What is e-Business?
Electronic business or e-business is a type of business that includes sharing of information across the internet or any other computer network. It involves the exchange of services and products between individuals, groups, and businesses. It can be overview as one of the most important activities of any business. Electronic commerce and electronic business differ from each other. As it does not only deal with online transactions of selling and buying a product or service but also enables one to conduct business processes within the value chain through internal or external networks.
Benefits of e-Business
1. Ease of Formation and Lower Investment Requirements
It is very easy to start or set up an electronic business. The traditional industry needs many procedures for setting up a business. While for e-business procedural requirements are not required. Electronic business does not require any investment like in the case of traditional business. One can set up an online business they just required software, a device, and the internet.
2. Speed
The exchange of information involved in selling and buying is done with the help of the Internet. The speed is more beneficial in the case of information-intensive products that can even be delivered online. In the transformation of the business processes, the cycle time is substantially reduced due to becoming parallel or simultaneous.
3. Convenience
Electronic business breaks down the time barriers that location-based businesses encounter. As the internet is always available organizational personnel can do work from wherever they are, and whenever they may want to do it. e-business is very flexible. Businessmen can remain in touch with their customers, suppliers, etc.
4. Global Reach
There are no geographical boundaries for e-business. With the help of electronic business, sellers can operate at the national and global levels. All this is done with the help of a well-developed computerized networking system. The buyers have the facility of selecting products from any part of the world. The seller and buyer can also interact with each other from any part of the world.
5. Government Subsidies
The advantage of electronic business is that they also get benefits from the government. You might be knowing that the government is trying to promote digitalization.
6. The movement toward a Paperless Society
Paperwork has been reduced due to the use of the Internet. As almost everything is done electronically through computers. Government authorities are also now increasingly using computers to reduce the use of paper.
7. Expedites Customer Service
Customers require fast solutions to their answers. In e-business, live chat and email are available that can solve the problem at a faster note. It extends with the use of online in the business platform. As it is a more flexible form of customer service.
Limitations of e-Business
1. Ethical Fallouts
In this kind of business, there are ethical fallouts due to e-businesses. Companies make use of the electronic eye to keep track of e-mail accounts, computer files, etc. Such information is used against employees which is unethical.
2. Low Personal Touch
Even though e-business is very high-tech, it lacks the personal touch. In this form of business, the customer can not touch or feel the product. It is difficult for the consumers to check the quality of a product. This kind of business is not suitable for the company which requires a personal touch, such as garments, toiletries, etc.
3. Security Issues
In e-business, there is a lot of risk involved. As it is easier for hackers to get your financial details. It has security and integrity issues as well. There are websites that do not have the capability to conduct authentic transactions. This brings distrust among potential customers.
4. Delivery Time
Product delivery takes time. You get the thing as soon as you buy it in traditional business that doesn’t happen in online business. The delay time often discourages customers. E-businesses are attempting to address these difficulties by offering extremely short delivery times. This is an improvement but it does not fix the problem.