e-Business

If business is taken to mean the wide range of activities that make up industry, trade and commerce, then e-business may be defined as the conduct of industry, trade and commerce using computer networks. The network you are most familiar with as a student or consumer is the internet. But while the internet is a public thoroughfare, firms also use more private — and therefore more secure — networks to manage their internal functions more effectively and efficiently.

e-Business versus e-Commerce

The terms e-business and e-commerce are often used interchangeably, but a more precise definition distinguishes the two. Just as 'business' is a broader term than 'commerce':

• e-Commerce is the narrower term. It covers a firm's interactions with its customers and suppliers over the internet — essentially the buying and selling side.
• e-Business is the more elaborate term. It includes e-commerce plus other business functions carried on electronically, such as production, inventory management, product development, accounting and finance, and human resource management. …