E-Business, as the name implies, refers to the method and the art of transacting or conducting business transactions using electronic means. The technological advancements, more specifically the explosive growth of the internet, contributed to the development of business over the internet. E-Business consists of a set of services that enables an organization to cohesively bring together:
1. Strategy
2. Process
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3. Organization
4. Technology
5. Rapidly capture opportunities
6. Deliver competitive advantage to their business.
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In simple terms e-Business can be defined as the usage of the internet to connect with customers, partners, and suppliers. But the term also implies the transformation of existing business processes to make them more efficient.
To engage in e-business, companies need to be able to unlock data in their back-end computer systems, so they can share information and conduct electronic transactions with customers, partners, and suppliers via the internet.
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And for some companies, engaging in e-business means adopting new web-enabled business models-auctioning off surplus goods, selling products directly to consumers, or joining in on-line purchasing cooperatives with their competitors.
Without a doubt, embarking on an e-business effort requires as much thinking about business strategy as it does about technology.
The successful implementation of e-Business initiatives dramatically improves top-line and bottom-line performance for companies. Following is the summary of the key characteristics of an e-Business:
a. Strengthening relationships with customers and suppliers
b. Checking out the competition
c. Developing new product ideas and sources
d. Dealing with government at all levels
e. Re-designing business processes and management systems
f. E-tailing or selling goods and services on-line.