I want to share with you what are all the topics which we are going to cover in this article. Also, you can watch all the chapters videos on my YouTube channel by clicking here.
Topic covered in this article are as follows EMERGING MODES OF BUSINESS:-
- Meaning and scope of e-business
- e-business VS e-commerce
- Benefits of e-business
- Difference between e-business and traditional business
- Process of e-business
- Security & safety of e-business
- Resources required for successful implementation of e-business
- Business process outsourcing (BPO)
- Knowledge process outsourcing (KPO)
- Case study of emerging modes of business
As time passes the working style of the business changing.
In this, we will mainly study about:-
- BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing)
Meaning & Scope of e-business
Carrying on business activities through the internet.
Scope of E-Business
Parties involved in electronic (Internet) transaction are:-
- B2B Commerce
- B2C Commerce
- C2C Commerce
1) B2B-Commerce(Business to Business)
Transactions between business units via the internet.
Activities involved in B2B are:-
- Creations of utilities via resources of each other.
- Collaborations mean sharing the profit.
- Commercial negotiations.
- Manufacturer district goods to various distributors.
2) B2C Commerce (Business to Consumer)
The transaction between business units and customers via the internet.
- Selling and Distributions
- After-sale services
- Promotions and other marketing activities
- Listen to customer’s complaints, etc.
3) C2C Commerce (Customer to Customer)
Transactions between customers to customers through the internet.Ex: OLX.
- Selling used Books
- Information about Products, etc.
4) Intra B-Commerce
The transaction between parties of the same firm only via the internet.
a) Interaction between two departments of the same firm only.
b) Placing orders and giving instructions to suppliers.
c) Communicate the information through the whole organization.
d) Recruitment, elections, and training of employees.
e) Reporting by employees to their managers.
Difference between E-Business and E-Commerce
1) E-Commerce comes under E-Business
2) E-Commerce has one branch of E-Business
3) E-Commerce only deals with the distribution of goods and services.
Opportunities/Benefits of E-Business
1_ Easy to form and lower investment is required because when we use the internet in doing business the cost is low.
For Example:- Website, Channel, etc. In this modern world, most of the business is done online via the internet which is more efficient cost-effective, and easy to use by the customers.
But in the traditional type of business, the work is done without using internet cost is more and also less efficient.
2) It also a convenient method because in this method we can handle many things online without going outside. For Example:- we can buy many things online using many shopping apps like Amazon, Flipkart, etc.
Also, we can manage transactions in bank account using net banking, we can recharge our mobile and pay many bills online without stepping outside the home.
3) E-Business also has a very fast speed because the internet is a very fast network and we use the internet in E-Business.
Using this we can buy or sell things very easily and also in very less time means very fast. Example:- OLX,Alibaba, etc.
4) E-Business has global reach across the world. It has no geographical limits. We can order and communicate anywhere across the world.
We can choose better products online at the same price from different apps and different countries, whenever we find a suitable product we can order it and get delivered in a short time as per our convenience.
5) E-Business also involves cost saving as the involvement of the middlemen is completely terminated.
6) E-Business also paper saving in nature as most of the work done is online. This also encourages a movement towards a paperless society and also encourages an environment-friendly nature.
Difference between E-Business/Modern Business and Traditional Business
1) Formation of E-Business very easy as compared to traditional business because the setup of E-Business does not involve many steps that are involved in the traditional business.
2) There is no personal touch available in E-Business but Traditional Business has a personal touch and we can also bargain in Traditional type of Business which is unavailable in E-Business.
3) Setting the cost of Business is low in E-Business whereas high in Traditional Business.
4) Operating cost is low in E-Business but high in Traditional Business.
5) Risk is high in E-Business whereas low in Traditional Business.
6) E-Business requires technically qualified and IT professional persons whereas Traditional Business requires semi-skilled laborers.
7) In E-Business it is not possible to do a physical examination of goods whereas possible in Traditional Business where we can bargain also but E-Business the price of the product fixed and not bargained by the customers.
Process of e-business
Phases/Process involved in the Online Transaction are as follows:-
1) Registration involves log in or sign in various sites we visit.
2) Placing an order is done when we have to buy a product then firstly save it in the shopping cart and then place the order whenever you are ready to buy the product.
3) After that, it comes to the Payment Mechanism. There are many options available in the Payment Mechanism which are:-
- COD (Cash On Delivery)
- Cheque Transfer
- Net Banking
- Debit/Credit Card
- Digital Cash
Security/Safety of E-Business
There are two types of risks which are:-
1) Transactional Risk
Risk and Safety measures of Transactional Risk are:-
a) Sometimes there is the default in the order this can be prevented by credit card authentication.
b)Default on delivery also there this can be prevented by credit card authorization.
c) The default on payment can be prevented by the settlement of credit card.
2) Data storage risk
Risk and safety measures of Data Storage Risk are:-
a) VIRUS ( Vital Information Under Seize) cleans the information or hampers information that can be prevented by encrypting the message to certain codes through which can’t understand the third parties or hackers.
b) Hacking or unauthorized entry, which can destroy/steal data this can be prevented by complaining to the crime cell or by digital signature that gives an identity to the sender called the sender’s identity through which only the sender and the receiver can only understand and communicate each other easily.
Resources required for the successful implementation of E-Business
1) Computer hardware is very necessary. We need that type of computer a powerful, high speed, technology updated and capacity to handle business properly.
2) Technically Qualified Staff who can handle and understand the internet and it’s coding also.
3) The computerized system of receiving payment through which automatically receive and pay amount available and if the amount is extra paid then refund also available automatically. The computer must have account data table records of the consumers also.
4) Well-Designed Website which means the website must contain hyperlinks, pictures, contact number, price & information of the customers.
5) Telecommunication Facilities means that an internet facility and its speed must be good.
Business Process Outsourcing (BPO)
BPO refers to getting the business task done through an outside Agency/Country.
Some examples of BPO companies in India are -Wipro, Infosys, Zenta, etc.
Scope of BPO:-
1) Customer support services mean BPO companies help in establishing call centers to different countries so that if the customer faces any problem then they can contact the call center 24 hours 7 days. Also, 70% revenue of the BPO companies comes from the call centers.
2) Contract Sales mean that BPO provides technical services, tools support, etc.
3) Data services that deal with the maintenance of accounting books, etc.
Advantages of BPO companies:-
1) Concentration on core competence means that the routine task outsourcing to the other companies so that they can concentrate on the important works of the company.
2) Reduction in cost because many big companies use outsourcing the work as they get cheaper labor in another country which results in the benefit of the economic scale.
3) Helps in avoid labor problem as they outsource the labor to other countries.
4) Benefits of the latest development.
Limitations of BPO Companies:-
1) Confidentiality (Secrecy) means that there is a possibility that the outsourcing company can leak the important data of the main company.
2) Sweat shopping means that BPO companies only do routine work at low cost but no skill and no Iq is there in BPO companies.
3) Protest in the home country because if the company using outsourcing and shortage of labor in its own country then it gives rise to the protest which is governed by jobless people.
4) Ethical concerns sometimes arise like child labor.
Knowledge Process Outsourcing (KPO)
In KPO, firms get knowledge and information-related work done from an outside firm/agency/country.
Feature of KPO:-
a) Create value for the clients.
b) KPO involves advanced thinking, technical skill, and decision judgment.
c) KPO increases efficiency.
d) KPO helps in cost saving.
So, Guys, we have finally over with this chapter Emerging modes of business.
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