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The introduction of Internet technology has led to the business revolution, the so-called e-business. As a consequence, the e-business led the surprising economy booming for certain years. However, in the last few years, e-business also led to a global economy recession. The rises and falls of e-business raise curiosity to researchers for further investigation on the impacts of Internet technology on the business operations. What goes wrong with e-business becomes an interesting question, and deserves in-depth investigation.

In this paper, we give the definition of mobile business and construct its advantages. We analyze why e-business did not perform well in the last few years by showing how traditional Internet users were blocked by corporate firewalls from interactions with e-business.

Based upon transaction cost theory, we decompose transaction cost into analytical components: transportation cost, information cost, telecommunications cost and management cost, and therefore, derive the profit realization equation. We then use this profit realization equation to analyze how mobile technology impacts business operations.

As a result, this paper provides an analytical framework for enterprises implement mobile business and reengineer business operations. The enterprises can therefore set up corporate strategy to restructure the enterprise resources to build superior core competence and enhance corporate competitive advantages