Importance & Impact of E-Business

Introduction

It won't be wrong to say that technology has always given us the opportunity to live a much better and useful life. It's because of technology that we are now able to travel from one place to another within few hours instead of many days or even months that use to take before the advancement of the technology. The best innovation that technology has given us and is considered to be the best development till the developments made by the technology so far is the blessing of internet technology. Internet is not only the source of connecting people from around the globe within few minutes but it has also opened new dimensions for marketing of product and its selling and purchasing. People are now able to perform businesses that include buying of multiple stuff, making payments or any other financial transactions, and also they can carry out their different business functions on internet. Business owners, managers and even consumers can now do anything they want without having trouble of leaving their home as long as they are connected to the internet.

There are two terms that are used more frequently when talking about from the perspective of electronic commerce. One is the electronic business mostly pronounced as e-business and the other is electronic commerce that is also referred to as e-commerce. These two terms are used in interchange to each other whereas these both the term have different meanings. The adding the prefix “e” the means electronic, means all the activity that is performed or accomplished without any contact or any physical exchanges made. All the dealing is done by using electronic mediums or by digital mediums.

E-commerce means such business transactions that are done over the internet where the interested parties come to an understanding for the selling or purchasing of any product or service. These kinds of transactions that are conducted through e-commerce websites fundamentally involves the transferring and/or handling over of ownership and user rights for particular service or products (QIN, 2008).

Technically speaking, e-commerce is a sub-part of e-business as defined by the definition, e-business means all those transactions that are performed online that includes all kinds of selling that are made directly to the consumer (e-commerce), dealing with respective suppliers and manufacturers, and also carrying out interactions with various partners (BHUSRY, 2005).

Beside all kinds of online transactions dealing with selling and buying, e-commerce also serves the purpose of exchanging of information through a centralized database system. It is not necessary that all kinds of business are able to perform all kinds of e-commerce transactions. Most of the business functions are limited to the level of technological access these companies have.

All the e-commerce transactions are involved principally in all kinds of money exchanging transaction. As the term e-business is a much broader term, therefore it is not limited to the monetary transactions only but all the various aspects that are included in the business world such as product designing, marketing, supply chain ...