Business Studies: Class 11 — Chapter 5: Emerging Modes of Business

• Digitisation: The conversion of text, sound, images, video, and other content into a series of ones and zeroes that can be transmitted electronically.
• Outsourcing: Contracting out non-core business processes to specialized agencies.
• Internationalisation and Globalisation: Expansion of business operations beyond national boundaries.

e-business is defined as the conduct of industry, trade, and commerce using computer networks. While e-commerce covers a firm's interactions with its customers and suppliers over the internet, e-business is a broader term that includes other electronically conducted business functions such as production, inventory management, product development, accounting, finance, and human resource management.

• B2B Commerce: Business-to-Business transactions where both parties involved are business firms (e.g., automobile manufacturer interacting with component suppliers).
• B2C Commerce: Business-to-Customers transactions featuring business firms at one end and customers at the other (e.g., online shopping, ATM withdrawals).
• Intra-B Commerce: Transactions and interactions within a single business firm using an intranet (e.g., marketing department interacting with production department, B2E or Business-to-Employees commerce).
• C2C Commerce: Consumer-to-Consumer transactions originating from a consumer and ending with a consumer (e.g., selling used books on eBay, peer-to-peer payment via PayPal, consumer forums).

• Ease of formation and lower investment: Relatively easy to start; network connections are more vital than high net worth.
• Convenience: Offers 24x7x365 access to shopping and business operations.
• Speed: Information exchange and transactions occur at the click of a mouse.
• Global reach/access: Allows sellers access to global markets and buyers freedom to choose globally.
• Movement towards a paperless society: Reduces dependence on paperwork and red tape, supported by the Information Technology Act 2000.

• Low personal touch: Lacks the warmth of interpersonal interactions, making it less suitable for products like garments or toiletries.
• Incongruence in speed: Information flows instantly, but physical delivery takes time.
• Need for technology capability: Requires familiarity with computers, leading to a digital divide.
• Increased transaction risk: High risk of impersonation, leakage of credit card details, virus attacks, and hacking due to anonymity.
• People resistance: Stress and insecurity regarding new technology can lead to employee resistance.
• Ethical fallouts: Use of electronic monitoring ('electronic eye') to track employee files and emails.

1. Registration: Registering with the online vendor by filling out a form and creating a password-protected account.
2. Placing an order: Picking and dropping items into an online shopping cart, followed by checkout.
3. Payment mechanism: Choosing a payment option:
   • Cash-on-Delivery (CoD): Cash payment made at the time of physical delivery.
   • Cheque: Vendor picks up the cheque; delivery occurs upon realization.
   • Net-banking Transfer: Electronic fund transfer using IMPS, NEFT, or RTGS.
   • Credit or Debit Cards: 'Plastic money' used for instant electronic deduction or credit.
   • Digital Cash: Electronic currency existing only in cyberspace, drawn from a bank account using special software.

• Default on order taking/giving: Seller or buyer denies the order was placed.
• Default on delivery: Goods delivered to the wrong address, or wrong goods delivered.
• Default on payment: Seller does not receive payment, but customer claims it was made.
• Remedies: Identity/address verification, cookies, and using secure shopping sites with seller ratings.

• VIRUS (Vital Information Under Siege): Programs that replicate and disrupt systems, ranging from Level-1 (annoyance) to Level-4 (complete destruction). Protected via anti-virus software.
• Hacking: Unauthorized access to data.
• Cryptography: Protecting data by encrypting it into cyphertext, which can only be decrypted back to plaintext with a secret key.
• SSL (Secure Sockets Layer): Encryption technology used to protect credit card details.

Once information is on the internet, it can be copied easily. Personal data can also be supplied to third parties, leading to spam/junk mail.

Successful e-business requires standard business resources (money, men, machines) along with specialized resources:

• Developing, operating, and maintaining a robust website.
• Adequate computer hardware and telecommunication links.
• Trained workforce capable of handling electronic queries and transactions.
• Secure payment gateway integration.