Define e-commerce and describe how it differs from e-business.So.pdf
- 1. Define e-commerce and describe how it differs from e-business. Solution Electronic commerce, commonly written as e-commerce, is the trading or facilitation of trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail. E-commerce businesses may employ some or all of the following: E-Commerce Definition E-commerce is “any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods and services,” defines the U.S. Census Bureau. Transactions aren't required to have a price and include both sales and items like free downloads. E-commerce includes transactions made on the internet, Intranet, Extranet, World Wide Web, by email and even by fax. E-Business Definition E-business is broader than e-commerce; including the transaction based e-commerce businesses and those who run traditionally but cater to online activities as well. An e-business can run any portion of its internal processes online, including inventory management, risk management, finance, human resources. For a business to be e-commerce and e-business, it must both sell products online and handle other company activities or additional sales offline. E-Commerce Types E-commerce branches into two major groups: online purchasing and online shopping. Online purchasing businesses offer customers the ability to find information, place orders, request quotes or prices and submit purchase orders. Online shopping businesses provide information about products so that consumers can make a decision whether or not to purchase a product. Many e-commerce businesses practice online shopping and purchasing strategies to assemble an online store. E-Business Types And Strategy According to E-business at Ohio State University, “E-business can work for any business because it involves the whole business cycle from production, procurement, distribution, sales, payment, fulfillment, restocking and marketing.” Business strategy is complicated, as it involves
- 2. four directions of planning: vertically, laterally, horizontally and downward. Vertical planning coordinates website front and back-end systems and horizontal planning coordinates e-commerce with customer relationships, supply-chain management and resource planning. Laterally, you must manage customers, business partners and suppliers while at the same time integrating new technologies and business processes downward through the organization.