Emerging Modes of Business: Types, Scope & Benefits

The boundaries of commerce are being redefined by the new digital and emerging modes of business. These are not just trends – they are the future. The emerging modes of business are transforming industries and creating extraordinary opportunities for entrepreneurs worldwide. From virtual storefronts to distributed networks, the dynamic world of emerging modes of business is reforming the landscape of commerce. Let us delve a bit more and discover the aspects of emerging modes of business in this blog.

What are the types of emerging modes of business?

Our way of business today has undergone a big change so, we are being introduced to some emerging modes of business that are different and involve a lot of digitisations for maximum reach and without any physical barrier. To discuss further, we shall first find out about e-business and then discuss the types of emerging modes of business.

What is E-Business?

Electronic Business is a business that is conducted online and includes buying and selling goods and services. Through this e-business model, customers are given services, the payments are processed, the production control is managed and all of these are done entirely over the internet, along with the collaboration of the business partners. A range of functions is included in the E-business mode, which includes the development of intranets and extranets. In recent times, e-business has grown in progression and has given rise to new requirements for this new business.

E-Commerce: It is the firm’s interactions with its customers and suppliers over the internet. E-Commerce is a part of E-Business, E-Business is a broader term than E-Commerce.

What are the scopes of E-Business?

The scope of E-Business is quite huge. Almost all the business & management functions can be carried out over computer networks. The scope of E-business can be further viewed:

1. B2B Commerce

B2B means Business to Business. In this, the parties involved in the E-Commerce transactions are business firms. The integration of the internet into business operations has connected computers to manage various tasks such as placing orders, tracking production, coordinating delivery of components, and handling payments between businesses. With this seamless digital network, the e-commerce business increased efficiency. There are no delays and improved communication across the supply chain.

Example - IndiaMART: An Indian B2B e-commerce platform that connects manufacturers, suppliers, and exporters with businesses in need of products or services. It covers diverse industries such as electronics, textiles, and machinery.

2. B2C Commerce

B2C means Business Commerce transactions that have business firms at one end and customers on the other end. It covers a lot of activities like marketing, promotion, and delivery of products. In this form of e-commerce, the business and customers are directly involved.

Example - Flipkart: An Indian e-commerce giant, Flipkart caters to millions of consumers with products across various categories, including electronics, fashion, and home essentials.

3. Intra-B Commerce

This emerging mode of business involves the parties engaged in electronic transactions from within the organisation. E-business is used in a much wider sense that includes the use of an intranet for managing instructions and dealing with various departments and functions in an organisation. The use of computers facilitates the firm to go in for a flexible manufacturing marketing department to interact seamlessly with the production department or any other department for effective management.

Example Tata Steel's internal procurement system - Tata Steel, one of the largest steel manufacturing companies in India, has implemented an intranet-based e-commerce system that permits various departments within the company to manage procurement and inventory efficiently.

Through this system, different units of Tata Steel can order raw materials, parts, and services from their internal suppliers or warehouses. This process ensures that all the transactions, approvals, and inventory management are handled within the company's intranet, rationalising operations, and reducing costs. The system is designed to facilitate quick decision-making and efficient resource management across its vast network of plants and offices.

4. C2C Commerce

Consumer-to-consumer business is meant by the term. It originates from the consumer and the ultimate destination is also consumers. When there is no established market mechanism for a product, the vast space of the internet allows people to globally search for potential buyers on their own. Also, E-Commerce technology provides market system security to such transactions.

Example - OLX India. OLX is an online marketplace where an individual can buy, sell, or trade goods and services directly with each other. This is particularly popular for second-hand goods, including electronics, furniture, vehicles, and more.

Let us see what are the benefits of E-Business:

1. Ease of Formation and Lower Investment Requirement: E-Business is relatively easy to start, it does not require doesn’t big investment on the technical requirement for setting up an industry.
2. Convenience: The Internet offers the ease of time and place. You can use the internet from anywhere and at any time. So, E-Business is enabled and enhanced by electronics and offers the advantage of accessing anything, anytime and anywhere. 
3. Speed: Much of the buying and selling through the internet includes the exchange of information that is allowed at the click of a mouse. The time taken to complete a cycle from the origin of demand to its fulfilment is substantially reduced due to the transformation of the business processes from being sequential to becoming parallel or simultaneous.
4. Global Reach: The Internet is without boundaries. It allows the seller access to the global market and it also affords the buyer the freedom to choose products from all over the world.
5. Movement Towards Paperless Society: Dependence on paperwork has been considerably reduced with the increase in the use of the Internet. Maintaining records, getting permissions, approvals, licences, etc. all are done with computers and electronic filing which helps reduce the use of paper.

What businesses are getting impacted with the emerging modes of business?

Emerging modes of business are significantly influencing various other industries with their technological advancements and shifts in consumer behaviour.

E-commerce and Retail

• Transformation of Shopping Experiences: e-commerce platforms like Amazon, Flipkart, and Myntra have transformed how consumers shop. These platforms offer convenience, a wider range of products, and personalised shopping experiences through data analytics.
• Omnichannel Retailing: Businesses are accepting omnichannel strategies, integrating online and offline experiences to provide unified customer service. For example, companies like Reliance Retail are combining their physical stores with digital platforms, allowing consumers to shop online and pick up in-store.

Manufacturing and Supply Chain

• Automation and IoT Integration: The manufacturing industry is adopting automation and IoT (Internet of Things) technologies. Smart factories and automated supply chains are becoming the standard, improving efficiency, and reducing costs. Companies like Tata Steel use intranet-based systems to streamline procurement and inventory management internally.
• 3D Printing: 3D printing technology is revolutionising manufacturing by allowing companies to produce prototypes and end products faster and at a lower cost. This technology is particularly influential in the automotive, aerospace, and healthcare industries.

Financial Services

• Fintech Revolution: The financial industry is significantly changing due to fintech innovations. New-age companies like Paytm and Razorpay are providing digital payment solutions, lending platforms, and investment services.
• Blockchain : Blockchain technology is being used to improve transparency and security in financial transactions.

Healthcare

• Telemedicine and Online Consultations: The healthcare industry is experiencing a shift towards digital platforms for consultations and diagnostics. Apps like Practo and online pharmacy platforms are making healthcare services more accessible, especially in remote areas.
• Wearable Technology: Wearable devices and health apps are enabling real-time monitoring of patient's health, leading to more personalised and preventive care. Companies like GOQii in India are leading the charge in integrating health data with wearable technology.

Education

• E-learning Platforms: The education sector has seen a growth in online learning platforms like BYJU’s and Unacademy. These new platforms offer flexible learning opportunities through virtual classrooms, catering to an inclusive range of students from different geographical locations.
• AI and Adaptive Learning: Artificial Intelligence is being used rapidly to create adaptive learning environments that cater to individual student needs, making education more personalised and effective.

Logistics and Transportation

• On-Demand Services: The logistics and transportation industry has been revolutionised by on-demand services like Uber and Ola, which provide flexible transportation solutions. Likewise, last-mile delivery services like Dunzo and Swiggy Genie are restructuring how goods are transported within cities.
• Drones and Autonomous Vehicles: Emerging technologies such as drones and autonomous vehicles are beginning to play a role in logistics, particularly in delivery services, although widespread adoption is still in progress.

These emerging modes of business are driving efficiency and innovation across industries besides challenging traditional business models, compelling companies to adapt or risk uselessness. The integration of digital technologies, data analytics, and new business practices is creating more dynamic and approachable industries capable of meeting the evolving demands of the global market.

How do the emerging modes of business lower barriers to entry and make it easier for entrepreneurs to begin their ventures and offer innovative ways to engage customers?

Here's a table that outlines the opportunities presented by emerging modes of business for entrepreneurs, to begin their ventures and also offer innovative ways of business :

Conclusion

Emerging modes of business, like e-commerce and the gig economy, are revolutionising how companies operate. Adapting to these trends is essential for staying competitive in today's fast-paced market. Businesses need to embrace these changes to secure their future growth and success.Top of Form

FAQs

Q1. What are the emerging modes of business services?

 Ans. E-Business, e-Commerce, and Outsourcing are considered the emerging modes of business services.

Q2. What are the benefits of operating in emerging markets?

Ans. Emerging markets can benefit from rapid growth and potentially high returns. Emerging markets also tend to benefit from high population growth and technology developments while having decent valuations, so you need not pay much for your investment.

Q3. What is the future of e-commerce?

Ans. The focus on sustainability and eco-friendliness is the philosophy that has gained momentum in recent years. In 2024, this trend will likely intensify in the e-commerce industry. Customers expect e-commerce platforms to offer eco-friendly options, reduce packaging waste, and embrace sustainable practices.

Q4. Why do companies enter emerging markets?

Ans. Investors seek emerging markets for the prospect of high returns because these markets often experience faster economic growth as measured by gross domestic product (GDP).