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Question One. With help of suitable examples, distinguish between E-Commerce and E-Business.
E -business and e-commerce are terms that are sometimes used interchangeably, and sometimes they areused to differentiate one vendor's product from another. In both cases, the e stands for "electronicnetworks" and describes the application of electronic network technology; including Internet and electronicdata interchange (EDI), to improve and change business processes. E-commerce implies businesstransactions over the internet where the parties involved are either selling or buying. The transactionsconducted in e-commerce basically involve the transfer or handing over ownership and rights to productsor services.Technically, e-commerce is only a part of e-business because, by definition, e-business refers to all onlinebusiness transactions including selling directly to consumers (e-commerce), dealing with manufacturersand suppliers, and conducting interactions with partners. Information exchange via centralized database isalso done in e-
commerce. Business functions are only limited to the companies’ technologic
al resources.E-commerce principally involves money exchanges in the transactions. In e-business, as it is broader, it isnot limited to monetary transactions. All aspects in business are included like marketing, product design,and supply management.E-business is more about making great products, brainstorming and giving quality service, planning aboutproduct exposure and executing it. Well, of course, e-commerce is an integral part of the e-businessprocess but in strict terms, it is the activity of selling and buying.E-commerce covers outward-facing processes that touch customers, suppliers and external partners,including sales, marketing, order taking, delivery, customer service, purchasing of raw materials andsupplies for production and procurement of indirect operating expense items, such as office supplies.It involves new business models and the potential to gain new revenue or lose some existing revenue tonew competitors. It is ambitious but relatively easy to implement because it involves only three types of integration; which are vertical integration of front-end Web site applications to existing transactionsystems, cross-business integration of a company with Web sites of customers, suppliers or intermediariessuch as Web-based marketplaces and integration of technology with modestly redesigned processes fororder handling, purchasing or customer service.E-business includes e-commerce but also covers internal processes such as production, inventorymanagement, product development, risk management, finance, knowledge management and humanresources. E-business strategy is more complex, more focused on internal processes and aimed at costsavings and improvements in efficiency, productivity and cost savings.An e-business strategy is also more difficult to execute, with four directions of integration: vertically,between Web front-systems and back-end systems; laterally, between a company and its customers,