The internet is a valuable tool that allows small businesses to market themselves extensively and reach a global client base. Most small businesses in Australia are now connected to the internet.

Electronic business (or e-business) describes the use of information and communications technology to conduct business both at home and overseas using electronic capabilities. E-business is a strategic focus and should be incorporated into the business strategy.

The term e-business is broader than e-commerce because it includes all business activities like marketing, customer support, research, communications, order processing, supply chain management and partner collaboration.

It is estimated that 60% of small businesses in Australia place purchase orders over the internet, while 66% of small businesses pay online for products and services (Yellow Pages e-business Report: July 2006).

E-business operates on three levels:

B2B (business to business) – business communications with other businesses like the direct placement of purchase orders.

B2C (business to consumer) – business communications with consumers through sales completed from a business website (e-commerce) or a regular newsletter.

B2G (business to government) – business communications with government like online taxation lodgements.

Contact your local Business Advisory Service to find out more about business technology management. Or, visit digitalbusiness.gov.au.