[XI.

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HOW TO MANAGE E-BUSINESS: DESIGN, DEVELOPMENT AND FUTURE

OF THE CONCEPT

Assist. Prof. Dr. Onur Başar Özbozkurt

Tarsus University
Abstract
Modern-day digital transformation including the internet and global usage of websites
and rapid structural changes in the economy enable for e-business in terms of coordinating
and adapting these changes. In this regard, as a revolutionary paradigm of doing business, e-
business is a brief way of describing “electronic business” that represents the method of using
digital and online information and communication technologies (ICT) to strengthen business
processes that notably include online stores or other internet-based firms. In other words, e-
business contains a more comprehensive definition of e-commerce that includes not only
buying and selling goods and services but also collaborating with stakeholders and business
partners, leading electronic transactions within a company. In addition to that, e-business may
comprise a crucial key of an organizational management strategy involving in the use of
solutions desired and planned to increase organizations' competitiveness. In this sense, this
present study aims at exploring the aspects of the main circumstances of the concept of e-
business and focuses on the growth of e-business, formulation and implementation of e-
business strategies, and looks at the future prospects for e-business in addition to identifying
the distinctions of e-commerce. The study shows that the rapid technological developments
combined with the growth of e-business contribute the tremendous opportunities and an
appropriately developed e-business strategy and tools that are correspondingly used in the
companies, positively affect organizations’ success and sustainability.
Keywords: E-Business, Information and Communication Technologies, Management.

E-İŞLETME YÖNETİMİ: TASARLANMASI, GELİŞİMİ VE KAVRAMIN GELECEĞİ

Özet
İnternet ve web sitelerinin küresel düzeyde kullanımı ve ekonomideki hızlı yapısal
değişiklikleri de kapsayan günümüzdeki dijital dönüşüm, bahse konu değişiklikleri koordine
etmek ve bu değişikliklere uyum sağlamak için e-işletmeciliğe olanak sağlamaktadır. Bu
bağlamda, iş yapmanın devrim gerçekleştiren bir paradigması olarak e-işletmecilik, özellikle
çevrimiçi mağazalar veya diğer internet tabanlı firmaları içeren, iş süreçlerini güçlendirmek
için dijital ve çevrimiçi bilgi ve iletişim teknolojilerini (BİT) kullanma yöntemini temsil eden
“elektronik işletmeciliği” tanımlamanın kısa bir yolunu ifade etmektedir. Farklı bir ifadeyle e-
işletmecilik, yalnızca mal ve hizmet satın alma ve satmayı değil, aynı zamanda bir işletme
içerisinde elektronik işlemlere öncülük eden paydaşlarla ve iş ortaklarıyla işbirliğini içeren
daha kapsamlı bir e-ticaret tanımını içermektedir. Buna ek olarak, e-işletmecilik,
organizasyonların rekabet gücünü artırmak için arzulanan ve planlanan çözümlerin
kullanılmasını içeren bir organizasyonel yönetim stratejisinin çok önemli bir anahtarı
olabilmektedir. Bu bağlamda bu çalışmada, e-işletmeciliğin e-ticaretten farklılıklarının tespit

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edilmesine ek olarak, e-işletmecilik kavramının temel koşullarının incelenmesi ve e-

işletmeciliğin büyümesine, e-işletme stratejilerinin oluşturulmasına ve uygulanmasına
odaklanılmakta ve e-işletmeciliğe ilişkin gelecekteki beklentilerin incelenmesi
amaçlanmaktadır. Bu çalışma, e-işletmeciliğin büyümesiyle birlikte kaydedilen hızlı
teknolojik gelişmelerin kayda değer fırsatlara katkıda bulunduğunu ve doğru bir şekilde
geliştirilen e-işletmecilik stratejisi ve buna paralel olarak faydalanılan araçların,
organizasyonların başarısı ve sürdürülebilirliğini olumlu yönde etkilediğini ortaya
koymaktadır.
Anahtar Kelimeler: E-İşletmecilik, Bilgi ve İletişim Teknolojileri, Yönetim.

1. INTRODUCTION
Technological developments are rapidly changing the methods of organizations do
business. The fundamental actor of these changes, internet, considerably has a gorgeous
significance for doing business, specifically e-business, and precisely improving the
productivity of economic and business activities (Souza & Batista, 2017: 60). In this sense, e-
business refers to an approach that includes successfully achieving business goals which
(computer-based, networked etc.) technology for information exchange allows and promotes
the implementation of business activities in and across value chains in addition to that
strengthening decision-making that underlies those activities (Holsapple & Singh, 2000: 161;
Holsapple & Chen, 2013: 263).
Furthermore, e-business can be defined as the tools and processes that permit
organizations to use internet-based information technologies to operate business activities
both externally and internally (Pilinkiene, Kurschus & Auskalnyte, 2013: 77). In this regard,
e-business can be synthesized that, fundamentally, e-business is related to new and innovative
business strategies, models, tactics, and methods that are facilitated with the competences
brought by the internet and related technologies. Additionally, e-business opportunities enable
the e-business strategy aligned with business operators and drivers (Akhgar & Siddiqi, 2006:
1).
On the other hand, although e-business and e-commerce interchangeably are used in
various researches, these concepts have distinctions between each other. In this respect, e-
commerce means inter-business or inter-organizational transactions which are between firms
and organizations, and business-to-consumer transactions which are between firms,
organizations and individuals (Zorayda, 2003: 7). E-business explicitly seems a “framework”
to categorize e-businesses from the point of strategic business goals and objectives; however,
the e-commerce business model is a scheme for business processes in which the goods and
money flow (Aithal, 2016: 276). Namely, e-commerce is a kind of paperless trading. E-
commerce by buying and selling exchange data and information necessary for the
transportation of goods, with less effort and more momentum will perform banking
transactions (Azadi & Rahimzadeh, 2012: 49).
From this point of view the development of advanced technologies, the environment of
business changes, the extension of markets, the production of new goods and services, the
demands of buyers online, the new internet-based business applications, and adopting the

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digital changes have exponentially prioritized to increase the importance of e-business and its
activities (Combe, 2012, 331). In this regard, this present study aims at exploring the aspects
of the main circumstances of the concept of e-business and concentrates on the growth of e-
business, formulation and implementation of e-business strategies, and looks at the future
prospects for e-business in addition to identifying the distinctions of e-commerce.

2. E-BUSINESS
Within the last decades, the nature of the business environment has aggressively
changed owing to the production and advent of a series of technological developments, and in
this regard the introduction of mobile data technology is seen as the vital point of
understanding e-business (Cristofaro, 2019: 1). In this sense, electronic business typically
means to as “e-business” in brief, can be described as utilizing information and
communication technologies (ICT) in support of all business activities (Raaju, 2015: 33).
Similarly, e-business refers to as the use of the internet to create a network and authorize
business processes, electronic commerce, organizational communication, and cooperation
within a company and with its clients, suppliers, stakeholders, and partners. E-businesses
utilize several networks such as the internet, extranet, intranet, etc. to enhance their
commercial activities and processes (Combe, 2012: 1). Furthermore, a more extensive
explanation of e-business can be argued as the change process of organization’s business
activities to deliver additional customer value via utilizing the technological applications and
determining the paradigm of the recent business economy (Zorayda, 2003: 7).
Jelassi & Enders (2005:4) highlight that the concept of “e-business” is acknowledged as
the utilization of electronic tools to internally and externally operate organizations’ business
activities and processes. In this frame, internal e-business processes consist of linking
between an organization and its employees via using the intranet to enhance information
sharing, enable knowledge spreading, and support managerial report system. In addition to
that, e-business processes also contain improving the aftersales service activities and
cooperating with business stakeholders and partners in terms of developing a new product
jointly, etc. Brzozowska & Bubel (2015: 1095) point out the e-business means a business
management way utilizing IT communication, primarily internet-based applications.
Likewise, e-business simplifies sending reports and documents, exchanging data between a
distributor, producer, stakeholder and business partner, attracting new clients, and exploring
new markets.
Mazzarol (2015: 83) emphasizes that the model of “e-business” includes the utilize by a
business of ICT to strengthen production processes, customer engagement activities, and
internal management processes (Mazzarol, 2015: 83). Moreover, Kovacic, Groznik & Bosilj-
Vuksic (2002: 640) stress that the infrastructure of e-business reflects the share of total
economic infrastructure utilized to improve e-business processes and activities and operate
electronic commerce transactions. In other words, the infrastructure of e-business contains
software, hardware, support services and human-based capital used in electronic business and
the fundamental value drivers and main characteristics consist of total customer service, cost
leadership and emerging recent business models.

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Wu, Mahajan & Balasubramanian (2003: 425-426) state that e-business can be utilized
to engage in clients, business partners, stakeholders, suppliers, and employees in terms of e-
commerce websites that offer sales transactions, customer-service websites, extranets and
supply chains, etc. Namely, Fillis & Wagner (2005: 606) argue that e-business is one of the
main business models operated over an electronic network that include having a website,
exchanging data files, using other companies’ websites or utilizing to buy and sell goods and
services online.
As Aithal (2016: 275) stresses that the e-business model contains the specific roles and
relationships among organizations’ customers, shareholders, suppliers, and allies; the essential
flows of services, product, money, and information; and the crucial opportunities to the
related partners and participants. Similarly, Kolaric, Petrovic & Radojcic (2011: 32) claim
that e-business does not only signify the prioritization of adapting new technologies; but also,
it means to be interiorized the innovative practices that concentrate on clients and suppliers,
changes in the methods which goods and services are shaped to buyers’ demands etc. by
organizations.
From this point of view, e-business precisely enables innovative opportunities for
organizations that are avid and ready to adapt and transforming its traditional business
channels to a virtual business platform (Sheung, 2014: 9). Additionally, e-business provides
organizations to effectively and efficiently link their internal and external processes and work
cooperatively and closely with partners and suppliers to enhance customers’ expectations and
needs in terms of achieving a better satisfaction level (Owenje, 2014: 2). In other words, e-
business briefly allows creating a bridge between to clients, business partners, stakeholders,
suppliers, and employees via utilizing the internet, intranets, and extranets (Rodgers, Yen &
Chou, 2002: 185).
2.1. Formulation and Implementation of E-Business Strategies
The nature of e-business environment has active and dynamic circumstances and in such
a context, the formulation and implementation of appropriate strategies in e-businesses are
facing several challenges (Sanaei & Sobhani, 2018: 185). In this frame, the identification of e-
business strategies have a vital significance for business development and promoting
economic restructuring and upgrading (Elnaga & Shammari, 2016: 68) and it is a crucial
element for all organizations to describe and adopt an appropriate e-business strategy for their
business actions to lead its e-business implementation and support the overall corporate
strategy (Chen, Ruikar & Carrillo, 2013: 307). In this sense, e-business strategy helps to the
development to expand organizations’ knowledge and skills along the dimensions of
analytical ability and creative thinking (Jelassi & Enders, 2005: 34). Furthermore, the e-
business strategy allows vision and mission, goals and objectives for the organizations’
business climate. The underlying component of the e-business strategy is the conception of a
real-time engaged organization that supports and creates value to its clients better processes
than other rivals in the business environment (www.wap.dhl.com, Date retrieved: 06.09.
2019).
Suchánek (2008: 538) states that e-business strategy involves the adoption of business
processes spanning the entire value chain. The primary aim of e-business strategy formulating

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is to create value by utilizing ICT. Namely, the added value can be characterized as the
creation of higher profit, shortening of the business transaction, lower costs, etc. Additionally,
Akhgar & Siddiqi (2006: 3) argue that e-business strategies’ stages respectively include e-
business expectations, priorities, applications, implementation options, and long-term plans.
In this frame, Figure 1 below indicates developing e-business strategy.

Procedural
and
technological
audit Competition
Implementation analysis and
analysis of
schedules strategic
partners

Development of
E-Business Occasions
Implementation Strategy and
preferences technologies
identification

The selection
of Definition of
technologies the occasions
suppliers

Figure 1. Development of E-Business Strategy

Source: Adapted and retrieved from Suchánek (2008: 538).

On the other hand, the implementation of e-business strategies are more than a simple
adoption of Information System, hence it includes a closer integration between the external
and internal management process, a deeper bridging with organizational partners,
stakeholders, suppliers and clients, besides strategic opportunities (Wu, et al., 2003: 428;
Lucia-Palacios, Bordonaba-Juste, Polo-Redondo & Grünhagen, 2014: 225). Additionally,
implementing e-business strategies are key activities for taking responsibility and initiating to
be ready for the business climate. To succeed in e-business strategies, the appropriate
objectives and measurable goals need to be clearly described in the beginning, introducing
and determining the new market advantages and opportunities or enhancing information
accessibility among business drivers, departments, and strategic business units (Akhgar &
Siddiqi, 2006: 6).
2.2. The Distinctions Between E-Business and E-commerce
Although, the concepts of e-business and e-commerce are interchangeably used in some
researches, these concepts are different meanings between each other. On one hand, e-
commerce refers to inter-organizational transactions and inter-business transactions that
include transactions between and among firms/organizations, and business-to-consumer
transactions that signify transactions between firms/organizations and buyers; on the other

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hand, e-business includes governmental or non-profit organizations’ business process that

conducts with internet-based technologies (Zorayda, 2003: 7). On the contemporary e-
business architecture concept, e-commerce has been assumed as a vital component of the
organizations and seen a business unit on its own. In addition to that, e-commerce has been
presumed as the interchange of goods and services for money utilizing internet technologies
as enhancing infrastructure (Labuschagne, & Eloff, 2001: 298).
Furthermore, e-commerce implies to prospects of online business that contains
interchanges among clients, vendors, stakeholders and business partners. For instance,
suppliers are interaction with manufacturers, clients are interaction with salespersons. In this
point, e-business embraces these components and contains operations that are handled within
the business itself (Deitel, 2001: 1376). Similarly, e-commerce is determined as the total
transactions operated between units utilizing digital communication in which using electronic
order systems. However, e-business is described as the type of business in which any part of
the process regarding with digital communication. Namely, e-business includes both
transactions, e-interactions and collaborative activities (De Graaf & Muurling, 2005: 128).
Besides, e-commerce is related to selling and buying of products around the web.
Contrarily, e-business is not limited to commercial transactions and supports the other units of
business services. E-commerce concentrates on the organization’s dealings with its clients,
partners or suppliers. On the contrary, e-business specifies undertaking industry, commerce,
and trade via using of ICT (www.keydifferences.com, Date retrieved: 13.08.2019). From this
point of view, Table 1 indicates the comparison of the concepts of e-business and e-
commerce.
Table 1. The Comparison of E-Commerce and E-Business
Basis for Comparison E-Business E-Commerce
Definition It is known as driving business It is known as carrying out
utilizing internet and internet- merchandise trade via
based technologies. utilizing the internet.
What is it? Superset Subset
Is it limited to Not limited. Limited.
monetary transactions?
What they carry out? Business transactions Commercial transactions
Approach Ambiverted Extroverted
Requires Website, customer relationship Website
management, enterprise resource
planning, etc.
Network Intranet, Extranet, and Internet Internet
Source: Adapted and retrieved from https://keydifferences.com/difference-between-e-
commerce-and-e-business.html#ComparisonChart, Date retrieved: 13.08.2019.
Consequently, in the model of e-commerce, buyers make transactions via selling and
buying goods and services over the internet; by contrast, in the concept of e-business,
business processes are carrying out on the internet. Additionally, e-commerce needs to a
specified website for representing and introducing the business activities; however, e-business
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consists of creating and building better relationships with clients, suppliers, partners, and
distributors via customer relationship management, enterprise resource planning, and website.
Furthermore, e-commerce requires the connection of the extrinsic business environment via
using the internet; besides, e-business uses the internet, extranet, and intranet. By the same
token, whilst e-commerce has limited monetary transactions, e-business has no limited
monetary transactions. Also, while e-business carries out business transactions, e-commerce
operates commercial transactions.
2.3. Future Prospects of E-Business
The evolution of ICT has critically an impact on many organizations around the world
challenges the transformations and changes to the business environment and socioeconomic
development plans, representing the fundamental implications on various organizations’
business transactions and supporting the concepts of globalization and the transformation of
the global digital economy (Kamel, 2012: 1104). In this respect, successfully incorporating
today’s digital technologies needs organizations to conduct innovative methods (Kane,
Palmer, Phillips & Kiron, 2015: 37; Senyo, Liu & Effah, 2019: 52).
Besides, utilizing internet-based technological applications are not adequate. Also, it is
necessary to profit from digitalization needs business model innovation; for instance, making
transition to modern and contemporary service business models (Parida, Sjödin & Reim,
2019: 1). In this regard, a future-ready e-business organizations consider all circumstances of
interaction between organizations’ brand and the client and prioritize it with buyer-centered,
engaging and designed interactions. In addition to that, it needs to pay attention to the whole
customer experience lifecycle and strength intelligence at the appropriate circumstances.
Moreover, e-business organizations require a digital transformation strategy that is perpetual
visited and iterated over time to be able to adjust to market conditions (www.avanade.com,
Date retrieved: 21.09.2019).
Furthermore, Kulyk & Škodová Parmová (2017: 84) state that e-business will be
conducted via flexible internet networks of interdependent organizations all over world in the
future. Considerably, it will be global, collaborative, open, adoptive and dynamic, consistent
and frictionless. Namely, ICT will be one of the most crucial assumptions for successful e-
business development. All organizations will be affected by these kind of innovative business
transformations. Additionally, Fei & Chung (2015: 191) highlight that to support e-business
based organizations in achieving excellence and the competitive edge, IT for future e-business
management must rise to new challenges by providing tools to analyze large volumes of data
from various sources and support decision making, generating models for investigating
components in fast-growing e-commerce sectors, and developing mechanisms for enhancing
the efficiency of business processes, etc. Ultimately, Lee & Jecks (2004: 44) briefly argue that
one certainty is that the e-business drivers of the future will be those who can engage the
chasms between engineering, business, IT and technology, and human relationships.

3. CONCLUSION
Within the last decades, the business environment has drastically changed due to the
advent of a series of technological innovations, among which the introduction of mobile data

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technology is considered as the milestone from where thousands of new disruptive e-

businesses have been set (Cristofaro, 2019: 1). Moreover, new e-business environment makes
the organization abandon the traditional ways of operation (Kolaric et al., 2011: 39). In this
respect, it has been presumed that e-business is a new revolution where initiative is needed to
fully utilize the capabilities of internet technology in a specific business setting (Sheung,
2014: 8). Considerably, electronic business, namely e-business is more than just buying and
selling products online. It also includes the entire online process of developing, marketing,
selling, delivering, servicing and paying for products and services (Malhotra, 2014: 11).
From this point of view, this study shows that the rapid technological developments
combined with the growth of e-business contribute the tremendous opportunities such as more
efficient administrative functions, accessing prices anytime and faster and easier ordering by
customers, enabling access for new international and regional markets, strengthening
customer and supplier networks and improving a creative collaboration and project
management. In this sense, an appropriately developed e-business strategy and tools that are
correspondingly used in the companies, positively affect organizations’ success and
sustainability.
As a result, this study has recommendations for both further researches and practices in
business life. In this regard, further researches might concentrate on empirical studies in the
related field in addition to theoretical and conceptual studies. Additionally, universities should
support e-business practices to strengthen this new and emerging discipline. Besides, it is
recommended managers to invest more in training employees for this type of new business
model and should take into consideration that these adoption to challenges and taking steps to
this new business world are critical to survival for almost every organization since it is
expected that upgrading the quality of e-business practices are going to increase its
significance in the future.

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