Stages of E-Business:
The first phase of e-business evolution, which began in the mid and late-1990s, focused on transaction oriented e-commerce rather than e-business. In other words, it focused only on online trading of goods and services. During this phase, dotcom companies focused on having better search, graphical product display and payment processing capabilities. But when the dotcom bubble burst, things changed. In the second phase of e-business evolution, companies shifted their focus from transaction oriented e-commerce to customer centric e-business. This marked the second phase of e-business evolution.
During the dotcom boom phase (the first phase), most organizations viewed e-business merely as the development of a website for offering information about the company and its products. In some cases, organizations used their websites as just another marketing and sales channel. However, e-business has a much broader scope. It involves the digitization of an organization's internal business processes as well as its external interfaces with customers, suppliers and partners. E-Business is about transforming an organization for the information age, where value is created by effectively managing intangible assets rather than just physical assets. It offers significant potential to transform companies by creating new value chains and business processes or redesigning existing ones.
Organizations are now adopting e-business to improve employee productivity, maximize customer satisfaction and loyalty, and increase revenues and profitability. The customer-centric approach is a very important aspect of e-business because of:
- Growing importance of service-based differentiation over price-based competition
- The availability of several technologies for improving customer satisfaction
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