Distinguish between

1) Traditional business and E-business.


Traditional business



A traditional business takes a lengthy and complicated procedure to form

E-Business is easy to form

Setting up cost

2. Setting up cost

It takes huge capital in order to setup.

It takes a very nominal cost

Risk involved

3. Risk involved

Less Risk involved as parties have personal interaction.

High risk involved as there is no direct contact between the parties

Scope of Business

Traditional business is limited to a particular area so the scope is limited.

E-business covers the entire world and so the scope is vast

Customer Interaction

Face to face interaction is possible

In E-business, there is an absence of face to face interaction.

Physical inception

Goods can be inspected physically before purchase

Goods cannot be inspected physically before purchase

Resources focus

Traditional business resources focus on supply-side

E-business resources focus on demand-side

Delivery of Goods

In traditional business delivery of goods is instant.

In E-business delivery of goods takes time


It is ancient and still in usage where the digital network is not reachable.

It is used to save valuable time and money


It is available during the limited time

It is available round the clock


It is difficult to perform more business in this model.

More business can be done easily without any hassles



2) E-business and E-commerce




E-business is the conduct of business processes on the internet

‘E-commerce involves commercial transactions done over the internet

What is it?

E-business is a superset of E-commerce

E-commerce is a subset of E-business


E-business includes all kinds of resale and post-sale efforts.

E-commerce just involves buying and selling of products and services


It is a broader concept that involves market surveying, supply chain, and logistics management and using data mining

E-commerce is a narrower concept and restricted to buying and selling


It is used in the context of B2B transactions

It is more appropriate in the B2C context

Which network is using

E-business can involve the use of internet intranet or extranet

E-commerce involves the mandatory use of internet




3) BPO and KPO





BPO refers to the outsourcing of non-primary activities of the organization to an external organization to minimize cost and increase efficiency

KPO is another kind of outsourcing whereby, functions related to knowledge and information are outsourced to third-party service providers

Degree of Complexity

PO is less complex

KPO is complex


BPO requires process expertise

KPO requires knowledge expertise

Talent required in employee

BPO requires good communication skills

KPO requires professional qualified workers

Focus on

BPO focus on low-level process

KPO focus on high-level process