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Electronic business

E-business (electronic business) can merely be described as a wider notion that embraces all aspects of the use of information technology in business. It doesn't just deal with buying and selling it also deals with the servicing customers and collaborating with business partners and with organisation. A good example of is Amazon, they deal with the advertising of books and music cd's online. They become the middlemen among the publishers and the consumers. E-business is any business process that is empowered by an information system. E-business can be split into three parts namely business to consumer, business to business and business to employee. Today, this is mainly finished with Web-based technologies. Electronic digital business methods permits companies to web page link their inner and external functions more effectively and flexibly, work more strongly with suppliers and associates to better meet the needs and expectations with their customers. Used, this calls for the benefits of new income streams through the use of electronic commerce, the improvement of connections between clients and companions and increasing efficiency from using knowledge management systems. E-business can be conducted over the general public Internet, through interior intranets and over secure private extranets.

E-business covers business functions along the complete value string: digital purchasing ("e-procurement") and supply chain management, control orders electronically, customer service and cooperation with business lovers. This applies to traditional and digital organisations. Special technical expectations for e-business facilitate the exchange of data between companies. E-business software alternatives permit the integration of intra and inter solid business operations.

Applications can be divided into three categories:

A) Internal business systems:

Customer marriage management

  1. Internal business deal processing
  2. Recruiting management
  3. Process control
  4. Employee information portals
  5. Workflow management
  6. Enterprise source of information planning
  7. Knowledge management
  8. Doc management systems

B) Enterprise communication and collaboration

Content management system

  1. E-mail
  2. Voice email
  3. Discussion forums
  4. Chat systems
  5. Data conferencing
  6. Collaborative work systems

C) Electronic commerce- Business-to-business electric commerce or business-to-consumer electronic commerce

  1. Electronic money transfer
  2. Supply chain management
  3. E-marketing
  4. Online business deal processing
  5. Range of e-business applications
  6. These applications can be available to different sorts of users:
  7. All users of the internet
  8. Only the employees on the intranet
  9. A specific targeted band of users of your extranet (like customers, companions etc. )

E-business supplies the opportunity to rethink a complete range of assumptions about how exactly businesses operate, that they relate to their customers and products, and their roles and position in the wider market.

The drivers for e-business can be divided into the follows: Opportunities and Threats.


E-business provides possibility to choose a business design. Some organisations such as prudential assurance with Egg and Co-operative Lender with smile have launched different internet businesses, and have taken the opportunity to establish a new brand which might be more consultant of their business perspective for future years of the business, that an old long-standing brands.

E-commerce also provides opportunity to define the partnership with customers. I. e. usual service ventures are under the customer's control. The customer is motivated to learn the script for example the process associated with placing an order. This learning escalates the barriers to switching.

Customer knowledge: This embeds the collection of data which supply the organisation an upper give rivals for example my bank. My bank knows my by name and address which can help stop crime.

Cost saving on deals can be extensive because the client can take responsibility for a large aspect of the service business deal.

Access to global marketplaces: This occurs mostly in niche market markets; usage of such global market segments has provided welcome opportunities for smaller businesses and going into the global market is challenging.


  • Hurdle of access are minimal. It requires short time period to put into practice web existence and in that way to launch a new business.
  • Size doesn't matter and indeed small and medium sized companies may become more flexible and flexible.
  • Increase customer expectation about choice, especially with regards to extensive product range, the opportunity to undertake comparison shopping, and 24-hour availability.
  • Pressure on product margins. Marketplaces which may have pressure on product margins, additional pressure will arise from an additional channel of delivery.

Virtual organisations (VO)

This is a non permanent network of independent companies- items, customers, even rivals- associated by it to talk about skills, costs, resources, suggestions to create, deliver product and services with out being limited by traditional boundaries or locations and gaining usage of one another's markets. Virtual organisation has many locations and need to communicate between those locations, to share information and work collaboratively on that distributed information to produce joint products and services, by using information systems. From my perspective virtual organisation can be identified as

A virtual company can be an opportunity-pulled and opportunity identified integration of core competencies of different companions which is dependant on information systems.

  • Inside a virtual organisation a single project can find different partners on basis of computer support.
  • In a very virtual organisation experts can be accessed through the computer network.
  • In a very virtual organisation individuals interact with the other person as associates within computer backed collaborative work.
  • Within a virtual organisation, companies must be connected electronically so that people within an organisation can inter-operate and intra-operate across the electronic business environment, using common tools to find their way across the e-business environment and show information.

Virtual company will have neither central office nor an company chart. This type of organisation will haven't any hierarchy no vertical integration. The purpose of such an company is to or alliance is to order speed and adaptable in order to:

Break down market barriers to new products by rallying the mandatory skills and competence from teams, individuals, and even rivals from external organisational boundaries.

Gain gain access to into new markets and technology.

For this type of company to exist they need to have the following:

  • Adaptability, overall flexibility and responsiveness to change requirements and conditions.
  • Performance.
  • Empowerment of staff.
  • Low degree of bureaucracy.
  • High infusion of computer to support business techniques and knowledge workers.
  • Stewardship of expertise, know-how and knowledge.
  • Dispersion of components parts.

The success factors for such organisations are:

  • Shared risks.
  • Common benefits.
  • Trust.
  • A shared vision.

The goals of your virtual company are:

  • Excellence: each partner brings its center competence.
  • Usage: sources of partners are utilized more profitably.
  • Opportunism: market opportunity can be met better mutually than by each individual company.

Any of these factors can transform the opportunism that resulted in the formation of a virtual organisation may lead to its demise. The bad thing relating to this organisation is that whenever they is a turmoil, misunderstandings or unforeseen event the company has few founded procedures to deal with the negotiation and conflict resolution. In a virtual organisation a key component to acquire is a digital team. A virtual team can be an evolutionary form of network organisation enabled by innovations in information and communication technology. The opportunistic nature of such alliances suggests that they will generally be short-term and are present only until after their aim has been achieved. The five main features of a electronic company are alliance for a goal, underlying information and communication systems, vertical integration, globalization, and collaboration. The member companies will then disband and proceed to create new partnerships. In reality the permanence of alliances and how virtual organisations mutate will rely upon the interdependencies between your member the users, and the scope to which original goals evolves into new distributed objectives.

Organisations are motivated to be VO anticipated to different situation:

  • Needs for process development - companies are often encouraged by competitive pressures, resource, requirements and other factors to accomplish increased output and quality.
  • Sharing of primary competencies- VO (virtual organisation) help treat the voids in an organisation including the starting up, turn over and retirements.
  • Mobile employees- VO (virtual organisation) concepts can help the many companies employing mobile staff such as auditors, specialist and technicians.
  • Cost lowering- bettering efficiency often means reducing over head, such as redistributing cost over several lovers' locations.
  • Changes in worker values and behaviour toward work- quality of life are a significant element in keeping and employing staff.
  • Costs and problems of traveling- VOs (virtual organisation) address transportation issues, such as unpredicted commuting time, traffic inconveniences, the cost of fuel and environmental impact of commuting.

For an company to have the ability to apply VOs (virtual company) it'll include:

  • Telecommuting - the partner's employees work at a location away from the usual office such as at home or mobile locations.
  • Tele-centres - these satellite offices typically are situated in communities beyond local area but provide space, equipments for employees commonly unavailable in telecommuting.
  • Mobile working - this refers to the working environment of mobile workers who are required to use technology such as cell phones, e-mail wireless devices, pagers and laptops.
  • Hot desking - is when employees of the organisation temporary physical occupy a work place or surface in the organisation or a partner's organisation.
  • Hoteling - employees of the organisation don't have traditional work place in a building but instead home based or the street and reserve meeting rooms or office buildings at a building, usually the business's headquarters, when they have to meet with clients, colleagues, or their departments.
  • Virtual team - is several employees that work in a Geographically Dispersed Team (GDT), space, and organisational boundaries with links strengthened by webs of communication technology i. e. e-mail, groupware or training video conferencing.


In E-business technology is any thing that facilitates and constrains the development of e-business.

Most of the enjoyment around e-business is integrally from the probable of the internet, plus more specifically the web. Whiles these technologies are important lets remember that in e-business, especially in business-to-consumer applications, is concerned with allowing customers access through whichever route they choose for example mobile phones, personal digital assistants (PDA) with WAP screen or public access kiosks i. e. in airports, railway stations, and shopping centres. So quite simply customer will want to have the ability to gain access to information in the move, as well as through fixed machines at home or at the job. The only issues with this is that the merchandise been viewed can't be touched, smelt, or seen like in a traditional shop. An advantage of these e-businesses is a customer can go to a exclusive mall and accumulate information on something, compare prices with similar products and also check details of the merchandise.

The main solutions that I will be discussing will be:

  • The internet.
  • Intranet and Extranets.

The term internet and World Wide Web are often used interchangeably. Both of these won't be the same thing. The internet is a assortment of interlinked computer networks or a network of sites while the World Wide Web consists of those servers linked to the internet that use HTTP. The defining feature of the web is the fact that websites or documents are associated with one another through hyperlinks that happen to be embedded in the website. Users move in one site to another with the help of hyperlinks.

Another principle that is often experienced in the internet world is that of the intranet. An intranet is an organisations inside communication system that uses internet technology. Intranet is a web browser and graphical interface. While the internet offers usage of its contents for almost any member of the general public, intranet have strict gain access to adjustments in form of passwords and firewalls. These security devices protect company webpages, doc databases and other information from external gain access to. These are great for large companies working from several places.

Extranet can be an extended intranet that provides access to users beyond the organisation such as customers, suppliers, collaborators plus some times opponents. Extranet likewise have security devices that protect information from other internet users and define the level of gain access to for approved users.

The internet links millions of computers and the speed of increase in use and the new subscriber are the progress daily all around the globe. That is why a whole lot of companies are incredibly excited and commit big money in the e-business portion of there company. For companies the internet is the gateway to an enormous market it's just a matter of finding your topic. An example of an extremely success internet company that we all know is Amazon. Most companies think it is important to truly have a existence online in form of the website, because the internet is now a cheaper way of campaign and visibility.

For customer the internet is a gateway to information, commercial and government websites, software and record archives, and e-mail. The internet offers for both the customer and companies a abundant seam of information and commercial deals and business.

Relationship between E-business, Virtual Company, and Technology.

The romantic relationship between e-business, virtual company and technology are that virtual company needs e-business and technology. In online company technology is important because online organisation needs these systems such as the internet to create and re-form alliances and to create blurred boundaries of the company, breakdown barriers to entry and access new markets. In addition, it needs technology for security issues, compatibilities and interoperability, payment mechanism and mobile network route capacity.

It needs e-business because e-business embraces all areas of information technology running a business i. e. security issues related to data security and payment mechanisms, reducing costs, improved customer service and increased competitive border. This includes buying and selling, collaborating with business partners and the integration across business processes and communication within the company. Technology has also helped the online organisation advance information and communications technologies. It has additionally have in flexibility, improved security, low costs, and improved upon resource utilization. Technology has helped communication to allow users separated by time and space and often culture, geography, history and future to activate in collaborative work.

E-business technology is important because e-business needs technology to have the ability to embrace information technology for example without the internet e-business will never be able to service out duties like investing online, conversing with customers, companies being able to promote and become noticeable online. So without technology they'll be no e-business. Exclusive company can be related to e-business only if a corporation is involved in a momentary network of independent companies associated by it to talk about skills, costs and usage of one another's markets or to cause a product or service.

Virtual Organisations and e-business are related to technology or work palm at hand because without them the relevant technology wouldn't normally have being designed for example in e-business the online transaction processing would have being useless because they will be no need for online transaction with no release of e-business. In the case of virtual organisation technology has help to make it work including the internet has made it easy for a virtual organisation to form and re-form alliances also to create blurred boundaries of the company, break down barriers to entry and access new marketplaces. Technology has also helped virtual company progress information and communications technologies. It has also have in versatility, upgraded security, low costs, and better resource utilization. Technology has helped communication to allow associates separated by time and space and frequently culture, geography, history and future to activate in collaborative work.

Benefits of E-business are that it gives the opportunity to choose a business design, it redefines the business relationship, it introduces cost saving for the company i. e. advertising or overhead costs, it gives the company access to new global market segments, the company gets launched to E-commerce, it gives companies like banks Customer knowledge for instant knowing the client by first name.

Benefits of technology are better communication i. e. in a position to reach more people with the help of the internet, saves on over brain costs, it introduces cheaper ways of campaign and been obvious to the customers and prospects, technology gives better storage area methods i. e. banks holding home elevators the magnetic strip of an credit/debit cards or super market segments storing information on a bar code, it introduces better ways of communicating.

Benefits of electronic Organisation will be the partners show risks, show costs, it breaks down market barriers to new products by rallying the required skills and experience from teams, individuals, and even rivals from outside the house organisational boundaries, it supply the partners access into new marketplaces, expertise and technology, it introduces increased versatility of organisations and finally it increases customer relationships for the lovers.


As mentioned I assume that technology, virtual organisation and e-business work to check one another. Technology is important for both e-business and exclusive company because both need some sort of technology to have the ability to exist or benefit example virtual company can not do well without technology. It needs technology to set up a networks, marketing communications, security and e-business can't exist without the help of technology because technology is needed to embrace information technology foe example support the internet, INTERNET, e-mail, groupware such as lotus and video tutorial conferencing. In terms of technology without e-business and electronic organisation the solutions will never be designed or designed for example in e-business the online transaction processing could have being useless because they'll be no need for online transaction without the intro of e-business. Technology in addition has helped virtual company advance information and marketing communications technologies. It has additionally have in versatility, improved security, low costs, and upgraded resource utilization. Solutions has helped communication or have meetings to allow participants separated by time and space and frequently culture, geography, background and future to activate in collaborative work.

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