How do e-business and e-commerce relate to the Internet?
Fundamentally, e-business and e-commerce are simply about transactions. They use both protocols, such as TCP/IP and HTTP, and Internet applications such as web browsers and e-mail readers to facilitate these transactions. But this begs the question, which transactions occur? What type of business transactions would you say are achieved through the Internet? Well, the obvious ones are sales transactions – perhaps buying a CD online. But did you think about other forms of communications such as a customer enquiry about a product via an e-mail browser, or an e-mail from a company telling a customer about a new product release. Remember that these are e-commerce transactions too.
The impact of the Internet on any business can be readily assessed by reviewing how it affects three different types of business relationships which together form the supply chain of that business. A different form of e-commerce is available for each These are shown in the diagram below.
Buy-side e-commerce refers to transactions to procure resources needed by an organisation from its suppliers.
Sell-side e-commerce refers to transactions involved with selling products to an organisation’s customers (including via distributors and other channel members).
In-side e-commerce refers to internal transactions needed to support the business such as new product development and administrative tasks.