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Electronic business is gaining high momentum and popularity in these days. It has given the option to the customers to enable business transactions efficiently and conveniently. This Assignment on Internet and E-Business enables us to understand the scope of e business and understanding how does the e-business system functions. It is also aimed to enable the understanding of the use of models of electronic businesses.
The e business can enhance the following process at IDS-
Benefits of e businesses
Barriers to online businesses
The success of an online business depends on the threshold of the parties to the online business, according to Metcalfe’s Law the value of the online business is directly proportional to the square of the number of online users. Major barriers are;
E – Business is directly proportional to the Personal Computer Penetration. So owning PC’s and having internet connections is a factor that limits the online business.
Infrastructure – if infrastructure is improper it acts as a barrier to the e-commerce there is a requirement of internet connection, access to internet facilities, including the software and the hardware’s required act as barriers. Political, Economic and Business Barriers – people still prefer cash payment over credit, the security of e-commerce payment act as barrier for encouraging people. Government e-commerce regulations also sometimes restrict e-commerce.
Marketing barriers–ethical constraints, language barriers, etc. will act as a marketing barrier for IDS. (Pahladsingh, 2010)
Technical Issues and security concerns for e-business
E-business is prone to barriers of security threats and technical issues some of them are;
The security and legislative issues will inhibit the online business of IDS if not tackled properly
Verification of the identity of the seller is difficult in e-businesses for IDS. There is a risk of the online message sent being tampered and hacked (that might contain important personal details and bank details) taking the evidence of the date and the time and place of making an online contract is another issue. Dealing with laws of electronic signatures -The Electronic Communications Act of 2000 replaced digital signatures with electronic signatures
Parties to e-commerce need to comply with the UK Electronic Communications Act that states that at the time of a dispute, electronic signature will be considered as legal evidence (Out-Law.com, 2013). So IDS is prone to the threat of all of these security issues.
Dealing with the security issues
As e-commerce is highly prone to security attacks, virus threats, hacking IDS need to devise plans to deal with these security issues.
Firewall is used to stop and prevent the access to and from a network that is private in an unauthorised manner. It is used for both hardware and softwares or for both in an combined manner. These will prevent the access to the network without authorisation.
Common techniques of adding firewalls
Other control methods are all security incidents must be duly reported. There should be the adoption of a policy of continuity management of the business.
There are different technologies used in making an e-business successful, some of them are listed below;
Mobile computing technologies and applications are gaining market momentum. The wireless e-commerce is made possible by mobile telephones and computer devices that are hand held such as tablets and laptops, smart phone applications are making e-commerce possible anywhere and everywhere.
Java, Extensible Mark-up Language (XML), Java 2 Platform, Presentation layers are other technologies extensively used by e-businesses such as Amazon to gain market success.
Amazon uses SCA or Service Component Architecture to integrate efficient service delivery. This is a combination of programming language and also frameworks used along with the programming language. It uses Web services, Messaging systems and Remote Procedure Call as access methods (TIMOFTE, Carmen, 2010).
SDO or Service Data Objects are used to be able to handle data of the business for Amazon. As the data is both in the formats of relational databases and XML, SOA is used efficiently to manage and handle data in both the formats (TIMOFTE, Carmen, 2010).
Local area network technologies such as IEEE 802.11 and IEEE 802.1 lbs are standards that are widely being used with laptops and personal computers making e commerce possible
Telecommunications technology such as 2G and 3G digital technology services are enabling the access to high speed internet to people and making an e business gain success
Universal Mobile Telecommunications are third generation technology leads the user to get connected to the internet at all times and there is no need to log in to use e businesses. This has resulted in speedy and efficient e businesses
E-commerce secure payment gateways have heavily contributed to the success of the e-businesses, consumers also have benefitted by this technology as there is no need to stand in queues to make payment and time efficient and secure transactions can be made at feasible locations(Tarasewich, Nickerson, & Warkentin, 2011)
Social Networking is a platform that has led to the high popularity of e commerce by efficient marketing of the e commerce businesses
Business to business share points and intranet communication systems
Use of internet to make
The Importance of these technologies in making the e-business successful
All these technologies and applications have enabled efficient internal communication and contributing to the popularity of the e business systems. These technologies have added efficiency in marketing and the time and money spend to be able in a physical shopping location has been replaced by comparing prices, vendors and best options online. E Businesses are providing a host of shopping options to its customers. These technologies have enabled secure payment options and option of exchange policy too, if the product is unsatisfactory.
Illustrate the different e-business models that can be best suited for Don’s Lumber Company
Don’s Lumber company is a Hardware retail company that lacks the integration of e-business model leading the company’s suppliers to rely on a manual price sheet list and telephonic calls to get the quote and recent price information. So it is needed that the Don Lumber Company and their suppliers should implement e- Business models to get information in real time accurately and conveniently. This would lead the company to share the pricing and other relevant information accurately and there would be no need to maintain manual documentation. Electronic data handling would minimise errors and lead to storing data for a longer time (Steven, 2011).
The benefits of having an e-Business model for Don Lumber’s Company
An online business model would lead to minimising errors in the quotation for the firm and pricing information can be availed at any time from any location and there would be no requirement of the constraints such as physical presence, telephonic conversation, etc. It will lead to inventory planning for the company and even customers can contact the company through the e-business model (Marc, 2011). The model would enable the company to offer personalised service to the customers that would be of a superior quality. Having an online presence would also add to the growth and the recognition of the Don Lumber’s company. As e Business would enable the business to use technology to gain competitive advantage.
ecommerce model for Don’s Lumber company would lead to the increase in business functioning by better coordination with the stakeholders. Don’s Lumber company can have a cost effective marketing by using the eBusiness model. It will be possible to use marketing tactics without spending a lot of money all offers and discounts of the company can be displayed in the e-business platform of Don’s Lumber.
Flexible working arrangements - Don’s Lumber company is currently working with time barriers. The e –Business model would eliminate this .
The transaction costs would also be lowered by the use of the e-Business model. This includes the costs of operating a business in a physical location (LORETTE, Kristie, 2014).
Don’s Lumber Company can use many e-business models which combined together would create effectiveness in the supply chain management of the company. Merchant e-commerce model. The e business models would lead to the creation of an online store for the company in which the suppliers, vendors and customers can check relevant details. They can get price quotes, inquire about inventories. A third party secure payment gateway would lead to the generation of sales revenues.
Brokerage e-commerce model or Consumer- to-Consumer model –
This model is used to involve transaction and business operations between two consumers eBay uses this type of business model. By using this business model Don’s Lumber company can advertise their products online and sell the products stating the price quotation. For making this model work it is needed that both the parties to the model such as the buyer and the seller must be registered with the site that is auctioning so Don’s Lumber company and their suppliers needs to register with the auction website. This model works on the principle of serving as a platform for bringing the buyers and the sellers together (ESERVGLOBAL, 2014).
From the above models suggested the Don’s Lumber company can adopt a model that can be a combination of two or more models according to the personal requirements of the organisation. The model’s suitability for Don’s Lumber company has to be judged on certain parameters such as the ease of getting supplies from suppliers, vendor management, feedbacks from the customers and the suppliers. Don’s Lumber company should adopt a low cost model initially. I would recommend Mixed Revenue Model for operation with the suppliers and the transaction model suitable for Don’s lumber Company. This evaluation and selection is done on the basis of the suitability and the capacity to generate revenue for Don’s Lumber Company.
The website being user friendly affects the visitors a lot as they consider the ease of use as a key that affects their purchase decision. In e-business the website usability affects the purchasing decision lot as customers do not return to a website that is not easy to use. Certain issues need to be considered regarding the usability of the website they are;
HTML stands for HyperText Markup Language it consist of the Markup Language that is used for the creation of Web pages. HTML tags describe the documents of HTML. Each tag is unique and specifies a different content of the document.
HTML Markup – These are elements such as tags and character based data, references for characters and entities.
The versions of HTML so far are HTML, HTML 2.0, HTML 3.2, HTML 4.01, XHTML and HTML 5.
We will look at the features of HTML 5.
This Assignment on Internet and E-Business has clearly highlighted the advantage of having an online presence for a business. With the advance in technology there is varied business models that a business can choose to operate online, according to their own specification and requirements. With the numerous advantage of e-Business there are also disadvantages that the business has to deal carefully such as security and legislative issues. The website plays a vital role in the marketing and the recognition of business as it the first interface in the case of online businesses with their customers. So the website designing should be considered carefully, integrating easy to use and user friendly functionalities.
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