E-Business

The main focus of my discussion will be to explain the difference between E-Business and E-Commerce (a subset of E-Business).When people discuss E-business, some automatically assume that E-business and E-Commerce are interchangeably the same thing. When researching E-business, it is obvious that E-business and E-Commerce are two separate concepts, and their differences must be addressed. E-business is “the application of information and communication technologies in support of all the activities of business” (1). E-commerce, however, is “the buying and selling of products or services over electronic systems such as the Internet and other computer networks” (2). Although both terms contain the E for “Electronic,” and both are related to conducting business online, there are major differences between the two. As most people do not realize, E-Commerce is simply a subset or part of E-business. As a simplified way to put it, E-Commerce involves mostly just the actual business transaction. E-Business is more complex than E-Commerce, focusing on also the internal processes of a business or organization, including production, inventory management, product development, risk management, finance, knowledge management and human resources (3). E-business is also more focused on improving the productivity of a business as well as cost-savings for the business. Another major difference between E-Business and E-Commerce is the use of ICT (Information and Communications Technology). E-Business implements the use of ICT in conducting all aspects of a business or organization online. ICT is used to enhance the business, and the three primary processes that are enhanced in E-business include production processes (replenishment of stocks, payment processing, links with suppliers, production control), customer-focused processes (marketing and customer support), and internal management processes (internal employee services and training) (4). E-Business not only deals with the transactions of the business, like E-Commerce does, but also the relationships and management within the organization. E-Businesses control their inventory, employee relationships and training, management, and B2B (Business to Business) relationships electronically. E-Commerce can be either online purchasing or online shopping (5). That is strictly the part of the business that E-Commerce handles. E-Business, however, can run all internal aspects of the business online in addition to Online Shopping. Again, E-Commerce is a subset of E-Business in this aspect. “E-Business can work for any business because it involves the whole business cycle from production, procurement, distribution, sales, payment, fulfillment, restocking and marketing” (5). Understanding E-Business and the differences between E-Business and E-Commerce are important for understanding both concepts. Too often, these terms are used interchangeably and in conducting my research, I felt that it was important to define and express their major differences. Both are important aspects of a business, which is why they should be understood and not confused with one another. 1.http://en.wikipedia.org/wiki/Electronic_business 2.http://en.wikipedia.org/wiki/Ecommerce 3.http://www.computerworld.com/s/article/53015/The_difference_between_e_business_and_e_commerce 4.http://en.wikibooks.org/wiki/E-Commerce_and_E-Business/Concepts_and_Definitions 5.http://smallbusiness.chron.com/difference-between-e-business-e-commerce-2639.html