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What is Electronic Business?
Benefits of Electronic Business


Drawback of Electronic Business


E-business has the following particular disadvantages and costs:



Although businesses have flourished and developed from the development of technological activities available there have been certain costs. In particular set-up costs for businesses have increased. To be competitive businesses now have to set up certain databases and websites. This has increased the costs of initial set-up.

In addition to the initial set-up costs are the constant maintenance costs involved with updating and keeping active databases, websites, email accounts and the other necessary e-business activities.

Businesses have been forced to employ more people to run the additional tasks necessary for e-business. This has included outsourcing various activities but has also led to internal 'tech-teams.'

The increase of electronic communication results in a vast amount of information available to businesses. Information from customers, research, databases and various other activities can easily be overwhelming for a business to operate and can even prove to be inefficient if managed incorrectly.

The increase of employment has meant that training costs have simultaneously increased. As technology always develops it is also necessary to re-educate staff so as to operate new functions and technologies. This has proved to be an ongoing cost as a result of e-business.