Emerging
UNIT 4 EMERGING OPPORTUNITIES IN Opportunities in
Business
BUSINESS
Structure
4.0 Objectives
4.1 Introduction
4.2 Internet Applications in Business
4.2.1 Internet of Things
4.2.2 Technological Explosion
4.3 Emerging Trends in Business
4.3.1 Automation
4.3.2 Blockchain
4.3.3 Artificial Intelligence
4.3.4 Machine Learning
4.3.5 Social Shopping
4.3.6 Robotics
4.3.7 E-Tailing
4.3.8 Retail Entrepreneurship
4.4 Impact of Technology on Business
4.5 E-Commerce
4.5.1 Meaning of E-Commerce
4.5.2 Traditional Commerce v/s E-Commerce
4.5.3 Features of E-Commerce
4.5.4 Benefits of E-Commerce
4.5.5 Disadvantages of E-Commerce
4.6 M-Commerce
4.6.1 App Based Business Using Smartphone
4.6.2 Wallets and Plastic Money in Business
4.7 Franchising
4.7.1 Benefits of Franchising
4.8 Logistics and Supply Chain Business
4.8.1 Significance of Logistics
4.9 Outsourcing and Offshoring
4.9.1 Outsourcing
4.9.2 Offshoring
4.9.3 Difference between Outsourcing and Offshoring
4.10 Let Us Sum Up
4.11 Key Words
4.12 Terminal Questions

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Foundation of
Indian Business 4.0 OBJECTIVES
After studying this unit, you will be able to:
x assess how do opportunities play an important role in enhancing business
x discuss the trends which are bringing change in business
x explain the paradigm shift from website to application based business
x evaluate the impact of the use of plastic money and e-wallets
x examine the digital business collision with market place trends

4.1 INTRODUCTION
This unit aims to make the students aware of the various changes in the
business environment which has led to increased business opportunities. In
the second unit of this block, you have learnt how is digitisation finding a
way to every field of life. In this unit, you will learn how does digitisation
paves the way to a drastic shift in the business activities. In the present day,
entrepreneurs like Bill Gates, Mark Zuckerberg, Elon Musk, Jack Ma, Jeff
Bezos are the pioneers of success but all of them started from marginal
investment. Facebook was created in a Harvard dorm room at negligible cost
and Microsoft was formed two years after Gates decided to drop out of
school.

Tracing the business history of the world, it has been seen that the
marketplace is ripe for the determined entrepreneur to take it over. Some
individuals may have the business insight to sway the market but have not yet
managed to confine on a single thought to start with. But as Walt Disney
said, ³,I\RXFDQGUHDPLW\RXFDQGRLW´
The internet has touched our lives in more ways than we care to
acknowledge. We often do not realize how we would have reacted in a
different way less than a decade ago when the internet was not such a boom
and it is ever increasing. In this unit, you will learn the internet applications
in business, emerging trends in business and impact of technology on
business you will further learn the features, advantages and disadvantages of
e-commerce. You will also be exposed to franchising, logistics and supply
chain business, outsourcing and off-shoring.

4.2 INTERNET APPLICATIONS IN BUSINESS

It is very hard to visualize how any business could function during this time
without the use of the internet. The development of the internet has
considerably changed the day to day operations of a business; including how
they correspond with each other and their audience. Information can be
effortlessly transmitted to any destination in few seconds. The internet has
become a necessary tool for marketing and advertising. A business can
interact with the customers with the use of a website or online
advertisements. Many businesses now use the internet as a means of making
customers attentive of their current promotions. This can be very beneficial to
businesses that are targeting younger spectators.
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Emerging
4.2.1 Internet of Things Opportunities in
Business
The Internet of things (IoT) is the network of devices, vehicles, and home
appliances that contain electronics, software, actuators, and connectivity
which allows these things to connect, interact and exchange data. The
Internet of Things (IoT) has the supremacy to change our world. While we
are beginning to see its incredible boom, we are at a halt especially toward
the start of the transformational venture. As you can conceive, life in ten
years will appear to be physically unique from what it looks like in 2019. The
pace of innovation change is quickening, thanks to the coming wave of the
Internet of Things. Here and there, Internet of things still feels like void tech
language. It is difficult to piece all these different, divergent things together
and talk about them significantly. Along these lines, with an end goal to
comprehend this up and coming innovation, let us see what designs are
occurring to construct of Internet of things potential.

Sustained growth in the financial system comes with augmentation from all
sectors, among which development in the infrastructure sector is a key
requirement for intensification in sectors within manufacturing and services.
Within infrastructure, enlargement in different upcoming business in the
various sector is one of the most important requirements for the sustained
growth of a developing economy like India. The propagation of new
technologies such as mobile, cloud computing, and artificial intelligence (AI)
have changed customer behaviour and disrupted marketplaces. As a
consequence, our marketing practices must also step forward. Due to the
Information and Communication Technology revolution, there has been a
swift and outstanding boost in the interface between communities and
societies in today's human race. Our Indian social system is also going all the
way through enormous alteration to meet the needs of the modern world.
Information has by no means been so free and readily available as nowadays.
While the price of data has plunged, the supply of information has evolved
creating a data expansion. This is over and over again referred to as “Big
Data.” Companies are progressively emphasizing on their core competencies
(‘to do what you are preeminent at and leave all other non-value-added
activities to more suited players’) and working on to build strong
relationships with their supply chain partners who possess indispensable
harmonizing capability. Success will depend on how well companies act as a
team to deal with significant processes and activities across business
boundaries to meet customer requirements.

4.2.2 Technological Explosion

Technological explosion refers to the frequent increase in the use of
technology in everyday life. Innovation counselling firm Gartner, Inc.
predicts that 6.4 billion associated things will be used the world over this
year, which is 30% more than the last year. Furthermore, this number is
relied upon to develop by multiple occasions to about 21 billion by 2020.
It is a name given to the present pattern of computerization and information
trade in assembling innovations. It incorporates digital physical frameworks,
the Internet of things, cloud computing and cognitive computing. Industry 4.0
is generally alluded to as the fourth industrial revolution. The manufacturing
industry established long ago is experiencing a principal change, denoting the
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Foundation of beginning of savvy manufacturing or Industry 4.0. Consistently,
Indian Business
advancements dependent on IoT to make plants more brilliant, more secure
and all the more naturally reasonable. IoT associates the modern unit to an
entirely different scope of keen assembling arrangements, which go around
the manufacturing process.

4.3 EMERGING TRENDS IN BUSINESS

Today’s world is more about the practice economy. Customers are ready to
squander money on concerts, dinner dates, and trips. That is the new kind of
strategy with the know-how economy. Organisations in the present scenario
are trying to build, synchronise with the old business in a new way.

It is sky-scraping tea break entrepreneurs comprehend the importance of

being fastidious in project identification. Till in recent times, we in India kept
on exploring the possibilities of manufacturing almost the whole lot, right
from pins to planes and screws to submarines. Just as companies and
individuals carry out SWOT (Strength, Weakness, Opportunity and Threat)
analysis for identifying business opportunities for our entrepreneurs. Peter
Dawson in his book has mentioned that perpetual state of commercialization
which will change the manner in which organizations work. The Great
Recession has modified the very establishments of life and business and set-
off changes that are changing enterprises and organisations. The meaningful
brands research, led by the Havas Group, met 300,000 individuals around the
world. They broke down 1,500 brands in 15 ventures, all over 33 nations they
found that.

A standout amongst the most immediate influencers of business achievement

is the economy. For universal associations, this implies watching out for both
local and worldwide patterns. Money related changes can display a wide
scope of issues for organisations with workers spread all over the world. As
per Reuters, the up and coming scene in developing markets is relied upon to
get rough on occasion. Be that as it may, this has been an unavoidable truth
for organisations with areas in a wide range of nations.

Business patterns are quickly developing. It appears innovation is progressing

at a consistent quicker rate. We are feeling the impact of these progressions.
Business intelligence and analytics are in high demand as organisations seek
to use information assets to improve business outcomes, customer
relationships, and operational efficiency. Some of the emerging business
trends are explained below:

4.3.1 Automation
Automation driven by AI and advanced equipment is set to upset work as we
know it. We are robotizing customary occupations out of existence regularly.
Examples of these disruptions are given as under:
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employees.
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‡ :HQG\¶VUHSODFHGWKHLUORZHVWSDLGHPSOR\HHVZLWKURERWV Emerging
Opportunities in
As automation matures work will shift from Augmented Intelligence to true Business
Artificial Intelligence. No one knows for sure when AI will reach that tipping
point but every industry will be impacted.

4.3.2 Blockchain
Blockchain was designed by Stuart Haber and Scott Stornetta in 1991 as a
method to promise the trustworthiness of digital records. Haber and Stornetta
propelled the world’s first business blockchain. A Blockchain is a practice for
making an index of entries, which cannot be changed after they are
completed. This equally applies to the index. Blocks on the blockchain are
comprised of virtual snippets of data. In particular, they have three sections:

ͻ Blocks store data about exchanges, for example date, time, and amount of
your latest buy from online business.
ͻ Blocks store data about who is taking an interest in exchanges. Rather
than utilizing your real name, your buying is recorded with no identifying
data utilizing an unique “digital signature,” similar to a username.
ͻ Blocks store data that contrasts them from different blocks. Much like
you and I have names to differentiate us from each other, each block
stores a special code called a “hash” that enables us to separate it from
other blocks.

4.3.3 Artificial Intelligence

The recent boom in technology has led to demands for our applications that
include artificial intelligence (AI) and machine learning. This has led the
industry to develop the expertise in AI and ML tools so that the skills can be
implemented in the products. Artificial intelligence has been democratized.
Microsoft reported that AI is now present in a large portion of a billion
gadgets running Windows 10. Google has released TensorFlow. Berkeley AI
research released Caffe and Apache released Apache MXNEt. Amazon made
an AI stage for designers to work with an assortment of AI explicit systems
and services. The rise of automation to unmistakable quality is powered by
enormous spending and fast development in specific regions.

4.3.4 Machine Learning

Machine Learning (ML) is the field of learning that gives computers the
potential to gain knowledge of without being unambiguously programmed.
ML is one of the most exciting technologies that one would have ever come
across. Machine learning is the scientific study of algorithms and statistical
models that computer systems use to in actual fact perform a specific task
without using explicit instructions, relying on patterns and inference
instead Machine learning is an application of AI that provides systems the
capability to mechanically learn and progress from knowledge without being
overtly programmed. Machine learning focuses on the development of
computer programs that can right to use data and utilize it learn for
themselves.

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Foundation of ͻ Early adopters of machine learning are findings ways to mechanize
Indian Business
machine learning by embedding processes into operational business
environments to drive business value. This is enabling more effective and
precise learning and decision-making in real-time.
ͻ For businesses today, growth in data volumes and sources sensor, speech,
images, audio, video will keep on to gather speed as data proliferates.
ͻ Today, organizations can inculcate machine learning into core business
processes that are connected with the firm’s data streams with the
objective of improving their decision-making processes throughout real-
time learning.

4.3.5 Social Shopping

As e-commerce has grown over the last decade or so, it has also evolved,
changed shape, and spawned numerous offshoots. One of those offshoots of
the big e-commerce insurgency is social commerce and it is making a big
plaster. Social shopping is a new term that illustrates a progression where
social network users can procure products that come into sight in their feeds
and channels without interrupting their browsing occurrence. Before social
shopping, a corporation could set an advertisement on a social network, and
anyone who wanted to purchase their product would necessitate clicking the
ad, visiting a landing page on the company website, and ensuring through a
purchasing funnel. Once their purchase was inclusive, they could
recommence browsing their social network. The key divergence with social
shopping is that the user can currently make a procure without ever leaving
their social network feed.

According to Adweek, the top 500 retailers brought in nearly $6.5 billion
from social shopping in 2017. Social shopping is by all accounts on the
ascent. It will change how we consider moving items and administrations
since it is a moderately new channel that requires an alternate methodology.
Social shopping is a method of e-commerce where shoppers’ friends become
involved in the shopping experience.

4.3.6 Robotics
Robotics deals with the design, construction, operation, and use of robots, as
well as computer systems for their control, sensory response, and information
processing. These technologies are used to develop machines that can
substitute for humans and replicate human actions. Robots can be used in
numerous states of affairs and for lots of purposes including business. One of
the most common tasks robots perform for businesses is product assembly in
an industrial space. Manufacturing robots handle tasks such as welding,
sorting, assembly and pick-and-place operations with greater speed and
efficiency than human workers could ever hope to achieve. Most robots today
are used to do repetitive actions or jobs considered too dangerous for humans.
A robot is perfect for going into a building that has a possible
bomb. Robots are also used in factories to fabricate things like cars, candy
bars, and electronics.

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Emerging
4.3.7 E-Tailing Opportunities in
Electronic retailing (e-tailing) is a buzzword for any business-to-consumer Business
(B2C) transactions that take place over the Internet. Simply put, e-tailing is
the sale of goods online. The key difference between e-tailing and
e-commerce is that e-tailing is the action of selling of retail goods on the
Internet whereas e-commerce is the commercial transactions conducted by
electronic means on the Internet. We will discuss more in detail about
E-Commerce in forthcoming heads. With the continuation of shopping online
and other accessory applications, e-tailers can in reality have diverse forms of
transactions to choose from, either for business to business, consumer to
business, or consumer to consumer transactions. There are various impacts
of E-tailing in business. Some of them are mentioned below:

ͻ E-tailing as a platform will also eliminate the barriers between businesses

and consumers, because the information about the product and the
business is made easily accessible, making the information readily
available.
ͻ E-tailers can personally connect with their consumers and consumers can
give their appropriate feedbacks accordingly, making it an excellent
customer service tool.
ͻ It also provides customers and businesses an extensive display of options
to choose from for the reason that they offer more elastic paying and
pricing systems and they equally grant more opportunities for businesses
to check contest.

4.3.8 Retail Entrepreneurship

The retail industry is observing a big boom in this decade. The experts are
expecting a bigger growth in the future. The expansion rate is 15% and
currently, it comprises 10% of India's GDP. The figures are enough to
explain the colossal growth of the industry. It also depicts the right time to
invest in a prospective retail business and become a part of the boon of
consumerism. The attractive economy is literally becoming a global
destination for many marvellous retail brands. They want to invest and
operate in the Indian market and uplift the life and stature of the Indian
population. The factors such as the rise in the working population, increased
disposable income household income, affluence, enhanced lifestyle, demand,
and government aids for businesses are contributing largely to the boom of
this industry. If you are thinking of launching your own business, this is the
right time to invest and enter the promising platform to create a remarkable
future.
Check Your Progress A
1) What has been the impact of E-Commerce boom in India?
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Foundation of 2) What do you mean by robotics?
Indian Business
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3) What has made India one of the world’s fastest growing emerging
market economies?
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4) Give some examples of automation in business.
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4.4 IMPACT OF TECHNOLOGY ON BUSINESS

Businesses are affected by changes in the technological atmosphere.
Technology revolutionises and offers risks, opportunities and threats to
businesses. Some businesses can exercise changing technology to step
forward products and processes or even engender new products and processes
that will expand markets and profits. We have been witnessing how has
know-how transformed business.

Stone Age, Iron Age, Bronze Age, Steel Age, described in our history have
been defined on the basis of technology. It is the innovation and
transformation of activities which had brought transformation in business.
The transformation has been facilitating the progression in technology. The
progression which has changed the world around us. Look at Fig 4.1 which
shows effects of technology on business.

Benefits of Technology in the Business

Technology has both tangible and intangible benefits. It helps a business to
formulate ideas and fabricate the results that the customers demand.
Technological infrastructure affects the culture, effectiveness and
relationships of business. Depicts effects of technology on business
operations. Look at the Fig. 4.1 which shows the effects of technology on
business.

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Emerging
SECURITY EFFIICIENCY EXPOSURE
Opportunities in
Business
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protects your and make easy to gain
business from fewer mistakes brand exposure
cyber attacks when you use by shopping
and viruses. technology to online and
complete your communicating
work. with your
target
audience.

Fig. 4.1: Effects oof technology on business

While the benefits of technologicaal advancement in business are too many,

let us learn a few key advantages:

x Reducing Business Costs: Sm mall business owners can bring into play
innovation to reduce businesss costs. Business innovation mechanizes
back office operations, for exaample, record keeping, accounting, payroll
and finance. Entrepreneurs cann likewise utilise know-how to assemble
secure conditions for keeping uup important business or customer data.

x Harmonising Communication n: Technology facilitates in harmonisation

of the communication processs. For example, emails, texting, websites
and personal digital productts applications, known as “apps,” may
facilitate the communication with consumers. Companies can further
take customer criticism thrrough these electronic communication
methods. These methods also aallocate companies to reach customers via
mobile devices in a real-time arrrangement.

x Potential enlargement in Business: Technology permits small

businesses to accomplish the ooperations in the new markets. Rather than
just selling consumer goods oor services in the restricted market, small
businesses can accomplish reggional, national and international markets.
Retail websites are the most w widespread technique for small businesses
to sell products in quite a few w dissimilar economic markets. Websites
provide a minimal effort choicce that shoppers can get to all day, every
day when expecting to buy m merchandise or services. Entrepreneurs can
likewise utilise Internet publiccising to achieve new markets and clients
through mindfully placed web ppromotions.

x Considerations: Business technology enables organisations to

subcontract business operatiions to different organisations in the
worldwide and local business surroundings. Outsourcing can encourage
organisations to lower expenses and focus on finishing the business work
they do. Technical help and cuustomer care are two important operations
that organisations subcontract.. Entrepreneurs may consider outsourcing
of the operations for which they do not have the fitting offices or
reachable labour. Innovation enables organisations to contract out
capacity to the least expensivee territories conceivable, including foreign
nations. The world is experienncing a profound situated adjustment, on
account of constant connecctivity universally. This is making a
requirement for a computerizedd change of the entire thing – from retail to
our postal framework. It is cchanging our foundation needs and it is
additionally expanding the vellocity of business. To remain on the ball
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Foundation of entrepreneurs should likewise change the traditionally settled methods
Indian Business
for working their ongoing business.
Changes in Business are Fast-Paced
When the business environment is altering and they take action accordingly
to provide accommodation with these changes. This adjustment may facilitate
businesses manage change. Companies have an improvement when they have
managers and leaders in place that are predominantly skilled sensing when
change needs to happen. With the rise of new tools such as artificial
intelligence, robotics, and automation, may bring new changes in the
organisations. Managerial comprehension and acquaintance of the long-
established leadership models are no longer adequate to be successful and
excel in today’s speedily changing business environment. These fast-paced
changes also need to be reproduced in business.

4.5 E-COMMERCE
The term “E-Business” was coined by IBM’s marketing and Internet teams in
1996. In 1997, IBM marketing, with its agency Ogilvy & Mather began to
use its foundation in IT solutions and expertise to market itself as a leader of
conducting business on the Internet through the term “e-business.”

E-Business is the conduct of business on the Internet, not only buying and
selling, but also servicing the customers and collaborating with the business
partners. E-Business includes customer service (e-service) and intra-business
tasks. Example of E-Business: An online system that tracks the inventory and
triggers alerts at specific levels is E-Business. Inventory Management is a
business process. When it is facilitated electronically, it becomes part of E-
Business. An online induction programme for new employees automates part
or whole of its offline counterpart.

4.5.1 Meaning of E-Commerce

E-Commerce is defined as those commercial transactions carried out using
the electronic means, in which goods or services are delivered either
electronically or in their tangible or intangible form. E-commerce is the
activity of buying or selling of products on online services or over the
Internet. Electronic commerce draws on technologies such as mobile
commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI),
inventory management systems, and automated data collection systems.
Examples of E-Commerce:
a) Online shopping: Buying and selling goods on the internet is one of the
most popular examples of E-Commerce.
b) Electronic payments: When we are buying goods online, there needs to
be a mechanism to pay online too.

With the e-commerce boom, the number of people using credit/debit cards
and mobile wallets has increased exponentially. Innovative finance services
are the need of the hour. India has the world’s fast-growing internet
population, and that is an indicator of the huge potential of e-commerce. The
e-commerce segment was pegged at around $30 billion in 2019.
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Emerging
4.5.2 Traditional Commerce v/s E-Commerce Opportunities in
Traditionally the trading of merchandise and services used to happen in Business
conventional mode. For example, the client needed to go to the market, take a
mixture of items and then acquire them by paying the predefined amount. Be
that as it may, with the coming of web-based business individuals can
purchase merchandise, pay bills, or move cash in only a single click.

Both the mode have their own pros and cons. The differences between
traditional commerce and e-commerce are discussed below:

Table: 4.1: Traditional Commerce v/s E-Commerce

Basis for comparison Traditional commerce e-commerce

Meaning Traditional commerce is E-commerce means

a branch of business carrying out
which focuses on the commercial transactions
exchange of products or exchange of
and services and information
includes all those electronically on the
activities which internet.
encourage exchange in
some way or other.

Processing of Manual Automatic

transaction

Accessibility Limited time 24 × 7

Physical Inspection Goods can be inspected Goods cannot be

physically before inspected physically
purchase before purchase

Customer interaction Face-to-face Screen-to-face

Scope of business Limited to a particular Worldwide Reach

area

Information exchange No uniform platform Provides an uniform

for the exchange of platform for
information information exchange

Marketing One way marketing One-to-one marketing

Payment Cash, cheque, credit Credit card, fund

card etc. transfer, e-wallets etc.

Delivery of goods Instantly Takes time

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Foundation of
Indian Business
4.5.3 Features of E-Commerce
E-Commerce sites have given access to the large markets. Let us learn the
salient features of e-commerce.

1) Real-time Shopping Experience at Online Shopping: E-commerce

sites provide you interactive platform to expectance real time for
shopping experience. Most online retailers have offices to talk on the
web, find proposals and solution every one of your inquiries. Online
membership even enables you to hold the item and contact it (for
example Style mint, Birch box), and some even give you a chance to
talk from the beginning while you are shopping with Catalog.

2) Using Mobiles and Android Apps for Transaction: With the cell
phones dwarfing the work areas, the utilisation of these gadgets for
purchasing will increase further. Moreover, the sites must act as an
application and must be exceptionally responsive. We have numerous
sorts of applications now that help shoppers check out on their own, use
instalment wallet, store coupon codes like India square coupons
loyalties, card numbers and have GPS for the appropriate promotion of
organisations. There are additional applications that will give you a
chance to look at the costs of a similar item at various outlets.

3) Multi-channel: Purchasers nowadays anticipate an exceptionally easy

exchange. They expect that a product added to the cart will be
accessible to them. To fulfill the expectations of the customers IT
executives may put resources into business bundles, E-Commerce POS
frameworks and CRM frameworks, which will facilitate the business
operations.

4) Big Data: Also called Hadoop strategy is taking care of a great deal of
information. This has been an idea that has been capturing the interest
of the E-Commerce site proprietors, and it is set down deep roots. It is
syncing disconnected information and online information together. It
enables retailers to comprehend the concealed purchaser designs the
retailers may upgrade the IT platform to meet the growing business
requirements.

5) Customisation and Personalisation: In an unstable market, one must

be prepared for change all the time, not generally but rather for
personalisation. Customised proposals will discover more prominence
in the market.

6) Valuing Customer Engagements than Conversion Ratio: Till date

the conversion rates were given the most priority. However, with the
ascent in E-Commerce destinations, assembling new clients will be
intense. So normally retailers will rely upon clutching the current
clients. Client commitment will guarantee individuals build up for your
site.

7) Push Notifications: Pull browsing is the most recent pattern now, yet it
is not far when push per using will surpass it. Message notices, basket
notices for specific things on your homepages are for the most part
going to make up for lost time force.
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8) Social Networking Sites: As the long range interpersonal Emerging
Opportunities in
communication locales are expanding retailers must utilise this stage Business
for advertising and moving their items. Facebook, Twitter, LinkedIn
have been emerging good platforms for accruing information about the
most recent discounts and offers.

9) Mobile POS and Accessing Via Mobile: The idea of Mobile POS is
to make every single representative work and permit the client to
execute without being to the charging counter. On account of the
Android 4.2 Jellybean and iOS 6 that permit applications that let the
client do unlimited tasks with such applications.

10) Retailers Support to Omni-Channel Consumers: The mobile

applications facilitates you to analyse costs, check the surveys on the
web and offer the item with friends. The retailers will also incorporate
their different channels into one for offering support to the purchasers.

4.5.4 Benefits of E-Commerce

E-Commerce has reformed the idea of directing business by giving an
equivalent opportunity to all the business to mark their worldwide presence.
It has facilitated the clients with internet shopping and simple exchanges.
With the presentation of E-Commerce business, correspondence has turned
out to be easy and has additionally changed a great deal lately to improve
things.

It helps to reach Global: E-Commerce enabled business now have access to

people all around the world. In effect, all E-Commerce businesses have
become virtual multinational corporations. E-Commerce expands the market
place to national and international markets. Internal and web-based E-
Commerce helps to reach a more geographically dispersed customer base and
more business partners as compared to the traditional business methods.

Cost Effective: E-Commerce has ended up being exceptionally practical for

business worries as it chops down the expense of showcasing, producing,
marketing, stock administration, client care and so on. It additionally
diminishes the weight of foundation required for leading business. It can
likewise gather and deal with the data identified with the clients productively
which will help the buyer in creating an effective promotional technique.

4.5.5 Disadvantages of E-Commerce

The following are the important disadvantages of electronic commerce:

E-commerce Lacks the Personal Touch: Not all physical retailers have an
individual methodology, however, retailers do value human relationship.
Subsequently, shopping at those retail outlets is consoling and invigorating.
Tapping on "Purchase Now", and heaping up items in virtual shopping
baskets may provide glimpse of the product. The interactivity aspect may
provide feeling of personal touch to the customers.

System and data integrity: A computer virus is a program that clones itself
when an injected piece of program code is executed. It is a malicious
program. Data protection from the viruses that cause unnecessary delays and
can clean up all stored information is a must. The technical and human 73

 
Foundation of threats to web site security requires effective response for smooth operations
Indian Business
of the business.

E-Commerce Delays Goods: E-commerce sites take much longer time to get
the products into the customer's hands. Indeed, with express dispatching the
buyer gets the merchandise quickly. A special case to this standard is on
account of advanced merchandise like a digital book or a music record. For
this situation, an online business may really be quicker than acquiring
products from a physical store. Moreover, the delay in delivery of goods is a
matter of concern for the customers.

4.6 M-COMMERCE
M-commerce (mobile commerce) is the buying and selling of goods and
services through smart mobile devices. As a form of e-commerce, m-
commerce enables users to access online shopping platforms without needing
to use a desktop computer and take into consideration application based
phenomenon which in the current trend known as app. M-commerce plays a
very important function in business. It does this through many significant
applications like location-based services which allowed customers to glance
through their mobile devices in order to find services that are in close
proximity to their current location. They can also gain access to important
purchase data, reach new markets, and scale and time their messages
perfectly.

4.6.1 App Based Business Using Smartphone

Business software or a business application is any software or set of
computer programs used by business users to perform various business
functions. These business applications are used to increase productivity, to
measure productivity and to perform other business functions accurately.
This section will throw light on identifying the key players in the mobile
application value chain.

ͻ Benefit from extensive forecasts and statistical material.

ͻ Recognize the business opportunities in the mobile application market.
ͻ Predict tomorrow’s most profitable monetisation strategies.
ͻ Learn about the market opportunity for mobile network operators.
ͻ Evaluate the existing mobile app platforms.
Software particularly created for cell phones has been around for well over
10 years and before the term (application) store was promoted. The
conveyance of mobile content and applications was regularly acknowledged
via portals which were overseen by system administrators. Administrator
entryways had some achievement in moving mobile substances.

4.6.2 Wallets and Plastic Money in Business

The plastic money has emerged as an important way of performing business
transactions. A recent American Express ‘share of wallet' study among
cardholders across the six cities of Delhi, Mumbai, Kolkata, Chennai,
Bangalore and Hyderabad reveals that card usage is highest for dining and
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shopping, while it is also popular for travel-related expenses such as air Emerging
Opportunities in
tickets, hotels and car rentals. With GoI announcing on November 8, 2016, Business
India's first major ‘demonetization’, and amid the resultant cash squeeze
coming as a disruptive step to fast-forward the country into a breakaway
economy. As many as 23.3 crore unbanked people, out of 38 crore
smartphone users, are skipping the plastic money stage altogether and
embarking directly into digital transactional stage. No wonder, Nandan
Nilekani, one of India’s most famous IT czars and creator of Aaadhar Cards,
said digital transactions will escalate in the next three to six months to a rate
that would otherwise have taken three to six years.

An eWallet or a Digital Wallet like Paytm is a virtual wallet in which you can
deposit your money, and these wallets can be used to avail digital payment
services. Digital payment services refer to things like being able to pay at a
business without the need of physical currency and vice versa. These wallets
can be used to make payments and to receive payments as well. In these
wallets are regulated by RBI i.e. Reserve Bank of India and they can allow
users to keep a balance of up to Rs. 20,000 in a wallet for non - K Y C
accounts and KYC accounts the limit is higher and up to Rs. 100,000.
Examples of popular E-Wallets are Free charge, Mobikwik, Paytm etc.

An Electronic Money Processing platform gives you the opportunity to build

your own payment business without starting from scratch. A full-fledged
payment system has been made available for all kinds of payments and
transfers. Whether you operate financial services company, a retail network
or a telecom operator – E-Wallets allow businesses to harness up-to-date tech
trends.

Check Your Progress B

1) How do technology help in reducing business costs?
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2) What is E-Commerce? Give a few examples of E-Commerce.
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3) What are the disadvantages of E-Commerce?
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Foundation of 4) Which is the regulatory body of E-Wallets and Digital Wallets in India?
Indian Business
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4.7 FRANCHISING
In a franchise operation, the owner of the original business, known as the
franchisor, essentially sells the rights to use his brand to an entrepreneur
called a franchisee. In return, the franchisee agrees to follow the franchisor’s
business model and to pay the franchisor royalties.

Franchising has been emerging as in important way for business

development. A franchiser licenses its know-how, methodology, protected
innovation, utilisation of its plan of action, brand; and rights to pitch its
marked items and administrations to a franchisee. Consequently, the
franchisee pays certain charges and consents to conform to specific
commitments, regularly set out in a Franchise Agreement. For the franchiser,
utilisation of an established framework is an elective business development
technique, contrasted with extension through corporate claimed outlets or
"chain stores".

4.7.1 Benefits of Franchising

The most significant cause to think about a franchise when buying a business
is that you are buying a system. Since there is a previously recognized system
in place, there is a higher probability of accomplishment if you follow it.
These systems are designed to get better the overall efficiency and augment
sales of each franchise.
Capital: The franchisor’s capital requirements will be lesser because the
franchisees provide the capital to open each franchised channel.
Better Management: The local management of each franchised unit will be
highly motivated and very helpful. They care for the franchise units as their
own and that will frequently lead to higher sales and profit levels.
Less Employees: The number of employees which a franchisor needs to
operate a franchise network is much smaller than they would need to run a
network of company owned units.
Speed of Expansion: The franchise network can grow as fast as the
franchisor can develop its infrastructure to recruit, train and support its
franchisees.
Reduced Attachment in Day-To-Day Operations: The franchisor will not
be drawn in the day-to-day operations of each franchised outlet.
Risks and Accountability: The franchisor will not risk its capital and will
not have to sign lease agreements, employment agreements, etc.
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Increasing Brand Fairness: Levereging off the assets of franchisees helps Emerging
Opportunities in
franchisors grow their market share and brand equity more quickly and Business
effectively.
Publicity and Support: Franchisor will reach the target customer more
effectively through co-operative advertising and promotion initiatives.
Consumer Faithfulness: Franchisors use the power of franchising as a
system to build customer loyalty to catch the attention of more customers and
to keep them.
Worldwide Growth: International expansion is easier and quicker, since the
franchisee posesses the local market knowledge.

4.8 LOGISTICS AND SUPPLY CHAIN BUSINESS

As far back as history records, the merchandise that individuals needed were
not generally delivered where they needed to consume them, or these
products were not available when individuals needed to buy them.
Nourishment and different items were generally scattered and were just
accessible in bounty at specific occasions of the year. Earlier people had the
decision of delivering merchandise at their prompt area or moving the
products to a favoured site and putting away them for later use.

As logistics frameworks enhanced, utilisation and generation started to

isolate geologically. Districts would have some expertise in those items that
could be delivered generally effectively. Abundance generation could be
dispatched monetarily to other delivering regions, and required merchandise
could be either produced or bought. This trade procedure pursues the
standard of similarly preferred standpoint. This equivalent standard, when
connected to world markets, clarifies the abnormal state of global exchange
that happens today. Proficient logistics frameworks enable organisations to
exploit the fact that land, and the general population living there, are not
similarly profitable. Logistics is the very substance of exchange. It adds to a
higher financial way of life for all of us.

4.8.1 Significance of Logistics

Logistics is tied in with making value for clients and providers of the firm,
and incentive for the association's partners. The value in logistics is
essentially communicated particularly in terms of time and place. Items and
services have no value except if they are in the ownership of the clients when
(time) and where (place) they wish to expend them. For instance, concessions
at a games event have no value to buyers on the off chance that they are not
accessible at the time and place that the event is happening. Great logistics
management sees every action in the store network as adding to the way
toward including value. Value is added when clients are eager to pay more
for an item or service than the expense to put it in their grasp. To numerous
organisations all through the world, logistics has turned into an inexorably
essential value including the process for various reasons.

The term “procurement” is defined as “all those activities necessary to

acquire goods and services consistent with user requirements” The
procurement process is renamed as “supplier relationship management”. 77

 
Foundation of Practical storehouses incorporate Marketing, Research and Development,
Indian Business
Finance, Production, Purchasing and Logistics. Exercises in these procedures
live inside a utilitarian storehouse, yet a whole procedure won't be contained
inside one capacity. Each procedure is depicted at key and operational
dimensions. The vital part comprises of the foundation and key
administration of each procedure and gives an outline to usage. This is a vital
initial phase in incorporating the firm with different individuals from the
Supply chain. The operational segment is the realization of the procedure
once it has been set up.

4.9 OUTSOURCING AND OFFSHORING

Outsourcing and offshoring are two terms that every businessman is aware of
whether you outsource any function of your business or not. Most of the
time, these two terms are interchanged in conversation or even confused by
some to think they are one and the same. However, there are some
fundamental differences between the two. Outsourcing alludes to an
association contracting work out to an outsider, while offshoring alludes to
completing work in an alternate nation, more often than not to use cost points
of interest. The greatest contrast is that while outsourcing can be (and
regularly is) offshored, offshoring may not constantly include outsourcing.

4.9.1 Outsourcing
In simple terms, outsourcing refers to the act of contracting a third party
company to carry out certain functions of your business. Outsourcing can be
done for the sake of reducing operating costs as outsourcing is more cost
effective than hiring an in-house team.

Outsourcing turned into a well-known business technique back in the late 80s
and mid-90s to battle rising work costs and an inexorably worldwide
commercial centre. Basically, outsourcing is the way toward utilising outsider
specialist co-ops to deal with certain business capacities. At one time,
outsourcing was constrained to huge, global enterprises. Be that as it may,
today organisations of all sizes can take the advantages of outsourcing. Much
of the time, the advantages of outsourcing are not an enhancement procedure
they are a need. Frequently the main plausible approach to develop your
business, launch an item, or oversee activities is to appoint certain errands to
an outside merchant.

4.9.2 Offshoring
Off-shoring is the relocation of a business process from one country to
another typically an operational process, such as manufacturing, or
supporting processes, such as accounting. Typically this refers to company
business, although state governments may also employ off-shoring. Off-
shoring refers to a company getting their various services handled in a
different country to make the most of the cost advantage. Off-shoring is
usually done by finding a country where the exchange rate gives your
business a distinct monetary benefit. Companies based in western countries
like the U.S or U.K offshore their business to countries like India,
Philippines, and China etc.

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Emerging
4.9.3 Difference between Outsourcing and Offshoring Opportunities in
As discussed above, outsourcing alludes to an association contracting work Business
out to an outsider, while off-shoring alludes to completing work in an
alternate nation, for the most part, to use cost focal points. The greatest
contrast is that while outsourcing can be (and regularly is) off-shored, off-
shoring may not constantly include re-appropriating.

Table 4.2: Comparison between outsourcing and offshoring

Basis for Outsourcing Offshoring
comparison
Meaning Outsourcing is the Offshoring refers to the
assignment of business relocation of business
peripheral operations to an processes in a different
external organisation. country.
Implications Shifting operations to the Shifting activities or
third party. offices.
Objective Focus on core business Lower labour cost
activities
Function Non-employees Employees of the
performed by organisation
Location Within or outside the Outside the country.
country.

Check Your Progress C

1) What are the modern classifications of markets?
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2) Name few largest franchises of the World.
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3) What are the objectives of supply chain management?
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4) What are the advantages of off-shoring?
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Foundation of
Indian Business 4.10 LET US SUM UP
The internet has touched our lives in more ways than we care to
acknowledge. The development of internet has considerably changed the day
to day operations of a business including how they corresponded with each
other and their audience.

Internet of things is a network of devices which allows these things to

connect, interact and exchange data. It has the potential to change our world.

Technological innovation is a name given to a present pattern of

computerisation and information trade in assembling innovations. It
incorporates digital physical frameworks, the internet of things, cloud
computing and cognitive computing. Some emerging trends of business are:
1) Automation 2) Blockchain 3) Artificial Intelligence 4) Machine Learning
5) Social Shopping 6) Robotics 7) E-Tailing 8) Retail Entrepreneurship.

Businesses are affected by changes in the technological atmosphere.

Technology revolutionises and offers, risks, opportunities and threats to
businesses. Technology offers many benefits to the business by 1) Reducing
business course 2) Harmonising communication 3) Potential enlargement in
business etc.

E-Commerce refers to the conduct of business on the internet that includes

customers service and other business tasks. E-Commerce sites have given
access to the large markets. Various features or e-commerce sites are:
1) Real-time Shopping Experience at Online Shopping 2) Using Mobiles and
Android Apps for Transaction 3) Multi-channel 4) Big Data 5) Customisation
and Personalization 6) Valuing Customer Engagements than Conversion
Ratio 7) Push Notifications 8) Social Networking Sites 9) Mobile POS and
Accessing Via Mobile 10) Retailers Support to Omni-Channel Consumers.

E-wallet is the virtual wallet in which you can deposit your money and these
wallets can be used to avail digital payment services.

Franchising is an agreement between a franchisor and franchisee in which a

franchisor is the owner of the original business and he sales the right to use
the brand to an entrepreure called franchisee

Outsourcing refers to the act of contracting a third party company to carry out
certain functions for the sake of reducing operating cost where as off-shoring
is the reallocation of a business process from one country to another.

4.11 KEY WORDS

Internet of Things : The Internet of things (IoT) is the network of devices,
vehicles, and home appliances that contain electronics, software, actuators,
and connectivity which allows these things to connect, interact and exchange
data.

Industry 4.0 : It is a name given to the current trend of automation and data
exchange in manufacturing technologies.

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Blockchain: Blockchain is defined as a digitized, decentralized ledger that Emerging
Opportunities in
logs all business transactions. Business

E-Commerce: E-commerce means carrying out commercial transactions or

exchange of information electronically on the internet.

E-wallets: E-wallets is a virtual wallet in which you can deposit your money,
and these wallets can be used to avail digital payment services.

Franchising: Franchising is a form of business by which the owner

(franchisor) of a product, service or method obtains distribution through
affiliated dealers (franchisees).

Outsourcing: Outsourcing refers to the act of contracting a third party

company to carry out certain functions of your business.

4.12 TERMINAL QUESTIONS

1) What is Internet of Things (IoT)?
2) What are the emerging trends in business?
3) How technology has impacted the business in today's time, and what
are its benefits?
4) What are the differences between E-Commerce and traditional
Commerce?
5) What are the features of E-Commerce?
6) What are Digital Wallets?
7) What are logistics? State the significance of logistics.
8) What is outsourcing? How is it distinguished from off-shoring?

Note: These questions will help you to understand the unit better. Try to
write answers for them. But do not send your answers to the
university. These are for your practice.

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Foundation of
Indian Business SOME USEFUL BOOKS
Basu C. R. (2017), Business Organisation and Management, Mc Graw Hill
India.

Tulsian. P.C. (Recent Edition), Business Organisation and Management,

Pearson.

Gupta C.B. (2018), Business Organisation and Management, Sultan Chand

and Sons.

Singh B. P. and T. N. Chhabra, Business Organisation and Management,

Dhanpat Rai and Co.

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NOTES