INTRODUCTION: In this article the focus is mainly on e-business. It consists of a critical discussion and analysis of the impact of adopting e-business orientation. It also contains relevant information on the current state of the e-business market. The report also talks about the differences, advantages and disadvantages of e-business and e-commerce. At the end, recommendations and advice were provided to companies intending to adopt an e-business dimension. DEFINITIONS OF E-BUSINESS AND E-COMMERCE: The terms e-business and e-commerce are closely related but have some elements of difference between them. The term e-business was first coined by Lou Gerstner, CEO of IBM. According to Wikipedia (2006), e-business is any business process that is based on an automated information system, which today is mainly implemented with web-based technologies (Wikipedia, 2006). The Aberdeen Consulting Group defines e-business as “the automation of the full spectrum of interactions between businesses and their distributed employees, business partners, suppliers and customers.” (Intel.com, 2006) http://www.intel.com/it/pdf/e-business-value.pdf (12/27/06) E-business is a broader concept that takes everyone into account aspects of the use of information technology in business. In addition to buying and selling, it also includes customer service, collaboration with business partners and involves incorporation into business processes and communication within the organization (Rowley, 2002). According to the author, e-business conducts business on the Internet not only buy and sell goods, but also serve customers and collaborate with business partners using all human technologies. Definition of e-commerce: E-commerce involves the selling and purchasing of goods or services through electronic means (Chan et al, 2004). This is one of the simplest, most basic and self-explanatory definitions of e-commerce. DIFFERENCE BETWEEN E-BUSINESS AND E-COMMERCE: E-business and e-commerce are terms that are sometimes used interchangeably and are sometimes used to differentiate one vendor's product from another. In both cases, the e stands for “electronic networks” and describes the application of electronic network technology – including the Internet and electronic data interchange (EDI) – to improve and change business processes (Bartels, 2000). E-commerce or electronic commerce is carrying out communications and business transactions via computers and networks. It involves buying and selling goods and services through digital communication. Electronic commerce also includes transactions on the World Wide Web and the Internet and such means as electronic funds transfer, smart cards, and digital cash. E-commerce covers outward-facing processes that interact with customers, suppliers, and external partners such as sales, marketing, delivery, customer service, purchasing raw materials, and manufacturing supplies.