Electronic Business, commonly referred to as "eBusiness" or "e-Business", may be defined as the utilization 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 hence can be seen as one of the essential activities of any business. Hence, electronic commerce or eCommerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesse.
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.
Internet
The Internet is a global system of interconnected computer networks that use the standardized Internet Protocol Suite (TCP/IP). It is a network of networks that consists of millions of private and public, academic, business, and government networks of local to global scope that are linked by copper wires, fiber-optic cables, wireless connections, and other technologies.
The Internet carries a vast array of information resources and services, most notably, the inter-linked hypertext documents of the World Wide Web (WWW) and the infrastructure to support electronic mail, in addition to popular services such as online chat, file transfer and file sharing, online gaming, and Voice over Internet Protocol (VoIP) person-to-person communication via voice and video.
The origins of the Internet reach back to the 1960s when the United States funded research projects of its military agencies to build robust, fault-tolerant and distributed computer networks. This research and a period of civilian funding of a new U.S. backbone by the National Science Foundation spawned world-wide participation in the development of new networking technologies and led to the commercialization of an international network in the mid 1990s, and resulted in the following popularization of countless applications in virtually every aspect of modern human life. By 2009, an estimated quarter of Earth's population uses the services of the Internet (see Growth).
Knowledge management
Knowledge Management (KM) comprises a range of practices used in an organisation to identify, create, represent, distribute and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organisational processes or practice.
An established discipline since 1991 (see Nonaka 1991), KM includes courses taught in the fields of business administration, information systems, management, and library and information sciences (Alavi & Leidner 1999). More recently, other fields have started contributing to KM research; these include information and media, computer science, public health, and public policy.
Many large companies and non-profit organisations have resources dedicated to internal KM efforts, often as a part of their 'Business Strategy', 'Information Technology', or 'Human Resource Management' departments (Addicott, McGivern & Ferlie 2006). Several consulting companies also exist that provide strategy and advice regarding KM to these organisations.
KM efforts typically focus on organisational objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, and continuous improvement of the organisation. KM efforts overlap with Organisational Learning, and may be distinguished from that by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the sharing of knowledge. KM efforts can help individuals and groups to share valuable organisational insights, to reduce redundant work, to avoid reinventing the wheel per se, to reduce training time for new employees, to retain intellectual capital as employees turnover in an organisation, and to adapt to changing environments and markets (McAdam & McCreedy 2000)(Thompson & Walsham 2004).
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.
Electronic commerce
Electronic Commerce, commonly known as (electronic marketing) e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in 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 at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.
A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web.
Electronic commerce that is conducted between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.
World Wide Web
The World Wide Web (commonly abbreviated as "the Web") is a system of interlinked hypertext documents accessed via the Internet. With a Web browser, one can view Web pages that may contain text, images, videos, and other multimedia and navigate between them using hyperlinks. Using concepts from earlier hypertext systems, the World Wide Web was started in 1989 by the English physicist Sir Tim Berners-Lee, now the Director of the World Wide Web Consortium, and later by Robert Cailliau, a Belgian computer scientist, while both were working at CERN in Geneva, Switzerland. In 1990, they proposed building a "web of nodes" storing "hypertext pages" viewed by "browsers" on a network, and released that web in December. Connected by the existing Internet, other websites were created, around the world, adding international standards for domain names & the HTML language. Since then, Berners-Lee has played an active role in guiding the development of Web standards (such as the markup languages in which Web pages are composed), and in recent years has advocated his vision of a Semantic Web.
The World Wide Web enabled the spread of information over the Internet through an easy-to-use and flexible format. It thus played an important role in popularizing use of the Internet.Although the two terms are sometimes conflated in popular use, World Wide Web is not synonymous with Internet.The Web is an application built on top of the Internet.
