DEPARTMENT OF MECHANICAL ENGINEERING

COMPANY PERFORMING BOTH e-BUSINESS AND RETAILING WITHIN A COUNTRY

SUPPLY CHAIN INFORMATION SYSTEMS

SUBMITTED BY, C.MAXWELL REJIL-1064008

CONTENTS

1. INTRODUCTION 2. WHAT IS e-BUSINESS? 3. TYPES OF e-BUSINESS: i. ii. iii. iv. Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to- Consumer (C2C) Peer-to-Peer (or) Mobile, or m-Commerce

4. THE ROLE OF e-BUSINESS IN A SUPPLY CHAIN 5. CASE EXAMPLE TANISHQ; a. COMPANY OVERVIEW b. HOW TANISHQ CAME INTO EXISTENCE? c. RETAILING DONE BY TANISHQ: d. e-BUSINESS BY TANISHQ 6. CONCLUSION 7. REFERENCE

1. INTRODUCTION The rise of the Internet, and attendant information technologies and their application to business, has engendered a great deal of hype. Commentators have, among other things, heralded the arrival of a new economy and foretold the total transformation of the way people conduct business through online shopping. It has also completely altered in the methods used in the demand and supply chain process. e-Business has focused on new information products and networks. e- Business has emphasized the cost saving significance of the Internet and the attendant technologies when doing business, this affects the costs of transactions, internal management, and marketing of products. Reactions to the opportunities and challenges of the Internet have embraced every detail of the business environment. e-business will require existing businesses to migrate from place to space. Not all parts of the business will migrate some will stay behind, continuing to make profits in the Old World and funding the New World initiatives. This migration includes making challenging leadership decisions about which e-business models will succeed and how they will integrate with current channels to the customer. Many of the assets (e.g., brand, cash, relationships, market share) of successful place-based businesses will serve equally well in space, but some liabilities are painfully apparent.

2. WHAT IS e-BUSINESS? Defining e-business is like searching the Internet. Electronic business commonly referred to as "eBusiness" or "e-business", or an internet business, may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses. Laudon and Traver have defined e-Business as the digital enablement of transactions and processes within a firm, involving information systems under the control of the firm, which doesnt include the companys revenue. For example, a companys inventory management system and warehousing do not affect its revenue directly, such as its sales strategies and models. It comes under the domain of e-Business. However working Definition of e-business is: Marketing, buying, selling, delivering, servicing, and paying for products, services, and information across (nonproprietary) networks linking an enterprise and its prospects, customers, agents, suppliers, competitors, allies, and complementors. The essence of definition is the conduct of business and business processes over computer networks based on nonproprietary standards.

3. TYPES OF e-BUSINESS There are several types of business methods in todays ebusiness scopes, such as: Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to- Consumer (C2C) Peer-to-Peer (or) Mobile, or m-Commerce BUSINESS TO CONSUMER: The B2C model can be easily seen from many web sites because it sells the products, information and service to consumers and gains the revenue. The B2C model involves a business selling directly to consumers via a web site. This direct selling is the main reason that companies create these web sites. Also from these web sites revenue models, online businesses can be sorted into five different categories such as advertising revenue model, transaction fee revenue model, subscription revenue model, sales revenue model and affiliate revenue model BUSINESS TO BUSINESS: Before the Internet, business-to business transactions were referred to simply as trade or the procurement process. The term total inter-firm trade refers to the total flow of value among firms. Today we

use the term B2B Commerce to describe all types of computer-enabled inter-firm trade such as the use of the Internet and other networking technologies to exchange value across organizational boundaries CONSUMER TO CONSUMER C2C commerce helps consumers find and sell goods to each other as an online market provider. Sellers can post the goods that they want to sell in web page and the website charges sellers a percentage on the prices of goods sold. As an online marketplace provider the website does not need to take too much control of these goods on its web pages and allows users to communicate to each other. Most of these types of online marketplace providers dont provide any payment system for their users because if the company built a high security payment system this could be very expensive. Users need to make a payment by sending a money order or personal check, or through other payment systems from third parties. PEER TO PEER: P2P business provides its users the software to install in the users pc and allows the P2P provider to use the pc along with the company pc as a super computer. Some of P2P software could work together for science research while the users are not using their computers and users will have free access to use the websites resource online. Using another type of P2P business, users can search whatever kind of entertainment resource they are interested in through the P2P

softwares search engine and download music, pictures, movies, and documents from other peoples computers that also have the same P2P software installed. Mobile commerce refers to the use of small mobile devices to send and receive information. This includes devices such as cell phones, pagers, PDAs, and game players. This is closely linked to P2P commerce, as P2P is the major method by which such devices send and receive information.

4. THE ROLE OF e-BUSINESS IN A SUPPLY CHAIN E-business involves the execution of business transactions over the Internet. Companies conducting e-business perform some or all of the following activities over the Internet across the supply chain: Providing product and other information Negotiating prices and contracts Placing and receiving orders Tracking orders Filling and delivering orders Paying and receiving payment. Companies have used the Internet in a variety of ways to enhance supply chain performance.

5. CASE EXAMPLE-TANISHQ COMPANY OVERVIEW: Tanishq is a prominent jewellery brand of India. It pioneered the concept of branded jewellery and ornaments in India. It is a division of Titan Industries Limited, a company promoted by the Tata Group, one of India's largest conglomerates. The name Tanishq has been formed by combining "Ta" (the first two letters of Tata) and "Nishk or Nishkh" (meaning gold coin or necklace in Sanskrit). HOW TANISHQ CAME INTO EXISTENCE? The Tanishq saga began in the early 1990s, primarily fuelled by the fabled Tata entrepreneurial spirit and partly forced by circumstance. The splendid Titan watches success story was already up and running, and happened to need more foreign exchange to purchase the imported components and machines required to keep up with the burgeoning watch production. But with India going through a foreign exchange crisis, there was no help coming in, forcing Titan to search for a business that would earn them the required foreign currency. It was launched in 1994 as a range of jewellery and jewellery watches meant for the European & American markets. But things began to change globally around this time, and the West entered a protracted period of slow economic growth followed by recession. Supplying jewellery to the Americans & Europeans suddenly no longer seemed an attractive proposition.

Initially, the criticism for Titans foray into jewellery was loud and often bitter. Eventually, however, the critics were silenced. Tanishq, today, is perhaps the only major Tata brand with a strong appeal for women. Very importantly, Tanishq has brought to the market a whole new standard of business ethics and product reliability, in the process bringing about a transformation in the manner in which jewellery is bought and sold in India. RETAILING DONE BY TANISHQ: Tanishq has an exquisite range

of gold, gems and diamonds jewellery. It is Indias largest and fastest growing jewellery brand in India. Tanishq started in 1995 and challenged the established family jeweler system prevalent in India. Tanishq has set up production and sourcing bases with thorough research of the jewellery crafts of India. The Tanishq factory located at Hosur, Tamil Nadu (India) spreads over 135,000 sq ft (12,500 m2) and complies with all labor and environmental standards. Tanishq spread awareness to the public about alleged impurity in Gold jewellery across India. Tanishq introduced innovations like Karat meter, the only non destructive means to check the purity of gold and machine made jewellery. Tanishq Brand of Jewellery is not only a successful jewellery company but has also made the jewellery market in India more

organized than it ever was. There are a total of 84 stores in 61 Indian cities at present. Apart from buying jewellery, customers can also exchange them and avail from special discount offers. It possible to choose from exclusive jewellery like diamond studded gold jewellery with lots of innovative designs. Tanishq Jewelry Brands gives customers a wide range of jewellery to choose from, necklaces, bracelets, rings, earrings when you step into a Tanishq showroom in India. They can choose from contemporary designs, which highlight the modern thoughts and desires. The traditional jewellery focusing on the various aspects of the Indian history are also popular with the customers. Platinum jewellery and silverware designed by trained people are also a part of Tanishq Jewellery Brand. By the encouraging response from customers end to its branded jewellery over a period of time, Tanishq, an arm of Titan Industries, is seriously looking at destination stores such as Lifestyle, Pantaloons, Globus, Big Bazaar and other leading chain stores in India for boutiques. During the launch of its first-ever shop-n-shop boutique store at retail Major Shoppers Stop, Tanishq head (retail operations & sales) Govind Raj said: We feel destination stores like Shoppers Stop will provide huge opportunity for Tanishq where public convergence is huge in numbers every-day. We have systematically analyzed this concept and decided to plunge into this new concept

With retailing becoming the order-of-the-day given the public interest, convenience and the cost of infrastructure attached to it, Tanishq sees this new concept generating a positive response. Tanishq is focusing on the franchise route and is about to open 10 more stores across the country in the next two years to take it to a total of 75. Over 70 per cent of our sales come from franchises. With the opening up of new franchise outlets and destination store boutiques, Tanishq hopes to achieve Rs. 800 crore turnovers in the next three years against the current Rs. 450 crore. Tanishq has also earmarked an ad budget of Rs. 6 crore to showcase new models and new concept stores during this festive season.

Fig: The recent, 22000 sq.,ft showroom at Usman Road, Chennai.

e-BUSINESS BY TANISHQ Tanishq has entered into e-business recently with the advancement of the Technology.

Fig: Tanishq online web page

When a user is new to online shopping the website is designed in a manner that all can easily access to it by the instructions and procedures.

Fig: Image showing how new user can shop online.

TANISHQ CATALOG IN WEB:

Fig: Image showing online catalogue.

Tanishq also provides option for comparing its products in the website. This is shown in the next image:

Fig: Comparison of products ONLINE SHOPPING IN TANISHQ: To shop online in Tanishq first the customer must possess a credit card. Having a credit card customer login to the website and initially it will ask details for registration for a new user. Having our own login and password Tanishq provides way for online shopping. Customer can view the catalog of the products based on the occasion, the price range and the metal type we are looking for. Next is to move the products to our shopping bag and options are provided to compare the products online and after selecting the suitable design for the customers need now the

billing Process starts. It will ask for the address of delivery and the destination details this makes the system more reliable. Finally the payment of bill is done by the card customer possess.

SERVICE BEING RENDERED: When the customer is just viewing and going offline without a purchase the customer care being run by Tanishq will call us for assistance (Sir actually this happened when I was just viewing the way how shopping is being done there. I got repeated 2 calls the very next day, when I am unable to attend they again gave me a ring that evening asking can we assist you and what difficulties you had in shopping and such customer relation related questions). Thus the company is trying its best to retain its customers.

CONCLUSION: Tanishq stands out as a brand that abides by values of trustworthiness, credibility and respect. By introducing revolutionary, innovative designs in a market that worships tradition, the brand created its own tradition of retail success. Yet Tanishq is more than just a jewellery retailer. It stands for reassurance of quality and ethics. The fact that it belongs to the Tata family assures the customer that with Tanishq, all that glitters is certainly pure gold. Thus e-business will become a success story based on the way the relation with customer is maintained.

REFERENCE: 1. http://www.tanishq.co.in/content/how-buy-diamond-and-goldjewellery-online-online-shopping-guide 2. http://www.tanishq.co.in/online-diamond-gold-jewellery-shop 3. PLACE TO SPACE Migrating to eBusiness Models, Peter Weill and Michael R. Vitale 4. e-BUSINESS AND THE SUPPLY CHAIN MANAGEMENT by Jorge R. Len-Pea, Executive Director Partner, Secured Assets Yield Corporation Limited 5. WHICH E-BUSINESS IS RIGHT FOR YOUR SUPPLY CHAIN? By Sunil Chopra and Jan A. Van Mieghem.