E-commerce is ‘all electronically mediated information exchanges between an organisation and its external stakeholders.
E-commerce is sell-side if it is between an organisation and its customers and is buy-side if it is between an organisation and its suppliers’.
E-business includes all aspects of e-commerce, but also includes work flows and movements of information within an entity, for example between departments or functions.
Internal processes are driven by e-business methods as well as external relationships with customers, suppliers and other external stakeholders.
The objective of e-business is to increase the competitiveness and efficiency of an entity by using electronic information exchanges to improve processes.
E-business does not simply involve automating existing processes. Processes should be radically redesigned by e-business methods so that they become more efficient and create added value.
E-business opportunities can alter the strategic position of an entity, and provide different strategic choices;
a. E-business can change the nature of the market place in which goods and services are bought and sold. For example, it encourages the globalisation of markets and the buying and selling of items in the internet.
b. E-business also changes the nature of the relationships with suppliers and customers.
E-business significantly will extend the volume and scope of your business in aspect of information accessibility to the organisation for effective performance purposes.
The future of every business in this information age is highly depending on the effective utilisation of e-commence by organisation or companies.