e-business vs e-commerce

Internet has made business interactions multi-faceted. People can now do business such as buy
things, transact, and carry out business functions over the internet. Consumers and business
owners/managers nowadays can now get and do what they want without leaving the confines of
their rooms as long as they are connected to the internet.

The terms e-business and e-commerce are now often seen and used interchangeably. However,
though related, they have different meanings. The “e” prefix means “electronic” which connotes
any activity or transaction done without any physical exchanges or contact. The dealings are
done electronically or digitally, a thing made possible with the leaps and bounds development of
digital communications.

E-commerce implies business transactions over the internet where the parties involve are either
selling or buying. The transactions conducted in e-commerce basically involve the transfer or
handing over ownership and rights to products or services.

Technically, e-commerce is only a part of e-business because, by definition, e-business refers to

all online business transactions including selling directly to consumers (e-commerce), dealing
with manufacturers and suppliers, and conducting interactions with partners. Information
exchange via centralized database is also done in e-commerce. Business functions are only
limited to the companies’ technological resources.

E-commerce principally involves money exchanges in the transactions. In e-business, as it is

broader, it is not limited to monetary transactions. All aspects in business are included like
marketing, product design, supply management, etc.

E-business is more about making great products, brainstorming and giving quality service,
planning about product exposure and executing it. Well, of course, e-commerce is an integral
part of the e-business process but in strict terms, it is the activity of selling and buying.
Summary:

1. E-business is broader in scope and e-commerce is just an aspect or a subset of it.

2. E-commerce only covers business transactions such as buying and selling of goods and
services over the internet.

3. E-commerce essentially involves monetary trade while in e-business, money transactions

are not necessary.

4. E-business involves marketing, product design, consumer service evaluation, and more.

Read more: Difference Between e-business and e-commerce | Difference Between | e-business vs
e-commerce http://www.differencebetween.net/business/difference-between-e-business-and-e-
commerce/#ixzz1KZL5E2Lva

E -business and e-commerce are terms that are sometimes used interchangeably, and sometimes
they're used to differentiate one vendor's product from another. But the terms are different, and
that difference matters to today's companies. 
In both cases, the e stands for "electronic networks" and describes the application of electronic
network technology - including Internet and electronic data interchange (EDI) - to improve and
change business processes. 
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 and supplies 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 to new competitors. 
It's ambitious but relatively easy to implement because it involves only three types of integration:
vertical integration of front-end Web site applications to existing transaction systems; cross-
business integration of a company with Web sites of customers, suppliers or intermediaries such
as Web-based marketplaces; and integration of technology with modestly redesigned processes
for order handling, purchasing or customer service. 
E-business includes e-commerce but also covers internal processes such as production, inventory
management, product development, risk management, finance, knowledge management and
human resources. E-business strategy is more complex, more focused on internal processes, and
aimed at cost savings 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- and back-end systems; laterally, between a company and its
customers, business partners, suppliers or intermediaries; horizontally, among e-commerce,
enterprise resource planning (ERP), customer relationship management (CRM), knowledge
management and supply-chain management systems; and downward through the enterprise, for
integration of new technologies with radically redesigned business processes. But e-business has
a higher payoff in the form of more efficient processes, lower costs and potentially greater
profits. 
E-commerce and e-business both address these processes, as well as a technology infrastructure
of databases, application servers, security tools, systems management and legacy systems. And
both involve the creation of new value chains between a company and its customers and
suppliers, as well as within the company itself. 
All companies should have an e-commerce strategy. (Governments should have an e-public
service strategy.) Electronic networks in general and the Internet in particular are too important
for firms to ignore if they want to interact with customers, suppliers or distribution partners. 
But some companies need to move beyond e-commerce and form e-business strategies -
especially large companies that already have links