Incorporation of E-commerce into Business

Incorporation of E-commerce into BusinessINTRODUCTION OF THE TOPICIn the emerging global economy, e- line grant increasingly become a necessity comp peerlessnt of personalised credit line strategy and a bullocky catalyst for frugal development. The integration of knowledge and communications engineering science (ICT) in transaction has revolutionized relationships within organizations and those amid and among organizations and individuals. Specific al unriv tout ensembleedy, the social function of ICT in credit line has sharpend intersection pointivity, encouraged massiveer guest participation, and enabled mass customization, besides reducing costs.With developments in the profit and Web- standd technologies, distinctions be- tween traditional groceryplaces and the global electronic food marketplace such as business capital size, among impertinent(prenominal)s- ar gradually being narrowed d avow. The name of the game is strategic positioning, the facultyine ss of a comp whatever to delay emerging op- portunities and utilize the necessary humans capital skills (such as in disuniteectual re- sources) to select the just about of these opportunities done and through an e-business strategy that is simple, practicable and practicable within the scene of global information and sassy economic environment. With its effect of leveling the playing field, e-commerce coupled with the appropriate strategy and policy fire enables Small and medium shell enterprises to compete with large and capital-rich businesses.On a nonher plane, developing countries ar relentn step-upd rag to the global Marketplace, where they compete with and balance the more developed economies. Most, if non all, developing countries be already participating in e-commerce, either as sellers or buyers. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information foot must be improved.HISTORY OF profitsIn the 50s and previous(predicate) 60s, prior to the widespread inter-net molding that led to the meshing, most communication ne twainrks were extra by their nature to moreoer allow communications between the stations on the network. Some networks had gate focussings or bridges between them, that these bridges were frequently limited or create specifically for a single usance. One prevalent computer net working method was based on the central mainframe method, entirely allowing its terminals to be connected via long leased lines. This method was utilize in the 1950s by Project RAND to fight researchers such as Herbert Simon, in Pittsburgh, Pennsylvania, when collaborating across the continent with researchers in Santa Monica, California, on automated theorem proving and artificial intelligence. The cyberspace come to the foreline was developed and ready in the Late 1980s, but The Cold War held up the progress. When it ended in 1992, the lucre slowly became main stream. By the end of the decade, millions were using it for business, education and pleasure.The net profit was designed in part to provide a communications network that would work horizontal if any(prenominal) of the spots were destroyed by nuclear attack. If the most direct r disclosee was not available, routers would direct traffic some the network via alternate routes.The early Internet was used by computer experts, engineers, scientists, and librarians. in that location was nix friendly astir(predicate) it. There were no home or office personal computers in those days, and anyone who used it, whether a computer professional or an engineer or scientist or librarian, had to record to use a actually complex system.WHAT MAKES THE INTERNET SO POWERFUL?The Internet is the lowest cost system ever developed to communicate with a potential audience of hundreds of millions of lot all oer the world. tear down locally, the cost of a simple Web site is unremarkably less than the cost of a modes t ad in a business tele telephony directory. A Web site notifyister likewise give more information than a b coiffure directory ad, including color photos, expound descriptions of harvest-homes and assistants, and price information that keep be modifyd at any moment, for any reason, instead of waiting for a printed directorys next publication cycle.As a intelligence operation medium, the Internet is faster and more flexible than a newbornspaper or magazine. A story put up be added to a Web site flat at any cartridge clip of the day or night. There are no deadlines (except self-imposed ones) for Internet news. The printing press is always on, you might say. unconstipated television news, aside from a fewer 24-hour news take, must usually wait for scheduled news broadcast times instead of breaking into frolic programming whenever a new story comes along. Television is also constrained by its necessarily linear information de brookry format. It must tell a story, thu s another story, then take a break for advertize, then tell another story, and so on, in sequence. A good dealer groundworknot choose to get wind wholly a few stories that he or she finds interesting, which whitethorn occupy unaccompanied five minutes out of a 30-minute newscast. On the Internet, a referee is free not only to choose to view fitting those stories in which he or she is most interested, but also gets to choose the order in which he or she sees them. If sports tally are the spiritedest item on todays agenda, track and theres the sports section, as easy as turning a newspaper page. Another andiron and theres the score from the game that just ended, possibly with video highlights only one more jaw away.Corrections, changes, and updates to a story published on the Internet kindle be made as fast as they come in without waiting for a printing press to roll. Breaking news alerts can be sent instantly by email to subscribers who request this service, and a reade r can instantly communicate with an online publications editors via email or, if the publication has this facility, post his or her comments on a message room for other readers to see honest away, without waiting for a fax or mail to get through and an editor to tone the message over and by chance take it in the letters to the editor section several days after the original story ran.An online publication can also offer an advertiser something that is not available in any other medium ads that link directly, with one click, to a Web page encompassing of compelling reasons to buy the announce convergence or service. plane if only a fraction of one percent of all the great unwashed who see a Web ad click on it, that is still an infinitely higher percentage than can click on a magazine ad or TV spot for additive informationor even to buy a product directly from the advertiser right now. Even if few readers click on an individual online ad and buy right now, a Web ad still has the aforementioned(prenominal) branding and general get the name out effect as advertising in other media. If the cost of an online ad is similar to the cost of one in another medium, it represents a relegate appraise because of the expertness it gives an advertiser to give an interested person an entire Web site full of information right away, only one click remove from the online publication in which that ad is chip offning. notwithstanding the most direct way to make money online, no matter how a merchant gets traffic to his or her Web site, is to sell over the Internet. E-commerce has had its ups and downs, but the overall trend is upward, and it is homogeneously to stay that way for many twelvemonths to come. Putting up a catalogue Web site is furthest less expensive than printing and mailing paper catalogs, and the Web site can lead instant ordering and reference point card acceptance construct right into it, whereas a paper catalog can generate only phone orders that require a horde of (expensive) live operators to process or mail-in order forms that a node must fill outAnWHAT IS E- transaction?E-business (electronic business), derived from such terms as e-mail and e-commerce, is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners. One of the foremost to use the term was IBM, when, in October, 1997, it launched a thematic ply built around the term. Today, study corporations are re idea their businesses in terms of the Internet and its new culture and capabilities. Companies are using the Web to buy parts and supplies from other companies, to collaborate on gross sales promotions, and to do joint research. Exploiting the contrivance, availability, and world-wide croak of the Internet, many companies, such as Amazon.com, the book sellers, put up already discovered how to use the Internet achievementfully.E-business is more than just having a web p resence to facilitate buying and selling. Frank Jones, VP of IBM potoration, provides this definition E-business is exploiting the combined power of the internet and information technology to fundamentally transform key business strategies and processes.The most common implementation of E-business is as an additional, or in some cases primary, storefront. By selling products and services online, an e-business is able to reach a much wider consumer base than any traditional brick-and-mortar store could ever hope for. This function of E-business is referred to as ecommerce, and the terms are occasionally used interchangeably.An E-Business may also use the Internet to acquire wholesale products or supplies for in-house production. This facet of E-Business is sometimes referred to as eprocurement, and may offer businesses the opportunity to cut their costs dramatically. Even many E-Businesses which operate without an electronic storefront now use eprocurement as a way to better track a nd manage their purchasing. revenue from 5% in 2000 to 10% in 2007 . Asia-Pacific e-commerce revenues are projected to outgrowth from $76.8 billion atIn addition to buying and selling products, e-business may also handle other traditional business aspects. The use of electronic yap away as a form of technical and customer support is an excellent example of this. An e-business which uses chat to supplement its traditional phone support finds a system which saves incredible amounts of time magic spell providing opportunities unavailable through traditional support. By using virtual computer systems, for example, technical support operators can remotely access a customers computer and assist them in correcting a problem. And with the download of a dinky program, all pertinent information or so the hardware and software specifications for a users computer may be relayed to the support operator directly, without having to walk a customer through personally collecting the data. In th e past few years, around all businesses throw away become, to some degree or another, an e-business. The pervasiveness of Internet technology, readily available solutions, and the repeatedly demonstrated avails of electronic technology bring forth made e-business the apparent path. This trend continues with new technologies, such as Internet-enabled cell phones and PDAs, and the trend of e-business saturation forget most likely continue for some time.International Data Corp (IDC) approximations the value of global e-commerce in 2000 at US$350.38 billion. This is projected to climb to as high as US$3.14 billion by 2007. IDC also predicts an increase in Asias percentage plow in worldwide e-commerce closing of 2001 to $338.5 billion by the end of 2004. Asia-Pacific e-commerce revenues are projected to increase from $76.8 billion at year-end of 2001 to $338.5 billion by the end of 2004.SOME OF THE WAYS I CAN INCORPORATEE-BUSINESS INTO A COMPANYThe goal is to digitalise transa ctions, which are simply delimit as exchanges of information. The number of opportunities is limited only by your creativity, cost, and good business sense. The best advice is to determine the best opportunities for payback and channelise them first. Make sure the benefit allow pay back or exceed the cost. The quest is a summarized appoint of functions and activities where e-business applications are becoming embedded into the normal business model. Visualize, if you can, a business where each of these business activities is completely integrated with the others, to form a completely integrated e-business.After sales service ie. billing, withdraw planning, engineering, inventory planning, purchasing, receivablesBusiness analytics ie. pecuniary performance, trade, workforce, production, enterprise concernConsultant managementCustomer relationship management ie. account management, customer self-service, contact management communications, promotions, surveys, quality, sup porter desk, field serviceE-procurementE-store/e-exchange/product catalog ie. delivering b2b and b2c e-commerce,Finance ie. as circle management, accounting, budgets, invoicing, payables receivables, investments, government tax deteriorates payments, payroll administrationGrant donation managementHuman Resources vigilance ie. resource planning, benefits administration, reward programs, recruiting hiring, workforce management, pension administrationInvestor relationsMarketing and sales activities ie. products, technical information, sales support, product career cycle management, corporate resume, portfolio, customer lists, customer serviceMaterials managementOrder management customer fulfillmentProject managementPublic RelationsStrategic partner collaborationHAVING tralatitious BUSINESS WHAT DO ONLINE CUSTOMERS adjudicateConsumer attitudes of those who shop and purchase online are significantly different from the habits and preferences of consumers who visit stores. Their purchase lasts are driven and based on a different set of featureors trussed to the characteristics of the e-space environment. For an e-commerce business to survive, it is absolutely necessary to establish and maintain an intimate understanding of the customers, their behavior, and the factors that drive purchase decisions. In the current e-commerce environment, online consumers are highly sensitive to the following characteristicsQuick page download time, 8-10 secondsFast navigation, 2-3 page views to get to the consumers objectiveLogical and understandable first page view purpose of site, companys mission, organization of siteQuality user-friendly web site, easy to read and view with interesting graphicsImmediate customer service, a human to contact to ask questions while browsingComplete product descriptions, price and other charges, and picturesContact information, company address, store locations, telephone numbers, email addressConfidentiality regarding use or sharing of c onsumer informationOpt-out, or permission-given privacy policies for consumer data entered on the siteSecurity arrangements for online transactionsConvenient return policies and optionsOrder acknowledgement ability to check shipping spatial relationSite stability, similar look and feel for each successive visit10 SUREFIRE IDEAS TO START YOUR OWNONLINE INTERNET BUSINESSBecome a freelancer Do you have any specific skill? Sell it. Go to elance.com to find the job opportunities posted there. sidetrack information website Do you have a love to research any niche topic? Gather it, process it, rewrite it and start a new informational website on the researched topic. enter in affiliate marketing (sell others product) Why dont you sell manufacturers or marketers product? To be precise, sell others product. Sell an ad space If you have a website or blog sell an ad space from it. If you dont have, try having one exclusively made for selling ad space.Sell your own old stuffs through EBa y Start selling your product or your neighbors or friends product through EBay. Create a Niche blog Do you Blog for Fun? No dont blog it. Blog to generate income out of it, get hired by companies to write blog for them. or create your own niche blog (this might over lap with any one of the above strategy). Sell your services If you have a talent in any particular domain, and then sell it as a service. Be an Online service provider. Example Online Brokers (this might also overlap) Create e-books on any subject of your interest and sell it across various channels like EBay, Amazon, etcIS E-COMMERCE THE SAME AS E-BUSINESS?While some use e-commerce and e-business interchangeably, they are distinct con- cepts. In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals). In e-business, on the other hand, ICT is used to enhance ones business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network. A more comprehensive definition of e-business is The transformation of an organizations processes to deliver additional customer value through the application of technologies, philosophies and computing range of the new economy.Three primary processes are enhanced in e-business Production processes, which include procurement, ordering and replenish-ment of stocks processing of payments electronic cogitate with suppliers and production control processes, among othersCustomer-focused processes, which include promotional and marketing ef-forts, selling over the Internet, processing of customers purchase orders andInternal management processes, which include employee services, train-ing, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communications and elec- tronic publishing of internal business information are in addition made more efficient. payments, and customer support, among others andWHY ESTABLISH A BUSINESS ON THE INTERNET?Fact versus OpinionOn techniques we have practised. We will be sharing with you the methods we have used to establish our own internet business rather than harping on more or less theories. You will be reading a current(a) success story written by real people. Everything you will find here can be verified and put into practice by you. There is no denying that the internet has brought astir(predicate) a revolution. Never before have people been able to interact in such a cost sound and comfortable way. The Internet with its fivefold communication channels also changes the world of business. Now it is possible for you to establish your own company with a very s mall financial investment or in some cases even without any start-up capital at all. The majority of people in any country in the world do not really like their regular jobs. Nevertheless they get up early every morning to go to work and when they return home tired and baffle they switch on the TV to forget all about their problems. They a good deal dream about a life that gives them the immunity to do what they really like with people who are friendly, intelligent, understanding and supportive.When it comes to business, most people confuse their personal opinions with facts. They believe in fact that they know something when in reality they dont have all the data to support their beliefs.In this document section you will find factual information that is based on our experiences and our experiences Now with the Internet available in almost every household in any developed country, it is possible to achieve the type of lifestyle you have always dream about. The following facts wil l destine why you really should consider establishing yourown internet company Downsizing Lets face it a computer is more nut-bearing than a human in business. areas such as accounting, administration, data management, calculating, statistics and many more activities. Whatever industry you name new technologies increase productivity which, in turn, often leads to fewer jobs. To be sure new technologies also create new jobs but these require a much higher level of faculty and knowledge. A person who has been working in the same sort of job for several years is often not capable of acquiring all the skills and qualifications indispensablenessful for a job in a new workplace.Globalization The world is becoming more and more interconnected. Even, or maybe in particular after folk 11, international travel activities have been increasing and this pattern will continue into the future. The number of companies that operate on a multinational scale is constantly rise because they n eed new market places. In Europe nations have agreed on a uniform single currency the EURO, enabling the European conjunction to develop into a substantive economic entity. The same sort of thing is taking place in Asia with China, Taiwan, South Korea and Japan forming a powerful economic alliance. nurture More than viosterol million people worldwide are using the internet on aregular basis, with email and search engines as the most popular services. Information is power. People are able to influence, direct, convince, educate and manipulate others through one single tool The distribution of information. Email and intelligence forums allow people to share their thoughts, ideas and experiences with other people from all corners of the world.Cost Effectiveness The internet is by outlying(prenominal) the most cost effective communication tool. If you compulsion to send a letter via conventional or so-called snail mail it will cost at least around $1 (assuming you restrict yours elf to two single sheets of paper). Sending the same amount of information via email will be up to 100 times cheaper with immediate delivery.THE ADVANTAGES OF THE INTERNETSo, lets recap. Never have the chances for conniption up and running your own prosperous business been easier than they are todayWhile traditional industries like manufacturing are shrinking, new industries are growing especially the information industriesYou can use the internet to find your customers and business partners worldwideYour customers and partners can find you on the internet.You can use the internet to build a strong relationship with your customers especially via email.You can use the internet to market your products and services.You can use the internet to acquire all the information, training and qualifications you need for your business.You can set up a business with a very small marketing budget, something almost impossible in the real world.You can certainly list even more reasons why it is p ossible for anybody with a computer and access to the Internet to establish their own business. At the same time the reality is that only a very small percentage of people who do have a computer and access to the Internet, establish and run their own business. Why is this? The assist is very simple. Most people anywhere in the world, spend too much time thinking about things they do not want, instead of thinking about things they do want. As aresult there are only a few people who have their own company and they usually earn more money than soul with a regular job. Owners of comapines usually have more personal and financial independence than people with regular jobs. But what exactly do you need in order to own a company? Money? A University degree? The right friends? Well, maybe some of these things can help you with your business but then they are not essential and are no guarantee of success. We have probe a number of successful online business people and here is a list of important characteristics all of them possessed. We know that the following qualities are essential for success as a burgher so you should take the time to go through them and check whether or not you have them. All the information about how to set up a website, how to run an email newsletter, how to get a high ranking at Google, how to generate huge traffic to your website etc. will be worth nothing if you dont have most of the following skills and qualities.121WHAT DOES IT TAKE TO BE SUCCESSFUL INE-BUSINESS?Self-MotivationMost people wait until someone else tells them what to do. Thats the way our society is organized. You go to prepare and the teacher tells you what to do. You study at university and the professors tell you what to do. Your parents tell you what is right and wrong. You get a job and there you will have a boss and colleagues who tell you what to do. Now, we all have to go steady from others clearly but we do have a choice about where we get advice. If you want to know how to establish your own business, would you ask your colleague who has been working in a regular 9 -5 job for 15years or so? Think about your teachers at school or your University professors. Do you think they know how to set up a business and become an entrepreneur? If we examine truly successful people we will find that they have a high level of self-motivation. This applies to any calling in life.Consistency, the ability to follow throughMany people who do have self-motivation, quickly get enthused and inspired by a new idea. Getting excited or even excite by an idea might be great for the moment. A business, however, requires constant activity. If you want to establish and develop a company you need a high level of consistency also known as stickability. Once you have made the decision to set up your business, you must follow through this decisionwith consistency. Think about your life can you come up with an example where you have proved your consistency, your sticka bility? Did you ever want to learn to play an instrument or a sport or a learn a foreign talking to? How long did you stick to your plan? How much time did you spend on your project and what have you civil? Chances are that you started a lot of projects and half way through the course you quit because things got tough and you lacked stickability. If this is the case fear not. You are not alone. The truth is that most people quit as soon as things get more difficult. Making a long-term commitment is not easy for most people. This applies to personal relationships tooSelf-DisciplineAre you the sort of person who tends to raise your voice when something doesnt go your way? Or do you even have A propensity to shout at your spouse, children or colleagues when you are under pressure? Whenever you start shouting, swearing or using negative language you are wasting your vigor energy better put to use on your business venture. Swearing and grumbling kills your creativity and blocks your mind. You must be strong enough to withstand any tendency to get angry or upset or else you will never succeed in your business.CourageIt takes great courage to make decisions and set goals because this means you have to prove to yourself that you can follow your own words through to a conclusion. Look at your friends, family and colleagues. How often do you hear somebody make a promise like sick-abed call you next week. or Ill look this information up for you. or Sure Ill help you when you move house, just let me know when you need me. Those are statements, offers, promises all based on words. Yet, how often are they followed by deeds? Do you make New Years Resolutions such as Next year Ill quit smoking, Next year Ill start this business course at night school, and Next year Ill go on a trip to genus Paris or Egypt with you? How many of those resolutions and promises have you kept? How many of them did you simply forget two weeks into the New Year? It takes courage to make a real decision, as you will have to make a sacrifice to follow it through. Also, when you start up a business you will be alone, at least to pose with. There will be no-one to tell you what to do, nobody at first to motivate and support you. You will have to take responsibility for yourself and to a certain degree, for any possible partners and you can only lead others if you have your own fears under control and are willing to take risks. Many people do not set themselves goals because they are afraid of failing of admitting defeat and they think the best way to avoid defeat is to simply not set goals.Willingness to learn and the ability to change habitsWhen you settle down to start your own Internet business you are also deciding to go back to school again. Not in a real fleshly sense but mentally. You will have to trawl for every single bit of information that will get you enveloping(prenominal) to your goal. To learn means youll need to change your habits and habits are establishe d patterns of behaviour and thinking that everyone acquires throughout their lives. However, most people are not aware of the fact that they have to learn something new every day and that in order to learn, in order to obtain new knowledge and new skills they have to change some of these habits. If you want to learn a foreign language you have to change your daily routine. For example the habit of earshot to your favourite music on the radio. Instead you could be listening to audio recordings in the language you want to learn. We allhave a tendency to get used to things that are not only comfortable but also do not require much activity on our part. We get used to noticeing TV in the evening and eating convenience food at the same time because this is comfortable and doesnt require any mental activity. IF you want to establish your business, you wont have much time to watch TV for entertainment. You have to change your habit of absorbing information passively into one of actively s earching for information in order to analyze, filter and agitate it.CreativityEstablishing a business means creating a product, service or system that solves a specific problem or enhances a persons life in one way or another. You can achieve this purpose when you create something new This doesnt mean that you have to re-invent the wheel though. contemplate any new product development that enters the market and you will see that this new creation is not entirely new but has been made up by combining animated elements in a novel way. This action of rethinking existing elements is the formula of creativity. So, in order to create something new you have first to analyze an existing product to find out how it can be improved, developed or enhanced in any way so it will do a better job. Take Google its checks examined and analyzed existing search portals, in particular Yahoo and MSN. Based on their exhaustive studies they came up with an list and searching system that provides a hi gher search term relevancy. Study peoples behaviour identify their latent needs and desires and you will tap into a aeonian supply of product ideas. potVision is the ability to see things not as they are right now, but what they will be like in the future. Most people are so stuck in the moment, so preoccupied with their personal daily problems that they dont have the time or energy to think about how a particular market can develop in the future. Look at any successful business venture and you will find that its founder was able to project into the future, to estimate how peoples behaviour will change. Your success in business is directly related to your vision capacity and your vision capacity is compulsive by two factors How far ahead are you able to see into the future and how precise are your predictions? When Larry Page and Sergey Brin founded Google in 1998, they could see well beyond the year 2003, in which they yielded A revenue of almost $ 1 billion. By 1998 Yahoo and M SN were operating worldwide known search services and no one would have thought that two students could take the lead in the industry within 5 years. Yet, Brin and Page had become excellent analysts of the web search market and they collected andIncorporation of E-commerce into BusinessIncorporation of E-commerce into BusinessINTRODUCTION OF THE TOPICIn the emerging global economy, e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs.With developments in the Internet and Web-based technologies, distinctions be- tween traditional markets and the global electro nic marketplace such as business capital size, among others-are gradually being narrowed down. The name of the game is strategic positioning, the ability of a company to determine emerging op- portunities and utilize the necessary human capital skills (such as intellectual re- sources) to make the most of these opportunities through an e-business strategy that is simple, workable and practicable within the context of global information and new economic environment. With its effect of leveling the playing field, e-commerce coupled with the appropriate strategy and policy approach enables Small and medium scale enterprises to compete with large and capital-rich businesses.On another plane, developing countries are given increased access to the global Marketplace, where they compete with and complement the more developed economies. Most, if not all, developing countries are already participating in e-commerce, either as sellers or buyers. However, to facilitate e-commerce growth in the se countries, the relatively underdeveloped information infrastructure must be improved.HISTORY OF INTERNETIn the 50s and early 60s, prior to the widespread inter-networking that led to the Internet, most communication networks were limited by their nature to only allow communications between the stations on the network. Some networks had gateways or bridges between them, but these bridges were often limited or built specifically for a single use. One prevalent computer networking method was based on the central mainframe method, simply allowing its terminals to be connected via long leased lines. This method was used in the 1950s by Project RAND to support researchers such as Herbert Simon, in Pittsburgh, Pennsylvania, when collaborating across the continent with researchers in Santa Monica, California, on automated theorem proving and artificial intelligence. The Internet system was developed and ready in the Late 1980s, but The Cold War held up the progress. When it ended in 1992 , the internet slowly became main stream. By the end of the decade, millions were using it for business, education and pleasure.The Internet was designed in part to provide a communications network that would work even if some of the sites were destroyed by nuclear attack. If the most direct route was not available, routers would direct traffic around the network via alternate routes.The early Internet was used by computer experts, engineers, scientists, and librarians. There was nothing friendly about it. There were no home or office personal computers in those days, and anyone who used it, whether a computer professional or an engineer or scientist or librarian, had to learn to use a very complex system.WHAT MAKES THE INTERNET SO POWERFUL?The Internet is the lowest cost system ever developed to communicate with a potential audience of hundreds of millions of people all over the world. Even locally, the cost of a simple Web site is usually less than the cost of a modest ad in a bus iness telephone directory. A Web site can also give more information than a telephone directory ad, including color photos, detailed descriptions of products and services, and price information that can be changed at any moment, for any reason, instead of waiting for a printed directorys next publication cycle.As a news medium, the Internet is faster and more flexible than a newspaper or magazine. A story can be added to a Web site instantly at any time of the day or night. There are no deadlines (except self-imposed ones) for Internet news. The printing press is always on, you might say. Even television news, aside from a few 24-hour news channels, must usually wait for scheduled news broadcast times instead of breaking into entertainment programming whenever a new story comes along. Television is also constrained by its necessarily linear information delivery format. It must tell a story, then another story, then take a break for advertising, then tell another story, and so on, in sequence. A viewer cannot choose to view only a few stories that he or she finds interesting, which may occupy only five minutes out of a 30-minute newscast. On the Internet, a reader is free not only to choose to view just those stories in which he or she is most interested, but also gets to choose the order in which he or she sees them. If sports scores are the highest item on todays agenda, click and theres the sports section, as easy as turning a newspaper page. Another click and theres the score from the game that just ended, possibly with video highlights only one more click away.Corrections, changes, and updates to a story published on the Internet can be made as fast as they come in without waiting for a printing press to roll. Breaking news alerts can be sent instantly by email to subscribers who request this service, and a reader can instantly communicate with an online publications editors via email or, if the publication has this facility, post his or her comments on a message board for other readers to see right away, without waiting for a fax or mail to get through and an editor to look the message over and perhaps include it in the letters to the editor section several days after the original story ran.An online publication can also offer an advertiser something that is not available in any other medium ads that link directly, with one click, to a Web page full of compelling reasons to buy the advertised product or service. Even if only a fraction of one percent of all people who see a Web ad click on it, that is still an infinitely higher percentage than can click on a magazine ad or TV spot for additional informationor even to buy a product directly from the advertiser right now. Even if few readers click on an individual online ad and buy right now, a Web ad still has the same branding and general get the name out effect as advertising in other media. If the cost of an online ad is similar to the cost of one in another medium, it represents a better value because of the ability it gives an advertiser to give an interested person an entire Web site full of information right away, only one click removed from the online publication in which that ad is running.But the most direct way to make money online, no matter how a merchant gets traffic to his or her Web site, is to sell over the Internet. E-commerce has had its ups and downs, but the overall trend is upward, and it is likely to stay that way for many years to come. Putting up a catalog Web site is far less expensive than printing and mailing paper catalogs, and the Web site can have instant ordering and credit card acceptance built right into it, whereas a paper catalog can generate only phone orders that require a horde of (expensive) live operators to process or mail-in order forms that a customer must fill outAnWHAT IS E-BUSINESS?E-business (electronic business), derived from such terms as e-mail and e-commerce, is the conduct of business on the Internet, not onl y buying and selling but also servicing customers and collaborating with business partners. One of the first to use the term was IBM, when, in October, 1997, it launched a thematic campaign built around the term. Today, major corporations are rethinking their businesses in terms of the Internet and its new culture and capabilities. Companies are using the Web to buy parts and supplies from other companies, to collaborate on sales promotions, and to do joint research. Exploiting the convenience, availability, and world-wide reach of the Internet, many companies, such as Amazon.com, the book sellers, have already discovered how to use the Internet successfully.E-business is more than just having a web presence to facilitate buying and selling. Frank Jones, VP of IBM Corporation, provides this definition E-business is exploiting the combined power of the internet and information technology to fundamentally transform key business strategies and processes.The most common implementation o f E-business is as an additional, or in some cases primary, storefront. By selling products and services online, an e-business is able to reach a much wider consumer base than any traditional brick-and-mortar store could ever hope for. This function of E-business is referred to as ecommerce, and the terms are occasionally used interchangeably.An E-Business may also use the Internet to acquire wholesale products or supplies for in-house production. This facet of E-Business is sometimes referred to as eprocurement, and may offer businesses the opportunity to cut their costs dramatically. Even many E-Businesses which operate without an electronic storefront now use eprocurement as a way to better track and manage their purchasing. revenue from 5% in 2000 to 10% in 2007 . Asia-Pacific e-commerce revenues are projected to increase from $76.8 billion atIn addition to buying and selling products, e-business may also handle other traditional business aspects. The use of electronic chat as a form of technical and customer support is an excellent example of this. An e-business which uses chat to supplement its traditional phone support finds a system which saves incredible amounts of time while providing opportunities unavailable through traditional support. By using virtual computer systems, for example, technical support operators can remotely access a customers computer and assist them in correcting a problem. And with the download of a small program, all pertinent information about the hardware and software specifications for a users computer may be relayed to the support operator directly, without having to walk a customer through personally collecting the data. In the past few years, virtually all businesses have become, to some degree or another, an e-business. The pervasiveness of Internet technology, readily available solutions, and the repeatedly demonstrated benefits of electronic technology have made e-business the obvious path. This trend continues with new technologies, such as Internet-enabled cell phones and PDAs, and the trend of e-business saturation will most likely continue for some time.International Data Corp (IDC) estimates the value of global e-commerce in 2000 at US$350.38 billion. This is projected to climb to as high as US$3.14 trillion by 2007. IDC also predicts an increase in Asias percentage share in worldwide e-commerce year-end of 2001 to $338.5 billion by the end of 2004. Asia-Pacific e-commerce revenues are projected to increase from $76.8 billion at year-end of 2001 to $338.5 billion by the end of 2004.SOME OF THE WAYS I CAN INCORPORATEE-BUSINESS INTO A COMPANYThe goal is to digitize transactions, which are simply defined as exchanges of information. The number of opportunities is limited only by your creativity, cost, and good business sense. The best advice is to determine the best opportunities for payback and address them first. Make sure the benefit will pay back or exceed the cost. The following is a summar ized list of functions and activities where e-business applications are becoming embedded into the typical business model. Visualize, if you can, a business where each of these business activities is completely integrated with the others, to form a completely integrated e-business.After sales service ie. billing, demand planning, engineering, inventory planning, purchasing, receivablesBusiness analytics ie. financial performance, marketing, workforce, production, enterprise managementConsultant managementCustomer relationship management ie. account management, customer self-service, contact management communications, promotions, surveys, quality, help desk, field serviceE-procurementE-store/e-exchange/product catalog ie. delivering b2b and b2c e-commerce,Finance ie. asset management, accounting, budgets, invoicing, payables receivables, investments, government tax returns payments, payroll administrationGrant donation managementHuman Resources Management ie. resource planning, b enefits administration, reward programs, recruiting hiring, workforce management, pension administrationInvestor relationsMarketing and sales activities ie. products, technical information, sales support, product life cycle management, corporate resume, portfolio, customer lists, customer serviceMaterials managementOrder management customer fulfillmentProject managementPublic RelationsStrategic partner collaborationHAVING TRADITIONAL BUSINESS WHAT DO ONLINE CUSTOMERS SEEKConsumer attitudes of those who shop and purchase online are significantly different from the habits and preferences of consumers who visit stores. Their purchase decisions are driven and based on a different set of factors tied to the characteristics of the e-space environment. For an e-commerce business to survive, it is absolutely necessary to establish and maintain an intimate understanding of the customers, their behavior, and the factors that drive purchase decisions. In the current e-commerce environment, o nline consumers are highly sensitive to the following characteristicsQuick page download time, 8-10 secondsFast navigation, 2-3 page views to get to the consumers objectiveLogical and understandable first page view purpose of site, companys mission, organization of siteQuality user-friendly web site, easy to read and view with interesting graphicsImmediate customer service, a human to contact to ask questions while browsingComplete product descriptions, price and other charges, and picturesContact information, company address, store locations, telephone numbers, email addressConfidentiality regarding use or sharing of consumer informationOpt-out, or permission-given privacy policies for consumer data entered on the siteSecurity arrangements for online transactionsConvenient return policies and optionsOrder acknowledgement ability to check shipping statusSite stability, similar look and feel for each successive visit10 SUREFIRE IDEAS TO START YOUR OWNONLINE INTERNET BUSINESSBecome a freelancer Do you have any specific skill? Sell it. Go to elance.com to find the job opportunities posted there. Start information website Do you have a passion to research any niche topic? Gather it, process it, rewrite it and start a new informational website on the researched topic. Participate in affiliate marketing (sell others product) Why dont you sell manufacturers or marketers product? To be precise, sell others product. Sell an ad space If you have a website or blog sell an ad space from it. If you dont have, try having one exclusively made for selling ad space.Sell your own old stuffs through EBay Start selling your product or your neighbors or friends product through EBay. Create a Niche blog Do you Blog for Fun? No dont blog it. Blog to generate income out of it, get hired by companies to write blog for them. or create your own niche blog (this might over lap with any one of the above strategy). Sell your services If you have a talent in any particular domain, a nd then sell it as a service. Be an Online service provider. Example Online Brokers (this might also overlap) Create e-books on any subject of your interest and sell it across various channels like EBay, Amazon, etcIS E-COMMERCE THE SAME AS E-BUSINESS?While some use e-commerce and e-business interchangeably, they are distinct con- cepts. In e-commerce, information and communications technology (ICT) is used in inter-business or inter-organizational transactions (transactions between and among firms/organizations) and in business-to-consumer transactions (transactions between firms/organizations and individuals).In e-business, on the other hand, ICT is used to enhance ones business. It includes any process that a business organization (either a for-profit, governmental or non-profit entity) conducts over a computer-mediated network. A more comprehensive definition of e-business is The transformation of an organizations processes to deliver additional customer value through the applic ation of technologies, philosophies and computing paradigm of the new economy.Three primary processes are enhanced in e-business Production processes, which include procurement, ordering and replenish-ment of stocks processing of payments electronic links with suppliers and production control processes, among othersCustomer-focused processes, which include promotional and marketing ef-forts, selling over the Internet, processing of customers purchase orders andInternal management processes, which include employee services, train-ing, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity. Workgroup communications and elec- tronic publishing of internal business information are likewise made more efficient. payments, and customer support, among others andWHY ESTABLISH A BUSINESS ON THE INTERNET?Fact versus OpinionOn techniques we have practised. We will be sharing with you the methods we have used to establish our own internet business rather than harping on about theories. You will be reading a real success story written by real people. Everything you will find here can be verified and put into practice by you. There is no denying that the internet has brought about a revolution. Never before have people been able to interact in such a cost effective and comfortable way. The Internet with its multiple communication channels also changes the world of business. Now it is possible for you to establish your own company with a very small financial investment or in some cases even without any start-up capital at all. The majority of people in any country in the world do not really like their regular jobs. Nevertheless they get up early every morning to go to work and when they return home tired and frustrated they switch on the TV to forget all about their problems. They often dream about a life that gives them the freedom to do what th ey really like with people who are friendly, intelligent, understanding and supportive.When it comes to business, most people confuse their personal opinions with facts. They believe in fact that they know something when in reality they dont have all the data to support their beliefs.In this document section you will find factual information that is based on our experiences and our experiences Now with the Internet available in almost every household in any developed country, it is possible to achieve the type of lifestyle you have always dreamed about. The following facts will show why you really should consider establishing yourown internet company Downsizing Lets face it a computer is more productive than a human in business. areas such as accounting, administration, data management, calculating, statistics and many more activities. Whatever industry you name new technologies increase productivity which, in turn, often leads to fewer jobs. To be sure new technologies also creat e new jobs but these require a much higher level of qualification and knowledge. A person who has been working in the same sort of job for several years is often not capable of acquiring all the skills and qualifications needed for a job in a new workplace.Globalization The world is becoming more and more interconnected. Even, or maybe especially after September 11, international travel activities have been increasing and this pattern will continue into the future. The number of companies that operate on a multinational scale is constantly rising because they need new market places. In Europe nations have agreed on a uniform single currency the EURO, enabling the European Community to develop into a strong economic entity. The same sort of thing is taking place in Asia with China, Taiwan, South Korea and Japan forming a powerful economic alliance.Information More than 500 million people worldwide are using the internet on aregular basis, with email and search engines as the most po pular services. Information is power. People are able to influence, direct, convince, educate and manipulate others through one single tool The distribution of information. Email and discussion forums allow people to share their thoughts, ideas and experiences with other people from all corners of the world.Cost Effectiveness The internet is by far the most cost effective communication tool. If you want to send a letter via conventional or so-called snail mail it will cost at least around $1 (assuming you restrict yourself to two single sheets of paper). Sending the same amount of information via email will be up to 100 times cheaper with immediate delivery.THE ADVANTAGES OF THE INTERNETSo, lets recap. Never have the chances for setting up and running your own successful business been easier than they are todayWhile traditional industries like manufacturing are shrinking, new industries are growing especially the information industriesYou can use the internet to find your customers and business partners worldwideYour customers and partners can find you on the internet.You can use the internet to build a strong relationship with your customers especially via email.You can use the internet to market your products and services.You can use the internet to acquire all the information, training and qualifications you need for your business.You can set up a business with a very small marketing budget, something almost impossible in the real world.You can certainly list even more reasons why it is possible for anybody with a computer and access to the Internet to establish their own business. At the same time the reality is that only a very small percentage of people who do have a computer and access to the Internet, establish and run their own business. Why is this? The answer is very simple. Most people anywhere in the world, spend too much time thinking about things they do not want, instead of thinking about things they do want. As aresult there are only a few pe ople who have their own company and they usually earn more money than somebody with a regular job. Owners of comapines usually have more personal and financial freedom than people with regular jobs. But what exactly do you need in order to own a company? Money? A University degree? The right friends? Well, maybe some of these things can help you with your business but then they are not essential and are no guarantee of success. We have analyzed a number of successful online business people and here is a list of important characteristics all of them possessed. We know that the following qualities are essential for success as a businessperson so you should take the time to go through them and check whether or not you have them. All the information about how to set up a website, how to run an email newsletter, how to get a high ranking at Google, how to generate huge traffic to your website etc. will be worth nothing if you dont have most of the following skills and qualities.121WHAT D OES IT TAKE TO BE SUCCESSFUL INE-BUSINESS?Self-MotivationMost people wait until someone else tells them what to do. Thats the way our society is organized. You go to school and the teacher tells you what to do. You study at university and the professors tell you what to do. Your parents tell you what is right and wrong. You get a job and there you will have a boss and colleagues who tell you what to do. Now, we all have to learn from others clearly but we do have a choice about where we get advice. If you want to know how to establish your own business, would you ask your colleague who has been working in a regular 9 -5 job for 15years or so? Think about your teachers at school or your University professors. Do you think they know how to set up a business and become an entrepreneur? If we examine truly successful people we will find that they have a high level of self-motivation. This applies to any calling in life.Consistency, the ability to follow throughMany people who do have se lf-motivation, quickly get enthused and inspired by a new idea. Getting excited or even thrilled by an idea might be great for the moment. A business, however, requires constant activity. If you want to establish and develop a company you need a high level of consistency also known as stickability. Once you have made the decision to set up your business, you must follow through this decisionwith consistency. Think about your life can you come up with an example where you have proved your consistency, your stickability? Did you ever want to learn to play an instrument or a sport or a learn a foreign language? How long did you stick to your plan? How much time did you spend on your project and what have you accomplished? Chances are that you started a lot of projects and half way through the course you quit because things got tough and you lacked stickability. If this is the case fear not. You are not alone. The truth is that most people quit as soon as things get more difficult. Maki ng a long-term commitment is not easy for most people. This applies to personal relationships tooSelf-DisciplineAre you the sort of person who tends to raise your voice when something doesnt go your way? Or do you even have A tendency to shout at your spouse, children or colleagues when you are under pressure? Whenever you start shouting, swearing or using negative language you are wasting your energy energy better put to use on your business venture. Swearing and grumbling kills your creativity and blocks your mind. You must be strong enough to withstand any tendency to get angry or upset or else you will never succeed in your business.CourageIt takes great courage to make decisions and set goals because this means you have to prove to yourself that you can follow your own words through to a conclusion. Look at your friends, family and colleagues. How often do you hear somebody make a promise like Ill call you next week. or Ill look this information up for you. or Sure Ill help you when you move house, just let me know when you need me. Those are statements, offers, promises all based on words. Yet, how often are they followed by deeds? Do you make New Years Resolutions such as Next year Ill quit smoking, Next year Ill start this business course at night school, and Next year Ill go on a trip to Paris or Egypt with you? How many of those resolutions and promises have you kept? How many of them did you simply forget two weeks into the New Year? It takes courage to make a real decision, as you will have to make a sacrifice to follow it through. Also, when you start up a business you will be alone, at least to begin with. There will be no-one to tell you what to do, nobody at first to motivate and support you. You will have to take responsibility for yourself and to a certain degree, for any possible partners and you can only lead others if you have your own fears under control and are willing to take risks. Many people do not set themselves goals because they a re afraid of failing of admitting defeat and they think the best way to avoid defeat is to simply not set goals.Willingness to learn and the ability to change habitsWhen you decide to start your own Internet business you are also deciding to go back to school again. Not in a real physical sense but mentally. You will have to trawl for every single bit of information that will get you closer to your goal. To learn means youll need to change your habits and habits are established patterns of behaviour and thinking that everyone acquires throughout their lives. However, most people are not aware of the fact that they have to learn something new every day and that in order to learn, in order to obtain new knowledge and new skills they have to change some of these habits. If you want to learn a foreign language you have to change your daily routine. For example the habit of listening to your favourite music on the radio. Instead you could be listening to audio recordings in the language you want to learn. We allhave a tendency to get used to things that are not only comfortable but also do not require much activity on our part. We get used to watching TV in the evening and eating convenience food at the same time because this is comfortable and doesnt require any mental activity. IF you want to establish your business, you wont have much time to watch TV for entertainment. You have to change your habit of absorbing information passively into one of actively searching for information in order to analyze, filter and reorganize it.CreativityEstablishing a business means creating a product, service or system that solves a specific problem or enhances a persons life in one way or another. You can achieve this purpose when you create something new This doesnt mean that you have to re-invent the wheel though. Examine any new product development that enters the market and you will see that this new creation is not entirely new but has been made up by combining existing ele ments in a novel way. This action of rethinking existing elements is the formula of creativity. So, in order to create something new you have first to analyze an existing product to find out how it can be improved, developed or enhanced in any way so it will do a better job. Take Google its founders examined and analyzed existing search portals, in particular Yahoo and MSN. Based on their exhaustive studies they came up with an indexing and searching system that provides a higher search term relevancy. Study peoples behaviour identify their latent needs and desires and you will tap into a never-ending supply of product ideas.VisionVision is the ability to see things not as they are right now, but what they will be like in the future. Most people are so stuck in the moment, so preoccupied with their personal daily problems that they dont have the time or energy to think about how a particular market can develop in the future. Look at any successful business venture and you will fin d that its founder was able to project into the future, to estimate how peoples behaviour will change. Your success in business is directly related to your vision capacity and your vision capacity is determined by two factors How far ahead are you able to see into the future and how precise are your predictions? When Larry Page and Sergey Brin founded Google in 1998, they could see well beyond the year 2003, in which they yielded A revenue of almost $ 1 billion. By 1998 Yahoo and MSN were operating worldwide known search services and no one would have thought that two students could take the lead in the industry within 5 years. Yet, Brin and Page had become excellent analysts of the web search market and they collected and