34 E-commerce, e-business and e-procurement

E-commerce, e-business and e-procurement

In Unit 1, we have already distinguished e-commerce as the buying and selling of products and services over the internet while e-business is the strategic use of information and communication technology to interact with customers, prospective customers and partners through customer-centric multiple communication and distribution channels. E-commerce relates primarily to transactions. E-business, however, incorporates a wide range of production, customer and internal processes that are only indirectly related to commercial transaction. E-business system is a means to improve customer service while reducing costs through greater effectiveness and efficiency by aligning the organisation’s people, processes and technology into an integrated system.

E-procurement uses the internet to operate the transactional aspects of requisitioning (against agreed contract), authorising ordering, receiving and payment processes for the required services or products. The key enabler of all the above is the ability of systems to communicate across organisational boundaries. While the technology for e-commerce provides the basic means, the main benefits are derived from the resultant changes in the traditional procedures, processes and changes.


Please read about ‘e-procurement’ on pages 393 – 398 from your textbook Procurement Principles and Management, 10th edn, England: Prentice-Hall, Pearson Education Limited by Baily, P, Farmer, D, Crocker, B, Jessop, D and Jones, D (2008).






Activity 2.3
Question to activity 2.3
Suggested answer to activity 2.3


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