E-Business
Chapter 1: Introduction
Defining E-Business
the use of the internet to network and empower
business processes, electronic commerce,
organizational communication and collaboration
within a company and with its customers, suppliers,
and other stakeholders
Electronic commerce (e-commerce) is the buying and
selling, marketing and servicing of products and
services via computer networks
E-business vs. E-commerce
Development of New Economy
“the internet economy”
“the information economy”
“the digital economy”
New Economy
Development of New Economy
The new economy has been boosted by the development
of the infrastructure that supports the internet, ICT and
digital technology
The internet has opened up the possibility of exchanging
information, products and services around the globe
without any restraints of time or distance
The diffusion of information technologies has played a key
role in knowledge sharing, encouraging innovation and
creativity, integrating global supply chains, facilitating global
trade and creating wealth
Old Economy vs. New Economy
Types of E-business
Business-to-business (B2B) activities provide e-business
services across the supply chain or in parts of the supply
chain such as e-procurement, logistics, stock, control,
ordering, payments and distribution.
Business-to-consumer (B2C) sector has attracted the
highest number of entrants as well as some of the most
successful e-business ventures such as [Link], e-Bay
and FriendsReunited.
Consumer-to-consumer (C2C) element brings
consumers together for specific purposes.
Growth of E-business
The most significant factor that transformed the internet
into a global communications phenomenon was the
development of the World Wide Web (WWW) in the
early 1990s.
This facilitated access to particular parts of documents or
even to other relevant documents held on other servers.
This was called the hypertext transfer protocol (HTTP)
and derived from a mark-up language called hypertext
markup language (HTML).
From 1993 to 1996 the number of computer users with
access to the internet and the Web rose from zero to 10
million. In 2004 the figure stood at around half a billion.
Growth of E-business
The internet has created a new communications channel
and provides an ideal medium for bringing people
together cheaply, efficiently and for a wide range of
different reasons.
One of the key characteristics of e-commerce is the ease
of entry for firms
Advantages of using the Internet
Use of the Internet
Internet users nearly universally (96 percent) indicated they
accessed the Internet at least once a day.
More than 90 percent of Internet users surveyed globally
indicated they use social media, with a majority (60 percent)
using it daily, an increase of 10 percent over 2011.
Connection speed (73 percent) and reliability (69 percent)
ranked slightly above more affordable monthly fees (68
percent) among factors that would increase usage.
Other factors included more content in their local language
(50 percent) and more online availability of government and/or
community services (49 percent).
Source : [Link]
UK internet users online activities
Key People
Bill Gates
In 1975 Bill Gates and business partner Paul Allen began
created a company called Microsoft. The company is now
one of the world’s most recognised brands and is a multi-
billion dollar enterprise with interests in many hundreds
of multimedia products.
Key People
Michael Dell
Michael Dell started his computer business when still an
undergraduate at the University of Texas. Dell is now the
world’s leading direct-sale personal computer company.
Jerry Yang
Jerry Yang and business partner David Filo created
internet search engine Yahoo!. By the late 1990s Yahoo!
had grown into one of the world’s leading search engines.
Key People
Pierre Omidyar
Pierre Omidyar is the son of French-Iranian immigrants to
America and is famous for creating the world’s biggest and
most well-known internet firm, e-Bay.
Jeff Bezos
Jeff Bezos left his job on Wall Street to start a new business
from his garage in Seattle. His idea was to use the internet to
take orders for books and deliver them to customers quickly.
His company, which he called [Link] is now among the
largest internet-based retailers in the world.