Saturday, March 17, 2012

E -business and e-commerce

E-business & e-commerce are not same things there are several different between this two.All though sometimes they used interchangeably use but sometimes they are different  one from another. But the terms and condition are different, and that difference factor join both cases.E-commerce covers outward-facing processes that touch customers, suppliers and also external partners, including marketing,sales, order taking, delivery, customer service, purchasing of raw materials and supplies for production also indirect operating-expense items, such as office supplies. It involves new business models and also to gain new revenue or lose some existing revenue to new competitors.

It's ambitious but relatively easy to implement because it involves only three types of integration: vertical integration of front-end Web site applications to existing transaction systems; cross-business integration of a company with Web sites of customers, suppliers or intermediaries such as Web-based marketplaces; and integration of technology with redesigned processes for order handling, purchasing or customer service.

E-business includes e-commerce but also covers internal processes such as production, inventory management, product development, risk management, finance, knowledge management and human resources. E-business strategy is more complex, more focused on internal processes, and aimed at cost savings and improvements in efficiency, productivity and cost savings.

An e-business strategy is also more difficult to execute, for the reason of  four directions of integration: vertically, between Web front- and back-end systems; laterally, between a company and its customers, business partners, suppliers; horizontally, among e-commerce, enterprise resource planning, customer relationship management, knowledge management and supply-chain management systems; and downward through the enterprise, for integration of new technologies with  redesigned business processes.

But e-business has a higher payoff in the form of more efficient processes, lower costs and  greater profits.
E-commerce and e-business both  these processes, as well as a technology infrastructure of databases, application servers, security tools, systems management and legacy systems. And both involve the creation of new value chains between a company and its customers and suppliers, as well as within the company itself.

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