What Is E-Business And Where IT Has Started?
We are fortunate to experience technological change at a time when the transformation process of companies. And professionals necessarily requires the adoption of digital tools and technologies adapted to each need. This new paradigm is fundamental as it affects all areas of the company. The introduction and development of new models, solutions and strategies is therefore vital for a company in E-Business.
Most people associate the concept of electronic commerce with that of electronic commerce. Although the two terms are related, they cannot be classified, much less homonyms. The truth is that electronic commerce is a much broader, complex and holistic concept that has a decisive impact on many other areas within a company. Either way, it is important to know both terms to know the difference between them.
It all started with E-Commerce:
It’s not that e-commerce doesn’t matter anymore. In fact, it is still one of the most important industries for some of the largest companies in the world. But its concept is more limited by definition and its scope is limited to a specific area, which is online marketing, products and services.
Some date back to 1960 to reveal the history of electronic commerce with the creation of Electronic Data Interchange, a system that enabled the electronic communication of business information between companies that previously used analog methods of electronic commerce.
It was the first step closer to what we know about e-commerce today, but the original concept didn’t emerge until 1989, when Peapod, an American food company, established itself as a leading service and delivery company. Sell products online. A year later, the first World Wide Web server was introduced, eventually bringing communication and commerce to the Internet.
More About E-Commerce:
In 1994 the first SSL encryption certificates appeared, favoring the creation of payment services that can process online sales by bank card. 1995 was the year that Amazon and eBay collapsed. In 1998, Google and PayPal did. The rest is history.
The sum of all these factors has resulted in the consolidation and promotion of the use of electronic commerce. It was an absolutely radical change for commerce and retail. Successful businesses have grown from a local to a global reach, and online selling has become one of the technology milestones of the 2000s.
However, it took a few more years for innovation leaders to realize that the adoption of digital technologies and strategies must go beyond simple online sales. It had to affect all areas of activity and the strategy of the company. Those that were already consolidated had to adapt to remain competitive. And those that were born later did so with a 100% digital roadmap. The whole concept of e-commerce fails to achieve what it means for today’s businesses to become true e-commerce.
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What is E-Business?
An E-Business is a company whose operation and management are based on the use of tools, strategies and processes supported by technology and the Internet. As we saw earlier, this is a much broader term than electronic commerce. Which we use to refer only to the marketing of products or services over the Internet.
In a broader sense, the term E-Business describes the use of the Internet and information and communication technologies (ICT) in all essential business processes. Of course, this also includes simple business processes. But companies that define themselves as E-Business use ICT in many other important areas that have improved their processes in terms of efficiency and productivity.
E-Business is more than just a website, an online store, and the use of social media to communicate with customers. In general, electronic business transactions include all the parts that correspond to the sensitive areas of a company:
- Management and administration
Advantages Of E-Business:
This is how we see the creation of the products themselves, the supply, the shipping, the customer service, the payment and the collection. E Business offers companies a series of advantages, which can be summarized as follows:
- Having a more innovative, technologically connected, cutting edge and agile business that fosters a user-centric approach that ultimately leads to better service for customers.
- Versatility, with more business opportunities, with more sales opportunities and a greater degree of adaptation to market changes and trends.
- Greater process agility and automation of operational tasks mean more productivity for employees who can focus on what is essential.
- Data-driven business decisions through fully digital processes delivering quantifiable and qualified numbers based on defined goals. Now more than ever it is possible to know if a product or service is not profitable and it is not about the intuition or the experience of the entrepreneur.
Large companies and multitudes of start-ups around the world are adapting or being born completely digital. The current markets, volatile and adapted to the new needs and demands of consumers, demand it.