E-business
E-business....
Electronic business....
Electronic business....
Online Business or e-business is a term which can be used for any kind of business or commercial transaction that includes sharing information across the internet. Commerceconstitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business. Electronic commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses or e business refers to business with help of internet i.e. doing business with the help of internet network.[1] The term "e-business" was coined by IBM's marketing and Internet team in 1996.[2][3]
History
In 1994, IBM, with its agency Ogilvy & Mather, began to use its foundation in IT solutions and expertise to market itself as a leader of conducting business on the Internet through the term "e-business."[4] Then CEO Louis V. Gerstner, Jr. was prepared to invest $1 billion to market this new brand.[5]
After conducting worldwide market research in October 1997, IBM began with an eight-page piece in the Wall Street Journal that would introduce the concept of "e-business" and advertise IBM's expertise in the new field.[4] IBM decided not to trademark the term "e-business" in the hopes that other companies would use the term and create an entire new industry.[5] However, this proved to be too successful and by 2000, to differentiate itself, IBM launched a $300 million campaign about its "e-business infrastructure" capabilities. Since that time, the terms, "e-business" and "e-commerce" have been loosely interchangeable and have become a part of the common vernacular.
Business model
When organizations go online, they have to decide which e-business models best suit their goals.[7] A business model is defined as the organization of product, service and information flows, and the source of revenues and benefits for suppliers and customers. The concept of e-business model is the same but used in the online presence.
Revenue model
A key component of the business model is the revenue model, which is a framework for generating revenues. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. It is a key component of a company's business model. It primarily identifies what product or service will be created in order to generate revenues and the ways in which the product or service will be sold.
Without a well defined revenue model, that is, a clear plan of how to generate revenues, new businesses will more likely struggle due to costs which they will not be able to sustain. By having a clear revenue model, a business can focus on a target audience, fund development plans for a product or service, establish marketing plans, begin a line of credit and raise capital.
E-commerce
E-commerce (short for "electronic commerce") is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail.
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