Definition of E-Business
E-Business implies the use of web-based technology to buy and sell goods and services, create value and strengthen relationship with customers, suppliers, business partners, shareholders and employees. E-business refers to a broader definition of online e-commerce solution; it not only includes buying and selling but also servicing customers, and collaborating with business partners through electronic media.
E-business encompasses the use of technologies, processes and management practices that enhance organizational competitiveness through strategic use of electronic information. It goes beyond e-commerce by integrating ecommerce tightly with business operations to improve performance, create value and enable new relationships between Web development Company and customers.
E-business means connecting critical business systems directly to critical constituencies — customers, venders, and suppliers via Extranets, and intranets. Thus, it implies use of electronic information to boost performance and— create value by forming new relationships between and among businesses and customers. It goes beyond a simple Web site designing services on the-Internet to affect all aspects of business, from strategy and process to trading partners and ultimate consumer. It combines the resources of traditional information system with the global reach of the Web.
The term ‘E-Business was used by IBM in October, 1997 when it launched a thematic capaign built around the term. Today, major corporations are rethinking their businesses in terms of the Internet and its new culture and capabilities.
Companies are using the Web to buy parts and supplies from other companies, to collaborate on sales promotions, and to do joint research. Exploiting the convenience, availability, and world-wide reach of the Internet, many companies such as Amazon.com, the book sellers, have already discovered how to use the Internet successfully for growth and effectiveness.
Scope of E-Business
Electronic business (e-business) includes all processes that a business orgamsation conducts over a computer-mediated network. Examples of electronic business processes are :
1. Production focused processes. These include procurement, ordering, automated stock replenishment, payment processing and other electronic links with suppliers, as well as production control and processes more directly related to the production processes.
2. Customer-focused processes. These include marketing, electronic selling, processing of customer’s orders and payments, and customer management and suppotrt.
3. Internal or management-focused processes. These include automated employee services, training, information sharing, video conferencing and recruiting.
In the present competitive environment, e-business can help the business firms to attain the following objectives:
(i) Reaching new markets.
(ii) Introducing new products or services.
(iii) Building customer loyalty.
(iv) Enriching human capital.
(v) Marking the best use of existing and emerging technologies.
(vi) Achieving market leaderships and competitive advantage.
Difference between E-Commerce and E-business
The term e-business is broader and may eventually replace the term e-commerce as discussed below :
1. Meaning. E-business includes buying and selling of goods and services and also servicing customers and collaborating with business partners through electronic means. The term ‘e-commerce’ has a narrower meaning than e-business.lt refers to using the Internet to order and pay for products or services. Thus, e-commerce is a subset of e-business.
2. Range of Activities. E-commerce refers specifically to paying for goods and services, whereas e-business covers the full range of business activities that can happpn or be assisted, via e-mail or the Web. E-commerce happens when a customer buys a ticket online or buys something from an art shop and pays for it either when he receives they product or directly online at the time of ordering. It happens Chen an organization pay another organization for supplies via the web.
3. Nature. The term ‘electronic commerce’ is restrictive, as it does not fully encompass the true nature of the many types of information exchange via telecommunication devices. In contrast the term ‘electronic business’ is inclusive as ft also includes the exchange of information not directly related to the actual buying and selling of goods. Increasingly, businesses are using electronic mechanisms to distribute information and provide customer support. These are related to business activities and so are covered under e-business.