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E-Business vs E-Commerce: A Glimpse on its Differences


By its simplest understanding, e-commerce is the activity of trading (selling and buying goods/services) using online platform, while e-business is the overall activity of doing business utilizing the help of digital platform. That being said, e-business is the general term, while e-commerce is a part of e-business process.

To extend the analysis, I will put an example on Tokopedia (a famous e-commerce platform in Indonesia). As a start-up unicorn that focused on digital marketplace, Tokopedia facilitate the sellers and buyers to meet in their platform and doing the trading process (both buying and selling). This core function of Tokopedia is what we called as “e-commerce”.

However, as a company, they need to also perform their business function, such as finance and accounting, human resources, operations management, IT, and many more. To enable these functions to perform better (more effective and efficient) and generate more desired output, Tokopedia use digital platform to help them perform this function.

For instance, they could utilize ERP (Enterprise Resources Planning) system to do inventory analysis, workforce divisions, real-time financial performance analysis, and others. They could also use CRM (Customer Relationship Management) system to gain more insight and understand further about their user (a.k.a customer). This software could provide the company real-time analytics on the number of traffic on their website and mobile apps, trending products that are selling quickly at that moment, and more information needed for the strategy of the company.

All things considered, e-commerce are simplified as “online trading”, while e-business could be simplified as “digitalized business process”.

This post is uploaded as part of Management Information System course assignment

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REFERENCES:
https://keydifferences.com/difference-between-e-commerce-and-e-business.html

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