Electronic Business

Electronic business refers to the application of information and communication technologies (ICT) in support of all the actions of business (1). It is any process that a business conducts over a computer network. This can help businesses by allowing companies to link their internal and external data processing systems more capably. This results in more customer satisfaction (1). Many companies use electronic business for production, customer-focused processes, or management-focused processes (2). This can include electronic selling, customer management, employee training, and more. Electronic business includes e-commerce, which is “any transaction completed over a computer-mediated network that involves the transfer of ownership or rights to use goods and services” (2). The buying and selling of products online, which is an example of e-commerce, has become very popular for businesses as well as customers, since there are many advantages for both. First of all, the customers can order their products no matter what time of the day. Sometimes they may even obtain their order right away, such as electronic books or computer software that downloads right to their computer. This way, they do not need to leave their home or office in order to buy the product and they can order it on their own time without having to worry about when the store closes. As for the sellers, e-business helps cut costs and expand their markets. For instance, since the buying and selling is done electronically, the company does not need to build staff, maintain a physical store, or print and distribute mail order catalogs (3). “Automated order tracking and billing systems cut additional labor costs, and if the product or service can be downloaded then e-commerce firms have no distribution costs involved” (3). These businesses are not limited by the physical location of a store (3). Some examples of e-commerce businesses include Amazon and EBay, which are both extremely popular for their electronic buying and selling.

(1) http://en.wikipedia.org/wiki/Electronic_business
(2) http://www.census.gov/epcd/www/ebusines.htm
(3) http://ezinearticles.com/?What-is-e-Commerce---Advantages-and-Drawbacks!&id=241542