E-business, also known as electronic business, is the online conduct of business processes via the internet, extranet, or combination thereof. These business processes are customer-, intra-, and management-focused. They include purchasing and selling products and services, processing payments and managing production and supply chain.
E-business is similar ecommerce, but it encompasses more than just online purchases. The services and functions offered by e-business include the creation of extranets and intranets, as well as the provision of eservices via the internet by service providers. E-business allows companies to purchase parts and supplies from other businesses, collaborate on sales promotions, and do joint research.
Corporations are constantly rethinking and restructuring their business models, which are influenced by advanced technology, hybrid workforces and increased customer expectations. New business requirements have emerged from the rapid growth of ecommerce in recent decades. Customers expect companies to offer self-service options for transactions, personalized experiences and fast, secure interactions. There are new regulations and best practices to protect electronic data. To protect themselves from hackers, fraud, and theft, companies have implemented stringent security protocols.
With the deployment of advanced detection and response capabilities and endpoint device security, cybersecurity is now ingrained in ebusiness. browsers have security built in, and digital certificates can be obtained for individuals or companies from different vendors that provide cybersecurity tools and technologies. E-business is growing at a steady pace, even though security of online transactions remains a major concern for both consumers and businesses.
Origins and evolution of the e-business model
IBM is one of the first companies that used the term ebusiness in October 1997. It launched a campaign to clarify confusion for consumers about internet-based businesses. According to the company’s website, it spent $500 million on advertising and marketing campaigns to promote the e-business model. From $64 billion in 1994 to $88 billion in 2000, IBM’s net income had almost tripled and its e-business revenue reached more than $88 Billion.
4 Different types of e-business models
The business-to-consumer model. Buyers buy products and services online from sellers.
B2B (Business-to-Business) model. Companies use internet to transact with each other. B2B transactions are more complex than B2C transactions. They involve multiple online transactions at every step of the supply chain.
The consumer-to-business model (C2B). Customers create their own value and have a demand for goods or services. Reverse online auctions, as well as websites that sell airline tickets such like Priceline or Expedia are just a few examples.
Consumer-to-consumer (C2C) model. Consumers are buyers and sellers via third-party-facilitated online marketplaces such as eBay. These models generate revenue via personal ad fees and charges for memberships and subscriptions as well as transaction fees.
Comparing business-to-consumer and business-to-business e-business models.
What 4 type Examples of E-Commerce ?
E-business refers to older companies that have been digitally transformed from legacy processes to data-centric operations or newer, digitally-oriented companies. These organizations are those that Gartner, an advisory firm, defines as having “operating models or capabilities” that are built on the use of internet-era data and digital technologies. There have been many examples of ebusiness organizations of various sizes and shapes that have appeared on the digital landscape since then.
Amazon is the largest online marketplace and retailer in the world. It has used its ebusiness model to disrupt established industries such as publishing and foodservice.
Lyft and Uber, which both created businesses that connect drivers and passengers, disrupted taxi and livery service industries. Uber Eats, a food ordering platform and delivery service, was launched by Uber in 2014.
Expedia, Travelocity, and TripAdvisor allow consumers to plan, research, and book their entire trip based on their personal criteria such as price, location, and consumer ratings.
Schindler Group is a multi-national elevator and escalator manufacturer that was founded in 1874. It is a legacy company which has incorporated ebusiness using IoT to increase internet and mobility services into its product offerings.
What Are Advantages E-business ?
E-business has dramatically changed the way that government agencies, non-profit organizations, and enterprises operate. It allows them to increase productivity, reduce costs, and move faster towards digital transformation as well as upgrade and improve processes.
The time spent on these tasks is significantly reduced by automated billing, electronic invoicing and digital payments systems, which are many of those that were manually done just a few decades back. This type of time savings allows businesses reduce their department head count and shift workers to higher-value tasks. Digital systems streamline workflows and reduce the time it takes to invoicing and pay, which results in better cash flow.
Email, video conferencing, and online collaborative platforms improve productivity by decreasing delay between inquiries and answers. This applies whether communication is between employees, customers, and employees of external business partners or employees. This allows companies to be more responsive to market needs and stakeholder demands, as well as faster decision-making. In some cases, electronic communication has eliminated employee business travel. It has supported open and collaborative cultures that allow employees to contribute their ideas.
The digital systems that power ebusiness can help extend an organization’s reach far beyond its brick-and mortar walls. Cloud-based business apps allow remote workers and hybrid workers to work from anywhere, including their homes. Cloud-based apps and internet enable business transactions 24 hours a day, so solo practitioners as well as small businesses can do business worldwide.
Many e-business tasks can now be done faster, more efficiently, and with greater efficiency thanks to advanced technologies such as big data, AI and machine learning. These tasks include the archiving of information, deriving insights from data, recording financial transactions, and personalizing interactions with customers .
E-commerce software has opened up new opportunities for organizations, including email marketing. It also opens up new avenues for selling their products and services, like online shops. It has allowed the creation of completely new business models such as eBay’s ability for B2C/C2C sales, social networking websites like Facebook and Twitter, Shopify which provides the infrastructure and ecommerce platform for customers to set up online shops and sell their goods.E-business influences just about every aspect of an enterprise, including customer service, experiences, expectations and transactions.
What Is Types of E-Business?
While most organizations have some ecommerce capabilities to support their core competencies, ancillary functions and other business functions, the actual amount of ecommerce conducted within an organization varies.
Some companies have limited ecommerce capabilities. For example, a small company that processes payment using a mobile payment system but does not use any other digital services. The other end of this spectrum is the companies whose business model can be fully enabled by digital and electronic services.
Digital services are being used more frequently by businesses that have emerged from the COVID-19 crisis. These organizations can be classified as either fully-powered e-businesses or e-commerce entities, but they are more commonly referred to in traditional terms.
Many e-businesses are still classified by digital and business authorities as B2B/B2C/C2B/C2C. Some offer additional classes of e-business, such as business-to-government and business-to-employee.
What The Challenges Of E-business ?
There are many challenges that electronic business presents. They vary depending on whether the company was founded digitally, whether digital service power the core value proposition of the company, whether digital services can be used in only certain parts of the company’s operations, and whether legacy technology is present. Despite the many levels of digital transformation, the common thread to e-business challenges is the following:
Securing e-business services from more sophisticated cyberthreats
Scaling services quickly enough to meet demand, but without compromising performance.
Adaptive technologies are rapidly evolving to meet changing market dynamics.
To keep up with the latest technologies, skilled workers must be trained and found.
Keep up with the e-business capabilities which, due to their electronic nature are always available.
Many companies also struggle to connect their disparate data and functions to e-business services in order to converge and work seamlessly together.
Here Some Example of Security and Risks
While e-business strategies offer many benefits, such as faster transactions and a larger customer base, they can also pose risks.
E-business poses huge security risks. Customers are often required to give sensitive information such as credit card numbers and contact information during transactions. These sensitive information can be a lure for hackers, making them particularly vulnerable to Data Breach. E-business website owners must ensure that they include data encryption to protect their customers’ data. Inadequate data security measures and data integrity can result in customer brand loss and costly fines.
E-business depends on fast, secure online transactions. Even a poor web hosting service can pose a financial risk to companies. Insufficient bandwidth and crashed servers can lead to website downtime and customer dissatisfaction. It is important for companies to invest in reliable and well-respected hosting providers. This will increase the cost of running an e-business.
Marketing has its risks. Effective marketing is essential for all businesses to grow and sell. However, online marketing methods are quite different from offline marketing. Businesses that invest in marketing resources that aren’t targeted to e-business face huge financial risks.
E-businesses can also be affected by systemic risks that affect the entire online market segment. For example, the dotcom crash 2000-2001 began when several ecommerce startups went public and were bought by other ebusinesses. These e-businesses, which had low cash flow and valued financial stability more than growth, eventually went out of business because of an unsustainable economic bubble.
E-Business vs E-Commerce
E-commerce is similar to e-business, but they are not the same thing. E-commerce is a way to buy and sell products online. However, e-business encompasses a larger range of business processes such as supply chain management and customer relationship management. These are designed to make companies more efficient and effective. E-commerce should therefore be considered part of e-business.
E-commerce refers to any aspect of online ordering or purchasing. E-commerce transactions, for instance, involve a customer ordering online, picking up the product in a brick-and-mortar location, and then paying the invoice. E-business can, however, be managed in-house by a company’s network or outsourced to specialists who specialize in specific aspects of the transaction.