Online Business Or ERP

Online business or electronic business or e-business is a business process that relies on automated information system. It refers to the conduct of business on the Internet, which includes servicing customers and collaborating with business partners apart from buying and selling. The term was coined by Lou Gerstner, CEO of IBM . IBM launched a thematic campaign built around the term in October 1997. Exploiting the convenience ,availability and world-wide reach of the internet, companies are incorporating online business as a part and parcel of their operation. It enables them to link their internal and external data processing systems more efficiently and flexibly. Companies can now buy parts and supplies from other companies, collaborate sales promotions do joint research all through net.It is a tool that enables to have constant relations with the suppliers and satisfy the needs and expectations of the customers . E-commerce is a part of online business. The major components of Online business are value chain, electronics purchasing, supply chain management, processing orders electronically, handling customer service and cooperating with business partners. It enables to enhance the efficiency and build healthy relationships with the suppliers, clients and partners and thus increasing the profitability of the concern. Online Business is generally practiced using the Web, the Intranet, Internet or a combination of these. It often involves the use of knowledge management systems. It encompasses use of intranets to share and store documents and information, using email to conduct business, sending data via EDI(electronic data interchange) to other systems, and using Web-based interfaces for customer service.Some of the current trends in e-business are CRM(customer relationship management), SCM (supply chain management), ERP(enterprise resource planning),B2B(business to business) and B2C(business to consumer).CRM involves finding , creating, and retaining customers. It refers to the methodologies, technology and capabilities that help an enterprise manage customer relationships.SCM specifies managing the process of manufacturing a product from the stage of raw material to the final product, for example automation of inventory monitoring and supply ordering processes. ERP is the integration of all data and processes of an organization into a single unified system. With the rapid growth in the use of online business there have been proposal of standards for exchanging electronic information. About 1000 organizations apart from the United Nations Organization for the Advancement of Structured Information Standards are supporting the proposed ebXML. While XML( Extensible Markup Language) offers the ability to define customized information , ebXML focuses on workflow and common business practices and provides a structure for integrating them via the Internet.

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