In this age of E-Revolution;It has been quite interesting to explore deeply into the broader aspects of E-business and E-commerce. What is E-Commerce? Is it just buying and selling over the Internet? There are many people who are confused about what is actually happening in this sector. Apart from just buying and selling online; e-commerce encompases a range of transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. On a broader sense, E-commerce is more or less a of business model, or subdivide of a larger business model implemented over an electronic network, typically the internet.
What make E-business different from E-commerce?
E-business includes e-commerce along with a range of internal processes like production, inventory management, product development, risk management, finance, knowledge management and human resources. E-business strategy is more complex, more focused on internal processes and aims at cost efficient and improved efficiency in business approaches. In addition, E-business includes information exchange related to buying and selling of products, activities like procurement of raw materials or goods, customer interaction, supplier focus and so on.
While at times people use e-commerce and e-business interchangeably, they aren’t the same and all e-commerce companies are e-businesses, but not vice versa. Both e-commerce and e-business involves the creation of a value chains between a company and its customers. Knowledge about the difference between these two verticals;the e-commerce and e-business helps you in developing a well defined business strategy that fit well for your business expansion.
Thus, e-business involves not merely setting up the company website and bringing in its revenue through the sites ; but the basic streamlining of the business using the technology well embedded in ERP systems, supply chain management, CRM, data warehousing, data mining, etc.