E-business (Electronic business)

E-business (electronic business) is the conduct of business processes on the internet. These e-
business processes include buying and selling products, supplies and services; servicing
customers; processing payments; managing production control; collaborating with business
partners; sharing information; running automated employee services; recruiting; and more.

E-business can comprise a range of functions and services, ranging from the development of
intranets and extranets to e-services, the provision of services and tasks over the internet by
application service providers. Today, as major corporations continuously rethink their businesses
in terms of the internet -- specifically, its availability, wide reach and ever-changing capabilities -
- they are conducting e-business to buy parts and supplies from other companies, collaborate on
sales promotions and conduct joint research.

Defining the e-business model

IBM was one of the first companies to use the term e-business when, in October 1997, it
launched a thematic campaign to address the confusion many consumers had about internet-
based businesses. The company spent approximately $500 million on an advertising and
marketing campaign to demonstrate the value of the e-business model and to show that IBM had
the "talent, the services and the products to help customers capture the benefits of this new way
of doing business," according to the company website.

Examples of E-Businesses

Powerhouses like Amazon and PayPal serve millions of customers each year. As of 2012,
Amazon was the largest Internet retailer, and PayPal had 117 million active users who received
and made payments through its site. The number of individual retailers selling online has been
estimated well into the tens of millions. Whether it's shoes, clothes, appliances or insurance,
businesses can serve customers worldwide by tapping into the power of the Internet. Virtually
every type of product and many types of services can be ordered online, and then physically
shipped or electronically delivered to the purchaser.

What is ecommerce?

 Ecommerce refers to commercial transactions conducted online. This means that

whenever you buy and sell something using the Internet, you’re involved in ecommerce.

It was August 11, and the year was 1994. Around noon that day, Phil Brandenberger of
Philadelphia logged into his computer and used his credit card to buy Sting’s “Ten Summoners’
Tales” for $12.48 plus shipping.
That story may not sound too exciting today, but at that time, this particular transaction made
history. Why? Because it was the first time that encryption technology was used to enable an
internet purchase. Many consider that moment as the first “true” ecommerce transaction.
Needless to say, ecommerce has grown by leaps and bounds since then.

Ecommerce examples

Some examples of these ecommerce stores include eyewear retailer Warby Parker, menswear
store Bonobos, and shoe retailer Zappos.

1. Online storefronts

Having an online storefront is one of the most straightforward ways to conduct ecommerce. The
merchant creates a website and uses it to sell products and services using shopping carts and
ecommerce solutions.

2. Online marketplaces

Ecommerce transactions can also take place on online marketplaces — sites that facilitate
transactions between merchants and customers.

3. Social media

Social media can pave the way for ecommerce in two ways: social sites can facilitate a sale by
directing shoppers to a merchant’s ecommerce site, or they can allow users to buy something
directly on the platform.

Classifying ecommerce according to the parties involved

1. Business to consumer (B2C)

2. Business to business (B2B)
3. Consumer to business (C2B)
4. Consumer to consumer (C2C)
5. Government to business (G2B)
6. Consumer to government (G2C)

E-Collaboration

Goonatilake et al. (2009) state that ‘e-collaboration is the use of internet and related technologies
to assist distant clients in exchanging information for interactions between suppliers and
customers, and everyone in between to move trade forward’. Kock (2002) supports the
aforementioned definition by identifying e-collaboration.
E-Collaboration is a tool that breaks the boundaries of activities involving buying and selling. As
cited in Samtani (2002, p.8) The Gartner Group believed that by 2005 nearly half of all Web-
based commerce would be collaborative. Not only has collaboration become firmly established
within many businesses it has changed many business models to incorporate B2B (Business to
Business) integrations.

E-Collaboration, a relatively new concept that is shaping the way we do business. The
development of this model has seen recent advances in inter-enterprise software and
communication technologies which are shaping the way for digitalisation, mass communication,
and globalisation. This report explores the concept of developing e-collaboration for e-businesses
and the competitive advantage it provides to B2B (Business to Business), through the means of
secondary qualitative research, books, journals, the internet and shared company information.

Successful example of E-Collaboration – Nissan and Renault

Nissan and Renault are one of the most formidable e-collaborations. Beginning in 1999 when
Nissan UK was facing financial difficulties, Renault bought out 44.3% of the shares in Nissan.
Nissan bought 15% of Renault shares but hold no voting rights. They also created the Renault-
Nissan Alliance team, with both parties owning a 50% share. The two companies share their
purchasing and information services as shown below.

This partnership is successful due to many factors. Nissan are one of the leading petrol car
manufacturers and Renault specialise in diesel. The Alliance have together co-developed
common engines and gearboxes. These include a six-speed manual gearbox and a new V6 diesel
engine. The Alliance also interchanges existing engines or gearboxes. For example, the Nissan
3.5-litre engine is used in the Renault Laguna and Renault 1.5 litre diesel engine is used in the
Nissan Qashqai. In total, the Alliance share eight engines that are commonly used throughout the
range of Nissan and Renault cars.

Comparison Between Internet, Intranet & Extranet (by C.D. Crowder)

Internet

The Internet is a network that is available to anyone with an Internet-connected device. It is a

massive collection of networks sharing information publicly in the form of interlinked Web
pages. Internet Protocol defines a site's unique location which most users see as a domain name
or URL. The network is literally world-wide and is often referred to as the world wide web.
Intranet

An intranet network is only available to a small group of people. Intranets are mainly used within
businesses and organizations to provide access to files and applications among networked
computers and servers. Intranets may or may not have access to the Internet. If an intranet does
connect to the Internet, a firewall is used to prevent outside access to the intranet. The purpose is
to allow people within the same company to share information over a local area network. It is
sometimes referred to as a private Internet.

Extranet

An extranet is similar to an intranet, but is accessible via a Web portal. An extranet may be
accessed from anywhere if the user has a valid user name and password. The purpose of this type
of network is to allow collaboration and sharing of resources not only in-house but with a select
group of outside users. For instance, businesses will use an extranet to allow customers to log in
to provide input on projects. Another example is using a virtual private network to allow
employees to log in to the network when they're are not in the office.

Main Differences

The main difference between the three is accessibility. The Internet is public while the other two
are highly restricted. Home users, if they use one at all, would only use an intranet to share files
between computers and typically use the Internet when searching for and sharing information.
Businesses and organizations are the main users of both intranets and extranets in order to
restrict access to confidential data.

Reference:
Essays, UK. (November 2013). E-Collaboration for E-Businesses. Retrieved from
https://www.ukessays.com/essays/business-strategy/developing-e-collaboration-for-e-
business.php

Beynon-Davies P. (2004). E-Business. Palgrave, Basingstoke. ISBN 1-4039-1348-X

"Retail e-commerce sales CAGR forecast in selected countries from 2016 to 2021". Statista.
October 2016. Retrieved 2018-01-01.