Emerging Modes of Business
e-Business
e-Business uses electronic networks and digital technologies for business processes. e-Commerce is a part of e-business focusing on electronic buying and selling, while e-business can cover a wider range of internal and external processes.
Benefits
Digital business can reduce transaction time, widen market reach, support 24-hour availability and facilitate faster information exchange. It also creates challenges involving cybersecurity, privacy, reliability, logistics and digital payments.
Online Transactions
Electronic transactions can involve digital payment systems, cards, net banking, mobile payments and other authorised methods. Businesses should protect customer information and maintain secure transaction procedures.
Outsourcing
Outsourcing involves contracting external specialists to perform selected activities. It can provide expertise and cost or time advantages, but businesses must manage quality, confidentiality, dependency and contractual risks.
Explained MCQs
- Is e-commerce identical to e-business?
Answer: No.
Explanation: e-commerce focuses on electronic transactions, while e-business can include broader digital business processes. - Why can outsourcing create risk?
Answer: The business may become dependent on an external provider and may face quality, confidentiality or service-continuity issues.
Explanation: Benefits depend on selecting and managing the provider appropriately.