Setting up an E-business: The Basics

This session is designed for businesses, which are ready to expand their client base, and/or those individuals who have already developed an E-business plan .

• What is E-business?
• Types of E-businesses
• Success Stories
• Tips for Success
• Diagnostics:Are you Ready for E-business?
• Resources

What is E-business?

E-business or Electronic business is the extensive use of computers, communication technology, networking technology and computerized data to perform business processes. In other words, E-business is any system of suppliers, distributors, or customers that use the Internet as the basis for their operations. It can range from using e-mail to communicate with customers and/or conduct business to a web page promoting a company, from a full e-commerce retail site to the integration of procedures and processes using Internet based technology.

The transactional component of E-business is e-commerce. E-commerce can be defined as the buying and selling of information, products and services via the Internet. There are generally two types of e-commerce 1) B2C (Business to Consumer) in which businesses sell to consumers or 2) B2B (Business to Business) in which businesses sell their products or services to other businesses.

E-business has the potential to help you improve your business processes through accelerating and enhancing customer service; increasing sales by providing alternative sales and marketing channels; promoting product, service, and company information; and, by reflecting a modern image.

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Information guides on E-business can be found through the following links:

E-Future Centre

E-business Service Centre

E-business Connection

To gain a better understanding of E-business acronyms and terminology refer to the following sources:

E-Future Centre Glossary Provides a comprehensive list of glossaries and free, online technical dictionaries.

Vocabulary of E-commerce Provides 250 bilingual definitions for e-commerce terms.

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Types of E-businesses

Internet development can be broken down into four categories: The Online Brochure, Sales Site, Integrated Site, and the Involved Site (or Application). While the Integrated Site and the Involved Site (or Application) are mentioned here briefly, these types of E-businesses are for larger businesses and thus beyond the scope of this workshop.

The Online Brochure

Provides prospective customers with a profile of an organization, and its products and services available for sale. Such websites are generally not very elaborative and provide little or no functionality in terms of processing orders. Some benefits include increased exposure to potential customers and a positive brand image if well executed. Some drawbacks include the inability to order goods (which can be frustrating for customers) and the fact that competitors have access to the same data.

Some examples of types of businesses that may use an Online Brochure:

• Bed and Breakfast
• Hair Salon
• Tutoring Agency
• Spa

The online brochure is an effective way to advertise a product or service, cost, hours of operation, location and contact information, etc.

• Technical Requirements: Low to Medium
• Cost: Low to Medium

Cost can vary depending on hardware, Internet Access, Web designer (whether you decide to do it yourself or to hire someone else to do the work), Web development tools, location (urban area vs. remote rural area) etc.

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Sales Site

Offer products for sale and allow simple E-business transactions. This level of site often incorporates a database and, in many cases, there is a limited selection of items. Although often hosted on a secure server, Visa and MasterCard orders can be placed via phone or email for authorization and funds transferred through means of traditional deposits. Design, functionality, and usability are more critical for a sales site, as buyers often require confidence in the organization in which they are purchasing from. Benefits include increased exposure to potential customers, increased revenue, and increased customer access. The inability to display all products available possibly deterring customers and presenting a poor brand image, as well as a lack of functionality to gather marketing data, are some of the drawbacks to be considered.

Some examples of businesses that may use a Sales Site:

• Tea Merchant
• Clothing Shop
• Wine Merchant

The Sales Site provides a convenient way for a small business to advertise and sell products online.

• Technical Requirements: Medium to High
• Cost: Medium to High

Two other types of E-business sites, the Integrated Site and the Involved Site (or Application), tend to be very specific to each organization's needs. Some examples of businesses that may use an Integrated Site or an Involved Site (or Application):

• Car manufacturer
• Pharmaceutical Company

They tend to be larger, more complex and much more expensive, beyond the scope of most small businesses.

• Technical Requirements: High
• Cost: High

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Success Stories

Read through these success stories to learn how other small and medium-sized enterprises have integrated the Internet into their businesses.

Electronic Commerce in Canada: Success Stories This site features a searchable database of Canadian businesses that have successfully integrated Internet technology into their business operations. You can search the database by province or industry.

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Tips for Success

The following documents provide some useful tips, as well as outline some common mistakes in E-business ventures.

Critical Issues for e-Business Highlights nine critical issues involved when either developing an E-business component for a small to medium-sized business or setting up a true "e" company.

Critical Success Factors for e-Business Outlines several basic factors that are critical to successfully adopting E-business to your business.

The Most Common Mistakes in e-Business Highlights sixteen common mistakes found to occur in the Manitoba E-business arena. Take advantage of this presentation of "lessons learned" when planning your own E-business venture.

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Diagnostics: Are you Ready for E-business?

Perhaps you have read the literature and remain uncertain as to whether or not you are ready for E-business. There are several diagnostic tools/quizzes available on the Web to help you determine whether or not your business is ready. For example:

E-business Readiness Diagnostic Test A test designed to help you discover what is possible for your business in the digital economy and to assess your own E-business potential.

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Resources

There are a number of useful resources to help you get started with your E-business.

Student Connection Program This program introduces Canadian businesses to the power of the Internet as a business tool. SCP hires and trains post-secondary students to provide Canadian businesses with customized training on how they can use today's technologies to their business advantage. Services include Internet training, e-commerce awareness and assistance.

E-commerce First Step Program Assists small and medium-sized businesses to determine what steps need to be taken to implement e-commerce into their business activities. A Student Connection Program (SCP) Student Business Advisor will visit a business client's office and conduct a one-on-one information session, review the current e-commerce capabilities of the business and, following the session, prepare a detailed report and action plan specifically customized to the client.

eCorps Program Update A joint public-private sector initiative to increase the E-business capability of small and medium-sized businesses, while providing real work experience to a recent IT graduate.