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Chapter 1

BUS 252 Chapter Notes - Chapter 1: Customer Relationship Management, Enterprise Resource Planning, Electronic Data Interchange

Course Code
BUS 252

of 2
In the early twenty-first century, business are using the internet differently than it has in the past. Part
of this change comes from mobility, and part from other factors such as social media and cloud
Mobility: People are able to access the internet from a variety of internet-capable devices.
Social Media: Businesses are starting to use social media apps such as Facebook, Twitter, LinkedIn for
marketing purposes.
Cloud computing: Cloud computing involves applications and other computer resources being hosted on
the iteret rather tha o a eterprise’s ow coputer systes.
Any business that is carried out in an electronic form.
If businesses use electronic data interchange (EDI) to carry out business, it is a form of ebusiness.
The definition of ebusiness connects the idea of business change and structure to the creation of
business models that will sustain themselves.
Ebusiness as defined in the book:- It is the use of technology, particularly the internet, to integrate and
streamline the business processes, enterprise applications, and organizational structure of a business to
create a high-performance business models.
Ebusiness Models
The internet is causing business models to change.
Several features of internet-based business have an impact on the business models adopted by
businesses, including the following:
1) Speed
2) Convenience
3) Customization
4) Redefinition of product value
5) Media flexibility
Ebusiness models constantly change as they need constant updating to keep pace with fast-moving
times. The continual change and improvement emphasize the need for ebusiness strategy.
Ebusiness Strategy
Business models define how a business is going to make money, and strategy defines how it plans to
achieve the business objectives within the desired business model.
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The Structure of Ebusiness
Ebusiness includes the front-office and back-office information systems applications that drive modern
These include the applications that enable information related to the customers to be captured and
used to find better and more efficient ways to serve them.
Ebusiness also includes other information system application that serve to integrate the systems of a
business to streamline its value chain.
The streamlining of the internal value chain and the external supply chain is a fundamental strategy of
ebusiness that enables businesses to respond quickly to the increasingly stringent demands of
To make ebusiness work efficiently, there are a great deal of activities that need to take place behind
the webpages.
Systems need to be organized in such a way that there is a fast and free flow of information throughout
systems, regardless the platform within the organization.
System integration: The bringing together of various business systems that have different technologies,
functions, and platforms so they can conduct business processes in such a way that the user does not
see that different systems are being used.
System integration is necessary to enable the companies to provide fast turnaround without resorting to
increases in inventory.
Internal networks of the company are referred as intranets
External networks of the company are referred as extranets
Large business organizations use separate network server called web servers to construct their websites.
The language used to construct these websites is known as HyperText Markup Language (HTML)
Firewalls: A separate, highly secure computer, along with related software policies and procedures,
through which access to a network from the internet is exclusively directed.
The firewall is set up between the web server and the main system.
Tools for System Integration
The rise of internet is the primary reason, why ebusiness was able to reach the success that it has
Enterprises use systems such as supply-chain management (SCM), customer relationship management
(CRM) and enterprise resource planning (ERP) to achieve integration both internally and externally.
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