University:
California State University, Los Angeles
Course:
CIS 1200 | Information and Technology Literacy
Academic year:

2024
Views:

156

Pages:

2
Author:

Jithin J. I.

E-BUSINESS & ITS COMPONENTS E-business is short for “electronic business.” As an overarching term, it refers to any method of utilizing digital information and communication technologies to support or streamline business processes – from preparation to implementation. However, it can also refer more specifically to the business processes of online stores or other internet-based companies. These two slightly different interpretations of the term have led to a problem: a widely accepted, precise definition of e-business does not yet exist. As a result, it’s interpreted broadly, and is commonly misunderstood – mainly in relation to ecommerce. Although there is some overlap, e-commerce refers to trading products and services online, and so is strictly only speaking of one aspect of e-business. The word e-business became popular following an IBM advertising campaign about computerized procedures to automate business processes. On October 7th, 1997, the IT and consulting firm published an eight-page essay in the Wall Street Journal and used the term to describe how corporate systems would fundamentally change in the digital era. At the time, IBM understood e-business as “redesigning strategic business processes and meeting the challenges of a new market increasingly characterized by globalization, and based on new knowledge.” Although the company wanted to present itself as an expert on this topic, they nevertheless decided against patenting the term in the hope that other companies would engage with the concept and help to form a new industry. Components of electronic business The core components of e-business are information, communication, and transaction. Business partners use digital networks (i.e. public or private communication networks) to conduct business processes using innovative technologies to improve efficiency. Three key areas are particularly important for ebusiness: 1. E-procurement: the electronic sourcing of products and services by companies, focused on reducing costs and effort. 2. Online stores: the electronic sale of products and services via appropriate platforms, such as online stores. 3. Online marketplaces: electronic commerce via digital networks, connecting the buyers and suppliers of products and services. There are also two further areas of e-business: 1. Online communities: electronic communication network between individuals and organizations, which supports data and knowledge sharing as well as the preparation of transaction decisions. 2. Online companies: electronic business cooperation for connecting individual company services, resulting in a virtual business with a common transaction offer.