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The term e-business was first invented by Lou Gerstner, CEO of IBM and is abbreviated from electronic business. It is broadly defined as a business process that depends on an automated information system and is mostly connected with Web-based technologies. This method lets the companies to associate their internal and external data processing more competently, flexibly and effectively.

Electronic business is strongly related with suppliers and partners and better satisfies the needs of consumers. It is also more related with e-commerce which adds more revenue using the worldwide web or the internet and to develop dealings with clients and partners.

E-business is similar to and more than e-commerce. It incorporates business processes, electronic purchasing and supply chain management, processing orders electronically, handling customer service, and cooperating with business partners. Unique technical principles of e-business help the exchange of data between companies. This software solution lets the integration of intra and inters firm business processes. E-business can be performed using the Web, the Internet, intranets, extranets, or some combination of these.

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