E-Business Definition and Types


E-Business was first established in the 1990s by the International Business Machine (IBM) during its advertising operations. E-Business is defined as the revolution of major key business transactions by the utilization of internet technologies. On the other hand, E-commerce today is described as a business transaction carried out by the business people and organizations by use of electronics. However, e-business entails more than just buying and selling. It also involves associating with business people, servicing customers, and carrying out online transactions within a company or an organization (Feng 2006, p.9).

Definition of e-business

E-commerce and e-business have become an essential element and strong method for the economic development of business techniques especially in this period of the rising worldwide economy. The combination of information and communication technology into the business world has led to good relationships in organizations and between individuals and organizations. The use of information and communication technology in business has resulted in greater customer involvement, productivity, reduction of costs, and mass customization. Most of the countries especially the developing countries are now participating in e-business as buyers or sellers (Andam 2003, p.5).

Processes of e-business

Three major procedures are enhanced in e-business. The first process is the production process which comprises procurement, organizing, and replacement of supplies; the dispensation of payments; suppliers linking to the customers through the electronics and processes of controlling the production. Secondly, there is the customer-focused process. These processes comprise advertising and promotional efforts, transactions through the internet, processing of buyers’ procure orders and payments, and customer support. The third procedure is called the internal management process which involves training programs, worker services, sharing of information internally, recruiting and video conferencing (Andam 2003, p.7).

Types of e-business

There are three major types of e-business. These are business to consumer (B2C), business to business (B2B), and business to government (B2G). B2C is the most known type of e-business. This is the exchange of products, services, or information that occurs between the business partners and the consumer or buyer through the internet. As the internet technology grows, the business to consumer is also changing in the techniques the buyers are obtaining information, the methods products are being compared with one another, and the way they are bought and sold (Volusion 1999, par.4).

Secondly, the business to business (B2B) is the largest type of e-business in terms of the money used in B2B. This type of e-business involves transactions between businesses by using the cheapest channels for the sale of goods and services. They are also in charge of steadily changing company buying practices (Volusion 1999, par.5).

Thirdly, is the business to government (B2G) which refers to the exchange of transactions and information between the government organizations and businesses. This type of e-business is also referred to as e-government. It permits government organizations and businesses to utilize electronic means to carry out transactions and interact with one another through the internet (Volusion 1999, par.4).

Importance of e-business

Most of the customers in this era want to acquire quality products and access information through a quick means. Therefore, an organization or business which uses e-business in its transactions can be more customer-friendly than those that are not online. E-business has several advantages which are as follows. First, it eliminates the restrictions on location and availability; the customers or business people do not need to be in the same geographical area as the e-business for them to purchase the goods and services. In addition, the exchange of transactions and information can be done at any time in any place in the world if one can access the internet (Volusion 1999, par.2).

Secondly, e-business reduces money and time spent in carrying out conventional business procedures (Buzzle.com 2000, par.2). The majority of these traditional business transactions can be substituted with e-business which is easier to perform and saves a lot of time and money. The other benefit is that the e-business buyers acquire quality services and communication is highly effective. In addition, there is more availability, flexibility, and quicker response times with internet support (Volusion 1999, par.3).

E-Business also provides a competitive advantage as internet technology grows. This technology has opened up a new market for the businesses which are carried out online. Accessibility to the current information is a great benefit of the internet which assists the organizations to offer more effective, valid, and efficient information and also assist them in acquiring competitive benefits over those who do not use the online services (Volusion 1999, par.4).


Online marketing has currently become the best method of promoting the products and services of an organization or business. Therefore, for more people and countries to utilize the e-business, there need to improve on the accessibility to high-speed internet, lowering the services fees, availability of credit cards, and network security.


Andam, R. 2003. E-Commerce and E-Business. [Online]. 2009. Web.

Buzzle.com, 2000. Importance of Online Marketing for Your E-business. [Online]. 2009. Web.

Feng, L. 2006. What is e-business? How the internet transforms organizations. [Online]. 2009. Web.

Volusion, 1999. E-Business and its significance in Today’s Marketplace. [Online] (2009). Web.

Volusion, 1999. E-Business and Advantages. [Online] (2009). Web.

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