Where does this guide go
Created | Updated Oct 16, 2004
1.4 Doing Business Electronically
1.4.1 E-Commerce
E-commerce describes an organisations ability to do business electronically, which is to employ technology to perform its business, “E-commerce is the term used to describe financial transactions in the electronic marketplace. This typically includes buying or selling products or services on the Internet, via secure networks or extranets. Transactions may be business-to-business or business to consumer.” K Solutions.com, May 2000, “E Business and E-Commerce, An Introduction” - www.k solutions.com/library/whitepapers/e-commerceEbusinesswhitepaper31May2000.html (February 2002)
This requires that the organisation address the implementation of electronic solutions to certain aspects of its business. E commerce can encompass one, several or all of the organisations business units or functions. There is not an agreed definition as to how much of an organisations functions should embrace technology for it to become categorised as performing e commerce, the interpretation of the organisations itself and that of its customers is the best measure of the e commerce ability of an organisation.
1.4.2 E-Business
It may be argued that the next logical step after embracing e-commerce is to become an e business. However the distinction between a company embracing e commerce and a company believing itself to be an e-business is not clearly defined. Walid Mougayar, 1997, “Opening Digital Markets”, CommerceNet Press suggests that “People have been saying ‘business-to-business electronic commerce’ since 1994 … and when you look at those early broad definitions, it’s very difficult indeed to see how they differ from the ones given today for E-business” and continues “E commerce, e business or whatever else you may want to call it is a means to an end .. to improve or exploit unique business propositions”. Other writers focus on the Internet when defining what e business means: "basing a business around digital technology and the Internet as the main communication medium", Alex Drobik, E-commerce and E-business Review 2001 (p35), British Computer Society
Based on the fact that there is no single definition for distinguishing between e commerce and e business, research for the dissertation suggests that e commerce happens when companies embrace new technologies – it could be said that companies evolve into adopting and embracing e commerce. Becoming an e business however is a more planned strategic shift, it is taking the company as a whole, analysing and implementing solutions that will embrace new technologies with the aim of satisfying the future electronic requirements; not just of the company but also of customers, suppliers, business partners, employees and all other interested parties. It is a long-term goal, seeking to embrace technology – including the Internet – to the benefit of all.
