Accounting Information Systems:Basic Of E-Business ( Part 1)

October 23rd, 2006 Comments off
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This article explains:

·  what e-business is and the difference between e-business and e-commerce;

·  the different type of e-business model; and

·  key critical factor for e-business success.

DIFFERENCE BETWEEN E-BUSINESS & E-COMMERCE

E-Business:

 

  • Refer to all uses of advances in information technology (IT) particularly networking and communications technology to improve the ways in which an organization performs all of its business processes.
  • it embraces not only the external interactions with its suppliers, customers, investors, creditors, the government and the media but also includes the use of IT to redesign its internal processes.

 

Whilst

 

E-Commerce:

 

  • is a narrower concept that refers only to the electronic execution of business transaction such as buying and selling.

 

TYPE OF E-BUSINESS MODELS & CHARACTERISTICS

 

Model No.1:-

Business to consumer: B2C

  • organizational to individual;
  • smaller dollar value;
  • one-time or infrequent transactions and
  • relatively simple

 

Model No.2:-

Business to Business: B2B

Business to government:B2G

Business to education : B2E

B2B,B2G & B2E share the following characteristics:

·  inter-organizational;

·  larger dollar value;

·  established ongoing relationships

·  extension of credit by seller to customer and

·      more complex as it involves more accounting transaction and controlling sales and customer payments

KEY CRITICAL FACTORS FOR E-BUSINESS SUCCESS:-

·      the degree to which those e-business activities fit and support the organization’s overall business strategy

·      ensuring that e-business processes have three fundamental characteristics -validity, integrity and privacy (VIP)

 

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Financial Accounting

 
 

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