E-business
What is e-business?
E-business is the conduct of business via the Web (Internet, Intranet and Extranet). It is not only buying and selling but also allows key players to connect to critical business systems and access the information that they need.
It is a simple yet powerful concept which connects customers, employees, suppliers and distributors to the business systems and information that they need.
Business transaction over the Web is generally divided into two categories:
- business-to-consumer(B2C)
- B2C solutions generally refer to on-line retailing applications. The first businesses to go on-line were those selling books,
CDs, travel reservations and computers. Some companies, such as Amazon and
CDNow, were created as Web commerce businesses from the beginning.
- business-to-business (B2B)
- B2B solutions refer to transactions between business. This decreases the phone calls, faxes communication and increases the support between businesses.
Motivation for e-business?
E-business brings value to your business by its improving operating efficiency.
- Allow businesses to reach a greater market: anyone who has access to the Internet will be able to access business services provided for customers e.g. Amazon.com
- Allows for faster and easier communication between the businesses and their customers, suppliers and partners. Authorized persons can access data and systems. Systems and services are available across the Web.
Linking to dealers and factories online reduces lag time and paperwork.
Online billing and payment systems enhance financial relationships with customers and suppliers.
Benefits of an E-business
- Build customer loyalty
- Reduce costs
- Improve order processing efficiency
- Reduce inventory and warehousing expenses
- Lower actual dollar costs of sales transactions
