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Catholic Institute of Business and Technology| ELECTRONIC-COMMENCE ASSIGNMENT| What are the major limitations on the growth of e-commence? Which is potentially the toughest to overcome? Discuss why new and improved security measures are not enough to stop online crime? What is the missing ingredient? How have the unique features of Electronic Commence technology changed industry structure in the travel business? | 11/21/2011 11/21/2011 What are the major limitations on the growth of e-commence? Which is potentially the toughest to overcome? 1. High Financial cost involved
The cost involved in setting up an electronic business for is very expensive specially for starting businesses. Cost is a crucial issue. The opening investment for the adoption of a new technology is fairly heavier for small than for large companies. The high cost of computers and Internet access is a barrier to the uptake of e-commerce. Faced with budgetary constraints, small business, starters or SMEs consider the additional costs of ICT spending as too big an investment without immediate returns. Therefore, many SMEs find marketing on the Internet expensive.
Having a Web site is not equivalent to having a well-visited Web site. One reason is that the business might find it tough to attract many users. Another reason is the challenge of privacy for SMEs. Because of the presence of numerous entrepreneurs in the Internet, it seems that brand recognition matters in order to be competitive. Moreover, it is not enough that a Web site is informative and user-friendly; it should also be updated frequently. Search engines must direct queries to the Web site, and news about the site must be broadly disseminated.
Significantly, the experience of many OECD countries attests to the fact that the best e-marketing strategies are not better substitutes for the conventional form of media. One solution may be to encourage several SMEs to aggregate their information on a common Web site, which in turn would have the responsibility of building recognition/branding by hyperlinking or updating, for example. 2. Lack of awareness and understanding of the value of e-commerce. Most small scale businesses in developing countries like Ghana have not taken up e-commerce or use the Internet because they fail to see the value of e-commerce to their businesses.
Many think e-commerce is suited only to big companies and that it is an additional cost that will not bring any major returns on investment. 3. Lack of ICT knowledge and skills. People play a vital role in the development of e-commerce. However, technology literacy is still very limited in most developing countries. There is a shortage of skilled workers among small scale businesses or SMEs, a key issue in moving forward with using information technology in business.
There are also doubts about whether SMEs can indeed take advantage of the benefits of accessing the global market through the Internet, given their limited capabilities in design, distribution, marketing, and post-sale support. While the Internet can be useful in accessing international design expertise, SMEs are not confident that they can command a premium on the prices for their goods unless they offer product innovations. They can, however, capitalize on returns on the basis that they are the low cost providers.
Furthermore, more often than not, the premium in design has already been captured-for example, in the textile products industry-by the branded fashion houses. SMEs doubt whether Web presence will facilitate their own brand recognition on a global scale. 4. Other privacy- and security-related issues. While security is commonly used as the catch-all word for many different reasons why individuals and firms do not engage in extensive e-commerce and use of Internet-based technologies, there are other related reasons and unresolved issues, such as tax evasion, privacy and anonymity, fraud adjudication, and legal liability on credit cards.
In many countries, cash is preferred not only for security reasons but also because of a desire for privacy on the part of those engaged in tax evasion or those who simply do not want others to know where they are spending their money. Others worry that there is lack of legal protection against fraud (i. e. , there is no provision for adjudicating fraud and there may be no legal limit on liability, say, for a lost or stolen credit card). It is necessary to distinguish these concerns from the general security concerns (i. e. transaction privacy, protection and security) since they may not be addressed by the employment of an effective encryption method (or other security measure). The toughest limitation to over is the privacy and security related issues Since no formal law exists within cyberspace, Internet users can find recourse only through the applicable laws of their own government. Discuss why new and improved security measures are not enough to stop online crime? What is the missing ingredient? There are three major types of online crime. 1.
The Internet offers limitless communication, which crackers can use to establish connections with cohorts or with their victims. 2. Net-based attacks disrupt information on the Internet. 3. World Wide Web is a gold mine for information and tools that can be used to facilitate crime on and off of the Internet. Prefabricated programs, detailed instructions, maps, sensitive information, schedules, and addresses can be accessed over the web and make it extremely easy for an individual or group of individuals to remain anonymous, organized, and unseen by the public or by the proper authorities.
Even though, improved security measures like, cyber laws, Firefox, and other security measures have been put in place, the missing ingredient is universal law and protection of online commence and business that cuts across boundaries. How have the unique features of Electronic Commence technology changed industry structure in the travel business? The world’s first Business-to-Business online shopping or e-commerce system dates back to Thomson Holidays UK 1981. The travel industry since then has remained in the forefront of e-commerce usage.
E-commerce changed the travel industry. The early Sabre and Travicom airline reservation systems were replaced by the airlines’ own systems as the airlines followed the holiday tour operators. Travel today is increasingly bought direct from the provider, 24/7 on-line real-time and usually paid for at time of booking. Whether the consumer is home, at work or just mobile the full sales process is always available instantaneously – Seek travel, Find options, Compare and Select, Check availability, Book, Confirm, Pay, Provide ID info, Book add-ons – car ire, hotel, satnav etc. A total package is consumer created. And the consumer has access to independent reference sites to check quality and provide feedback. The travel industry is an e-commerce business. Agencies still exist to provide specialist services but overall the business has been productised. References www. wikibooks. com www. wikipedia. com http://www. netatty. com/privacy/privacy. html