Sri Lanka Tourism Development Authority

Advantages Of E-Business in Today’s World

E-Business Sri lanka

Electronic Business, also known as "e-Business" or "e-Business", is defined as the utilisation of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and hence can be seen as one of the essential activities of any business. Hence, electronic commerce or e-Commerce focuses on the use of ICT to enable the external activities and relationships of the business with individuals, groups and other businesses.

Electronic business methods enable companies to link their internal and external data processing systems more efficiently and flexibly, to work more closely with suppliers and partners, and to better satisfy the needs and expectations of their customers.

In practice, e-business is more than just e-commerce. While e-business refers to more strategic focus with an emphasis on the functions that occur using electronic capabilities, e-commerce is a subset of an overall e-business strategy. E-commerce seeks to add revenue streams using the world wide web or the internet to build and enhance relationships with clients and partners and to improve efficiency using the empty vessel strategy. Often, e-commerce involves the application of knowledge management systems.

E-business involves business processes spanning the entire value chain: electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Special technical standards for e-business facilitate the exchange of data between companies. E-business software solutions allow the integration of intra and inter firm business processes. E-business can be conducted using the web, the internet, intranets, extranets, or some combination of these.

Activities using e-Business tools include:

  • Trading of goods or services online, such as e-Procurement, primarily through the web-sites;
  • Electronic retailing (e-Tailing);
  • Use of the internet, intranets or extranets to conduct research and manage business activities;
  • Web-site marketing;
  • Online communications, such as e-mail; and
  • Online training for staff (e-Learning).

e-Business tools include:

  • Mobile phones;
  • Personal digital assistants (PDA);
  • Electronic Data Interchange;
  • File transfer;
  • Facsimile;
  • Video conferencing, internet, intranets and extranets.


The benefits of implementing e-Business tools is not so much in the use of technology, but in the streamlining of business processes and the ease in finding new markets. Some of the advantages and disadvantages include:

  • Quicker and easier communications.
  • Strengthened marketing capabilities and reach.
  • Increased hours of operation (a web-site provides 24-hour seven day information to existing and potential customers).
  • Access to broader information through research.
  • Reducing the cost of doing business by lowering transaction costs and increasing efficient methods for payment, such as using online banking and reducing stationery and postage costs.
  • The opportunities to adopt new business models and develop tailored customer support.