Janica Marie M.

Bagnol
ACC 214 – 0687

What is the difference between E-commerce and E-Business?

E-commerce is buying and selling using an electronic medium. It is accepting

credit and payments over the net, doing banking transactions using the Internet, selling
commodities or information using the World Wide Web and so on.

E-Business in addition to encompassing E-commerce includes both front and

back-office applications that form the engine for modern E-commerce. E-business is
not just about E-commerce transactions; it's about re-defining old business models,
with the aid of technology to maximize customer value. E-Business is the overall
strategy and E-commerce is an extremely important facet of E-Business.
Thus e-business involves not merely setting up the company website and being able
to accept credit card payments or being able to sell products or services on time. It
involves fundamental re-structuring and streamlining of the business using technology
by implementing enterprise resource planning (ERP) systems, supply chain
management, customer relationship management, data ware housing, data marts,
data mining, etc.

Conducting business online. Selling goods, in the traditional sense, is possible to

do electronically because of certain software programs that run the main functions of
an e-commerce Web site, including product display, online ordering, and inventory
management. The software resides on a commerce server and works in conjunction
with online payment systems to process payments. Since these servers and data lines
make up the backbone of the Internet, in a broad sense, e-commerce means doing
business over interconnected networks.

The definition of e-commerce includes business activities that are business-to-

business (B2B), business-to-consumer (B2C), extended enterprise computing (also
known as "newly emerging value chains"), d-commerce, and m-commerce. E-
commerce is a major factor in the U.S. economy because it assists companies with
many levels of current business transactions, as well as creating new online business
opportunities that are global in nature.

Here are a few examples of e-commerce:

1. accepting credit cards for commercial online sales

2. generating onlinea advertising revenue
3. trading stock in an online brokerage account
4. driving information through a company via its intranet
5. driving manufacturing and distribution through a value chain with partners on
an extranet
6. selling to consumers on a pay-per-download basis, through a Web site

E-Business?

Why Use Electronic Communication The Internet and electronic

communications (also called computer mediated communications, or CMC) doesn't
just mean new tools for communication; it means new ways to communicate. Today
your organization interacts with its various constituents differently - employees, board
members, customers, partners and others - depending upon the nature of the
message, the goals you are trying to achieve and the strengths (and weaknesses) of
the available media - telephones, voice mail, fax machines, print, etc.

Advantages Disadvantages
With the use of e-commerce you can Security - there are still some people
promote your product globally. who don't think it is safe to buy on-line
therefore as their isn't a high-street shop
will loss their custom.

Reduces Time and money spent.
Gives a competitive advantages.
Removes Location and availability
restrictions.
Heightens customer service.
You may not receive what you believe
you have purchased.
Things such as viruses could mean
losing the site or affecting your
customers computers while on your
website.