Difference Between eBusiness and eCommerce

welcome to mastering ex-business like to series from this episode we are talking about the difference between the two gels e-business and e-commerce most of the people use these two terms electronic commerce and electronic business interchangeably actually each of them got two distinctive features before that let’s talk about the history of electronic businesses and electronic commerce in the early 60s the beginning of these days there was a technique called as EDIS which means electronic data interchange EDI is allowed companies to process routine business transactions such like orders and invoices more rapidly more accurately and more efficiently then they could do through conventional methods of transactions and for decades banks have been using something called e FTS electronic fund transfers also known as wire transfers so this EFT is the term used for EDI that involves the transfer of funds between financial institutions of the private communication networks and that’s how the concepts of e-business and e-commerce help started up here you can see EDI s– have a relationship with the e-business concept and eft have a relationship with the e-commerce concept but when internet has entered into the scene everything was changed and that’s what we are going to discuss all through this lecture series internet began to advance in popularity among the general public in early 90s but it took some more years to develop the rapid accessibility and the persistent connection to the internet and also the security layout now you have seen as HTTPS and SSL but anyway after the infrastructure was well established it makes a huge impact to the businesses and their commercial transaction okay now let’s go back to our original question what is the difference between a business and e-commerce if someone asks you the difference between these two terms you can show this Venn diagram here you can see ecommerce is just a subset of e-business a business how many components and e-commerce is just a 1 just a 1 as well as a special one if ecommerce is not existed in the e-business most probably the e-business will not be existed in there to understand this difference perfectly we have to list down all the distinctive features of both ecommerce and ebusiness so in this table the left side column displays all the distinctive features in e-commerce and in the right side column it presents all the distinctive and related features of the e-business now let’s take the first one it says ecommerce involves commercial transactions done over the internet so here the e-commerce is doing commercial transactions now let’s take the e-business one it says ebusiness is conduct of business processes on the Internet even though both are using the Internet the things they are doing is different ecommerce is involved in commercial transactions and a business is conducting business processes so this commercial transactions might be included in the business processes now the second feature ecommerce is use of electronic transmission medium that caters for buying and selling of products and services so ecommerce is directly handling buying and selling activities in addition ebusiness also includes the exchange of information directly related to the buying and selling of products so a business’s cover up the information exchange part of buying and selling activities in the third feature it says thus those activities which essentially involve monetary transaction our term as e-commerce so we got the point buying and selling activities means the activities that involves monetary transactions on the other side you can see the information exchange activities procurement of raw materials or goods customer education that means the interaction and communication with the customer and looking for supplies that means supplier handling now look at the fourth feature ecommerce usually requires the use of a website and that is because if you are performing buying and selling activities you have to open the door for the public and the easiest way to do that is using a website now let’s see what kind of a thing a businesses are using a business involves the use of CRM customer relationship management systems PRPs enterprise resource planning systems that connects different business processes so a businesses are using large and complex systems because they need to handle different business processes and the next one say is ecommerce involves the mandatory use of Internet definitely commerce need internet and a business can involve the use of internet intranet and extranet Internet is publicly accessible because it is a public network and intranet is a internal network only the people who are authorized within our organization can access it an extranet is a external network which connects external parties only the people who are authorized in the external parties can access it and why businesses are having these two additional networks intranet and extranet that is because e businesses may handle internal business processes and business processes that connects another business party if the interaction is happening with an employee of the organization it is using intranet and if the interaction is happening with the external party for example suppliers it is using an extranet and if the interaction is happening with a potential customer we have to use a public network and that is the Internet now let’s look at the next feature ecommerce covers outward facing processors that touch customers suppliers and external partners so these processors doesn’t include the activities which are happening inside the organization and what are the processors cover up by the businesses so a business’s cover up the production inventory management risk management finance and suchlike internal processes the next feature says ecommerce is narrower concept and restricted to buying and selling when compared to that a business is a broader concept and that involves market survey supply chain and logistics management and using data mining so it includes several tools when compared with the e-commerce now the last feature we have listed down here say is ecommerce just involves buying and selling of products and services and that is the part where the monetary transactions are involved that is the part where the profits are earned and that’s why ecommerce is directly connected with the buying and selling and if you look at the e-business statement it says a business includes all kind of pre sale and post sale efforts so what are the pre-sales and post-sales activities purchasing raw materials things happening in the production and manufacturing process can be taken as pre sale activities and the jewelry and responding to a customer inquiry for a purchased product can be taken as post sale activities so hope you got the understanding why we are saying a business and e-commerce are distinctively different two concepts in our comparison we said a business have a much wider scope than the e-commerce and it is not just buying and selling of products and services but also communicating with the customers and collaborating with other business partners when showing the Venn diagram of a business and a commerce I said ecommerce is just a component a required component of e-business so what are the other components so here it displays the fear of other components collaboration collaboration with all the stakeholders of the business sf8 Salesforce automation bi business intelligences CRM customer relationship management SCM supply chain management ERP enterprise resource planning b2b business to business hope you got the understanding how much broader and how much complex it goes this is not the time to discuss about each and every component and we will do that in another episode thank you for watching and stay tuned in with us for more

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