Introduction to E-Business
The business is ever evolving. As the market sphere increases in size, not only in terms of physical shape but also in terms of reach of customers the business or the market expands its usual meaning. Now, business is not restricted to a land, rather it spreads all over the world where the customers can access the market space with the help of the internet.
This new form of market is the emerging mode of the business, known as E-Business. We will further our discussion on the same topic that is – Emerging mode of Business.
What is E-Business?
Electronic Business Refers to business that is conducted online. The e-business processes include buying and selling goods and services. Through this e-business the model customers are given services, the payments are processed, the production control is managed and all of these are done over the internet, along with the collaboration of the business partners .A range of functions is included in the E-business mode, which includes the development of intranets and extranets. In recent times, e-business has grown in leaps and bounds and has given rise to new requirements of this new business.
Types of E-Business
Business-to-Business (B2B) is the most common type of Business, where transactions occur between two businesses with their goods and services.
Business-to-Consumer (B2C) is the most popular among other e-business models. The transactions occur online.
Business to Business E-Commerce
B2B e-commerce or business-to-business electronic commerce is the sale of goods or services between two or more businesses via the online platform. This is actually used to enhance a company’s sales effort. Sales Representatives manually attending calls from the telephone are digitally replaced by e-mail orders received electronically. This is also effective in reducing the over-all over-head costs.
B2B business means business transactions between two businesses rather than business and customers. In the wholesale lot, the transaction is usually Business to Business while in retail level, the transaction is from a business to an individual consumer. Business to Business is recognised by the fact of the high value of transactions both in terms of goods or services and in terms of money value. While the business to consumer consists of less value than the B2B.
Emerging Modes of Business
We see, the module of a business is ever emerging. Now we have an e-business that caters to the need of online shopping and selling. Not only this, other functions to run a business now are done electronically. This emerging form of business is as useful as it is risky. In seconds purchasing and selling is done, in a matter of a few minutes we can sign into documents and launch our unique product. Also, the cyber-crimes are slowly heightening its pace as well. Frauds and cheats are taking place online. Fraud in e-commerce is a regular news now, hence stricter online securitized mode is to be conducted to transact the business.
Emerging modes of business are e-business or e-commerce that have hit world wide trade. In the upcoming years, figures of this business are expected to be multiplied.
FAQs on Emerging Business Modes: What to Know
1. What are the main emerging modes of business according to the CBSE Class 11 syllabus for 2025-26?
The two primary emerging modes of business are e-business and outsourcing. E-business refers to conducting all industrial and commercial activities through computer networks, including production, finance, and marketing. Outsourcing involves contracting out non-core business activities to external agencies to leverage their expertise and improve efficiency.
2. What is the fundamental difference between e-business and e-commerce?
The main difference lies in their scope. E-commerce is a subset of e-business and only covers the buying and selling of goods and services over the internet. In contrast, e-business is a much broader concept that includes not just e-commerce but also all other electronically conducted business functions, such as inventory management, production control, accounting, and human resource management.
3. How does e-business help a new startup compete with larger, established companies?
E-business levels the playing field by offering several strategic advantages to startups. It provides global reach from day one without the need for physical stores everywhere. The initial setup cost is significantly lower, and it allows for 24/7 operations. Furthermore, startups can use digital tools to engage directly with customers and build a brand faster than through traditional channels.
4. What are the four major types of e-business transactions? Give an example for each.
The four major types of e-business transactions are:
- B2B (Business-to-Business): A company procures raw materials from another company online.
- B2C (Business-to-Consumer): A customer buys a mobile phone from an online retailer like Amazon or Flipkart.
- C2C (Consumer-to-Consumer): An individual sells their used textbook to another student through a platform like OLX.
- Intra-B Commerce: A company's marketing department uses the firm's network to communicate with the production department.
5. Beyond just saving money, what are the strategic reasons a company chooses to outsource its processes?
While cost reduction is a major driver, companies outsource for several other strategic reasons. It allows them to focus on core competencies—the activities they do best. Outsourcing also provides access to a global pool of specialised talent and technology, leading to improved quality and efficiency. It can also fuel business expansion by delegating routine tasks to reliable partners.
6. What are the main security risks involved in online business transactions?
The primary security risks in e-business can be categorised into three types:
- Transaction Risks: This includes issues like default on order taking/giving, where the seller denies the order or the customer denies payment, and default on delivery, where wrong or defective goods are sent.
- Data Storage and Transmission Risks: Sensitive information like customer credit card details can be intercepted by hackers during transmission (e.g., via 'sniffing') or stolen from poorly secured business servers.
- Threats to Intellectual Property: Digital content like software, music, or e-books can be easily duplicated and sold illegally, leading to copyright infringement.
7. Why is a company's internal network (Intranet) considered a part of e-business if no money is exchanged?
An intranet is considered a part of e-business because e-business encompasses all electronically conducted business functions, not just commercial transactions. An intranet facilitates crucial internal processes like communication between departments, sharing reports, managing employee portals, and coordinating production schedules. These are vital business activities performed over a computer network, fitting perfectly within the broad definition of Intra-B Commerce.
