Key Points

e-Business refers to the conduct of industry, trade, and commerce using computer networks. It is a broad term that covers all business functions conducted electronically.

e-Commerce is a part of e-business, covering a firm's online interactions with customers and suppliers like buying and selling. e-Business is a wider term that also includes internal electronic processes like production, finance, and inventory management.

B2B (Business-to-Business) commerce involves electronic transactions between two or more business firms. This includes activities like a manufacturer purchasing raw materials from a supplier online.

B2C (Business-to-Customer) commerce involves transactions between a business firm and its customers. Online shopping is the most common example of B2C commerce.

Intra-B commerce refers to transactions and interactions occurring electronically within a single business firm. It facilitates communication between various departments, such as marketing and production, using the firm's internal network (intranet).

C2C (Customer-to-Customer) commerce involves business transactions originating from and destined for consumers. This is common for goods without an established market, such as used books, facilitated by platforms like eBay.

The main benefits of e-business include ease of formation, lower investment requirements, 24/7 convenience, high speed of transactions, global reach, and a reduction in paperwork.

e-Business has limitations such as a low degree of personal touch, a mismatch between order placement and physical delivery speed, the need for technological competence (digital divide), and increased risks from anonymity.

Unlike traditional business, e-business does not require a physical presence, has lower setup costs, and allows for direct contact with customers. Traditional business often involves intermediaries and has a hierarchical communication structure.

Online transactions typically involve three stages: first, registration with the vendor; second, placing an order by adding items to a shopping cart and checking out; and third, making payment through various mechanisms.

Payment for online purchases can be made through methods like Cash-on-Delivery (CoD), cheque, net-banking transfer, credit or debit cards, and digital cash.

Transaction risks involve default on order taking, delivery, or payment, where either the buyer or seller denies their part of the transaction. Identity verification and secure payment gateways help mitigate these risks.

Data stored and transmitted online is vulnerable to viruses and hacking. There is also a risk to intellectual property and privacy, as personal information can be copied or misused.

Cryptography is the art of protecting information by transforming it (encrypting) into an unreadable format. Only those with a secret key can decipher the message, which helps secure data during online transmission.

BPO is a business practice where a company contracts out its non-core business processes to an external provider. This allows the company to focus on its core competencies and often reduces operational costs.

The IT Act of 2000 provides legal recognition to electronic records and digital signatures in India. This act is crucial for validating and securing e-business transactions, paving the way for a paperless society.