The term electronic business has been perceived as one buzzword on the internet since it was first introduced by IBM in 1997 [1]. However, many experts agree to use the word ‘e-business’ as an definition to a set of automated business processes that is constructed on certain electronic networking technoligies such as internet.
E-business can be defined as the conduct of automated business transactions by means of electronic communications networks (e.g. via the internet and or possibly private networks) end to end [1]
E-business involves the automation of all the business processes materials to production, to stock holding, distribution and logistics, to sales and marketing, after sales, invoicing, debt collection and more [2]
Based on the quotation above, one can simply describe electronic business by three simple points: automated, business process and network
Automated
The word automated means that we don’t have to perform a certain set of activities manuallyor probably step by step ourselves. E-business allows users to automate some activities (mostly business processes such as placing a book order on an online bookshop or verifying somebody’s credit card details) and causes a lot of ease.
Business process
Business process can be defined as a set of activities that need to be performed by an organisation in order to keep itself exist. For example, businesses process for an online bookshop will be: advertising, processing book orders, verifying customer details and maintaining good relationship with customers to encourage further puchases.
Network
A network provides a foundation / platform that allows e-business to be constructed on top of it. A network can exist without e-business while e-business can’t exist without a network. Examples of network are: internet, intranet, or even LAN (Local Area Network).
So, everytime you view an advertisement or just simply place an purchase order on a website, you are experiencing one facility offered by e-business. When you receive an e-mail from an online shop telling how thankful they are having you as a loyal customer, you are experiencing one facility offered by e-business. The same situation also happens everytime you type in your customer details and record them through your organisation’s local area network.
Other related topics:
How does E-business differ from traditional business?
Selling on the web: Can we sell everything online?
How does e-business earn money online?
Using MySpace and Facebook for your business?
What is CRM? How can it affect on e-business?
Your e-business and YouTube
Optimizing your e-business with SEO
Linkspam: What is that and how to deal with it?
Do we need a better payment system for e-business?
How does search engine work?
[1] Papazagou, M.P. and P. Ribber, E-business Organizational and Technical Foundation. (West Sussex: John Wiley & Sons, 2006)
[2] Smith, P.R. and D. Chaffey, E-Marketing Excellence: The Heart of E-Business. (Oxford: Butterworth-Heinemann, 2002)
Filed under: E-Business | Tagged: E-Business, E-Business definition, E-Commerce, e-marketing, online business
