What is the difference between digital business and e-commerce?
What is the difference between digital business and e-commerce?
E-commerce
All electronically mediated transactions between an organization and any third party it deals with
Includes buying and selling (e.g. Amazon retail), but also pre sale and post sale activities such as customer support requests.
Types:
- Buy side e commerce – procurement from suppliers
- Sell side e- commerce – selling to customers.
- Also including social commerce
E-commerce = online transactions ( sales +related activities )
Digital Business
The broader conder of key business processes using internet technologies.
Goes beyond transaction – it covers research & development, marketing , manufacturing, logistics, supply chain management , and internet collaboration (intranets, extranet, enterprise social media )
Digital transformation of the entire business model and operations, not just sales.
Digital business = using digital tech to transform all aspects of the business.
You’ve breakdown the major key difference between digital business and eCommerce business really well! eCommerce business is all about online business transactions and the shopping activities directly tied to them, while digital business is about how latest digital technologies reshape and transform the entire business operations and organization structure.
I’d say that eCommerce can be considered as a subpart of digital business. I’m saying this because a company may have an eCommerce website to sell its products online, but if it also use AI technology in itd supply chain, uses cloud-based ERP systems, and digitizes its products manufacturing processes, then only we can consider it as a digital business.
In short:
eCommerce = Digital Products Sales + Related Shopping Activities
Digital Business = Digital Transformation of the Entire Business Operations