Concept of E-Business

1. Concept of E-Business

What e-business means. E-business (electronic business) is the carrying on of any business activity with the help of computers, software, the internet and other information and communication technology (ICT). It is a wide idea: it covers not only buying and selling over the internet, but the whole running of a business electronically — advertising and marketing, taking and processing orders, managing stock (inventory), keeping accounts, paying and being paid, dealing with suppliers, and serving customers after a sale. In short, e-business means using IT to perform the internal and external activities of an enterprise.

E-business and e-commerce — the difference. These two words are closely related and examiners often test the distinction. E-commerce (electronic commerce) means specifically the buying and selling of goods and services, and the payment for them, over an electronic network such as the internet — it is the trading part. E-business is the wider idea: it includes e-commerce but also all the supporting activities that are not themselves buying or selling — inventory management, online accounting, electronic communication with suppliers, customer support, recruitment, and internal office automation. A simple way to remember it: all e-commerce is e-business, but not all e-business is e-commerce.

Main features of e-business.

1. Uses ICT — it depends on computers, software, networks and the internet.
2. Not limited by time or place — an online business can operate 24 hours a day and reach customers anywhere, without a physical shop in every town.
3. Faster transactions — orders, payments and information move electronically in seconds.
4. Lower cost — savings on rent, storage, paperwork and staff for routine work.
5. Data-driven — every transaction is recorded, giving the business useful information for decisions.

Common models of e-business. E-business is classified by who deals with whom:

• B2B (Business to Business) — one business selling to or dealing with another business (for example, a manufacturer supplying a wholesaler electronically).
• B2C (Business to Consumer) — a business selling directly to individual consumers (an online retail store selling to shoppers).
• C2C (Consumer to Consumer) — one consumer selling to another, usually through an online marketplace that brings them together.
• C2B (Consumer to Business) — an individual offering goods, services or information to a business (for example, a freelancer bidding for a firm's work online).

Benefits of e-business. Wider market reach; round-the-clock availability; lower operating cost; faster service; convenience for customers; and rich transaction data for planning. Limitations to keep in balance: dependence on internet and power; the need for security against fraud and data theft; the lack of physical inspection of goods before purchase; and the need for customers and staff to be comfortable with technology. …