E-BUSINESS

The use of term E-Business was coined by IBM in October, 1997, when it launched a
thematic campaign built around the term. E-Business is changing the way of doing
business. It consolidates the major themes that have arisen from the area of
electronic business and to provide an understanding of its application and
importance of to management.
The use of Internet and web technologies in business commonly known as ebusiness has changed how marketers implement and enhance their business
process and interact with their environment.
Meaning:
Electronic business commonly referred to as e-business, or an internet business. It
is the process of buying and selling of goods or services through internet and also
servicing customers and collaborating with business partners.
Definition:
E -business is the transformation of key business processes through the use of
internet technologies. An e business is that a company adapt to constant and
repeated change. The development of intranet and extranet is part of e business.
E business is everything to do with back-end systems in an organization.
Ex: E-mail marketing, online system that tracks inventory and trigger alerts at
specific levels, a content management system (developer, editor, manager and
publisher etc.)
Components of e-business:
1. Business intelligence
2. Customer relationship management
3. Supply chain management
4. Enterprise resource planning
5. Electronic fund transfers
6. Collaboration
7. Online activities
E-Commerce
E-commerce is the buying and selling of goods on the internet, complements
traditional trade. Now, technology has moved forward to next level of E-biz. Ecommerce technology is changing in a big way. It involves a lot, just as one aspect
of e-commerce such as the internet, requires extensive knowledge of web language
like HRML, XML or Java. Further, there are thousands of applications one has to
know such as search engines, web servers, communications and networking. All
these are significantly different than the internal technology structure of most
organization.
Definition:

Electronic commerce is where business transactions

telecommunications networks, especially the internet.

take

place

via

Electronic commerce is about doing business electronically.

History of E- commerce:
Origin of E-commerce is from Electronic Data Interchange (EDI) is a technology
which is about 40 years old, it has not been successful. E-commerce may be
dominated by the internet rather than the EDI. The explosive growth of the internet
during the late 1990s has created the vision of e-commerce.
Evolution of E-commerce
E-commerce as a revolution started in the year 1997, when people started
conceptualizing the opportunities of e-business. The term e-business was first used
by IBM in 1997.E-business i.e. electronic business is derived from such terms as email and e-commerce. The year 1998 was the year of hype and 1999 was the year
of consolidation of the concept of e-commerce.
Now it is e-commerce that is most associated with the net. In that respect, 1999
was some sort of watershed. It was a year, which in view of the critics, was the year
in which e-commerce came of age. It emerged at the end of the old century and
entered in to enable the new millennium to prosper.
Electronic commerce has been one of the most exciting developments following the
internet revolution. E-commerce basically uses the electronically networked
information systems to carry out potential commercial activity across the globe
enabling times to generate business in a big way.
Functions of Electronic Commerce
1. Communication function: Aimed at delivery information to facilitate business
transaction
2. Service management function: Covers the automation and improvement of
business process
3. Process management function: Application of technology to improve the
quality of service.
4. Transaction capabilities: Provide the ability to buy/sell on the online services.
The Impact of Electronic commerce
1. Marketing: Marketing through online.
2. Computer Science: Development of different network and computing
technologies
3. Finance and Accounting: incorporates online banking, accounting and audit
implication
4. Economics: impact on local and global economics
5. Production and Operations management: Production systems are integrated
with finance marketing and other functional system.

6. Manufacturing: web Based ERP can also be used to forward orders directly to
designers within seconds.
7. Management information system: This includes the analysis, design and
implementation ofe-business systems within an organization.
8. Human resource management: Issues of on-line recruiting, home working and
people to working on a project by project basis replacing permanent
employees.
9. Business Law and Ethics: The different legal and ethical issues that have
arisen as a result of a global virtual market.
Characteristics of E-commerce Technology
1. Improved sales
2. Improved responsiveness
3. Efficient inventory management
4. Effectiveness and efficiency
5. Planning and execution of meetings
6. 24/7 service availability and global reach.
7. Universal standards
8. Interactivity and support
9. Information density
10.Personalization/ customisation