What is eBusiness?

eBusiness is not really a new concept. Since the 1980’s software firms have promoted the adoption of EDI systems to streamline the procurement process and exchange of documents between companies. The cost and complexity of these systems, however, has proven prohibitive to all but the largest of firms. The lack of mass take up of EDI has been its undoing.

The internet however offers the possibility of extracting all the benefits of EDI but without the cost. The process of utilizing the internet throughout the business, not just as an additional sales channel (ie eCommerce), has become known as eBusiness.

eBusiness has developed in phases. In its first wave eBusiness was really just eCommerce in the form of brochureware with companies writing HTML code and thus creating a “Web Presence”. The second phase is well developed in the US with many companies transacting electronically, having overcome several obstacles such as:

The value proposition for the seller is as follows: From a buyers perspective the value proposition is as follows: More recently eBusiness has entered a new phase with the internet being utilized as a whole new way of doing business.

Companies have learned that if they extend their business processes across company boundaries and integrate them with the suppliers’ and customers’ business processes they are able to eradicate duplicate processes, ineffective hand-offs and disconnects between and among enterprises.

Real evidence is emerging that the internet will revolutionise the way business is conducted and is therefore threatening the existence of some businesses and creating new opportunities for others.