Difference Between eBusiness and eCommerce


Welcome to MasteringX eBusiness lecture series.
From this episode we are talking about the difference between the two terms eBusiness and eCommerce most of the people use these two terms electronic commerce and electronic
business, interchangeably. Actually each of them got two distinctive features. Before
that let’s talk about the history of electronic businesses an electronic
commerce. In the early 60s the beginning of 60s there was a
technique called as EDI, which means electronic data interchange. EDIs
allowed companies to process routine business transactions such like orders and invoices, more rapidly more accurately and more efficiently than
they could do through conventional methods of transactions. And for decades banks have being using something called
EFT’s electronic fund transfers also known as wire transfers so this EFT is the term used for EDI that involves the transfer of funds
between financial institutions over the private communication networks. And
that’s how the concepts of a ebusiness and ecommerce have started up. Here you can
see EDIs have a relationship with the e-business concept and EFT have a
relationship with the e-commerce concept but when even internet has entered into the
scene everything was changed and that’s what
we are going to discuss all through this lecture series. Internet began to
advance in popularity among the general public in the early nineties but it took
some more years to develop the rapid accessibility and the persistent
connection to the internet and also the security layout now we have seen as HTTPS and SSL. But anyway after the infrastructure was well established it make a huge impact
to the businesses and their commercial transactions ok now let’s go back to our original
question what is the difference between ebusiness and e-commerce. If someone
asked you the difference between these two terms you can show this venn diagram
here you can see ecommece is just a subset of ebusiness. ebusiness have many
components and e-commerce is just a one just a one as well as a special one if ecommerce is not existed in the
e-business most probably the ebusiness will not be existed in there. To
understand this difference perfectly we have to list down all the distinctive
features of both ecommerce and e-business so in this
table the left side column displays all the
distinctive features in e-commerce and in the right side column it present all
the distinctive and related features of the e-business now let’s take the first
one it says ecommerce involves commercial transactions done over the internet so
here the Ecommerce is doing commecial transactions now let’s
take the e-business one it’s says ebusiness is conduct of
business processes on the internet even though both are using the internet the
things they are doing is different ecommerce is involved in commercial
transactions and a ebusiness is conducting business processes so this commercial transactions might be
included in the business processes now the second feature ecommece is use
of electronic transmission medium that caters for buying and selling of
products and services so , ecommerce is directly handling buying and
selling activities in addition ebusiness also includes the exchange of
information directly related to the buying and selling of products so ebusiness cover up the information exchange part of buying and selling
activities in the third feature it say thus those activities which
essentially involved monetary transactions are termed as ecommerce , so we got
the point buying and selling activities means the
activities that involves monetary transactions in the other side you can
see the information exchange activities procument of raw materials or goods
customer education that means the interaction and communication with the
customer and looking for suppliers that means the supplier handling now look
at the fourth feature. eCommerce usually requires the use of our website and that
is because if you are performing buying and selling activities you have to open
the door for the public and the easiest way to do that is using a website now let’s see what kind of a thing ebusiness are using. ebusiness involves the use of the CRMS customer
relationship management systems ERP enterprise resource planning
system that connects different business processes so ebusiness are using large
and complex systems because they need to handle different business processes and
the next one says ecommerce involves the mandatory use of internet.
definitely eCommerce need internet. and eBusiness can involve the use of internet, intranet and extranet. Internet is publicly accessible because it is a
public network and intranet is an internal network only the people who are
authorized within an organization can access it an extranet is external
Network which connects external parties only the people who are authorized in
external parties can access it and why ebusinesses are having these two
additional networks. internet and extranet that is because the ebusinesses may handle
internal business processes and business processes that connects another business
party if the interaction is happening with an employee of the organization it
is using the intranet and if the interaction is happening with the
external party for example suppliers it is using extranet and if the interaction is
happening with a potential customer we have to use a public network and that
is the internet now let’s look at the next feature. ecommerce covers outward-facing processes
that touch customers suppliers and external partners so these processors doesn’t include
the activities which are happening inside the organization and what are the
processes cover-up by the ebusinesses so ebusinesses cover up the production
inventory management risk management finance and suchlike internal processes the next feature says ecommerce is
narrower concept and restricted to buying and selling when compared to that ebusiness is a
broader concept and that involves market survey supply chain and logistics
management and using data mining so it includes several tasks when
compared with the e-commerce. Now the last feature we have listed down here
says ecommerce just involves buying and
selling of products and services and that is the part where the monetary
transactions are involving that is the part where the profits are earned. And that’s
why ecommerce is directly connected with the
buying and selling and if you look at the e-business
statement, it says ebusiness includes all kind of presale
and postsale efforts so what are thepresale
and postsale activities purchasing raw materials things happening in the production and
manufacturing process can be taken as presale activities and the delivery
and responding to a customer inquiry for a purchased product can be taken as post sale activities
so hope you got understanding why we are saying ebusiness and e-commerce are
distinctively different two concepts in our comparison we said ebusiness have a
much wider scope than the e-commerce and it is not just buying
and selling of products and services but also communicating with the customers
and collaborating with other business partners When showing the venn diagram of
ebusiness and ecommerce I said ecommerce is just a component a required component of
ebusiness so what are the other components so here
it displays the few of other components collaboration, collaboration with all the
stakeholders of the business. SFA sales force automation BI – business intelligences CRM customer
relationship management SCM supply chain management ERP – enterprise resource planning b2b
business to business hope you go to understanding how much
broader and how much complex it goes this is not the time to discuss about
each and every component and we will do that in another episode thank you for watching and stay tune in with us for more

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