Internet risks – Give examples of four things that can go wrong with a transactional site?
Security is a major risk when transacting over a transaction site. As personal information
such as name, address, credit card details may be entered into the website, if there is no
proper electronic security in place to ensure information is kept confidential and safe,
breach of security may cause this information to be leaked over the internet and misused.
A website can also be unauthentic or fraudulent. This is a major risk -as purchases made
over a website this is fraud there is a chance that money will be taken, without receiving a
good in exchange. In addition to this the corresponding card details can be further used
by the website to make illicit purchases without consent of user. Paypal is an online
payment system which is used to mitigate some of this risk.
Another risk is that the product can’t be experienced or test driven before purchasing.
The goods can only be read about and visually seen through pictures however a consumer
can't actually feel fabric of the dress, or try the dress on to see how it fits on a person. This
is a major disadvantage especially if a customer is purchasing an item worth many
thousands of dollars -such as a home entertainment theatre in which case person may wish
to experience the sound directly, one which a retail store environment would allow.
Finally transactional website lacks personal touch. Sometimes there is nothing more
appreciated than the service that is delivered when it is done personally ie employee to
consumer. Some customers feel reassured and content walking into a store such as a
supermarket and picking the products and goods they want. As such online transactions
may suffer for being unable to interact with people.
Write down a definition for each
a) E-commerce:
E-commerce: Or electronic commerce describes the process where the buying/selling of goods and
services is conducted predominantly over the internet. This enables businesses and consumers to
conduct transactions over the internet, but without being confined to restrictions of a brick and mortar
shop such as location and time. Other advantages include: reduced transactional costs, reduced lead
time, increased efficiency and has the advantage of having global market reach.
b) E-business:
E-business: Or electronic business refers to using technology such as the internet to allow a company
to conduct its business operations. The internet is such a channel to communicate with its suppliers,
customers, employees and business partners without need for physical contact or requiring a
physical location ie such as sending emails. E-business is seen as improving existing business
processes, such as a restaurant using the internetto promote its business while not directly selling
the product online.
What is the difference between buy side and sell side eCommerce?
This diagram shows the distinction between buy-side and sell-side
e-commerce.
Buy-side e-commerce refers to transactions to procure resources needed by an organization from its suppliers.
Sell-side e-commerce refers to transactions involved with selling products to an organization’s customers.
So e-commerce transaction between organizations can be considered from two perspectives: sell-side from the perspective of the selling organization and buy-side from the perspective of the buying organization."
Describe the different types of eBusiness
types ofe-business are :
1.B2B commerce - it is that business activity in which 2 firm or business units make electronic transaction in which 1 can be a producer firm and other are raw material supplier firm.
2.B2C commerce - in B2C commerce, 1 party is the firm and other party is a customer. on the one hand, customer can seek info. , can place an order, get some items on the Internet and can also make the payment. on the other hand, a firm can make a survey to know, who buying what and can also know satisfaction level of customer. a firm can also make delivery of goods like air and train tickets etc.
3.intra B commerce - under this, the parties involved are 2 persons or departments of some business unit. use of computer network makes it possible for the marketing department to interact constantly with the production. a firms transactions or interactions with its employees are some time refer to as B to E commerce. employees can use electronic catalogue and ordering forms.
4.C to C commerce- under C to C commerce, both the parties involved are customers. it is required for buying and selling of those goods for which there is no established markets are available.
Which digital technology has the highest penetration rate? Explain and source your answer.
Internet & Mobile phone have the highest penetration rate:
List: Four drivers to adoption of sell-side e-commerce by business.
The drivers to the adoption of sell-side e-commerce by businesses in developing countries are:
•Expand their market
You can make the assumption that developing countries do not possess the same infrastructure as fully developed countries do. Therefore businesses can become restricted to doing business within the geographic area they serve. One could argue that it would be beneficial for businesses in developing countries to utilize sell-side e-commerce to increase the amount of consumers they can target across a larger geographic area.
•Decrease amount of inventory needed/free-up capital
If a business in a developing nation were to utilize sell-side e-commerce, their customers would be able to make purchases online. Therefore the business would be able to implement a JIT distribution system reducing the amount of inventory they would need to store, thus freeing-up capital for other endeavors.
•Reduce the risk of loss
By doing business through sell-side e-commerce businesses in developing nations will be able to reduce the risk of loss to the business. For example; once a business owner closes for the evening they lock their doors and go home, who’s to say that their building won’t burn down or they won’t be a victim of a robbery? Therefore by doing business online they will be able to reduce the risk to their business by not keeping a large amount of inventory at any given time, in any given location.
List: Four barriers to adoption of sell-side e-commerce by business.
•Poor infrastructure/lack of distribution channelMany developing countries do not have the infrastructure to support normal travel throughout every region of their nation. Therefore a business owner in a developing nation might hesitate to utilize new business techniques through e-commerce, simply because their country does not possess adequate infrastructure to support the distribution channel they will need in order to succeed.
•Cost/lack of knowledge
Many developing countries are isolated in regards to regular commerce with developed countries. Therefore if a business owner in a developing country wanted to build a website and begin to utilize sell-side e-commerce, they might be scared off the idea due to their own inexperience and the sequential costs associated with building and marketing a website.
•Quality of life/Distribution of wealth
As is the case in developed countries, many developing countries’ citizens live in poverty. Many developing countries citizens do not have access to clean water and food on a regular basis; forget about access to the internet and credit cards. Therefore it would be difficult to sell a business owner on the benefits of sell-side e-commerce when a large percentage of his fellow citizens do not have the means to become his customers.
How might a restaurant benefit from an online presence?
The restaurant benefits from online presence is that you might find a product on interent. The Groupon Australia, Not only put the price down, but also can focus the internet user and get the benefit.
http://www.groupon.com.au
What are some examples of Digital information?
The different examples of digital information are:
· MP3
· IPAD
· Digital camera
· Mobile phones
· Interent
· LED television
