🦉 🛒 ✝️ E-business: legal basis, development, processes 👑 🙎 🍛

E-business is a commercial activity that uses all the capabilities of information and telecommunication technologies to increase profits. Simply put, people began to use the benefits of civilization without hesitation and learn to earn money without leaving their comfortable home. It was only at first that the Internet was created as a way to exchange information, and today it is a completely profitable platform for startups.

Components

Technological progress does not stand still, and today the Internet is used as an interactive channel for interactions between companies, their partners and customers. No one will be surprised by online sales or negotiations on Skype. The Internet has grown into a network economy environment that forms the backbone of e-business.

Over time, along with the concept of e-business, the concept of e-commerce appeared. This is the same component of e-business as marketing, online advertising, financial services, investment funds, etc.

Clash of concepts

There are many definitions for e-business. For example, specialists at IBM companies say that this is a transformation of the basic business processes using the Internet. Gartner Group is inclined to believe that electronic business is a continuous improvement of the products and services of the company, as well as production relations through the use of digital technologies. As for the definition from the Encyclopedia of Internet Business, it sounds like this: it is a business activity during which all the capabilities of information networks are used.

It is easy to see that all these processes reflect the use of the World Wide Web, although today the development of electronic business has long passed this stage and has opened up a wider field for activity. Therefore, e-business can be described as follows: this is the implementation of business processes during which all the capabilities of information and telecommunication technologies are used.

Today we can say with confidence that the process of transforming ties in the enterprise is rapidly advancing. Inside the company, the Network is used to increase the efficiency of employee interaction, to optimize the planning and management process. For external relations, the Global Network is used to build relationships with partners, customers and suppliers.

Features of the network economy

With the spread of electronic business, a concept such as a network economy has emerged, it is closely connected with all communications that are carried out using a computer. Unlike a conventional economic system, it has its own characteristics:

Here goods and information about them move, but not people at all.
The production of goods is organized in a country where there is a steady demand for them.
In the labor market, competition is intensifying.
The role of domestic mental work (i.e. freelance) is growing significantly.
Business partners are changing more dynamically.
Information tools for large and small organizations are becoming equal.
Decisions are made more quickly.
Management takes place on a collective and equitable basis.
New forms of settlement appear.

True, here, as in every activity, there are drawbacks. For example, it is difficult to calculate risks, since they are global in nature, it is almost impossible to identify the main risk factors. In the virtual world, the situation is changing much faster than in the real world, so you need to make decisions quickly. Who did not have time, he lost profit. It is also difficult to ensure the information security of the business, and the enterprise has absolutely no legal status.

The beginning of a new era

The development of e-business consists of three stages:

The first stage fell on 1994-1999. At this time, commercial organizations first found their place in the information environment and began to try a new way of interactive interaction with customers. From the point of view of technological, marketing and business prospects, this was a real breakthrough. By the end of the 90s, electronic business began to expand its demands, requiring the creation of two-way interaction with customers.
The beginning of the second stage dates back to 1998. Then organizations began to gain experience in the global network and called their activities e-commerce. At that time, order forms were already appearing on the sites, which, after filling out, were transferred to the processing system.
The third phase began in 2000. Then e-business became an integral part of all areas of economic activity. Entrepreneurs now not only posted information on websites, but transmitted it to the client in various ways. At the third stage of development, business requires the use of automated applications that would simply work without human intervention.

Electronic business processes are much improved in the third stage of development. Significantly improved the quality of service, decreased prices for products and services. Everything has become automated, and workers perform only those tasks that are best able to solve.

Field of activity

Given the scope of activity, electronic business can be divided into several parts, according to how it is connected to the Internet:

Business on the Internet. This may include any activity that is related to the distribution and technical support of the provider.
Business around the internet. This aspect includes the supply of hardware, software. Web design, programming and related services.
Internet business. This is the creation of advertising on the Internet, electronic auctions, shops, online marketing, etc.

Commerce as an element of business on the web

In e-business, e-commerce is an important component. This term means a transaction made in any form, during which the parties transmit information to each other through telecommunication technologies.

E-commerce is a way to do business globally. It enables companies to work more closely with other companies, suppliers and respond more quickly to customer requests.

E-business is a general concept that includes interactions between subjects of market relations using digital technologies, and commerce is only an integral part of it.

Directions

If you delve into the topic, you can understand that the basis of electronic business is precisely electronic commerce. It is divided into five areas:

Business business. This includes all areas of information links between firms. Using technology for receiving and transmitting data, firms can significantly save time and conduct their activities more efficiently.
Business consumer. Today, such a direction is considered the most effective from an economic point of view. The basis of this direction is retail trade on the Internet.
Consumer to consumer. Consumers exchange commercial information. For example, they talk about their experience in cooperation with a company, about a purchased product, etc. Trade between individuals also belongs to this segment of activity.
Business Administration. This kind of interaction is to create business relationships between business and government organizations.
Consumer Administration. Perhaps one of the least developed commercial areas. True, there is a high potential: this connection can be used to create a connection between the government and the consumer. This will be especially true in the social and tax spheres.

True, now the basis in e-commerce is trade and the provision of services via the Internet.

Activities

Since the advent of the Global Network, entrepreneurs have realized that they can use it for their own purposes to expand the field of functioning. Thanks to the development of e-business, it became possible to expand production, reduce costs, increase the customer base and work outside your own country.

This type of entrepreneurial activity began to develop in two main directions - creating a business from scratch and developing an existing business. It is worth noting that in this activity, the geographical location is of great importance, because each region has its own characteristics, the speed of technological development and the legal foundations of electronic business. But be that as it may, business everywhere goes through the same stages of development. First corporations appear, then communities, conglomerates, network economic systems and electronic markets.

International regulatory documents

E-business is not just an activity like online games that everyone can play without thinking about anything. With the development of the Internet and commercial relations in the Global Network, the world community has adopted a number of documents regulating these activities. So, in 1995, the UN Commission adopted the law "On the legal aspects of electronic data exchange." On January 30, 1997, by a resolution of the UN General Assembly, another law was created - On Electronic Commerce. This document today serves as the main legal basis for action in the field of e-business.

Thus, electronic business can be considered a full-fledged economic activity, which has more pros than cons.

E-business: legal basis, development, processes