Lecture 1

Lecture 1
What is e-business?
Agenda 2
• E-business and e-commerce
• E-business concepts and dimensions
• Types of e-business
• Evolution of e-business
• Stakeholders and major players
• E-business framework
3
“It is not the strongest of the species that

survive, nor the most intelligent, but the one
most responsive to change”
Charles Darwin
“If you’re not changing faster than your

environment, you are falling behind”
Jack Welsh, CEO of GE
Regional Training Workshop for Enterprise Support Agencies to Promote E-business for
SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok
E-business and E-commerce 4
Electronic business or e-business is the use of

ICT to improve business (from the use of email to
facilitate administrative procedures in buying and
selling through the Internet).
Electronic commerce or e-commerce is where

business transactions take place via electronic
communication networks, especially the Internet.
E-business vs. E-commerce 5
The main difference between them is that e-commerce

defines interaction between organizations and their
customers, clients, or constituents. On the other hand,
e-business is broader term that also encompasses an
organization’s internal operations.
Electronic commerce describes the buying and selling

of products, services, and information via computer
networks including the Internet, where e-Business
describes the broadest definition of EC. It includes
buying and selling of products and services, servicing
customers, collaborating with business partners, and
conducting other intra-business tasks.
E-business and e-commerce 6
Three alternative deﬁnitions of the relationship

between e-business and e-commerce
E-Business concepts 7
E-business defined from the following perspectives:
• Communications: delivery of goods, services,

information, or payments over computer networks
or any other electronic means
• Commercial (trading): provides capability of

buying and selling products, services, and
information on the Internet and via other online
services
E-Business concepts (cont.) 8
• Business process: doing business electronically

by completing business processes over electronic
networks, thereby substituting information for
physical business processes
• Service: a tool that addresses the desire of

governments, firms, consumers, and management
to cut service costs while improving the quality of
customer service and increasing the speed of
service delivery
E-Business concepts (cont.) 9
• Learning: an enabler of online training and

education in schools, universities, and other
organizations, including businesses
• Collaborative: the framework for inter- and intra-

organizational collaboration
• Community: provides a gathering place for

community members to learn, transact, and
collaborate
Dimensions of e-business/e-commerce 10
Source: Choi et al. (1997), p. 18.
Dimensions of e-business/e-commerce 11
• Pure vs. Partial: based on the degree of digitization of:

- Product
- Process
- Delivery agent
• Traditional commerce: all dimensions are physical
• Pure e-business: all dimensions are digital
• Partial e-business: all other possibilities include a mix

of digital and physical dimensions
Types of e-business 12
Business-to-business (B2B)
Business that sells products or provides services to other
businesses
Business-to-consumer (B2C)
Business that sells products or provides services to end-user
consumers
Consumer-to-consumer (C2C)
Consumers sell directly to other consumers
Types of e-business (cont.) 13
Business-to-government (B2G)
Government buys or provides goods, services or
information to/from businesses or individual citizens
Business-to-employee (B2E)
Information and services made available to employees
online
Mobile commerce (m-commerce)

E-commerce transactions and activities conducted in a
wireless environment
Collaborative commerce (c-commerce)

Individuals or groups communicate or collaborate online
Evolution of e-business 14
How it started
• Electronic data interchange (EDI) - electronically transfer routine

documents (application enlarged pool of participating companies to
include manufacturers, retailers, services)
• 1970s: innovations like electronic funds transfer (EFT) - funds

routed electronically from one organization to another (limited to
large corporations)
• 1990s: the Internet commercialized and users flocked to participate

in the form of dot-coms, or Internet start-ups
Traditional Purchasing Process Flow 15
Source: ariba.com, February 2001.
Evolution of e-business (cont.) 16
• 1997: Introduction of a brand new phrase – e-business
• 1999: The emphasis of e-business shifted from B2C to B2B
• 2001: The emphasis shifted from B2B to B2E, c-commerce, e-

government, e-learning, and m-commerce
• 2004: Total online shopping and transactions in the United States

between $3 to $7 trillion
• E-business will undoubtedly continue to shift and change
Levels of e-maturity 17
Innovate
Business development
Integrate
Order processing
Interact
Order taking
Informate
Brochure-ware Where do you
want to
Be and Go….
Evolution of e-business (cont.) 18
The Future
By 2008:
• Number of Internet users worldwide should reach 750 million
• 50 percent of Internet users will shop
• E-business growth will come more from:

• B2C, B2B, e-government, e-learning, B2E, c-commerce
Stakeholders 19
E-Business relationships are formed with the

following types of stakeholders:
• Internal stakeholders: Management and staff
• Suppliers and manufactures
• Customers
• Intermediaries
• Financial institutions
• Web service providers
• Associations
• Web communities
• Etc.
Major Players 20
Major business pressures 21
E-business framework 22
E-Business does not affect an organization’s fundamental

goals, rather it provides a new ways to achieve them:
• E-business adoption strategy and direction

Vision must be communicated to all stakeholders
• The interaction among stakeholders

Smaller network, more flexible organizations, shifting priorities and
roles
• Information system and technology infrastructure

Mechanism to improve, enrich, change, and deepen relationships with
key stakeholders
• Culture
Need to adapt the new way, will impact on rules, belief,
norms, and behaviours
Conclusion 23
Q&A

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• E-business and e-commerce

• E-business concepts and dimensions

• Stakeholders and major players

“It is not the strongest of the species that

“If you’re not changing faster than your

Electronic business or e-business is the use of

Electronic commerce or e-commerce is where

The main difference between them is that e-commerce

Electronic commerce describes the buying and selling

Three alternative deﬁnitions of the relationship

E-business defined from the following perspectives:

• Communications: delivery of goods, services,

• Commercial (trading): provides capability of

• Business process: doing business electronically

• Service: a tool that addresses the desire of

• Learning: an enabler of online training and

• Collaborative: the framework for inter- and intra-

• Community: provides a gathering place for

Source: Choi et al. (1997), p. 18.

• Pure vs. Partial: based on the degree of digitization of:

• Traditional commerce: all dimensions are physical

• Pure e-business: all dimensions are digital

• Partial e-business: all other possibilities include a mix

Mobile commerce (m-commerce)

Collaborative commerce (c-commerce)

• Electronic data interchange (EDI) - electronically transfer routine

• 1970s: innovations like electronic funds transfer (EFT) - funds

• 1990s: the Internet commercialized and users flocked to participate

Source: ariba.com, February 2001.

• 1997: Introduction of a brand new phrase – e-business

• 1999: The emphasis of e-business shifted from B2C to B2B

• 2001: The emphasis shifted from B2B to B2E, c-commerce, e-

• 2004: Total online shopping and transactions in the United States

• E-business will undoubtedly continue to shift and change

• 50 percent of Internet users will shop

• E-business growth will come more from:

E-Business relationships are formed with the

E-Business does not affect an organization’s fundamental

• E-business adoption strategy and direction

• The interaction among stakeholders

• Information system and technology infrastructure

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