E-Business
Definition of e-Business
E-Business (eBusiness), or Electronic Business, is the administration of conducting business via the Internet. This would include the buying and selling of goods and services, along with providing technical or customer support through the Internet. e-Business is a term often used in conjunction with e-commerce, but includes services in addition to the sale of goods.[1]
e-Business is an example of the business use of a Disruptive Technology. In this case a new technology, the internet, fundamentally changed the way we conduct business and live as a society.
The act of converting a business from brick and mortar to online model is called Digital Transformation (DX) - this involves the conversion of current business processes into web enabled processes and a fundamental rethinking of the business model itself.
Although the terms e-commerce and e-business are often used interchangeably, there are differences. E-commerce is the buying and selling of goods and services on the Internet or other computer network. Any brick and mortar store can become an e-commerce business by adding a virtual storefront with an online catalog. In most cases, e-business refers exclusively to Internet businesses, but it may also refer to any business that uses Internet technology to improve productivity and profitability. Business transactions that involve the exchange of money are covered by the term e-commerce. E-business includes all aspects of running a business that sells goods and services, including marketing, earning and retaining customers, procurement, developing business partners and customer education. In order to be successful, e-commerce and e-businesses must have quality storefronts that are simple to navigate and peruse, with accurate and thorough catalog information. E-business became an extension of e-commerce to encompass all aspects of businesses that function online. E-business involves e-commerce, but e-commerce does not cover all aspects of e-business.[2]
e-Business is the term used to describe the information systems and applications that support and drive business processes, most often using web technologies. e-Business allows companies to link their internal and external processes more efficiently and effectively, and work more closely with suppliers and partners to better satisfy the needs and expectations of their customers, leading to improvements in overall business performance. While a website is one of the most common implementations, e-Business is much more than just a web presence. There are a vast array of internet technologies all designed to help businesses work smarter not harder. Think about collaboration tools, mobile and wireless technology, Customer Relationship Management and social media to name a few.[3]
e-Business can be thought of in terms of the key functions or processes in "business" namely,
- Buy: Procurement of raw materials
- Make: Manufacturing the product offering
- Sell: Marketing and sales
- Service: After sales support
Inbound and outbound logistics can be placed separately or within one of the above functions. This simple model of business can help understand e-Business as well. e-Business enables whole of parts of these functions over the internet:
- e-Buy is procurement of raw materials enabled by the internet
- e-Make is manufacturing the product offering enabled by the internet
- e-Sell is marketing and sales enabled by the internet
- e-Service is after sales support enabled by the internet
e-business vs e-Commerce
e-Commerce is the sales of goods and services over the internet. In the model above, it is "e-Sell" and different from e-Business which encompasses the three other functions being performed with the help of the internet.
e-business Examples
Brick and mortal businesses are using the internet to buy, make, sell, and service their products and services: - An insurance company sells its products online when a user can fill out a form to purchase insurance. - A car company allows its customers to configure and purchase its cars online
Pure play e-Business companies conduct all four functions online: - e-Bay is an online auctioneer - Amazon, which started as an online bookstore, conducts all business over the internet without any physical presence other than its offices for staff and warehouses.
e-Business Models
e-Business models refer to the structure of the business that is using the internet for part of whole of its operations. For example, if a business sells commercial products to other business entities, it is called a B2B Business
Please refer to the page on e-Business Models for further information.
References
See Also
Further Reading
- The difference between e-business and e-commerce Computer World
- Ebusiness and its Advantages Volusion
- What is ebusiness? Ebusiness and intranets, extranets, Internet DigitSmith
- From Bricks to Clicks: The Four Stages of E-volution Strategy+Business