Difference between E-commerce and E-business
How e-commerce relates to the broader idea of e-business.
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E-commerce vs E-business at the firm boundary
E-business is digital enabling of internal firm processes; e-commerce occurs when value crosses firm boundaries.
E-business (inside the firm)
- Digital enabling of internal transactions and processes
- Information systems under firm control
- Inventory control, HR systems, internal ERP
- No direct exchange of value across boundaries
E-commerce (across firm boundary)
- Commercial transactions crossing firm boundaries
- Exchange of value (money) for products/services
- Online sales to consumers or other firms
- Generates revenue from outside parties
E-business is the digital enabling of internal firm processes (such as inventory or HR systems) that do not directly involve an exchange of value with outsiders. E-commerce occurs when an exchange of value crosses the firm boundary — for example, when a customer pays for a product online. The two systems blur at the firm boundary, where internal systems link up with customers and suppliers.
Explanation: E-business is the digital enabling of internal firm processes (such as inventory or HR systems) that do not directly involve an exchange of value with outsiders. E-commerce occurs when an exchange of value crosses the firm boundary — for example, when a customer pays for a product online. The two systems blur at the firm boundary, where internal systems link up with customers and suppliers.