What is e-Business?

The Difference between e-Commerce and e-Business

There is a difference between ‘e-commerce‘ and ‘e-business‘:

e-commerce in its purest sense is defined as: ‘All electronically mediated information exchanges between an organization and its external stakeholders.‘ Thus a company which posts information on a brochure website is not necessarily engaging in e-commerce. However a company which accepts requests for additional information about specific products and provides that information interactively via their website is engaging in e-commerce. Financial information of course in included in this definition but the concept is broader the realm of strictly finance.

The UN Conference on Trade and Development defines e-Commerce using broad and narrow definitions: The narrow definition is that electronic commerce is a commercial transaction whereby the order for a good or service is made using some form of Internet based communication. The delivery and payment may be performed off-line in the physical world.

The broad definition includes the use of Internet and non-Internet communications systems, such as telephone ordering, interactive television and electronic messaging. The broad definition would also include privately owned electronic networks usually run by businesses and their partners for their own account. It is important that the buyer and seller do not meet physically during the order placement. Instead they use some kind of electronic communication device to close the deal.

E-Business on the other hand may be defined as: ‘All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes‘

E-business is said to occur when a business has fully integrated ICT‘s into its operations both internally and with external stakeholders; potentially redesigning its business processes or even reinventing its business model. Thus, an organisation can be engaging in e-commerce, through its ability to electronically interact with its customers on-line say, but it may not be an e-business because it has not implemented the back-office functions and business processes which electronically and organisationally support that interaction.

Why the Internet is of Value to Business

As an instantaneous information and communication medium with global reach, the Internet is a practical and vital business tool. And, your small business can benefit from the equal footing it offers you, regardless of your size or location. Below, we‘ll explore some of the efficiencies that can be achieved by small businesses using Internet technologies to further their business goals.