Distinguish between
1) Traditional business and E-business.
Traditional business | E-Business |
Formation | |
A traditional business takes a lengthy and complicated procedure to form | E-Business is easy to form |
Setting up cost | |
2. Setting up cost It takes huge capital in order to setup. | It takes a very nominal cost |
Risk involved | |
3. Risk involved Less Risk involved as parties have personal interaction. | High risk involved as there is no direct contact between the parties |
Scope of Business | |
Traditional business is limited to a particular area so the scope is limited. | E-business covers the entire world and so the scope is vast |
Customer Interaction | |
Face to face interaction is possible | In E-business, there is an absence of face to face interaction. |
Physical inception | |
Goods can be inspected physically before purchase | Goods cannot be inspected physically before purchase |
Resources focus | |
Traditional business resources focus on supply-side | E-business resources focus on demand-side |
Delivery of Goods | |
In traditional business delivery of goods is instant. | In E-business delivery of goods takes time |
Usage | |
It is ancient and still in usage where the digital network is not reachable. | It is used to save valuable time and money |
Accessibility | |
It is available during the limited time | It is available round the clock |
Scope | |
It is difficult to perform more business in this model. | More business can be done easily without any hassles |
2) E-business and E-commerce
E-business | E-commerce |
Meaning | |
E-business is the conduct of business processes on the internet | ‘E-commerce involves commercial transactions done over the internet |
What is it? | |
E-business is a superset of E-commerce | E-commerce is a subset of E-business |
Features | |
E-business includes all kinds of resale and post-sale efforts. | E-commerce just involves buying and selling of products and services |
Concept | |
It is a broader concept that involves market surveying, supply chain, and logistics management and using data mining | E-commerce is a narrower concept and restricted to buying and selling |
Transaction | |
It is used in the context of B2B transactions | It is more appropriate in the B2C context |
Which network is using | |
E-business can involve the use of internet intranet or extranet | E-commerce involves the mandatory use of internet |
3) BPO and KPO
BPO | KPO |
Meaning | |
BPO refers to the outsourcing of non-primary activities of the organization to an external organization to minimize cost and increase efficiency | KPO is another kind of outsourcing whereby, functions related to knowledge and information are outsourced to third-party service providers |
Degree of Complexity | |
PO is less complex | KPO is complex |
Requirement | |
BPO requires process expertise | KPO requires knowledge expertise |
Talent required in employee | |
BPO requires good communication skills | KPO requires professional qualified workers |
Focus on | |
BPO focus on low-level process | KPO focus on high-level process |