What is an E-Business?

By Deepak Palasamudram3 min read · Posted Jan 21, 2023


E-business, or Electronic Business, is the process of using the internet to conduct business activities. There are many components involved in e-business, such as **business intelligence (BI), customer relationship management (CRM), supply chain management (SCM), enterprise resource management (ERP), e-commerce, electronic transactions, online activities with other businesses, and collaboration.**As e-business is often misinterpreted as e-commerce, it is important to note that e-commerce is only one component of e-business.

The Components of an E-Business

Business Intelligence (BI):

Business intelligence is the collection, analysis, and reporting of data about a company's operations and performance. Business intelligence uses the internet to monitor key performance indicators, analyze customer data, and make business decisions. Companies often choose three key performance indicators to constantly monitor how the business is doing and whether changes are needed (performance indicator example: how many products are sold that month). BI systems are used to have a visual on business performance and other aspects of data, and they are represented in graphs, charts, and spreadsheets.

Customer Relationship Management (CRM):

Customer relationship management is the management of customer interactions and data to improve customer relationships. Customer relationship management consists of marketing, sales, and customer service. E-businesses often use websites, phone numbers, and/or e-mail to communicate with their customers. CRM systems store customer contact information and purchase history which help with determining market segmentation, spotting trends, and improving customer service. Of course, the main goal of CRM systems is to help keep customers happy while generating high profits and pursuing potential opportunities.

Supply Chain Management (SCM):

Supply chain management has to do with how goods or services arrive at customers. Businesses use supply chain management to find the most efficient manner through which raw materials can be manufactured into products and to then find how those products can best reach customers. In SCM, companies must manage relationships with suppliers, manufacturers, carriers, and inventory managers to understand their production processes and ensure a smoothly flowing network.

Enterprise Resource Planning (ERP):

Enterprise resource planning refers to the planning and integration of various departments and business functions such as finance, accounting, marketing, sales, production, and human resources with information technology to efficiently manage and store information and fulfill the needs of each department. ERP lessens errors by, for example, eliminating mistakes made when manually entering information. The information storage facilitates data sharing with partners, suppliers, and other parts of the organization.


E-commerce, or electronic commerce, is the buying and selling of goods and services over the internet. E-commerce is a subset of e-business that uses online platforms and websites to facilitate transactions between buyers and sellers. E-commerce has made purchasing products much easier as customers can purchase products without having to visit a physical store.

Electronic Transactions:

Electronic transactions are the exchange of information over (usually secure) electronic networks and are an integral part of e-business. Electronic transactions of data let departments communicate with each other over an intranet (a private and secure network within the company). Electronic transactions allow employees to easily exchange information, such as business policies and essential documents.

Online Activities with other Businesses:

E-businesses often interact with other businesses online through e-mail, video conferencing, and other digital communication tools. Part of an intranet, the extranet allows partners, suppliers, and other aspects of a business to share information.


Collaboration is a big part of e-business as companies exchange information, manage projects, and achieve goals internally and externally. E-businesses use video conferencing software, instant messaging, e-mail, and other tools to collaborate with team members, partners, and sometimes customers. Electronic collaboration allows businesses to quickly and efficiently handle tasks without needing to spend resources on costs such as travel.


E-business is any activity that a company conducts online. E-business makes it easier for businesses to communicate with their customers and make business decisions. There are many components of e-business that are key to a company's success, with businesses of different industries having different needs. As per all things business, there is no ONE solution, and instead each business needs to make independent decisions on what will best help it operate.


About The Author

Deepak Palasamudram


Hello, I am Deepak, a high school student and an Article Writer for Pitch Labs. Along with my love of writing and teaching others, I am passionate about entrepreneurship, finance, and coding. I plan to delve more into these subjects in the future.

See more posts by Deepak Palasamudram



Join Our Community

Looking for something else? Get your questions answered in our free online learning community!

Entrepreneurial Resources

Jumpstart your next business with our free resource library.



Our organization cannot give out official legal/fiscal guidance. All articles are written by volunteers and it may be beneficial to contact professionals to assist your understanding of the information and to guide your action. Pitch Labs bears no responsibility for the results of actions taken based off of article content or any other form of assistance given.