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What is E-Business?

What is E-Business?
Contribution: Melva Evita Turnip

A. What is e-business?

Electronic Business or E-Business is an activity of transactions, buying and selling, business conducted through electronic devices or with the internet so that companies can directly interact with customers, suppliers and business partners. Or the shorter meaning of e-business is the use of Information and Communication Technology to run and manage its business so that it can benefit. Information and Communication Technology in e-business is used to enhance the company's business which includes all profit-oriented and non-profit-oriented aspects of a company.

E-business can also be said as an advertisement so that consumers can buy company products. So that e-business is very useful for e-comerce because the function of e-business is to support parts of the company such as production, finance, marketing, etc. So the company will use Information and Communication Technology to run and manage its business while making a profit.

B. E-business strategy for the company

The concepts or strategies carried out by the company in running e-business can be divided into several groups, including the following:
  • a. ERP (Enterprise Resource Planning)
    • It is a business strategy of a company information system that can be used to coordinate the resources and information used for the business process.
  • b. EAI (Enterprise Application Programs)
    • It is a business strategy that deals with the concept of integration of business processes that allows companies to exchange information.
  • c. CRM (Customer Relationship Management)
    • It is a business strategy of services and software designed to increase the profits and satisfaction of consumers.
  • d. SCM (Supply Chain Management)
    • It is a management strategy regarding the supply chain that will automatically be computerized.

C. Benefits that can be obtained from e-business

Some advantages that can be obtained from e-business, which include:
  • Expanding the market, with e-business companies or businessmen can expand their markets so they can enter national and international markets, so that business people can reach many customers.
  • Suppress telecommunications costs and the time of transaction and product acceptance.
  • Consumers can see goods, specifications, and other information through the internet so there is no need to bother having to go to the seller.
  • Improve the good image in the eyes of consumers of course with good service too, because with the internet media information can be quickly spread. And many other benefits.

D. E-business strengths and weaknesses

As for some advantages or advantages of e-business, which include the following:
  • a. Easy access
    • It means that in order to be able to connect or interact remotely or indirectly with consumers, business people only need an adequate internet connection.
  • b. More on target
    • So business people who promote their products will be more targeted, so consumers will increase.
  • c. Saving time
    • If you have to interact or transact, you have to meet consumers or meet business partners, so e-business communication can be done online on the internet so you can save time.
  • d. Does not require too much capital
    • Most people always assume that to start a business requires considerable capital, especially in promoting products to be sold. Whereas today there can be seen many people who do business using the internet or online with little or no capital. Only with a small capital and supported by an adequate internet connection, many people can immediately run a business. An example of business on the internet is to become a reseller, so only sell products that are sold by other sellers, of course, with an agreement that has been agreed before.

As for some of the weaknesses possessed by e-business, which include the following:

  • a. There is no meeting directly with consumers or vice versa
    • So there is no access between the businessman and the consumer, so there will be no direct face to face between the seller and the buyer. If you want to meet, you have to make a deal first.
  • b. Risk of fraud
    • Because the transaction is not directly it is at risk of fraud, especially for novice businessmen who are still lack of knowledge about business on the internet. But now there are lots of ways to avoid fraud, one of which is by using a joint account transaction so that transactions become safer.

F. some examples of e-business

Some examples of current e-business are newspapers or print media that are based online, so it's not just the print media. Lots of print media that run their business not only through print media but also through online media on the internet and of course there are many benefits that can be obtained for example such as news that can be accessed at any time by the whole community and more updated news etc. Then another example is that there are lots of fashion shops that not only run their businesses in the real world but they also run their businesses online.

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