The Impact Of E-Business

INTRODUCTION:

In this write up the focus is mainly on e-business. It consists of critical discussion and analysis of the impact of adopting e-business orientation. It also contains relevant information on the current state of e-business market.

The report also talks about the differences between, advantages and disadvantages of e-business and e-commerce. Recommendations and advice have been given in the end for businesses intending to adopt an e-business dimension.

DEFINITIONS OF E-BUSINESS AND E-COMMERCE:

The terms e-business and e-commerce are closely related but have some elements of differences between them.

The term e-business was first coined by Lou Gerstner, CEO of IBM. According to Wikipedia (2006), e-business is any business process that relies on automated information system, which today is mostly done with web based technologies (Wikipedia, 2006). The Aberdeen Consulting Group defines e-business as “the automation of the entire spectrum of interactions between enterprises and their distributed employees, trading partners, suppliers, and customers.” (Intel.com, 2006) http://www.intel.com/it/pdf/e-business-value.pdf (27/12/06)

E-business is a wider concept that takes into account all the aspects of use of information technology in business. Apart from buying and selling, it also includes servicing customers, collaboration with business partners, and engages incorporation across business processes and communication within the organisation (Rowley, 2002)

According to the author, e-business is conducting business on the internet by not only buying and selling goods, but also servicing clients and collaborating with business partners by using all the human technologies.

E-commerce definition: E-commerce is about the sale and purchase of goods or services by electronic means (Chan et al, 2004). This is one of the most simple, basic and self explanatory definition of e-commerce.

DIFFERENCE BETWEEN E-BUSINESS AND E-COMMERCE:

E-business and e-commerce are terms that are sometimes used interchangeably, and sometimes they are used to differentiate one vendor’s product from another. In both cases, the e stands for "electronic networks" and describes the application of electronic network technology - including Internet and electronic data interchange (EDI) - to improve and change business processes (Bartels, 2000)

E-commerce or electronic commerce is carrying out business communications and transactions through computers and over networks. It involves buying and selling of goods and services through digital communication. E-commerce also includes transactions on the World Wide Web and the Internet and means such as electronic funds transfer, smart cards and digital cash. E-commerce covers outward facing processes that interact with customers, suppliers and external partners such as sales, marketing, delivery, customer service, purchasing of raw materials and supplies for production.