E-business or electronic business is a term used to define the functioning of a business on the internet or using internet tools. This concept is used to improve profits of a firm by means of applying internet technology to reach a larger customer base and improve the efficiency with which a business is run. The word is more commonly used to define any business that uses the internet a medium for transaction of goods and services. In an e-business, all the commerce activities are carried out using the internet. Examples of e-business are online stores, which buy and sell goods online.
Information and communication technologies
Information and communications technologies, or ICT for short, are used to improve the productivity of the business. ICT is being used widely all over the world to develop better relationships between individuals or businesses and also as an aid to all sorts of e-commerce activities. The ICT is a combination of communication technologies like the cellular phones, faxes and internet based communication channel and the information technology developments. By combining both these technologies, companies are able to perform better in business and gain more profits. Even if a business is land based, it can use ICT to improve its business performance as ICT facilitates better organization of resources through a better communication and information network.
What is e-commerce?
E-business and e-commerce go hand in hand, although e-business is a more vast entity than e-commerce. While e-commerce concentrates on the financial aspects of a business and helps in better organization of accounts and finances, e-business encompasses different business strategies, building up business networks and ways of improving customer base, thereby aiding in the overall growth of the business. In other words, e-commerce is a part of e-business. E-commerce activities include purchase of raw materials or finished goods, sales, ferrying goods from the producer to the customer and also provide different kinds of financial services.
The best thing about e-business is its worldwide reach. A business or a company can move out if its brick buildings and enter the virtual business world, which provides a great many business opportunities and scope for further development of the business. The customer base can be increased as people all over the world can get access to the business. As the awareness about the business increases, the number of people wanting to trade with the company increases. E-business is one of the best ways to let the world know about a business.
Requirements for an e-business
The basic requirements to begin e-business are a computer and an internet connection. The business can be further improved by creating a website, which can elaborate about the business. If the business is a store selling goods, then a website will be very helpful in increasing the sales. There are a lot of software’s available, which will be of a great help in organizing all the data of the company. In today’s world, where everybody is hooked on to the internet, going online with a business will be one of the best moves that a business can make.