Applying E-Commerce in Business - Essay Example

?Applying E-Commerce in Business Introduction Benefits of E-commerce for Businesses E-commerce is the using of specific information technology infrastructures to exchange value (e.g., money) across organizations and individuals in return for products and services traded in the internet. There are essential characteristics of such infrastructure specifically useful for the modern day businesses. Ubiquity is the accessibility of E-commerce infrastructure from various locations such as home, work, beach, and club or anywhere else preferred by the individuals. They can also use a variety of platforms to access these services example: mobiles, laptops and desktop computers. This infrastructure contains universal standards and is globally reachable. It is rich in diversity and accommodates videos, audios and text messaging. They enable firms to host live conferences, instant messaging (IM), file transferring and text based live chat across the globe. E-commerce infrastructure enables effective interacting between clients in multi stratums including consumers, producers and vendors. It decreases the cost and increases the quality of business transactions. It allows clients to customize and personalize the services according to the requirements of different parties (Turban, et. al, 2012). E-commerce generates a number of economic benefits to the businesses due to the above characteristics such as decreasing cost, increasing richness in communication, expanding market and enhancing customer relations. The cost of travelling to market place is saved and the physical presence is no longer required for bargaining in virtual markets. Videos, audios, pictures and graphics used in virtual markets can simulate the real shopping experience to buyers. Market of the modern day business has expanded widely across the globe. It is not constrained by country borders, racial, religious, language and ethnicity based differences. It does not involve rigid time zones. Billions of potential consumers and various producers can meet in virtual market places. Consumer becomes a co-participant in marketing process. Hence the products can be customized according to individual preferences unlike in traditional marketing methods (Turban, et. al, 2012). It can be converged with contemporary trends in Information Technologies such as cloud computing. Benefits of Cloud computing for E-Commerce Based on the predicting analyses by Nelson (2010) it is forecasted that 80% proportion of total E-commerce in the world will be taken over by cloud computing within 10 years. Processing of payments using the internet and the webs involve identification of transaction ID, customer name, dollar amount, date/time of transaction and status of the payment. All these can be converged in “cloud” infrastructure at a comparatively lower cost and a higher efficiency (Knowledge Center, 2011). Hence cloud computing depicts the potential growth of E-commerce as well. According to the definition of Mell, and Grance (2011), “cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction” (p.2). The above definition contains a number of characteristics of E-commerce infrastructure. Economic characteristics of cloud computing are as follows. On-demand self-service involves utility based access to the cloud without involving of human component for providing the service each time a customer needs it. Broad network provides heterogeneous platforms. Resource pooling allows aggregating the storage, memory, processing capacity and network bandwidth of idle computers across the globe and a number of customers who are unaware of the specific location where the service is provided from. Rapid elasticity involves immediately and unlimitedly providing the services while ensuring its availability, accessibility and purchase-ability to the customers. Measured service means the ability to automatically monitor, control and record the amount of services consumed by the customers and billing them accordingly with fair and transparent strategies (NIST, 2011). On-premise computing requires firms to purchase, hardware, software and updates required for locally hosting the servers. Hence IT costs were largely a fixed cost during the old days. On-demand and Measured service shifted this fixed nature of IT costs to a variable cost which depends on the firms’ scale of production. These are largely useful to the medium and small scale businesses for decreasing the monetary costs associated with computer software applications. These features are also useful for the large scale firms in avoiding issues of software bulkiness (Murch, 2004). Rapid elasticity is a distinguished characteristic which provides convenience and flexibility for scaling the production in and out by the firms (Gartner, 2009). Broad network cater the needs of various customer segments and hence is applicable and useful to the entire society. Self-service helps overcoming time zone differences across producers and consumers. Further Resource pooling on global scale is the most important economic characteristic associated with cloud computing. It increases the resource use efficiency and environmental friendliness of businesses. These are the future potentials of E-commerce. Creation of Public and Private Spaces in E commerce Public, community and private infrastructures largely derive from cloud computing. These can be used for creating private space in E-commerce. Privacy related categories are identified by using the deployment characteristics of cloud infrastructure such as who is authorised for accessing, administrating and utilizing the platforms. A private platform is built for the purpose of benefiting multiple consumers within a single organization (NIST, 2011). Information security is vital for the businesses in E-commerce. Private cloud infrastructure can demark the privacy concerns of such firms. The benefits of private platforms by the businesses largely vary upon cloud service providers. Example: Ubuntu provides dynamic platforms that compliance with multiple external internet and web service providers, back up from leading technology companies, software developers, flexibility in customizing and personalizing the messages, and scalability (Ubuntu, 2012). Community platforms enable uploading data or applications by multiple organizations who share similar technological and security concerns such as military and research institutions. Public platforms are open access infrastructures which are managed by the specific organizations. Hybrid platforms contain characteristics of more than one form of deployment models described above (NIST, 2011). Literature review Business Related Time Issues “Temporality” is commonly adopted in conceptualizing time in the field of business management (Lee and Sawyer 2010). Temporality includes linear measurement of chronology of events and also properties of time such as punctuality, duration, initiation, sequence, deadline, cycle, rhythm, speed. Measuring time by using hours, minutes, days and quarters was considered significant since the early days in business field. In fact time was generally identified as money. In the modern day business firms’ time factor is embedded in terms of both linear chronology and its properties example: emerging of night-working, 24/7 shipping and year round availability of products (Roberts, 2008). Rigid time horizons and non-negotiable deadlines are commonly faced challenges by the modern day organizations. When operating across different time zones organizations often face challenges relating to collaboration and communications failures. In temporally distributed projects, time-zone differences hinder remotely building labor and customer relationships. Mutually inter-dependent organizational and relational infrastructures have the capacity to strengthen the communication effectiveness of such distributed organizations (Fenema and Raisanen 2005). Further different working hours can adversely affect the business process. Issues of non-overlapping working hours cannot be solved by common e-technologies such as email, instant messaging (IM) and Web conferencing. On the other hand asynchronous e-mails are useful in overcoming communication delays associated with overlapping working hours but located at different sites. Hence temporal boundaries are rather difficult to deal with compared to the special boundaries by using modern E-technologies (Cummings et. al, 2009). Traditional sequential and temporally ordered strategies constraint firms from coordinating several actions simultaneously. Computing on the other hand enhances usage of polychronic time and solving complex problems effectively. Eample: Game theory is used in computer applications for making decisions which involve processing of complex strategies, multiple objectives, motives and constraints simultaneously. Bruce Bueno de Mesquita is known for adopting computer applications for predicting significant political events accurately. This program places numeric values on people’s objectives, motivations and factors influencing their decision making process (The Economist, 2011). Business Related Geographical Mobility Issues Using human geography is disadvantageous for describing the various issues related to proximity in modern day businesses. Hence the concept of “spacing” is adopted for theorizing the issues of “proximity” by many scholars (Beyes and Steyaert 2011). Space in organizations is described by using three approaches (Taylor and Spicer, 2007). They are the physical proximity between two locations, area dominating by materials and understandings or interpretations of firms. Physical proximity is the measured distance between firms’ customers, competitors, resources and other important federal institutions. Networking, Ergonomics and office design etc. are the management sub-disciplines which are related to the physical proximity. Workplace and architecture describes firms’ space as materialized power relations infrastructure. Concepts of employee relations and labor Process falls under this approach. Space as experience describes the firms’ understanding or interpretation of symbolisms, aesthetics, actors, and discourses which are described in the management sub-discipline known as organizational infrastructure. Relations and organizational infrastructure are significant invisible factors affecting the performances of geographically dispersed organizations (Fenema and Raisanen 2005). Operating in geographically dispersed locations and different socio-cultural environments result in deteriorating the firms’ relations and organizational infrastructure. Multinational organizations incorporate people of different races, ethnicities, nationalities, economic classes and religions. Managing customer and labor relations internationally is often hindered by such difference occurring in across the borders. In addition to these language barriers also affect organizational and relations infrastructure. In geographically distributed organizations the frequency and richness of interactions are also affected (Fenema and Raisanen 2005). Isaacs et al., found that in large organizations informal communication plays an important role in receiving information. Dissemination of information largely employs formal techniques alternatively. Integrated Temporal and Special Issues Tsatsou, 2009, described time and space as intrinsically inseparable elements of physical reality. With the development of computer based “virtual reality” the traditional concepts of time and space are being destroyed. Information technologies have fuel the need for theorizing what is temporality, spatiality and mobility compared to the history where these concepts were commonly and explicitly perceived notions. How people experience temporal and spatial dimensions currently are not characterized by hours and minutes or borders and geographic boundaries like in the old days. Business communities can now benefit from temporal shrinking, permeable spatial boundaries and the newly established electronic spaces which do not require physical presence. In temporally and geographically not-dispersed organizations employees and customers often “run into each other” in the corridors, cafeteria, at the photocopier etc. A small percentage of the conversations which occurs during such meetings have found critical to their performances of organizations. The coordination, productivity, and well-being of the groups are enhanced by such conversations. Further forming “weak ties” i.e. low-intensity relationships with little mutual obligation and infrequent contact, most likely unintended encounters with people outside the organizations have found increasing the labor productivity (Nelson and Mathews, 1991). Forming these critical forms of labor relations is often difficult in traditional temporally and geographically dispersed organizations. Hence the flexibility and effectiveness of decision making and positive stereotyping of other groups is adversely affected when operating in different time zones and socio-cultural environments E-technology Solutions for Time and Space Issues There are a number of multiuser domains which enables socially rich interactions between the individuals who are navigating in internet and webs. Curtis, 1992 showed how simple text messaging can enhance unplanned interactions between the users who encounter in a virtual world. These interactions can lead to forming of advanced social groups between internet users. Advancement of graphical virtual communities has enhanced forming effective interactions by providing convenient methods for noticing and initiating conversations between individuals who have similar motivations and interests (Morningstar & Farmer, 1992). Such recent domains contain richer visual representations of places and people. Bly et al., 1993 revealed that use of audio and video connections can enhance connections among people despite the occurring of differences between their time zones and physical proximity. Example: Portholes at Xerox EuroPARC media space used video snapshots updating approach for increasing the social interactions between geographically dispersed organizations. These videos depict the material spaces in distributed organizations (Dourish & Bly, 1992). Ubique [http://www.ubique.com] virtual place enhances unintentional interactions between the navigators. It allows the users who are visiting the page at a given time to interact by using text and/or audio chat. Further in 1999 experiment by Shirani et al., influence of two communication technologies (e-mail and a group support system-GSS) and two task structures (less structured and more structured) had been measured on the total number of basic and inferential idea categories. It was revealed that that using of e technologies and unstructured communication enhance the ability of analyzing problems and generating of inferential ideas by the employees as opposed to synchronous and structured methods. Violation of Privacy in the Internet Classic problems associated with E technologies are corporate culture shock, loss of control, information security and privacy concerns (Earnst and Young, 2012). The information security and privacy related agreements are set between intermediate service providers and firms. Organizations have to be cautious in negotiating such terms and agreements. Misusing of personally identifiable information which is recorded during internet based transactions is also a severe problem. Scholars recommend on purchasing web services from authorized venders and in accordance with applied rules and legislations (Goldner, 2010). Emerging of providing security as a service can be identified as a useful solution to overcome such issues. Further the service providers associated with E-commerce have to demonstrate the necessary technical expertise and legal expertise to protect the data stored in private, community and public from unauthorized accessing. Commonly adopted information security strategies are underdeveloped and/or expensive. Example: Regulatory applications of information security such as Payment Card Industry Data Security Standards, Health Insurance Portability and Accountability Act, Data Privacy Directives are expensive. Thus the utilization of such regulations is limited even in developed countries (Earnst and Young, 2012). In addition to these there are also new challenges created by newly emerging business ventures such as pricing or e-technologies, legislations of vender-consumer agreements and cross border taxations. Conclusions E-commerce is the usage of internet and webs to exchange value (e.g., money) across organizations and individuals in return for products and services. It shows a vast potential for growth by converging with “cloud computing.” Moreover, communication barriers, collaborating problems and deteriorating of relations and organizational infrastructures is evident in temporally and geographically dispersed traditional organizations. Migrating into e-technologies enhance firms’ communication systems, labor relations, strategic and decision making abilities. Nevertheless, e-technologies may fail in solving firms’ temporal issues such as non-overlapping working hours in different locations. Further, security related problems and under developed regulation systems discourage use of internet and webs in critical data handling despite private and community “clouds” are capable of controlling unauthorized access up to a certain degree. References Beyes T and Steyaert C 2011, ‘Spacing organization: non-representational theory and performing organizational space,’ Organization, Vol. 19, no. 1 pp.45-61 Bly, SA, Harrison, SR and Irwin, S 1993, ‘Media spaces: Bringing people together in a video, audio, and computingenvironment,’ Communications of the ACM. Vol 36, no. 1, pp. 28-47. 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