LVMH MAKES SCOTCH PRICES SKYROCKET

LVMH UPS GLENMORANGIE SINGLE MALT SCOTCH WHISKY PRICES

The LASANTA

Glenmorangie Distillery is located in the Northern Highlands Scotch distillery section of Scotland, UK, 65 km north of Inverness, overlooking the lonesome waters of Dornoch Firth. It claims credit for the popularisation of the idea of 'finished malt whisky' - although it is not certain if they were also the first to apply the technique of double maturation in another cask. 

According to the Glenmorangie Company, the earliest record of the production of alcohol at Morangie Farm is dated 1703. In the 1730s a brewery was built on the site that shared the farm's water source, the Tarlogie Spring. Distillery manager William Matheson acquired the farm in 1843 and converted the Morangie brewery to a distillery, equipped with two second hand gin stills. He later renamed the distillery Glenmorangie. The distillery was purchased by its main customer, the Leith firm Macdonald and Muir, in 1918. The Macdonald family would retain control of the company for almost 90 years, up to 2004. It also owned the Ardbeg distillery in Islay.  

The number of stills was expanded from two to four in 1980, which was also the time they stopped malting their own barley. In 1990 the stills were expanded again to a total of eight. Those eight stills enable Glenmorangie to produce four million litres of pure alcohol each year, confirming them as a worldwide brand. In 2009, Glenmorangie distillery added two pairs of brand new stills to the eight already in use, increasing production capacity from 4,000,000 litres of alcohol per year to 6,000,000 litres of alcohol per year. Together with Bunnahabhain and Isle of Jura, Glenmorangie has the tallest pot stills in the industry at 26 ft 3 in (8.00 m) tall, with 16 feet 10.25 inches (5.1372 m) necks.

Around 1995 Glenmorangie released four different ' wood finishes' - a Port Finish, a Madeira Finish, a Sherry Finish and a Sauternes (Burgundy) wine finish. Later on some more finished 'limited releases' were bottled. The bottles actually hold single-malt Scotch, but the Glenmorangie in each has been "finished" for two years in barrels that once held wine, after ageing 10 years in the traditional second-hand Bourbon barrels.

The Tall Copper Stills at Glenmorangie

   The result is called wood-finished whisky, because it picks up distinctive flavours from the barrel wood. Wood-finishing has been the hottest trend in Scotch for the last few years. Often the results are sweeter and fruitier than traditional Scotch and more appealing to people who are new to its craggy style, but connoisseurs also are attracted by wood finishes because they can show a surprising new side to a well-known brand. Glenmorangie has been the best selling single malt in Scotland almost continuously since 1983, and produces around 10 million bottles per annum, of which 6 to 6.5 million are sold in the UK.

Some of the most knowledgeable in wood finishing are distilleries such as Edradour, the smallest distillery in Scotland, and Isle of Arran. A lot of big names are doing wood finishes as well, including Glenfarclas, Bowmore, Macallan and Springbank. Springbank's 11 year “Madeira Wood”, for example, was matured entirely in ex-Madeira casks.So far, at least 33 of the 95-odd active malt distilleries in Scotland have issued one or more wood-finished whiskies.

In the 1970s, Scotch distillers concluded that finishing in sherry barrels overpowered some of the natural flavours of Scotch, so they switched almost entirely to American Bourbon barrels. That said, some distillers still felt that some desirable flavours could be had from used ex-wine seasoned wood, so a series of experiments were tried at a low scale over five years, studying the effects of different woods. Eventually, they decided that full maturation in ex-Bourbons barrels, followed by finishing the maturation in other wood for shorter periods gave the best results. The first release was a 12-year-old Glenmorangie finished in Port barrels, the Quinta Ruban.

It was undeniably tasty, but Scotch lovers cherish tradition, so there was a fierce controversy. Well known spirits writers first decried and denigrated wine-finished Scotch as either a way of covering up flaws in whisky or a cheap gimmick aimed at unsophisticated people who like sweet, fruity drinks. But in the 2004 edition of his book, spirits writer Michael Jackson acknowledged that wood finishes had become an established part of the single-malt market. Soon thereafter, the company was sold to the French drinks company Moët Hennessy Louis Vuitton for around £300 million. The prices of the Glenmorangie and Ardbeg range of Whiskies saw an immediate rise of $10.00 per bottle, followed by periodic hikes. A $49.95 Nectar D'OR now sells at $77.00 in most liquor stores.

Glenmorangie uses a number of different cask types, with all products being matured in white oak casks manufactured from trees growing in Glenmorangie's own forest in the Ozark Mountains of Missouri, USA. These new casks are left to air for two years before being leased to distillers Jack Daniel's and Heaven Hill for them to mature bourbon in for four years. Glenmorangie then uses the barrels to mature their spirit. The Original range will mature entirely in ex-bourbon casks, while the Extra Matured range of bottlings are transferred into casks that were previously used to mature other products such as wine, port or sherry for finishing. Rum casks are also used in finishing.

Glenmorangie also obtains small batches of other casks for finishing and release limited edition bottlings from these. Following acquisition by LVMH, Glenmorangie produced a rare limited edition aged in casks previously used to mature Château Margaux, the Glenmorangie 18yo 'Extremely Rare' (43%, OB, Bottled +/- 2010). These bottlings are now extremely hard to find and are priced accordingly.

Approximately 75 per cent of the whisky that is distilled at Glenmorangie is sold as a single malt. The rest is used in blends like Highland Queen.

Port Finish: Glenmorangie Quinta Ruban

Sherry Finish: Glenmorangie NAS 'Lasanta'

Madeira Finish: Glenmorangie Madeira Wood Finish, a fruity, creamy whisky with a slight orange hue.

Sauternes (Burgundy) Wine Finish: Glenmorangie Nectar d'Or

American Contribution

TO an American, this is a little disorienting. The Scots have always credited their noble spirit to peat smoke, sea air, water filtered through granite and heather and the like; in brief, to environmental factors that a French winemaker would consider terroir. We Americans have been the ones to dwell on the flavour whiskey picks up from the barrel.

American law spells out exactly what kind of barrel you have to use if you want to call your whiskey Bourbon. It has to be made of American white oak, charred on the inside, and brand-new. Once you've aged any whiskey in it, it can never again be used for Bourbon.

As a result, there are always a lot of used Bourbon barrels lying around. Scotch distilleries have long bought them up for ageing their whisky. To anybody who asked, they've explained that the Bourbon has helpfully extracted all the barrel flavours that would obscure the subtleties of Scotch.

How things have changed. These days many Scottish distillers are exploring the effects of used wine barrels, which add unfamiliar fruity notes. Some are even experimenting with new Bourbon-type barrels, which contribute the familiar vanilla and caramel flavours of Bourbon.

Wood finishes are also spreading from single malts to blended Scotches such as Grant's and the Famous Grouse. (The Grant's aged in ale barrels has a very attractive roundness and fullness -- too bad we can't yet get it in this country.) 

About half the distilleries making wood finishes are in the area east of Inverness known as Speyside. Since Speyside is close to wood-finish pioneer Glenmorangie and known for the delicacy of its whiskies (compared with the smoky island malts), this area is an ideal place to explore the world of wood. The Speyside most familiar to Americans is the Glenlivet, the top-selling single malt in the United States. Glenlivet is aboard for the idea of adding nuances from barrels, but strikes a classical tone, dubious about all these wine flavours.

First posted in 2009.

THE WELL KNOWN RAINA WRITERS

Vitasta Raina's Antecedents

Vitasta's father, Pramathesh (Tisha) Raina was one year behind me in School in 1956. Tisha and I joined the National Defence Academy together and have been crossing each other's path since then. Tisha's elder brother, Suresh, was my classmate in School and College. I missed Tisha's wedding-he married another friend's sister. I've seen V as a kid and look where she is today! I'm proud of her and for her parents. 

Vitasta's grandfather, Pandit Trilokinath Raina, who I called Baikash after the death of my father, was Uncle Raina to me in my childhood, right up to 1967, when I joined the NDA. Thereafter, he was 'Sir', one of our English teachers. Tisha's mother has always been my surrogate mother, more so after my mother died in 1983. Sadly, they are no more.

I am the proud possessor of an autographed Pandit Trilokinath Raina's masterpiece, "An Anthology of Modern Kashmiri Poetry", published in 1976. 

Vitasta's book,'Writer's Block' is available at Amazon for $5.34 and all family members, friends and course mates can get it from her father for just Rs.99.00. Go pick up a copy of her book. He is at pramatheshraina@hotmail.com

First written in Oct 2012.

SOCIAL MEDIA ETIQUETTE

BELIEVE IT OR NOT, SOCIAL MEDIA ETIQUETTE EXISTS

There was a time not too long ago when people didn’t share as much as they do now with the rest of the world. Many of us went through our daily lives only staying in touch with people we truly valued and forgot about the ones that came through our lives and out as fast as revolving doors. Social media completely changed all that. All of a sudden, we were thrown back into reconnecting with people we hadn’t talked to in years and started inviting a whole new batch of people into our lives – aka our WhatsApp, Meta (Facebook) and Instagram friends besides X (Twitter) and LinkedIn followers, among a raft of other such sites.

The downside in posting on Social Media platforms has been well documented. People constantly check their phones for new messages or updates. Social media is addictive and can consume time that you may not have, forcing a tightening of schedule. There is the appalling lack of privacy on most sites as social media is public by nature. It is also victim to a ripple effect as a message is reposted in a background different from the original. Who is to stop access to content posted on social media without prior notice or permission from the user who originally posted it?

One school of thought says Social Media Etiquette involves understanding and following the unwritten rules and expectations of online communication to promote positive interactions and maintain a respectful and productive online environment. Adhering to social media etiquette helps create a positive and inclusive online environment, fostering healthy and respectful interactions between individuals and communities. It promotes effective communication, reduces misunderstandings, and encourages the development of meaningful connections and relationships.

On the other hand, there is the belief that Social Media makes us more self-centred, less empathetic and rude to others. It also makes us more narcissistic than ever because we can show off our achievements and post photos from parties without facing consequences.That said, there is no need to fan or ignite flames by providing material data that can cause otherwise rational people to butt in and sow discord. You can help yourself by following certain precepts.

Here are the four things you should never discuss when using social media.

Relationships

It might be exciting and thrilling whenever you get into a new loving relationship, yet make sure to always keep the details of your love life personal. Sure, people don’t mind scrolling through your photo albums seeing pictures of you and your partner together, but the last thing they want to hear about is how much you love each other and can’t live without each other through status updates and tweets. Inevitably, there is a chance your relationship might not work out, and the last thing you want is to make a fool of yourself for being so outspoken about something that didn’t last.

Personal Struggles

Whenever you’re going through tough times, it might be tempting to tell your whole Social Media world about it, but here is a harsh truth: people don’t want to hear about your personal problems. These sites were intended to keep connected, not to dish out free group therapy sessions. Things like losing a job, going through a divorce, and filing for bankruptcy happen to a lot of people, but that doesn’t mean we should go around telling the world about our sorrows. Do your best to keep things like this off Social Media because eventually you’ll get through those tough times and wonder why they were such a big deal in the first place. You don’t want a reminder of your unhappy days to be documented for you and the whole world to see.

Political Beliefs

It astounds me how many individuals find it necessary to share their political beliefs with the rest of the world. As if it isn’t bad enough that the mainstream media can’t say enough about it, users of media sites have to chime in with their thoughts as well. Keep in mind, what you say about political candidates most likely isn’t going to change the way somebody feels about their established political beliefs, so keep it reeled in. It’s easy to get fired up about political candidates, especially when it’s this close to election time; however, by keeping your opinions to yourself, you’ll be able to stay out of some hectic social media rants.

Angry Rants

We all have bad days, but before the creation of Facebook and Twitter, those bad days were normally things we kept to ourselves. In the moment, our anger can seem completely justified, but just remember that things will eventually cool down. If you are enraged about something, try not to get on Social Media to tell the world about it. It may seem harmless at first, but the storm will eventually calm down and you might regret some things you say, especially if they are derogatory about a friend, your career, your love life, etc. Before there was ever Facebook or Twitter, we embraced the expected normalcies that came along with human interaction. Do yourself a huge favour and remember these four rules of social media etiquette whenever you next log on to your Social Media sites.

 

This is a guest post by Nadia Jones

 

DOES E-BUSINESS AUTOMATE OR INFOMATE

 WHAT IS E-BUSINESS?

Electronic Business (e-Business) is, in its simplest form, the conduct of business on the internet. The first usage of the term was by IBM, in 1997, when it launched a commercial campaign on the internet, forcing many corporations to reconsider their perspective of their extant businesses with relation to the internet within its supposedly definable boundary of capabilities. This concept can be expanded by redifining it as the conduct of online business processes on the web, internet, extranet or a combination thereof. These customer and management-focussed business processes include buying and selling goods and services, servicing customers, processing payments, managing production and supply chains, collaborating with business partners, sharing information, running automated employee services and recruiting employees. With the evolution of the internet with time to a seemingly limitless entity, e-Business is the focussed harmonisation of Information and Communication Technologies (ICT) in furtherance of an overall business aim.

E-business is similar to e-commerce but encompasses much more than online purchasing transactions. Functions and services range from the development of intranets and extranets to the provision of e-services over the internet by application service providers. Enterprises conduct e-business to buy parts and supplies from other companies, collaborate on sales promotions and conduct joint research.

Corporations are continuously rethinking and reshaping their business models influenced by advanced technologies, hybrid workforces, heightened customer expectations and, specifically, the internet's availability, reach and ever-changing capabilities. The growth of e-business in recent decades has given rise to new business requirements. Consumers expect organizations to provide self-service options to conduct transactions, personalized experiences, and speedy, secure interactions. New regulatory laws and best practices for keeping electronic data secure have been established. Companies have adopted stringent security protocols and tools, including encryption, digital certificates and multi-factor authentication, to protect against hackers, fraud and theft.

Different Types of E-Business Models

1. Business-to-consumer (B2C) model. Sellers offer products and services directly to consumers online, and the buyer purchases them via the internet.
2. Business-to-business (B2B) model. Companies use the internet to conduct transactions with one another. Unlike B2C transactions, B2B transactions usually involve multiple online transactions at each step of the supply chain.
3. Consumer-to-business (C2B) model. Consumers create their own value and demand for goods and services. Examples include reverse online auctions and airline ticket websites such as Priceline and Expedia.
4. Consumer-to-consumer (C2C) model. Consumers are buyers and sellers via 3rd-party-facilitated online marketplaces such as eBay. These models generate revenue through personal ad fees, charges for memberships and subscriptions, and transaction fees.

Examples of e-Business

• E-business encircles older companies that digitally transformed from legacy processes to data-centric operations and newer digitally oriented companies. The latter are organizations that advisory firm Gartner has defined as starting after 1995 with "operating models and capabilities [that] are based on exploiting internet-era information and digital technologies as a core competency." Since then examples of e-business organizations of different shapes and sizes have flooded the digital landscape.

• Amazon, the world's largest online retailer and marketplace, has used its e-business model to disrupt and expand into numerous well-established industries, including publishing and supermarkets.

• Uber and Ola, both of which built businesses that match drivers with people needing rides, disrupted the taxi and livery services industries. And in 2014, Uber went one step further in the USA and expanded its e-business with the launch of a food ordering and delivery platform, Uber Eats.

• Travel sites like MakeMyTrip, Yatra and TripAdvisor enable consumers to research, plan and book all or pieces of their trips based on personalized criteria, such as price, consumer ratings and location.

Advantages of e-Business

E-Business has drastically changed how enterprises, government agencies, nonprofit organizations and other institutions operate, allowing them to increase productivity, lower costs, move more quickly toward digital transformation and upgrade processes.

Electronic invoicing, automated billing and digital payment systems lower the amount of time workers devote to these tasks, many of which were handled manually just a few decades ago. That kind of time savings allows businesses to decrease department head count or shift workers onto higher-value tasks. Digital systems also streamline workflows, reducing the time between invoicing and payment and improving cash flow for the business.

Electronic communication systems, such as email, video conferencing and online collaboration platforms increase productivity by decreasing delays between inquiries and responses -- whether the communication is among employees, employees and external business partners, or employees and customers. Decision-making is faster, resulting in more agile companies that are responsive to stakeholder needs and market demands. Electronic communication has also eliminated, in some cases, employee business travel and supported more open, collaborative cultures so any employee can contribute ideas.

Digital systems that power e-Business can also extend an organization's reach beyond its brick-and-mortar walls. Cloud-based business applications enable remote and hybrid workers to perform their jobs in the office, from their home and other locations. Similarly, cloud-based apps and the internet allow business transactions 24/7 so even solo practitioners and small businesses can conduct business globally.

Advanced technologies like big data, AI, machine learning, the cloud, automation and Internet of Things (IoT) have improved the ease, speed and effectiveness of numerous e-business tasks. These tasks include archiving information, deriving data insights, recording financial transactions and personalizing interactions with customers.

E-commerce software and services have delivered new capabilities to organizations like email marketing and created new avenues to sell their goods and services, such as online stores. It has enabled the creation of entirely new business models, such as eBay's capacity for B2C and C2C sales, social networking sites like Meta (Facebook), X (Twitter), Linked-In and Shopify, which offers the infrastructure and e-commerce platform for customers to create online stores and sell their own goods.

Zuboff (1988) argued that the computer, initially designed to replace lower echelon jobs by automating them had, instead, led to an unexpected outcome: a focus on what she called ‘informating’. A close look reveals that the technology implementation that Zuboff describes can be seen from two angles. One aspect concerns automation of arduous manual and repetitive tasks. The other facet, more central to Zuboff, involves informating or re-designing work well beyond automated tasks so that any new data generated by computerisation could be developed by workers into a strategic company asset. Informating calls for collecting, organising, analysing and creating a database, the domain of IT specialists, who then administer it. This information flow is, de facto, edifying to those with access to the computers, thereby precluding the planned laying off of staff. I agree with Zuboff, but find that I have to go beyond her. I believe that computerisation works at two levels:

The first and most important level is its output of information. It is this information that guides decision making authorities to an optimal business strategy, i.e. minimal cost and maximum efficiency. Information is of many types and impossibly diverse to pen. From an organisations’s point of view, the field could be narrowed, depending upon its raison d’être, to departmental productivity rates; cross-channel interaction, particularly in supply chains; delivery schedules/bottlenecks; market demand and performance, etc.

The second level is a mix of information and linked automation, fed downwards through a network, an indication that the management believes in informating.  Workers are granted access to role-specific data and overall section-wise performance, creativity is encouraged.  Workers now have the opportunity to explore different patterns in the information, perhaps bringing ideas to the company that will increase productivity, decrease operating costs, create new products, or serve customers better. Feedback is welcome. Workplace ethos also changes to an unshackled approach.

Next, consider the case of the world's second largest enterprise software company, Oracle. The first sentence that stares at you in big bold letters when you download their brochure at oracle.com is their USP: INFORMATION GENERATES VALUE, the Cornerstone for Sustainable Compliance and Growth. Today’s branch heads in an organisation are constantly carrying out a balancing act. On the one hand, they must comply with increasingly stringent regulations, which require a consistent flow of information.  On the other, they must help guide the enterprise to a profitable future, investing in new opportunities and equipment while hedging risks to maximise Returns on Investment (ROI) and economies of scale. What is of great help here is that the information is fully transparent and the data presented is exactly the same to all heads. They are on a level playing field as a cohesive unit if called upon to make either objective or selective judgments.

BUSINESS PROCESS AUTOMATION

Boeing engineers also use ‘informating’, which they describe as a collaborative, distributed and multimodal system. Their perspective is slightly different, as should be the case in two vastly differing industries. Boeing believes informating strategies emerge as industries move beyond an emphasis on productive efficiency, where ‘automating’ strategies tend to be at the forefront− like the production of Intel chips− to an emphasis on innovation and competitive advantage in which interpretation and manipulation of information to suit the organisation’s aims can be as important as the production of material goods.

Automating technologies seek to extract productive value (skill, technique, strength) from human bodies and invest them in machines, making human labour superfluous. Informating technologies− for example electronic mail and bulletin boards, telecom networks, etc. also extract or externalise workers' activity (e.g. planning and discussion,) but they do not seek to replace workers; they are meant to augment or enhance a worker's performance.

There is an inexorable but welcome concomitant to informating: A change in workplace ethos. Informating addresses the changing roles among managers and workers that occur with the influx of information technologies. In the informated work milieu, quite different from an industrial area of operations – a trio of specific operating conditions needs to be met.

1.   Managers must ‘release’ workers to explore and interpret patterns in the central database's content. In many cases, this means that managers must loosen their grip on authority to give way to a more decentralised work environment. Workers should be encouraged to look for underpinning patterns that contribute to innovation and new directions and rewarded for their discovery.

2.   Workers need access to participate. This mandates that systems' computer expertise be decentralised and distributed throughout the organisation so that workers have more direct, ongoing access to key, raw data, i.e. resources.

3.   The management must make a conscious effort to develop and to train workers so they can determine context within the informational stockpile and participate in the planning process; this is especially valid at the brainstorming level.

The flexibility of Web tools for managing multimedia content, the relatively little staff required to design and maintain a site, and the technology's inherent accessibility by most users are the primary reasons behind the growing popularity of Web-based tools for informating projects. Interestingly, research has shown that information professionals - whether they are working in a corporate library or in another department as Webmasters - play a key role in designing and/or and maintaining a company's central information resource and in carrying out the informating process. Typically, the core database is the history of the organisation since inception. Even more interesting is a report that by placing most of their core database as ‘current awareness’ on their Web site, an organisation added a strategic edge by off-loading a lot of repetitious tasks/responses and directly saved millions of dollars annually in support calls.

Judging from the evaluation and analysis presented supra, there is no need to fear that e-business will morph to its retrogressive past by going back to the earlier wave of automation,  with systems that either replace people or reduce the amount of skill that people need to do with systems that either replace people or reduce the amount of skill that people need to do their jobs.

Zorayda Ruth Andam, in her Report on the e-ASEAN Task Force UNDP-APDIP (2003), writes, “In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. The integration of information and communications technology (ICT) in business has revolutionised relationships within organisations and those between and among organisations and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customisation, besides reducing costs” (http://www.apdip.net/publications/iespprimers/eprimer-ecom.pdf p.5).

Andam first defines e-commerce as a wide range of online business activities for products and services. It also pertains to any form of business transaction in which the parties interact electronically rather than by physical exchanges or direct physical contact. (p.6)

E-commerce is usually associated with buying and selling over the Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. Though used often, this definition is not exhaustive enough to integrate latest developments in this new and revolutionary business phenomenon. A more complete definition is: E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organisations, and between organisations and individuals.

Interestingly, e-business also deals with commercial transactions over the net. It has the same parameters, viz., Buyer, Seller or Provider, Internet contact and contract, Product and Sale. On the topic of whether the Internet economy is synonymous with e-commerce and e-business, she writes that the Internet economy is a broader concept than e-commerce and  e-business. It includes e-commerce and e-business.

Andam defines e-business as: 'The transformation of an organization’s processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy.' Surely, this is just a matter of semantics, a play of words. What then is the difference between e-commerce and e-business?

Andam explains that internet economy pertains to all economic activities using electronic networks as a medium for commerce or those activities involved in both building the networks linked to the Internet and the purchase of application services such as the provision of enabling hardware and software and network equipment for Web-based/online retail and shopping malls (or 'e-malls'). It is made up of three major segments: physical (ICT) infrastructure, business infrastructure, and commerce. The CREC (Center for Research and Electronic Commerce) at the University of Texas has developed a conceptual framework for how the Internet economy works. The framework shows four layers of the Internet economy-the three mentioned above and a fourth called intermediaries. 

Let’s look at the components of the four layers.

Layer 1: Internet Infrastructure: Companies that provide the enabling hardware, software, and networking equipment for Internet and for the World Wide Web.

Layer 2: Internet Applications Infrastructure: Companies that make software products that facilitate Web transactions; companies that provide Web development design and consulting services.   

Layer 3: Internet Intermediaries: Companies that link e- commerce buyers   and sellers;companies that provide Web content; companies that provide marketplaces in which e-commerce transactions can occur.

Layer 4: Internet Commerce Companies that sell products or services directly to consumers or businesses. There is no mention of e-businesses here! Does Andam imply e-commerce has the same factors or components as e-business? Or that they are the same in different guises? No, we need to go back to basics here. I’ll give you a hint: Read page 7 of Andam’s PDF carefully.

If you want a slightly clearer understanding of the two, just remember that e-commerce is a subset of e-business. “E-business goes far beyond e-commerce or buying and selling over the Internet, and deep into the processes and cultures of an enterprise. It is the powerful business environment that is created when you connect critical business systems directly to customers, employees, vendors, and business partners, using Intranets, Extranets, e-commerce technologies, collaborative applications, and the Web.” Read about it online at: (http://www.ebusinessprogrammers.com/ebusiness/ecommerce_ and_ebusiness.asp). I don’t think you will have doubts anymore.

Globalization along with the boom of the internet era has led to the exponential growth of the eCommerce sector in the past two decades. The growth of the eCommerce sector has in turn become a catalyst for the growth of the economy as a whole. The impact that the internet has on the industry structure, as well as the competitive forces in the market, are as explained below:

• There is an increased rivalry among the existing competitors. As there is no geographical limitation for a virtual marketplace, the competitors can be from anywhere across the globe. This has led to a considerable increase in the number of competitors when it comes to eCommerce.

• The bargaining power of buyers has increased. There are quite a lot of products available in the market for a wide range of prices. This is because of a huge reduction in the switching cost and the powerful channels existing in the chain have also been removed.

• The bargaining power of the suppliers has also increased. Suppliers now do not have to depend on the wholesalers or manufacturers to get a deal to supply the products or raw materials. The internet has made it possible for the suppliers to come closer to the customers and the procurement process has also become easier.

• The barriers to entry have been drastically decreased. Any company or manufacturer willing to sell their product can do it so easier with the help of the internet. There is no significant barrier to entry present in the current market structure.

• Threats to substitutes have increased considerably. As discussed before, there are a lot of sellers available on the internet who offer the same product or close-enough substitutes. Because of this, customers switch from one company to another without giving it much thought.

• Disintermediation: eCommerce has eliminated traditional intermediaries in the supply chain, such as wholesalers and retailers. This has led to a reduction in cost and increased efficiency in the production and delivery of goods and services.

• Disruption of Traditional Business Models: The Internet has disrupted many traditional business models. Many businesses that ignored the digital revolution have faced severe challenges in meeting changing customer needs and adapting to new challenges.

E-commerce and e-Business are similar but not synonymous. E-commerce narrowly refers to buying and selling products online, whereas e-business defines a wider range of business processes, including supply chain management, electronic order processing and customer relationship management, designed to help companies operate more effectively and efficiently. E-commerce therefore should be considered a subset of e-business.

E-commerce describes any part of the business processes associated with online ordering and purchasing. An e-commerce transaction, for example, would be a customer ordering online and picking up the product at the brick-and-mortar store. By contrast, e-business processes can be handled in-house through a company's internal network or outsourced to providers that specialize in specific parts of the transaction.

IT business analysts can interpret working data, analyse key metrics, gauge the implications of changes in the supply chain environment and share these insights with senior management and other employees. They can also develop new processes based on the needs of relevant stakeholders.

Information is built on the automation process: today, to automate also means to ‘informate’. The automatic collection of data enables the recording of many more details. So automating the front end of a business provides an opportunity in the back end of the business to make better decisions with the information gathered.