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E-Business Architecture and Modeling

This paper covers the understanding on E-Business, Its architecture and the various E-Business Models that are implemented worldwide effectively with the presence of Internet. Internet has connected the globe in such a way that reaching any customer in any corner of the world is just few clicks away and this has made the concept of E-Commerce and E-Business so successful and effective. To build an effective E-Business application one needs to focus particularly on the e-business architecture at the time of designing and developing the application.

The E-business models are broadly categorised into B2E, B2C and B2B business models which are discussed below in the paper. It also covers in brief the SWOT analysis on the E-Commerce which will enable to highlight the scope areas for the improvement in the e-Commerce industry. Introduction Internet has provided a strong platform to E-Commerce to capture the entire business world very effectively in no time.

With the advancement in technology and efficient research been done on the E-Commerce, its business models and architecture, the security, confidentiality and the authenticity of the transactions been made through internet has also made E-Commerce, a great success. Since, it has become quite handy to target and reach the potential

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customers across the world with the help of E-Commerce; almost 100% increase in the sales has been observed over the past decade which in itself is a very big achievement to any industry.

Internet has played the role of a great contributor in the establishment of E-business industry and this rapidly growing industry has a promising future ahead as the research and developments are continuously working towards introducing the new and more efficient architectures and models. It is a fact of no surprise that in the present time, transactions worth billions of dollars are been made on daily basis on the internet due to the highly advanced security measures being implemented in the E-commerce. What is E-business?

We all are quite used to hearing this term –E-business in some way or the other in today’s time but what exactly e-business is . E-business is the modern concept of doing business through internet and the various technologies implemented to ensure the security and confidentiality of the transactions been made over the internet. Here, the customer does not pay the bills directly to the vendor and so; it requires either the bank details or the card details to complete the billing transaction which takes quite a number of confidential information from the customer.

Many people define E-commerce and E-business as two separate entities but ideally they both are associated and as e-commerce should be considered a segment of the e-business category only. In the simplest of the terms, E-business is nothing but any particular business being conducted over the internet and we all are very much influenced with the concept of e-business in some way or the other. E-Business Architecture E-business or E-commerce uses Internet as the platform to execute all its services which includes the online payment system too.

Since the customer is required to make the payment to the vendor over the internet by either sharing his bank details or the Debit card/Credit card details it requires lot of security and authenticity as the customer passes very crucial information to the vendor over the internet. This has made it quite important and necessary to have a strong and secured architecture system in the e-commerce development. This industry has seen immense development and advancement in the last two decades which again has made e-business, a flourishing and profit making business.

The concept of online payments has touched the life of everybody either directly or indirectly. We regularly use the online payment services to book the movie tickets, to pay our internet and telephone bills and even when we take the help of airline booking vendors they too use the concept of online payment to book our flight tickets. The most advanced and latest innovations been made in the e-commerce architecture are the outsourcing and cloud computing. Three-tier architecture has dominated web-based solutions. E-Business Models

Based on the mode of execution and the sources involved in the E-commerce, various e-business models are defined which makes it easy to differentiate one model from another. Few business models to name are B2B (Business to business), B2C (Business to customer), B2E (Business to employee). B2G (Business to government), G2B (Government to business), G2G (Government to government), G2C (Government to Citizen), C2C (Consumer to consumer), C2B (Consumer to business) etc. The most common business models which are frequently used are B2B and B2C.

All these models work on the same concept of using internet as the base technology for their implementation and execution. Let’s talk about the two basic models B2C and B2B in brief. B2C or Business-to-consumer as the term defines the activities which are been done in between the vendor serving the business and the consumer who is taking the services from the vendor. For example a person buying a pair of shirts from the vendor in any online store is the appropriate illustration of B2C business model.

B2B or Business-to-business model deals with the transactions been made between the two business vendors like the manufacturer or a commodity and the whole sale vendor. Here both the parties involved come under the business category. SWOT analysis on E-business SWOT Analysis, The strength, Weakness, Opportunity and threat analysis is one of the most effective and appropriate analysis been implemented in any industry to identify the scope of improvement areas and work in the desired direction to achieve the pre defined goals and objectives.

Let’s discuss each one of these elements in brief here. Strengths: The major strength areas in e-business are the various levels o management which makes it feasible to effectively implement the high standards of security required to keep E-business model running successfully. Also, the various levels in the architecture of the e-business models allows the data and the application to run and store separately thus making it possible to avoid any kind of data loss or breach. Languages like PHP and .

Net in the programming world have provided a lot of flexibility to the applications which run over the internet. Weakness: The organizations with the motive to earn the maximum amount of profilt from their e-business have started outsourcing a number of services or applications. One such example would be outsourcing the Domain hosting to some other vendor who is providing this service at very low cost but this might harm the business due to the slow speed of data processing and transaction execution. These affect the security and goodwill of the business.

Opportunities The opportunity associated with the rapidly growing e-business industry is definitely another option to promote the concept of outsourced sharing operations which mutually benefit both the parties to avail better services and that too in quite low cost. It also makes it possible to reduce the cost of operations required to run a business as it does not need the business to be established physically at any place, also reduces the cost of the employees too as most of it is been managed over the internet.

The connectivity and speed of processing of transaction is highly commendable over the internet which is a great factor in itself. Threats: Major threats associated in the e-business model are the security and authenticity of the payment solutions that are used to complete the billing or the payment transaction. This system needs to be built on strong and safe platforms as it processes the confidential information passed from the consumer or customer to the vendor.

Few very common names associated with the merchant payment services are Paypal, SWReg, AlertPay, MoneyBookers etc. Conclusion E-commerce industry has evolved itself in a very short span of time and it regularly keeps on updating itself in terms of the technology been implemented in it which is a healthy sign of development in any industry. The associations been made amongst the vendors have made it quite simple and feasible to do any kind of transactions online in to time and with much ease.

The advanced technologies used in the E-business will definitely promote the concept of online transactions and will surely take this industry to heights which will not only double the sales in just few years but will also provide the boost to the other industries too to adopt the concept of e-business if they have yet not tried it. Recommendations In spite of “e-business’ being quite a new concept, there is already a great amount of experience in design and implementation of e-business initiatives and measurement of their impact.

As firms are seeking to look at the initial and copied online store examples and beyond them to the lesser obvious business areas where a transformation could be brought about by e-business technologies, the need to benchmark the existing e-business experiences has arisen. Along with IBM Global Services, a joint project is being conducted to perform a task whereby e-business initiatives deployed since a long time are being surveyed and their impact is being observed and analyzed.

The objective to be achieved by the survey is breaking down a particular industry into e-business components i. e “building blocks” which can also be seen in initiatives in the other industries as well as functional departments. Identifying, describing and organizing these building blocks help in reusing the same in new initiatives. Building blocks is used as a unit to model the e-business initiatives of a firm rather than its business model which is a term that is often used inconsistently to suggest formulation and analysis of e-business strategies.

Two reasons are present for such a choice. The first reason is that a business model has an invariable link with the situational context-the firm along with its industry. As a result, reapplication of the observed business model without isolation from its context to another firm is difficult. The second reason is that a business model often applies to a whole firm rather than particular e-business initiatives that are undertaken by the firm. . References 1.

Book on “Enterprise Business Architecture-The formal link between strategy and results” by Ralph Whittle and Conrad B. Myrick http://books. google. co. in/books? id=Id89sggCJ38C&dq=e-business+architecture&source=gbs_navlinks_s 2. Korper, S. , Ellis, J. (2001), E-Commerce Book Building the E-Empire. Academic Press, San Diego. 3. Understanding on E business models-http://en. wikipedia. org/wiki/Electronic_business#Models 4. What is a business Model and its classification http://www. ebusinessmodels. com/

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