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While the burgeoning use of electronic devices in our economy is widely acknowledged and discussed, it remains largely undefined and unrecognized in official economic statistics. The terms Internet, electronic commerce, electronic business, and cybertrade are used often. However, they are used interchangeably and with no common understanding of their scope or relationships. Establishing terms that clearly and consistently describe our growing and dynamic networked economy is a critical first step toward developing useful statistics about it. This paper presents definitions and concepts to describe the electronic revolution taking place in our economy. They were developed by the Census Bureau for discussion purposes, are based on reviews of available information and consultations with interested professionals, and are intended to provide a frame of reference for developing useful official statistical measures. The paper also describes Census Bureau related program plans for FY 2000 (October 1999 to September 2000) and concludes with a number of questions seeking interested parties views and comments.

E-business infrastructure is the share of total economic infrastructure used to support electronic business processes and conduct electronic commerce transactions. It includes hardware, software, telecommunication networks, support services, and human capital used in electronic business and commerce. Examples of e-business infrastructure are:

Computers, routers, and other hardware

Satellite, wire, and optical communications and network channels

System and applications software

Support services, such as web site development and hosting, consulting, electronic payment, and certification services.

Human capital, such as programmers.

Examples of e-commerce transactions are:
An individual purchases a book on the Internet.
A government employee reserves a hotel room over the Internet.
A business calls a toll free number and orders a computer using the seller's interactive telephone system.

A business buys office supplies on-line or through an electronic auction.
A retailer orders merchandise using an EDI network or a supplier's extranet.
A manufacturing plant orders electronic components from another plant within the company using the company's intranet.
An individual withdraws funds from an automatic teller machine (ATM).

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