Information Technology in the Activities of the Organization - Coursework Example

E-BUSINESS Name Institution Instructor Course Date Introduction E-business is the systems in which business organization applies information technology in the activities of the organization (Esterline, 2006, p. 9). This adoption of information technology is in the areas of human resource management, training, purchase, sales and marketing and any other business that is undertaken in the business organization (Esterline, 2006, p. 16). Electronic business is the conducting of business online through various tools and applications. The increased use of technology based on the computer has increased the need to conduct business using the internet. This is due to the vast number of internet users that has increased over the last few decades. The activities of any business involve the exchange of goods and services between the business and individuals, groups and other business organizations. In e-business, the focus is on the use of information technology in enabling the activities in the firm as well as those activities that involve the firm and external organizations. Electronic business has enabled companies to link the processing on internal and external data processes with suppliers, and other stakeholder in ensuring customer satisfaction. Additionally, most businesses use electronic business to improve their activities in their organizations (Grefen, 2010, p. 35). Electronic business is conducted using the web, internet, extranets and intranets, as well as their combination. The contemporary issues and trends in electronic business are focusing on the use of internet and computer technology in increasing business performances. These issues include, cloud computing, virtual communities, electronic negotiations, electronic bargaining and online business marketing. The current trends in technology and innovation force different organizations to adopt new ways of conducting business and ensure customer retention and satisfaction. This paper focuses on cloud computing and crowdsourcing. Additionally, the paper will also explain how the business organization may employ these technologies in the business in order to determine the benefits and challenges of these information technology applications if adopted in an organization. Cloud Computing Cloud computing may be defined as the use of the internet remote servers in maintaining data and applications that are useful in customer satisfaction (Lewis, 2009). These servers in cloud computing allow the customers and business owners to use various prominent business applications through the internet without having them in their personal computers. This means that customers can access useful product information through the use of an application that is not installed in his or her personal computer (Solomon, 2012). This information and other personal files are accessible from any computer that has internet access. Therefore, cloud computing allows the central data storage, application, processing and bandwidth. The adoption of cloud computing in the organization makes it possible for customers and business to access information from any place and from any computer that has internet connectivity. Unlike the traditional data access systems using the traditional computers that required the user to be in a single location, cloud computing allows the user to access the same information from any computer in any part of the world. Examples of cloud computing include Yahoo email, Gmail and Hotmail, which allows users to share information and emails, but the applications are not installed on their devices or personal computers. This allows the business to store its information in online hardware databases where it can be accessed from any part of the world. The user does not have to be in the location of the hardware (Huth and Cebula, 2011). Types of clouds There are different types of clouds that are applicable in an organization. This depends on the nature of data and privacy of the information that is shared kin the cloud. Therefore, the choice of a computer cloud depends on the need of the organization. Public Cloud: Public cloud is where an organization and their service providers make the information of the business open to the general public. This means that the information concerning the business organization is shared through the internet where everyone using the internet is at liberty to access such information. In terms of business organizations, public cloud is useful when the organizations with similar needs are willing to share information that will boost their business. Additionally, this data is useful to customers and any other stakeholders of the business. Since the data stored in the public cloud are accessed by the public, business organization may use the public cloud to advertise their products and create product awareness. Moreover, business firms may also use the public cloud to inform customers of the existence of new products and their feature in the market (Huth and Cebula, 2011). Benefits of public clouds Public clouds allow the users, or the business organization to access an efficient data storage centre which allows easy computing works. This is crucial especially for organizations that do not have large storage space for their data (Marston et al., 2011, p. 178). In the public cloud, the service provider provides the hardware application and storage costs hence making use of public clouds to be inexpensive. In addition, public clouds provide companies with access to various information, which is useful in increasing the performances (Huth and Cebula, 2011). For example, different companies that have access to the cloud space may access useful information, which may help the organization in strategic planning. Moreover, the business organization does not have to bear the cost of managing and maintaining the resources in the virtual cloud since the maintained and management of the virtual resources is done by the service providers. This is important for business since it reduces the cost of maintenance (Kim, 2009, p. 66). Limitations of public clouds The security and privacy of the stored data are not guaranteed since there is online malware that may affect it. This is because, the management of the company is not aware of the location where the data is stored and whether it has back up or not. In addition, the company management is not able to establish what individuals are accessing the data. Moreover, the reliability of the public cloud networks is also wanting (Huth and Cebula, 2011). Private Cloud: As the name suggests, a private cloud is where the cloud is designed for access by a certain specified organization or group. The data in private cloud can be managed by the internal IT department of the organization or by a third party under instructions of the company management (Gillam, 2010, p. 35). The use of private cloud requires a lot of resources in order to be effective; this organization needs to re-evaluate the available resources before adopting private virtual clouds. Although the level of privacy is high compared to public cloud, private clouds are expensive, and organizations are not able to predict the running costs (Huth and Cebula, 2011). Cloud providers Software as a service (SaaS): The SaaS does not allow the user to make copies of software or install it in personal devices. This means that, business the business do not need to incur extra costs in installation of SaaS (Huth and Cebula, 2011). Since the software in a SaaS is accessible in the cloud, it is possible for all the computers in the organization to have the same software hence easy management of information. This also reduces the cost of training on different software for the company. This form of cloud ensures rapid scalability and eliminates all concerns related to infrastructure (Solomon, 2012). Platform as a service (PaaS): this offers the subscriber with access to internet components that will allow the user to develop and operate their application in the internet (Huth and Cebula, 2011). This is useful especially for companies that are willing to develop and test their cloud solutions using particular applications. In addition, there are lower risks resulting from hardware and software upfront investments (Solomon, 2012). Infrastructure as a service (IaaS): this deal with the computational infrastructure where the subscriber is outsourcing the storage and resources that are needed such as software and hardware (Solomon, 2012; Huth and Cebula, 2011). Mobile Commerce This is the delivery of commercial services using the wireless communication directly to the consumers in different locations. Therefore, it can be defined as the use of information technology which integrates with communication technology for business purposes and value added chains as well as management of business (Sharma & Gutiérrez, 2010, p. 35). The use of mobile commerce is due to the changing consumer needs and consumer behaviours in the global market. With the introduction of wireless technology and increased use of mobile phones in the world, many business organizations are shifting their business and management technologies to the use of mobile phones (Sharma & Gutiérrez, 2010, p. 35) Application in the business Mobile banking: This is where an organization conducts all its financial transactions with the bank using the mobile phones. This means that the organization will reduce the cost of accessing the bank and make transactions at the convenience of its premises. Additionally, the use of mobile banking allows customers of the organization to pay for products and services directly to the organization bank account using their mobile phones. This reduces the cases of theft that results from carrying of cash. Therefore, customers will be able to make payments in a fast manner. Mobile purchase: The use of mobile commerce is useful to the customer of an organization. The integration of mobile banking and mobile purchase allows customers to pay for products directly from their banks to the organization (Rajeswari, 2009). In mobile purchase, the customers are accessing the organization products through their mobile phones. Once the customer browses the product online, he or she is able to order for the product using the online purchase systems at the convenience of their phones (Siau & Shen, 2003, p. 9). Mobile advertising and promotion: The organization uses mobile phone networks and network provider to send information on the products and its availability. This is a form of product promotion which is able to reach a wide range of customer. In addition, the organization may use mobile alerts to inform customers on the new brands and where they can get the new products. This reduces the cost of advertising since traditional marketing and advertising is tiresome and the audiences that it can reach is minimal (Ngai & Gunasekaran, 2007, p. 7). Benefits of mobile commerce Ubiquity: M commerce utilizes wireless networks hence the customer or the organization is able to access information in any place of the world (Siau & Shen, 2003, p. 2). This is crucial especially when the organization is location oriented such as the travel and tour industries (Rajeswari, 2009). Localization: mobile commerce enables the organization to detect the location of the user or customers (Siau & Shen, 2003, p. 3). This is important in marketing the products of the organizations since it is easy to establish the populations of mobile phone users in a certain location (Rajeswari, 2009). Convenience: mobile banking is convenient for the customer will no longer be constrained by time or space. This means that customers can shop in other locations where they are not located (Rajeswari, 2009). Personalization: this enables customers to receive personalized information in their devices since the devices are solely owned (Rajeswari, 2009). Disadvantages The devices do not offer a wider display of the product hence some feature of the product may not be visible or clear. This may create confusion for customers who wish to purchase the products. In addition, the information received in the mobile phones is subject to network capabilities. This means that if the network has issues they will affect the delivery of business information to customers. The network bandwidth may not be sufficient to support some contents on the network. This limits the size of information delivered to customers. In addition, since the information is sent through a wireless network, the security of the information is not guaranteed. This means that information sent in these networks is selective in order to preserve vital organizational information (Siau & Shen, 2003, p. 12). Conclusion Electronic business is the conducting of business online through various tools and applications. The increased use of technology based on the computer has increased the need to conduct business using the internet. The activities of the business can utilise the electronic business in various ways. Cloud computing allows customers, and other organization to access vital information on the activities of the company. This includes information on products and services that are offered by the organization. In addition, cloud computing and social networking have revolutionized the business world. In addition, the increased level of technology has introduced mobile commerce. The use of mobile commerce is due to the changing consumer needs and consumer behaviours in the global market. With the introduction of wireless technology and increased use of mobile phones in the world, many business organizations are shifting their business and management technologies to the use of mobile phones. 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