What is the connection between ERP and e-business?
E-business stands for 'electronic business', which
involves communications and doing business electronically through the
Internet. E-business is defined as the use of electronically enabled
communication networks that allow business enterprises to transmit
and receive information.
It can significantly improve business performance
by strengthening the linkages in the value chain between businesses
(B2B) and consumers (B2C). Besides increasing efficiency in selling,
marketing and purchasing, e-Business achieves effectiveness through
improved customer service, reduced costs and streamlined business
processes. Furthermore, e-Business creates a strategic,
customer-focused business environment for shared business
improvements, mutual benefits and joint rewards.
Companies use the Internet to implement customer
relationship management (CRM) and supply chain management (SCM)
capabilities, which enabled them to link their operations seamlessly
with customers and suppliers.
For example, a beverage manufacturer with 40%
growth and Rs. 700 crore in annual sales revenue sells its products
through 150 distributors nationwide as well as general stores and
cafes in the country. By using ERP system and e-Business platform,
the salespersons can track sales and promotions through the Internet
and are provided assistance and suggestions to enhance their
performance. The sales persons and distributors have access to
commission reports and they can track and adjust sales orders.
Through consolidating its financial, compensation, sales and
depletion data into a single report, the organization prevents
out-of-stock and partial shipments. The increased need for more
labour force to handle customer service issues in the past was also
eradicated by integrating ERP system with e-Business.
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