Explain why a firm's online inventory control system is an example of e-business rather than e-commerce. What is the key factor in determining if a transaction is "commerce"?

Question

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The Answer is E-business refers primarily to digitally enabled transactions within a firm, involving information systems, such an online inventory control system, under the control of the firm. E-business does not involve commercial transactions in which an exchange of value across organizational boundaries takes place. E-commerce, on the other hand, is a revenue-generating operation. The key factor in determining if a transaction is commerce, therefore, is "exchange of value." To be e-commerce, a transaction must include the direct production of revenue.

Explain Why a Firm's Online Inventory Control System Is an Example