E-business involves the replacement of paper-based, human-agent based or telephone-based personal transactions with transactions over electronic networks.  These networks can be the Internet, proprietary networks, internal networks, extranets, or intranets.  The processes involved in e-businesses are external-oriented processes such as e-commerce and internal processes including production, supply chain management, human resources management, information management, finance, and risk management. Not only are individual companies using e-business processes to streamline their own operations, both startups and existing businesses are rushing in with products and services to facilitate the conduct of e-business.

E-Business is fundamentally changing the way companies operate, going far beyond buying and selling over the internet, or e-commerce, into the deeper layers of how companies relate to the whole chain of enterprise from raw materials through to satisfied customers.  Right now most companies use the internet as a way to introduce their services to customers – a glorified and expensive business card. Others have web sites with catalogues or on-line stores where customers can look over their wares and fill up a shopping cart and pay by credit card.