UNIT 51 E-BUSINESS

Electronic business " e-business ", is defined as the application 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 can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses.

Why E-business?

Business and technology are now inextricably linked. There are no technology decisions that are not business decisions, and there are no business decisions today that don't involve technology, according to Jim Cassidy, IBM's Director Asia-Pacific.

Opportunities of e-business:

- developing flexible infrastructure enabling your organization to meet the challenges of ever-changing business models;

- reducing supply chain and administrative cost;

- improving customer service;

- developing effective and efficient market programs

Business processes must not only incorporate timely company information – for improved customer relationship management, supply chain management, and beyond, they must also be kept up-to-date with fast-changing business needs. E-business facilitating these processes is the way most business soon will be transacted. Whether or not you ever plan to sell products or services over the Web, your most important customer or supplier may one day insist upon using Web for all transaction.

The fastest growing companies are moving aggressively to bring e-business into all their operations. They align their systems with their fast-changing business priorities and use these systems strategically, for growth. In addition, successful businesses are employing information technology to gather and interpret data about their ultimate customers, including demographics, trends, and buying behavior.