Electronic Business or e-business is a business which uses internet in order to share its information with others. This term was firstly used by IBM’s (International Business Machines Corporation) marketing and Internet team in 1996. The origin of e-business dates back to 1994 when IBM resorted to its basics in IT to introduce themselves as the pioneer of businesses done through internet (e-business).
All of us know online businesses like Amazon.com, eBay, Google, Facebook that sell products, services, or advertising online. Online businesses attempt to sell some products using the global communications infrastructure of the Internet. The term e-business (electronic business) refers to the businesses like buying and selling products, supplies and services; servicing customers; processing payments; managing production control; collaborating with business partners; sharing information; running automated employee services; recruiting; and set forth through the internet. While online businesses are very valuable and noteworthy, they have some disadvantages as well. For example, they can reinforce the inequalities between different parts of the society.
In addition, they can serve insecure businesses compared to traditional businesses. However, since many people like customers, suppliers, employees, and numerous other people can have access to such services, it is worthy to take some actions in this field and enhance the security. Sellers need to assure their customers that their private information will be kept for the assumed purposes and will not be available to others. In doing e-businesses, both parties need to be assured that the other part of the transaction does the job well, that is payment by one person and doing the project well by the other.
To do this, the identity of the two parties need to be established through the using "something they have" (i.e. credit card) and "something they know" (i.e. card umber). Data integrity is another factor which needs to be taken into account. Data integrity refers to the sameness of the data received and transferred. Using firewalls can contribute both parties in this regard. However, backing up the files you have can decrease such a problem. The strong points of e-businesses are associated with the strengths of the internet. This infrastructure provides a good platform for many which is not only available for every individuals, but also cheap and easy to use in comparison with traditional businesses.
There are also some advantages in using e-businesses: 1) Global accessibility and sale reach: E-businesses can enhance the range of customers and in effect increase the products. 2) Closer relationships: product providers can make deeper relationships with each other to satisfy the orders of their customers. 3) Free samples: Sellers can easily show their samples to the customers through internet. 4) Reduced costs: Many of the costs will be reduced for the sellers and the customers. 5) Media breaks: E-business can reduce the number media needed to connect the seller to the customers. 6) Time to market: Marketing takes shorter time. 7) Customer loyalty: Since internet is always available, customers can access to the most up-to-date products of the sellers.
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