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In era of the network economy, it's very important for the enterprises to set up an effective e-business strategy. After intensive study of the law of e-business evolution, we provide a four-stage model of e-business evolution based on information technology, and the specific features of application of each stage also are described. Then the inner drive and key effects are analyzed in four aspects, they are IT application, corporation strategy, competence of IT and power of relationship. In the end, we conclude some suggestions and rules about how enterprise should do in establishing their e-business strategy based on the evolution model, which is valuable for real business practice.