Electronic Business.docx

Electronic business (e-business) refers to the use of the Web, Internet, intranets, extranets or some combination thereof to conduct business. E-business is similar to e-commerce, but it goes beyond the simple buying and selling of products and services online. E-business includes a much wider range of businesses processes, such as supply chain management, electronic order processing and customer relationship management. E-business processes, therefore, can help companies to operate more effectively and efficiently.

Online Business or e-business is a term which can be used for any kind of business or commercial transaction that includes sharing information across the internet. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses or e business refers to business with help of internet i.e. doing business with the help of internet network.[1] The term "e-business" was coined by IBM's marketing and Internet team in 1996

The Advantages of E-Business by Kristie Lorette

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The Internet has been a door to a myriad new business opportunities. Business owners of e-businesses and their customers find advantages in Internet transactions as opposed to brick-and-mortar operations. If you’re thinking about starting an e-business or adding an online component to your existing business, discover some of the advantages an e-business offers.

Cost-Effective Marketing With an e-business, all of your marketing efforts end with one goal—to drive target traffic to your business website. With one central place to send customers—your e-business website—it allows you to use many online marketing tactics including email marketing, article marketing, social media networking and e-

newsletters. Most of these online marketing efforts are very low cost or free, so an e-business allows for highly cost-effective marketing strategies.

Flexible Business Hours E-business breaks down the time barriers that location-based businesses encounter, according to eCommerce Education. Because the Internet is available 24 hours a day, seven days a week, your business never closes. An e-business can literally be making money while you are fast asleep.

Eliminates Geographic Boundaries An e-business also allows you to broaden your reach. An online business can reach customers in the four corners of the Earth. As long as someone has an Internet connection, you may be able to reach and sell your product or service to these visitors to your business website.

Reduces Transaction Cost Running an online business reduces the cost per transaction because it takes less manpower to complete an online transaction. Once you get your website up and running, the customer places the order online, which removes the need for a salesperson. The customer payment goes through your online payment processing software or system—again eliminating the need for a store clerk. Someone has to download the order and ship it, which is probably you, but an e-business transaction has less burden of cost on the business, making each transaction more cost effective than a brick-and-mortar business.

Low Overhead Costs Running an e-business cut back or out most of the costs involved in running a physical location. Ebusinesses have less expensive phone, rent and utility bills than businesses with physical locations. An ebusiness also reduces the cost of paying employees because you do not need someone to “man” your website during business hours. Some e-businesses do not require any additional space and can be run out of your home, which you are already paying rent for or your mortgage payment. Even housing inventory may not be an issue because you may be able to establish a drop-shipping situation, where your wholesaler ships orders for you on behalf of your business.

Examples of E-Businesses by Gregory Hamel

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The Internet is a powerful tool for communication and research, but it also provides businesses with a means of connecting with consumers and generating income. Businesses that generate revenue primarily using the Internet are sometimes called e-businesses. E-businesses can vary greatly in terms of how they provide value to and earn income from consumers.

Online Retailers Online retailers are e-businesses that use the Internet as a means to advertise and sell physical merchandise of one kind or another. Examples of well-known online retailers include Amazon.com, Newegg.com and Tigerdirect.com. Online retailers allow consumers to order merchandise and have goods shipped to them. Online retailers have several advantages over traditional brick and mortar retail stores, including the ability to sell goods at any time of the day, to remain open on holidays and to sell goods without incurring the cost of renting retail store space.

Online Services Some e-businesses generate revenue by providing consumers with useful services rather than selling goods. Examples of online services include Ebay, which allows users to sell merchandise via online auctions, PayPal, which enables users to send and receive money online and Orbitz and Expedia, which assist users with making travel arrangements. Some e-businesses operate by providing content on a subscription basis; for example, Neflix offers online streaming video for a monthly fee.

Online Advertising Advertising is the primary source of revenue for many e-businesses. Website owners can sign up for services that allow them to post advertisements on their websites and earn income based on how many users view or click on advertisements. Websites that primarily deliver information and other content like

videos to users often earn income through online advertising. Examples of businesses that earn income through online advertising include Google and Yahoo.

Considerations Many businesses generate income from a variety of sources, both online and offline. For example, major retailers like Best Buy, Target and Walmart sell goods at physical locations as well as on the Internet. Similarly, many websites generate income using a variety of methods. For example, a popular blogger might generate most of his revenue based on advertisements, but he might also earn some income by selling T-shirts or other merchandise.

e-commerce is nothing but buying and selling of goods around the web. On the contrary, e-business is a little different as it is not limited to, commercial transactions, but it also provides other services. These are the two emerging modes of doing business, which are gaining importance with the passage of time. Gone are the days, when you have to go to the market to buy a single item. Nowadays you just have to place an order online, and that item will come to you within few minutes. Online shopping is getting popular, just because of its simplicity and convenience. This is possible only because of two electronic networks, namely, as e-commerce and e-business. e-commerce is concerned with the firm’s dealings with its customers, clients or suppliers. Conversely, e-business refers to undertaking industry, trade, and commerce, with the help of information technology and communication. The article presented to you explains the difference between e-commerce and ebusiness.

Content: e-commerce Vs e-business 1. 2. 3. 4.

Comparison Chart Definition Key Differences Conclusion

Comparison Chart

BASIS FOR COMPARISON

E-COMMERCE

E-BUSINESS

Meaning

Trading of merchandise, over the internet is known as E-commerce.

Running business using the internet is known as E-business.

What is it?

Subset

Superset

Is it limited to monetary transactions?

Yes

No

What they carry out?

Commercial transactions

Business transactions

Approach

Extroverted

Ambiverted

Requires

Website

Website, CRM, ERP, etc.

Which network is used?

Internet

Internet, Intranet and Extranet.

Definition of e-commerce e-commerce is an abbreviation used for electronic commerce. It is the process through which the buying, selling, dealing, ordering and paying for the goods and services are done over the internet is known as e-commerce. In this type of online commercial transaction, the seller can communicate with the buyer without having a face to face interaction. Some examples of real world application of e-commerce are online banking, online shopping, online ticket booking, social networking, etc. The basic requirement of e-commerce is a website. The marketing, advertising, selling and conducting transaction are done with the help of internet. Any monetary transaction, which is done with the help of electronic media is ecommerce. The following are the types of e-commerce: 

B2B – The process where buying and selling of goods and services between businesses is known as Business to Business. Example: Oracle, Alibaba, Qualcomm, etc.

  

B2C – The process whereby the goods are sold by the business to customer. Example: Intel, Dell etc. C2C – The commercial transaction between customer to customer. Example: OLX, Quickr etc. C2B – The commercial transaction between customer to the business.

Definition of e-business Electronic Business, shortly known as e-business, is the online presence of business. It can also be defined as the business which is done with the help of internet or electronic data interchange i.e. is known as E-business. Ecommerce is one of the important components of e-business, but it is not an essential part. e-business is not confined to buying and selling of goods only, but it includes other activities that also form part of business like providing services to the customers, communicating with employees, client or business partners can contact the company in case if they want to have a word with the company, or they have any issue regarding the services, etc. All the basic business operations are done using electronic media. There are two types of e-business, which are:  

Pure-Play: The business which is having an electronic existence only. Example: Hotels.com Brick and Click: The business model, in which the business exists both in online i.e. electronic and offline i.e. physical mode.

Key Differences Between e-commerce and e-business The points presented below are substantial so far as the difference between ecommerce and e-business is concerned: 1. Buying and Selling of goods and services through the internet is known as e-commerce. Unlike e-business, which is an electronic presence of business, by which all the business activities are conducted through the internet. 2. e-commerce is a major component of e-business. 3. e-commerce includes transactions which are related to money, but ebusiness includes monetary as well as allied activities. 4. e-commerce has an extroverted approach that covers customers, suppliers, distributors, etc. On the other hand, e-business has an ambivert approach that covers internal as well as external processes. 5. e-commerce requires a website that can represent the business. Conversely, e-business requires a website, Customer Relationship

Management and Enterprise Resource Planning for running the business over the internet. 6. e-commerce uses the internet to connect with the rest of the world. In contrast to e-business, the internet, intranet and extranet are used for connecting with the parties.

Conclusion e-commerce is the major part of e-business. It can also be said that ecommerce is e-business websites, but e-business is not necessarily ecommerce. The former is just the online presence of the conventional commerce and the same is the case with the latter. At present most of the companies are doing e-business just to capture the maximum part of the market. Some e-commerce websites have emerged since last few years who are vanishing the market traditional commercial business, like Flipkart, Amazon, eBay, etc.