Electronic business

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Electronic business, commonly referred to as "eBusiness" or "e-business", may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business.

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Electronic business

Electronic business, commonly referred to as "eBusiness" or "e-business", may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses [1].

Louis Gerstner, the former CEO of IBM, in his book, Who Says Elephants Can't Dance? attributes the term "e-Business" to IBM's marketing and Internet teams in 1996.

Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers.

In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the World Wide Web or the Internet to build and enhance relationships with clients and partners and to improve efficiency using the Empty Vessel strategy. Often, e-commerce involves the application of knowledge management systems.

E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the Web, the Internet, intranets, extranets, or some combination of these.

Basically, electronic commerce (EC) is the process of buying, transferring, or exchanging products, services, and/or information via computer networks, including the internet. EC can also be benifited from many perspective including business process, service, learning, collaborative, community. EC is often confused with e-business.

Subsets

Applications can be divided into three categories:

  1. Internal business systems:
    • customer relationship management
    • enterprise resource planning
    • document management systems
    • human resources management
  2. Enterprise communication and collaboration:
    • VoIP
    • content management system
    • e-mail
    • voice mail
    • Web conferencing
    • Digital work flows (or business process management)
  3. electronic commerce - business-to-business electronic commerce (B2B) or business-to-consumer electronic commerce (B2C):
    • internet shop
    • supply chain management
    • online marketing
    • offline marketing

Models

When organizations go online, they have to decide which e-business models best suit their goals. [2] A business model is defined as the organization of product, service and information flows, and the source of revenues and benefits for suppliers and customers. The concept of e-business model is the same but used in the online presence. The following is a list of the currently most adopted e-business models such as:

  • E-shops
  • E-commerce
  • E-procurement
  • E-malls
  • E-auctions
  • Virtual Communities
  • Collaboration Platforms
  • Third-party Marketplaces
  • Value-chain Integrators
  • Value-chain Service Providers
  • Information Brokerage
  • Telecommunication
  • Customer relationship

Classification by provider and consumer

Roughly dividing the world into providers/producers and consumers/clients one can classify e-businesses into the following categories:

  • business-to-business (B2B)
  • business-to-consumer (B2C)
  • business-to-employee (B2E)
  • business-to-government (B2G)
  • government-to-business (G2B)
  • government-to-government (G2G)
  • government-to-citizen (G2C)
  • consumer-to-consumer (C2C)
  • consumer-to-business (C2B)

It is notable that there are comparably less connections pointing "upwards" than "downwards" (few employee/consumer/citizen-to-X models).

See also

  • Electronic commerce
  • Very Large Business Applications
  • Sectoral e-Business Watch

References

Who says Elephants can't dance(2002), Louis Gerstner. pg 172

  1. ^ Beynon-Davies P. (2004). E-Business. Palgrave, Basingstoke. ISBN 1-4039-1348-X
  2. ^ Paul Timmers, (2000), Electronic Commerce - strategies & models for business-to-business trading, pp.31, John Wiley & Sons, Ltd, ISBN 0-471-72029-1

Sectoral e-Business Watch

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Sectoral e-Business Watch (SeBW)[1] is a continuous study project on behalf of the Directorate-General for Enterprise and Industry of the European Commission, implemented in 2002.[2] It monitors and analyses the uptake of Information and communications technologies (ICT) by companies in different sectors of the European economy and its economic impact, allowing the identification of competitiveness-enhancing industrial policy challenges.

Mission and methodology

The overall mission of Sectoral e-Business Watch is to study and assess the impact of ICT on enterprises, industries and the economy in general. It highlights barriers for ICT uptake, such as issues hindering a more effective use of ICT by enterprises in Europe. Further objectives are identification and discussion of public policy challenges stemming from the observed developments, notably at the European level, and to engage in dialogue with stakeholders from industry and policy institutions, providing a forum for debate on relevant issues.

In its scientific approach Sectoral e-Business Watch includes various research methods, such as enterprise surveys with computer-assisted telephone interviews, online surveys, case studies, expert interviews, Delphi-style interviews, econometric analyses, and literature evaluation. Enterprise surveys were conducted in 2002, 2003, 2005, 2006 and 2007. They cover varying sectors and countries and a different number of enterprises. The largest Sectoral e-Business Watch survey was the one in 2006 which included around 14,000 enterprises in 29 countries[3][4]. The results are presented in shape of study reports, table reports with survey findings, brochures with selected findings, and annual synthesis reports. All reports as well as files with survey data and accompanying information are available for free download from the project website. Researchers can apply for raw data.

Key findings

According to the study reports, Sectoral e-Business Watch has affirmed that basic ICT infrastructure, such as simple computer networks and access to the internet, has become a commodity for a majority of enterprises in all sectors[5]. These technologies have become so widely used that they are now essential in daily business. Beside its basic role, ICT creates wide strategic potential for enabling new business models, influencing value chains and increasing process efficiency. The Sectoral e-Business reports could repeatedly show the critical role of ICT in tomorrow's economy[6]. Advanced information infrastructures, services and value creating activities are made possible by computer networks and internet access.

Moreover, Sectoral e-Business Watch has found evidence that e-business is nowadays far beyond systems and technology. It is about optimally managing relationships with customers, suppliers and business partners in a complex and often global competitive environment[7]. Furthermore, e-business is not just about accomplishing electronic transactions such as procurement and sales. It is about accessing, providing and sharing information in business networks. Ultimately, it is about doing business in the advancing digital economy[8]. The way business is done is changing rapidly, mainly due to globalisation. Large companies are moving rapidly to exploit the advantages offered by ICT for their business strategies. Smaller companies will have to follow suit, or risk being excluded from digital supply chains[9].

The trend towards digitally integrated value systems connected through ICT is considered by Sectoral e-Business Watch as a new life-cycle of e-business[10]. The period between 1995 and 2000, over which internet based trade emerged, is referred to as "e-Business 1.0". During this time, companies connected to the internet and were quickly lured into buying all sorts of immature technology. After the shake-out of several failed business models, e-business between 2001 and 2005 focused on cutting costs. This period of more conservative attitude towards ICT is referred to as "e-Business 2.0". However, currently companies have been growing more "e-friendly" again. The underlying information infrastructures have matured and today no one doubts their importance for modern business. According to Sectoral e-Business Watch "A new era appears to have emerged - 'e-Business 3.0'".[11]

With regard to today's economic crisis Sectoral e-Business Watch states that companies, even in times of economic difficulties, tend to exploit the innovative potential of ICT in order to cut costs and thus emerge stronger and more competitive out of the crisis.[12]

Subjects of study

Manufacturing Sectors Service Sectors Special Topics
Food and beverages Banking and leasing RFID adoption and implications
Textile, clothing and footwear Insurance and pension funding Intellectual property rights for ICT-producing SMEs
Pulp, paper and paper products Retail Economic assessment of ICT adoption and its impact on innovation and performance
Publishing and printing Tourism The implications of ICT on energy consumption
Chemistry, rubber and plastics Transport services and logistics Assessment of ICT standards in the health sector
Pharmaceutical industry ICT services Impact of ICT on Corporate Performance, Productivity and Employment Dynamics
Steel Telecommunications The role of new companies in e-business innovation and diffusion
Metal products manufacturing Business services Handbook on ICT Indicators, with a Pilot Study on Time-Distances in e-Commerce Adoption
Machinery and equipment manufacturing Health and social services International Outlook on Electronic Business Developments
Manufacture of electronics & electrical machinery Hospital activities Standardisation and Interoperability
ICT manufacturing   ICT Security
Consumer electronics    
Transport equipment manufacturing    
Automotive industry    
Shipbuilding and repair    
Aeronautics industry    
Furniture    
Construction    
Craft and trade sectors      

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