WHAT IS AN E-ORGANIZATION?
Let’s begin by clarifying some concepts .Two terms that seem to cause considerable confusion are e-commerce and e-bussiness.
The term e-commerce is becoming the standard label to describe the sales of electronic business.It encompasses presenting products on Web sites and filling orders. The vast majority of articles and media attention given to using the Internet in business is directed at outline shopping—marketing and selling goods and services over the Internet .When you hear about the tremendous number of people who are shopping on the internet ;and how businesses cant up Web sites where they can sell goods, conduct transactions, get paid and fulfill orders, you’re hearing about e-commerce It’s a dramatic change in the way a firm relates to its customers >And e-commerce is exploding .Global e-commerce spending was $ 111 billion in 1999.It’s expected to be $1.3 trillion by 2003.You be aware ,however that 90 percent of e-commerce sales are business –to – business transactions ,The vast majority of e0commerce sales will be things like Intel chip sales to Compaq or Goodyear sales to Ford ,rather than consumers like you and I buying computers or sweaters for personal consumption.
An e-bussiness uses the Internet (a worldwide network of interconnected computers),Intranets ( an organization’s private Internet) and extranets ( an extended internet accessible only to selected employees and authorized outsiders) to open up an organization ‘s communication channels , making it possible to integrate and share information ,and allowing customers. suppliers employees, and others to communicate with and through the organization on a real-time basis.
In contrast e-business refers to the full breadth of activities included in a successful Internet –based enterprise .As such ,e-commerce is a sudset of e-bussiness E-bussiness includes developing strategies for running Internet-based companies improving communication with suppliers and customers ,collaborating with partners to electronically coordinate design and production ,identifying a different kind of leader to run a “virtual” business ,the challenge of finding skilled people to build and operate intranets and Web sites ,and running the “back room” or the administration side. E-bussiness includes the creation of new markets and customers ,but it’s also concerned with the optimum ways to combine computers, the Web, and applications software.