The smallest independent units a business is composed of are called components. The responsiveness of an organization to change is often wholly reliant on these components. If the business model has been built on components, the business is better prepared to incorporate change, because the underlying processes remain unaffected, while the business moves in a new direction.
Defining Electronic Business
The evolution of the information society is often compared Emergence of to the Industrial Revolution in terms of its consequences. The use of information and communication technologies provides the opportunity to extend the abilities of individuals and organizations to act, to reinforce cross-border contacts, and to develop an open society with cultural originality and variety.
Due to technological changes and economic development, the information factor has become more significant than the production factor. Many companies and organizations have moved their business processes onto the web and realized customer relationships with the help of electronic communication, leading to the term electronic business.
What does Electronic business mean?
Electronic business means initiating, arranging, and carrying out electronic business processes.
In other words, exchanging services with the help of public or private communication networks, including the Internet, in order to achieve
added value. Companies (business), public institutions (administration), as well as private persons (consumer) can be both service providers and service consumers.
What is important is that the electronic business relationship generates added value, which may take the form of either a monetary or an intangible contribution.