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

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)