Understanding E-Business
E-business or electronic business can be defined as activities related directly or indirectly to the process of exchanging goods or services by utilizing the internet as a medium of communication and transactions.
Understanding E-Commerce
E-Commerce is trading through an electronic network where computers are the means used to facilitate all company operations.
Relationship of E-Business and E-Commerce
There are 2 company operations in e-commerce, namely:
Internal side
(Finance, Marketing, Production, and other functional sections).
External parties
(Customers, Suppliers, Governments, Consumers and other environments).
Difference between E-Business and E-Commerce
E-business covers a very wide area, ranging from capital development, HR, SDT, marketing and marketing processes, and all kinds of other elements. Meanwhile, e-commerce only focuses on the buying and selling process.
E-commerce is a small part of an e-business.
E-commerce only requires specifications and analytical skills in terms of sales and transactions, while e-business requires careful consideration of various aspects.
Advantages of E-Business and E-Commerce
- Advantages of E-Commerce
- Better customer service.
- Better relations with suppliers and the financial community.
- Increased return on investment of shareholders and owners.
- Advantages of E-Business
By utilizing information technology, it can be seen how companies can reduce total operational costs.
With the use of information technology, customers can communicate with the company anytime, 7 days a week and 24 hours non-stop.
The company is able to expand its reach and scope for expansion easily (through the boundaries of space and time) and without requiring relatively expensive costs.
The concept of brick-and-morter transformed into click-and-morter has changed the behavior of companies in the business approach.
The opening of wide opportunities for business people to innovate to create new products or services due to the discovery of new technologies from time to time.
E-business driving factors
- Customer expectations
- What is expected by consumers at this time is not enough to be satisfied with the good quality of a product, but customers also expect good pre- and post-sales service.
- Must be competitive
- Globalization has formed an arena of very tight competition in the business world. Customers will easily compare the quality of products and services between companies, this forces the company to develop the right strategy.
- Deregulation
- Internet here is considered as an arena where the concept of perfect competition and open market has occurred, especially products and services that can be digitized.
- Technology
- E-business is the advancement of information technology which is dominated by the acceleration of computer and telecommunications technology. The function of information technology is not only critical to the development of e-business but also becomes the driving force behind enabling new business models.
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