Page 2 - Business Studies

120 BUSINESS STUDIES

5.2 e-BUSINESS transactions and functions conducted
electronically, including the more
If the term business is taken to mean popular gamut of transactions called
a wide range of activities comprising ‘e-commerce.’ e-commerce covers a
industry, trade and commerce; firm’s interactions with its customers
e-business may be defined as the and suppliers over the internet.
conduct of industry, trade and e-business includes not only
commerce using the computer e-commerce, but also other
networks. The network you are most electronically conducted business
familiar with as a student or consumer functions such as production,
is the internet. Whereas internet is a inventory management, product
public thorough way, firms use more
private, and, hence more secure development, accounting and finance
and human resource
management.
networks for more effective and efficient
management of their internal functions. e-business is, therefore, clearly much
more than buying and selling over the
e-business versus e-commerce: Internet, i.e., e-commerce.
Though, many a times, the terms
e-business and e-commerce are used
interchangeably, yet more precise 5.2.1 Scope of e-Business
definitions would distinguish between We have mentioned above that the
the two. Just as the term ‘business’ is scope of e-business is quite vast.
a broader term than ‘commerce’, Almost all types of business functions
e-business is a more elaborate term such as production, finance, marketing
and comprises various business and personnel administration as well

Figure 5.1 Business to Business e-Commerce

2018-19