Why E-Business?
E-business is a term that is often used interchangeably with e-commerce, but this is not
accurate. E-business uses the Internet and online technologies to create operational efficiencies,
thereby increasing value to the customer.Its focus is internal—for example, online inventory
control systems; accounting systems; procurement processes; supplier performance evaluation
processes; tools to increase supply chain efficiency; processing requests for machine repairs;
and the integration of planning, sourcing, and manufacturing. Critical business systems are
connected to critical constituencies—customers, vendors, and suppliers—via the Internet,
extranets, and intranets. No revenue is generated, but “e-business applications turn into e-
commerce precisely when an exchange of value occurs.”
E-business processes should be introduced wherever there is a process that is currently working
OK but is costing unnecessary time and money to implement via paper. This would certainly
apply to the small business that finds itself drowning in paperwork. Small businesses should
always consider that e-business processes could improve their operational and cost efficiencies
overall, so thinking about e-business implications should be part of many decisions. E-business
can work for any small business “because it involves the whole business cycle for production,
procurement, distribution, sales, payment, fulfillment, restocking and marketing. It’s about
relationships with customers, employees, suppliers and distributors. It involves support services
like banks, lawyers, accountants and government agencies.” The way you do business and
your future profitability will be affected by e-business. Converting your current business into e-
business may require some redesign and reshaping, depending on the size of your company.
However, e-business integration should be seen as an essential element in the efforts of a small
business to increase its agility in responding to customer, market, and other strategic
requirements.