What Is The Meaning Of E Business

E-Business is the abbreviation for “Electronic Business”, which in German means “electronic commerce“. As broad umbrella term it encompasses all forms of use of digital information and communications technologies designed to support or make more efficient the business processes of sales – both in the preparation and negotiation phase and in the implementation phase. However, the term can also be translated and used in the sense of “electronic business,” which then means, for example, that the business processes of an online store or mainly Internet-based company constitute e-business. These two different interpretations of the term point to a fundamental problem: To date, no generally accepted definition has been established for e-business. Instead, the term is often interpreted very broadly and often even used in a misleading way – for example, as a synonym for “e-commerce”. Although there are overlaps with the term e-business, e-commerce actually means e-commerce refers specifically to trade in products and services on the Internet (e.g., online shopping). (for example, online shopping). The term “e-commerce” is therefore much narrower and, strictly speaking, only a part of e-business. Online store construction kit from IONOS You want to create an online store? But have no experience so far on how to get your business online easily and quickly? Then an online store construction kit is exactly what you are looking for! SSL Certificate Free domain 24/7 support Definition: E-business E-business is a generic term that covers all forms of use of digital information and communication technologies to support and increase the efficiency of business processes in all phases of sales. E-commerce, on the other hand, merely refers to the trade in products and services specifically on the Internet and is therefore only a subsection of the much broader e-business. To better understand the connection between the terms “e-business” and “e-commerce,” e-commerce should be thought of as a subsection of e-business. The word e-business gained popularity through an advertising campaign by the IBM Group. This dealt with computer-assisted procedures for the automation of commercial processes: On October 7, 1997 the U.S. IT and consulting company published an eight-page essay in the Wall Street Journal in which the word (then spelled “eBusiness”) was intended to serve as a guiding concept for how business systems would be fundamentally changed by the Internet in the future. At the time, IBM understood the term to mean the “redesigning strategic business processes and meeting the challenges of a new marketplace increasingly characterized by globalization and based on knowledge“. The company wanted to present itself as an expert in this new economic concept – but decided against patenting the term. The intention behind it: Other companies should adapt the concept of e-business and thus help create a whole new industry. Domain Bundle Promotion Only for a short time: How to get two free domains! Buy a .de domain and get a .com and .info domain for free. Email box Wildcard SSL Personal consultant

Components of Electronic Business

Central components of electronic business are Information, communication and transaction. Economic partners conduct business processes via digital networks (i.e., public or private communication networks), using innovative information and communication technologies to support and increase efficiency. Three core areas are of particular importance for electronic business: E-procurement: The electronic procurement of products and services by companies, focusing on reducing costs and effort. E-shops: The electronic sale of products and services via appropriate platforms – for example, via online stores. E-marketplace: Electronic commerce via digital networks as a link between demanders and suppliers of products and services. In addition to this, two further areas belong to e-business: E-community: Electronic contact networks between individuals and institutions designed to support the exchange of data and knowledge as well as to prepare transaction-relevant decisions. E-Company: Electronic company cooperation for linking individual company services. This is intended to create a virtual company with a joint transaction offering.

Features of e-business

In order to fully understand the concept of e-business, you need to know above all how e-business relates to the Net Economy and what typical market participants in e-business are.

Net Economy and E-Business

The scope of e-business is determined by the possibilities of the modern Net Economy. This refers to the commercially used area of electronic data networks for the handling of information, communication and transaction processes across different platforms. Since the early 1990s at the latest, the advance of digitization has led not only to structural change in society, but also in the economy, whose focus has gradually shifted toward the information sector. The systematic use of technologies for the purpose of collecting and using information and use of information gave rise to what is known as an “information economy”. competitiveness is achieved through knowledge is achieved. This part of the economic system, also known as the “net economy,” now exists in parallel with the traditional “real economy.”

Market participants in e-business

E-business can take place between a variety of market participants: between companies and consumers, different private individuals, public administrations as well as other organizations (for example, non-governmental organizations). In general, the various market participants are subdivided into three areas into three groups in order to distinguish individual business areas:

  • Business (B): Business
  • Consumer/Citizen (C): Consumers and citizens
  • Administration (A): Public administrations and other organizations

All three groups can both as service providers and as customers, so that on the market, so that nine different relationships are conceivable in e-business. For example, B2C (business to consumer) and B2B (business to business) are part of e-commerce, while A2C (administration 2 consumer), A2B (administration to business) and A2A (administration to administration) are part of e-government (also a subsection of e-business).

Function of electronic business

The most important function of electronic business is “electronic value creation” – i.e., the generation of “electronic added value”. A main distinction is made between the following forms of electronic added value:

  • Structuring value: An online offer creates an overview of a large amount of information.
  • Selection value: An online offering provides specific database information on demand.
  • Matching value: An online offering creates the possibility to match requests from suppliers and demanders more efficiently.
  • Transaction value: An online offering makes a transaction more efficient.
  • Matching value: An online offering allows different providers to better link their service offerings.
  • Communication valueAn online offering improves communication between different customers.

Depending on the type of value to be added, a company chooses one or more of the following suitable value activities – for example, the collection, structuring, pre-selection, summary or distribution of information. The aim is to create a so-called “digital information product“should be created that offers added value or several added values and for which the customer is willing to pay. This information product can be a website, a blog, a comparison portal, an e-book or a software application. The electronic value creation process includes the following steps:

  • The Collection of a large amount of informationin order to identify the relevant data for the respective information product.
  • The processing of the collected informationto transform it into an information product.
  • The Transfer of the finished information product to the demanders.
  • If necessary the repetition of this process based on new information, since information products are usually not static and need to be constantly updated.

Apart from the generation of electronic added value, a distinction is made between various long-term goals of e-business: for example, the best possible automation of commercial processes or the establishment of new business models or the abandonment of outdated ones (for example (for example, by dispensing with intermediaries).

Examples of e-business

There are countless different e-business activities, so we can only provide a few individual examples here. For example, the area of e-procurement may include the following activities:

  • The implementation of a Desktop Purchasing System (DPS)which supports, organizes and controls the entire procurement process, for example by checking the availability of certain goods and processing their ordering and payment.
  • The establishment and operation of an electronic marketplace for products and services.
  • The integration of various electronic supplier catalogs into the company’s own merchandise management or Enterprise Resource Planning (ERP) systemto support procurement, inventory management, order processing, production management and logistics.

The following examples are again from the area of e-commerce:

  • The Design and maintenance of an Internet presence and/or an online shop with a range of products or services accessible at any time and from any location, several electronic payment methods, automatic e-mail notifications of order progress and customer service in the form of support chats, hotlines or help centers.
  • The Development and provision of an additional information offering – for example, through a blog or a comparison portal.
  • The expansion of online marketing and tailoring advertising messages to the largest possible number of customers – for example, using Big Data such as cookies, purchasing behavior and customer data.

It is to be expected that new technologies such as the Internet of Things will also mean that other e-business activities not yet mentioned here will become much more important in the future. Related articles How e-commerce is conquering Germany Purchases are increasingly being made on the Internet, and e-commerce is flourishing in many different industries. This is certainly due in part to the fact that anyone can now create and manage a professional web store. But what do you have to keep in mind if you want to get into online commerce? And how can you do this if you have no experience of running an online store? How e-commerce is conquering Germany What is omnichannel marketing? The definition of omnichannel marketing sounds simple: customers seamlessly use various channels of a provider on their way to closing a deal. Afterwards, they are supported by dialog marketing and encouraged to make new purchases. As a buzzword, omnichannel is on everyone’s lips, and many sales models such as click and collect have long since become part of customers’ everyday lives. But how does… What is omnichannel marketing? E-procurement The digitalization of the business world is also important for B2B purchasing. With e-procurement solutions, procurement processes can be handled more efficiently. Modern software ensures that purchasing functions with just a few clicks or, in some cases, even fully automatically. Would you like to learn how e-procurement can support a company? We will show you in which… E-procurement – electronic procurement Dynamic Pricing: What is it actually? Dynamic Pricing allows prices for products and services to be adjusted quickly at any time. Dynamic price management enables suppliers to respond flexibly to factors such as supply and demand – and to influence these in a targeted manner in order to increase sales. Large online retailers such as Amazon also use dynamic pricing and sometimes change their prices several times a… Dynamic Pricing: What is it?

Definition What is e-business?

Author / Editor: Updater / Michael Hase E-business is the handling of business processes via the Internet. Important examples are electronic commerce (e-commerce) or electronic procurement (e-procurement). Providers on the topic Basic knowledge of IT business (Image: © adiruch na chiangmai – Fotolia.com) The term e-business stands for the implementation of automatable business processes with the help of information and communication technology (ICT). From this definition it follows, on the one hand, that the term can be applied to the trade in products or the marketing of services via electronic data transmission technologies. On the other hand, the term e-business is also valid for the “digital enterprise”, which includes all business processes and market activities. More consumers can be addressed via the Internet than via any stationary sales or marketing channel. By dispensing with sales outlets, additional costs can be saved. In online business, this enables newly structured business plans, digitized business processes, new sales channels and modern forms of product marketing through online marketing. Other facets of e-business include e-collaboration (software-supported collaboration between teams separated by time or space), the minimization of paper-based documents (“digital office”), the optimization of customer service through partially automated call centers, and the revolutionization of procurement through the use of modern warehouse management and e-procurement systems. Industry-specific developments such as e-health (healthcare services supported by information and communications technology, such as telemedicine, electronic health records and online pharmacies) also go hand in hand with this trend.


Online shopping has enjoyed increasing popularity for years. Compared with stationary shopping, many consumers appreciate the ability to select desired products conveniently via PC, tablet or smartphone, to compare prices from different suppliers transparently and to order items simply with a click of the mouse. As a result, retail activities are increasingly moving to the world of the Internet. Legal foundations for e-commerce exist in commercial law requirements of the German Commercial Code (HGB) and German Civil Code (BGB), the Guidelines for Information Security in E-Commerce, and the provisions of Internet law. To ensure maximum customer satisfaction and comply with legal requirements, online retailers are advised to make billing and collection processes as simple and secure as possible. All data should be transmitted using TLS encryption (based on SSL source code), which is considered tamper-proof. In any case, fast and secure payment systems such as Giropay, Paypal, or Click&Buy are an advantageous option. Consumers who want to assess the seriousness of a provider in e-commerce should look out for seals of approval such as the “Trusted Shop” seal or the “Safer Shopping” seal awarded by TÜV.


As an elementary pillar of e-business, e-procurement covers the operational electronic procurement of goods and services via the Internet. This involves the use of specific warehouse management systems (e.g. ERP systems) and electronic data interchange technologies (e.g. EDI). In corporate procurement, e-procurement covers all phases and processes of procurement such as requisition, release, order, order confirmation and goods receipt. Used in a targeted manner, e-procurement can lead to significant cost savings compared to paper-based warehouse and procurement management. In addition, the acceleration of relevant process steps reduces the time required. Expenditure and procurement processes can be easily tracked using e-procurement and selected, processed and analyzed by supplier, product group, order quantity and cost center. In this way, important decision-making bases can be obtained for future procurement strategies.

Electronic marketplaces

Within e-business, the term electronic marketplace stands for virtual market areas in which participants use the Internet or other data networks to conduct business transactions. In addition to providing a transparent overview of offers and the associated opportunity to compare prices and services in a transparent manner, such portals also ensure secure processing of business transactions. In the virtual market space, the operator of the online marketplace can intervene at any time in a coordinating or regulating capacity as a higher-level authority. Virtual marketplaces are used in particular by companies for e-procurement and by private consumers as a buying and selling platform. Well-known C2C marketplaces are eBay and Amazon Marketplace. Commercial traders also offer their products on both platforms. (ID:45610982)

Table of Contents

1. introduction 2. definitions 2.1 definition “electronic business” 2.2 definition “electronic commerce” 2.3 definition of terms 2.4 developments 3. electronic business 3.1 virtual companies 3.2 new business processes 3.3 techniques 3.4 networks 4. electronic commerce 4.1 business to consumer (B2C) 4.2 business to business (B2B) 4.3 consumer to consumer (C2C) 4.4 evaluation 5. outlook List of figures Figure 1: E-business and e-commerce Figure 2: Typification of e-commerce Figure 3: Dimensions of the information society Figure 4: Overview of technological developments in e-commerce Figure 5: The virtual enterprise Figure 6: Classification of services on the Internet Figure 7: Characteristics of business model typologies Figure 8: The business model of the Financial Times Deutschland Figure 9: The business model of Amazon Figure 10: The business model of Yahoo! Figure 11: The business model of T-Online Figure 12: Forecasted global growth of electronic business Figure 13: Forecasted regional growth of electronic business

1. introduction

The Internet is much more than a traditional communication system between two individuals. It is far superior to all other communication systems, such as a telephone with a conference call. It is therefore referred to as an information revolution, which began with the spread of the worldwide web. It is characterized by the disappearance of spatial and temporal boundaries. With the new technology of the Internet, information is now available at any time and any place. With this technology, every individual has the opportunity to obtain, process and disseminate information worldwide. This is associated with the disappearance of information monopolies, that is, mass worldwide communication of individuals without control. (GORA 2001, p. 138) For companies, this change has enormous implications. On the one hand, the production factor “knowledge” dominates more and more, which leads to the fact that employees have to be educated with regard to the ability to collect information, to structure it and to apply it to the solution of problems. (WIRTZ 2000, p. 10) On the other hand, the new possibilities of information procurement technology, i.e. primarily the Internet, have been used in the economy for a long time. The company itself can gain information worldwide, but also present itself worldwide with the help of the Internet. It can communicate globally with other economic entities in a matter of seconds, so that events around the world take place in real time. This creates new networks as well as new markets. One speaks of “electronic business”, i.e. a new form of economy, from which also new enterprises, the virtual enterprises, emerge. With the help of these new information and communication systems, a whole new dimension of commerce is also emerging, namely electronic commerce. Whereas 100 years ago there was a transition from a regional economy to a national economy, this new type of electronic commerce is enabling the transformation into a global economy. (cf. GORA 2001, p. 139) After basic definitions, the following will examine how this still young phenomenon of electronic business affects companies in general, starting with the virtual enterprise. The effects in terms of business processes, networks and techniques will be presented next. Subsequently, electronic commerce will be discussed by presenting its business models, subdivided into different groups of participants, evaluating them, and giving a brief outlook.

2. definitions of terms

2.1 Definition of “Electronic Business

The term “electronic business”, also called “e-business”, is defined differently in the literature, but the definition according to KERSTEN (2001, p. 23) will be used here. He speaks of an “[…] umbrella term for the strategic application of computer-based information and communication technologies to achieve corporate goals, including the corresponding design and reorganization of business processes”. Thus, in general summary, it is “[…] the processing of transactions between economic entities via electronic media, also referred to as new information and communication technology.” (KEUPER 2002, p. 205) The latter author also refers to “electronic business” as an umbrella term with characteristics such as e-commerce, e-collaboration or e-procedurement. Both authors mention that e-business includes not only the support of existing business processes with electronic media, but also the further development and emergence of new types of business processes, since information and communications technologies have a system-building function. BERRES (2000, p. 101) also agrees with the two authors just mentioned in her definition, speaking of e-business when “all business processes are Internet-supported and digitally captured across all stages of the value chain” A very simple and imprecise definition is given by the IMB Consulting Group (1999, p. 21), which claims that e-business is “doing business electronically with consumers.” Nevertheless, the IMB Consulting Group (1999, p. 22) has presented a very detailed description of e-business in their figure (Figure 1). The dimensions of e-business are shown in graphic detail. One recognizes not only the technology, by which this economic phenomenon is made possible, but also the business processes, which are contained, as well as a fundamental thought, which is reflected in the uppermost way. Many different business models have developed in recent years in the field of e-business, however, many authors in the definitions are usually limited only to the aspect of industrial purchasing from the perspective of buyers and suppliers. Furthermore, some definition approaches limit the number of actors involved by restricting e-business to the “interorganizational business area” (WIRTZ 2000, p. 27). Figure not included in this sample Figure 1: E-business and e-commerce (Source: IBM Consulting Group 1999, p. 22)

2.2 Definition of “electronic commerce

The term “electronic commerce”, also referred to as “e-commerce”, represents a sub-concept of e-business, as just mentioned in the definition of e-business. Since this term has only existed for a few years, a uniform definition is not yet available. ZBORNIK (1996, p. 57) offers one possible definition: He understands the German term “elektronischer Handel” as an information and communication technology support or automation of the coordination forms markets, hierarchies and networks. He speaks of a very young research direction and tries to make a demarcation of electronic trade from conventional trade. According to GORA (2001, P. 294) means E-Commerce in the actual sense “the representation of business processes by electronic media, begun from the procurement over internal concerns up to logistics or the selling”. This however rather broadly comprehensive definition can be narrowed down by the simple designation of a “general development of a new distribution channel via Internet”. In the following, however, the definition of KEUPER (2001, p. 36) is taken as a basis. It distinguishes between a narrow and a broad form of understanding the term e-commerce. In its narrow definition, e-commerce only includes the direct purchase and sale of goods and services via electronic sales channels. In its broad version, on the other hand, this term includes any use of electronic information and communication systems to support various internal as well as cross-company value creation processes. For this broader version, he uses the term “electronic business” (KEUPER 2001, p. 294). According to RICHTER (2002, p. 17), the main objective of e-commerce is the electronic initiation and processing of transactions. According to the definitions, individual types of e-commerce can also be considered. GRONAU (2001, p. 40f) typifies e-commerce according to the partners involved, as shown in Figure 2. Thus, e-commerce can be understood as intra-business, which provides electronic networks for coordination and settlement within a company between independent units. Business-to-business (B2B) electronic commerce, which is electronic commerce between two companies, is another option, with electronic commerce between companies and end customers being referred to as business-to-consumer (B2C) electronic commerce. A fourth type is, of course, consumer-to-consumer (C2C) electronic commerce, i.e., trade between end customers without the involvement of a company, which is practiced, for example, through classified ad markets or auction sites on the Internet. KEUPER (2001) uses a similar typification with the same criterion as GRONAU (2001), namely that of market participants, and also distinguishes a B2B from a B2C area, so that this approach to typification according to GRONAU (2001) is retained in the following in agreement with KEUPER (2001) as described in detail in the previous section. Figure not included in this sample Figure 2: Typification of e-commerce (source: GRONAU 2001, p. 41)

2.3 Definition of terms

At this point, it should be emphasized once again that e-commerce, as described by several authors, is thus a part of e-business. E-Commerce concerns only the business processes between enterprises and customers, the enterprises among themselves as well as the customers among themselves. In the illustration 1 explained in the point 2.1, as well as in the illustration 3 the difference of both terms is again clarified. Figure 1 depicted the environment of e-business, which includes e-commerce in the second level. According to the IBM Consulting Group (1999), e-commerce only represents trade between the company and its customers, but it also includes trade between companies and between customers. Figure 3 of WIRTZ (2000, p. 4) shows the integration of e-commerce into e-business in a very nice and clear way. The boundaries and contents of e-business are also clearly illustrated. The information revolution mentioned in the introduction logically leads to the information society, which is characterized by the Internet economy that makes information procurement possible. E-business is included in this, a consequence of both phenomena. E-business contains various areas: electronic collaboration, electronic communication, electronic education, and electronic commerce, which will be discussed in more detail below. Figure not included in this sample Figure 3: Dimensions of the information society (Source: WIRTZ 2000, p. 4)

2.4 Developments

The approximately one hundred year history of electrical or electronic communication has taken a rapid development, especially in the last quarter century, which can be felt and influenced in all areas of life. Along with the military, commerce is one of the areas that was the first to recognize and innovatively exploit the potential of the new information technology. (ZBORNIK 1996, p. 35) In the following, only a brief historical outline will be given, which represents the developments of technology in the field of information and communication media. Figure 4 (ZBORNIK 1996, p. 40) shows a summary of all the most important stages in electronic commerce. Telegraphy made the beginning in 1838. Another important innovation is the telephone around 1880. In the 1950s, the history of the Internet already began, but initially for military purposes. In 1969, the first version of the Internet was put into operation, but it was initially used for experimental purposes. In the following years, however, it was released for universities. (WIRTZ 2000, p. 238) In the mid-1960s, the first flight reservation systems represented a decisive advance in the tourism industry. It should also be mentioned that in the mid-1970s, technology penetrated the financial exchanges, where it is now a standard feature. The now indispensable communication tool of emails also found its beginnings in these years. It was not until the 1980s that home banking emerged, while in the area of exchanges the systems were subject to constant innovation. From the 1990s followed a very rapid development. In 1992, the World Wide Web (WWW), known to everyone today, was developed by the Swiss nuclear research center CERN (Conseil Europeen pour la Recherche Nucleaire). In 1994, CommerceNet was launched in the USA. In the further course of the 1990s, there were renewals in electronic commerce every year, as can be read in detail in Figure 4. It is important to mention that from 2000 onwards, the legal framework was adapted to the needs of global e-commerce, thus further promoting this new form of marketing. Today, the Internet takes the leading role as the basic technology for e-commerce. To reach 50 million U.S. users, radio took 38 years, television 13 years, cable television 10 years, and the Internet just 5 years. (http://www.firstsurf.com/greiner0217_t.htm) In the following, we will briefly discuss the development of e-business within companies. To this end, the IBM Consulting Group (1999, p. 251f) speaks of an e-business cycle that is experienced “quite constantly” by companies in all industries. Thus, the first step after raising awareness in the company is to build a simple Web presence with the goal of simplifying access to information for customers, business partners and employees. Next, “self-service” applications are developed, linking the Web sites, for example, to customer and account information already on databases that can be accessed directly over the “Net.” After that comes a big elaborate step when the “net” is integrated with core processes to keep the business running. After that, however, many new opportunities open up for businesses to interact with each other, their customers, employees, suppliers and vendors. Of course, these processes must be constantly adapted to the current situation of the company. At the end of this cycle, they will exploit the maximum leverage of the advantages that the Internet offers them. Abbildung in dieser Leseprobe nicht enthalten Figure 4: Overview of technological developments in e-commerce (Source: ZBORNIK 1996, p. 40) […] What Is The Meaning Of E Business.

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