E-Commerce Essentials - Assignment Example

MODULE TITLE: e-Commerce MODULE CODE: UKFM ES9R2-10 15--01 MODULE DATE: 23 – 27 November 2015 NAME: .................................................... NUMBER: .................................................................. Table of Contents 1Introduction 1 2The Value These Technologies Offer to Customers and Retailers 1 2.1Uber 1 2.2Spotify 2 2.33-D Printing 2 2.4HTML5 3 2.5Cloud Computing 4 3The Factors that will Impact the Likely Adoption Rates of These Technologies 1 3.1Cost 1 3.2Presence of the Technologies 2 3.3Reliability and Accessibility 3 3.4Applicability 5 4Specific Industries where the Technologies may be particularly Relevant 1 4.1Education 1 4.2Research and Development 1 4.3Marketing and Engagements 2 4.4Transportation 2 5Conclusion 2 References 1 1 Introduction The needs and requirements of consumers keep changing, and the business environment is also changing. eCommerce has improved the manner in which business is done and has disrupted the traditional approach of doing business. The disruptive nature of eCommerce has improved the experiences of the retailers and consumers. The paper discusses some common eCommerce technologies and its respective impact on retailers and the consumers. The discussion uses numerous examples including Uber, 3D printing and cloud computing among others to indicative the values and variables that contribute to the embracement of the technology. 2 The Value These Technologies Offer to Customers and Retailers 2.1 Uber Uber is a taxi service provider or provides the framework to advance the easiness in transportation requirements. Uber is based on a mobile application that allows consumers to use a Smartphone to submit a trip request, and the Uber drivers are routed to the customers (Isaac, 2014). The Uber drivers use their own cars to move consumers from one location to the other. Uber strategy is disruptive in nature because it does not use the traditional method of taxis since the persons having access to the application can fulfill the request and communication purposes (Olsen and McDarby, 2015). The value that the Uber technology offers to the customers is high-quality services and flexible pricing. For example, the customer is requested to rate the services offered, and the easiness of the rating system determines whether the Uber driver would receive more customers or unable to receive the customers. The voluminous feedback enables the company to continue improving the services (Marx, Gans and Hsu, 2014). The strategy is different from the traditional approach in which consumers were required to complain to the fleet companies. The traditional approach takes time, and the information can be controlled. For example, the taxi fleet management may limit the movement of information, which is different from the strategy of Uber. In addition, the pricing system is similar to the traditional taxi services. However, the application has a unique algorithm that enables adjustment of prices based on the nature of the travel. The pricing fluctuates between time and distance (Isaac, 2014). For example, if the car moves at the speed of 11km/h, the pricing changes to distance while lower than this speed, time is used as a determinant. Therefore, the fluctuating pricing system is important to the consumer because it is automatic in nature. 2.2 Spotify Spotify is a commercial video, podcast and music streaming service that provides digital rights management content from media companies and record labels companies (Aguiar and Waldfogel, 2015). The platform allows consumers to search or browse music based on a record label, playlist, genre, album, and artist. The strategy and aim of the platform are to reduce piracy and increase the amount of royalties. The consumers subscribe for the music and are able to stream and sometimes download for offline requirements (Zhang et al., 2013). The approach is different from the downloading and purchase of music stored in devices (Yanggratoke et al., 2012). For example, music is commonly stored on CDs, and other storage platforms and the use of Spotify increases the amount of music that users can access. In addition, the producers of the music are compensated through royalties. Therefore, the platform benefits both the users that can access different and voluminous music while the producers receive revenues in forms of royalties (Aguiar and Waldfogel, 2015). The value the retailers (producers) receive increased the number of listeners who pay for the music while the consumers can easily decide the music to listen. This strategy is different from the approach of CDs because a customer can like a single song on a whole CD and purchasing a CD does not make sense (Kushida, Murray, and Zysman, 2015). Hence, choosing the song or music enables the user to invest on what they like. 2.3 3-D Printing Additive manufacturing or 3D printing is a method of making three-dimensional solid objects from a digital file. An additive process is used to create a 3D printed object. In the process, the objected is created through laying success layers of material until a time in which the object is created (Sandström, 2016). Therefore, continuous horizontal slices are created until the object is created. The difference of additive process from traditional machining techniques is the continuous removal of material through processes, such as cutting and drilling (Hahn, Jensen, and Tanev, 2014). The technology is used in numerous fields. Some of the fields include civil engineering, geographic information systems, education, medical and dental industries, aerospace, automotive, industrial design, footwear and jewel industries. The use of 3D printing allows faster development of ideas and reduces the time between prototyping to final production of the product (Sandström, 2016). The retailer (manufacturer) reduces the cost of production because the costs associated with tooling and prototyping are considerably reduced. The 3D printing improves the communication process because it is sometimes challenging to communicate when the idea is complex (Hahn, Jensen, and Tanev, 2014). The customer also benefits from the technology by improvement of the quality and safety requirements (Sandström, 2016). The manufacturer can design and test the product at the faster rate meaning weaknesses of the product can be determined at an early stage. In addition, due to a reduction in prototyping and tooling requirements, the research and development section becomes cheaper, allowing transferring of the benefits to the customer. 2.4 HTML5 HTML5 is in the family of the hypertext markup language and was released in 2014 and is used to develop websites. HTML5 offers similar services to previous platforms, but there are additional features that were not available in previous releases (Schrock, 2014). The new features have created and improved opportunities for creating websites that reflect and addresses the requirements of the developers and users. Some of the new features include inbuilt audio and video playback, offline caching, cleaner code, cross browser compatibility, and mobile optimization. The HTML5 technology is important in the manner in which the consumers and retailers would engage to accomplish the eCommerce requirements. The consumers can easily access the information, and the retailers can provide information regarding a product through numerous platforms (Schrock, 2014). The technology enables the creation of applications that can be supported easily using a mobile phone and also a computer system. In addition, the consumers will not be required to install add-ons such as sound music and video plug-ins (Kushida, Murray, and Zysman, 2015). The process of generating the websites has become easier because more of the design requirements are predetermined and easier to integrate into the entire system. 2.5 Cloud Computing Cloud computing is Internet-based computing in which information, data, and resources are provided to computers and other devices on-demand basis. It enables sharing of computing resources in which users are able to store and also process data on third party platforms (Boccardi et al., 2014). The strategy of cloud computing is to employ economies of scale through providing services to the customers to pooling resources and requiring customers to pay what they use. The value of the technology is the cost, accessibility, scalability and strategic benefits to the customers (Oliveira, Thomas and Espadanal, 2014). For example, a retailer will not need huge investment on infrastructural requirements meaning that the resources are targeted towards advancing the requirements of the company. Moreover, a user can access the information from anywhere in the world provided Internet and associated technologies are available (Boccardi et al., 2014). In addition, the retailer can increase the services through determining whether the business is growing well. Some businesses may not be viable and through the use of the cloud computing enables management of risk. For example, a retailer may invest heavily in technological equipment, but the business fails resulting in huge losses. Therefore, the cloud computing technology capitalizes on pooling of resources in fulfilling the needs of the retailers and consumers (Boccardi et al., 2014). 3 The Factors that will Impact the Likely Adoption Rates of These Technologies 3.1 Cost The Uber model, for example, aims to address the pricing system (Isaac, 2014). The needs and the requirements of the customers differ meaning that the distance traveled including different variables, such as traffic complications have been integrated into the pricing model. However, the fluctuation in pricing relative to other competitors may impact the model of Uber (Olsen and McDarby, 2015). Furthermore, the transactional costs and consumer behavior may affect the adoption of the technology (Marx, Gans and Hsu, 2014). Furthermore, Spotify aims to address the costly nature of accessing music. The package of music into albums means that consumers are required to purchase even music that they do not like (Aguiar and Waldfogel, 2015). Therefore, allowing the consumers to subscribe enables the consumer to choose the music that they like without the need of purchasing the entire album. The producers, on the other hand, will continue to generate loyalties depending on the quality of their respective music. Thus, the customers will receive more quality while the producers will be shielded from piracy and similar intellectual property theft. Moreover, the producer may decide to produce a single song rather than an entire album, which is cheaper and can continue generating revenues while the producer produces more songs and intellectual property (Aguiar and Waldfogel, 2015). Some of the technologies benefit the consumers more than the producers. For example, the 3D printing technology has reduced the costs of production and enabled the developers to become more imaginative (Hahn, Jensen, and Tanev, 2014). Research and development departments in numerous companies seek to require the costs and transfer the benefits to the consumers. Through the use of 3D printing, an idea can be changed from a 2D dimension to a 3D dimension easily (Sandström, 2016). The transition period and the imaginative period are shorted reducing the entire costs. However, the challenge may be acquiring the technologies enabling 3D printing (Hahn, Jensen, and Tanev, 2014). Research has indicated that it is easier to acquire the products, and it is also easier to use. The design of the technologies and applications reflects the needs and requirements of the consumers (Schrock, 2014). For example, the HTML5 addresses the complications and challenges associated with previous similar technologies (Kushida, Murray, and Zysman, 2015). For example, it reduces costs of development and prevents the consumers from installing supportive plug-in applications. It reduces costs need for accessing online informative because of the presence of cache technology. Therefore, the reduced costs associated with the use of HTML5 make both the retailers and consumers to use the platforms to cut the cost (Schrock, 2014). In starting a business, capital is an important component and allocation of resources is challenging. However, the use of cloud computing reduces the initial costs because the use of the technology is charged based on the use. Therefore, wastages are avoided while the costs are minimized. The retailers and consumers benefit from storing excessive information and also having a platform for analytics (Schrock, 2014). For example, the computing processing needs of organizations fluctuate meaning that the cloud computing would enable accomplishment of these requirements at a minimal cost. Hence, the cost is avoidable at the longer end. 3.2 Presence of the Technologies The Uber platform uses a Smartphone meaning that Internet connection is important (Olsen and McDarby, 2015). The technological development associated with the application and frequency of the upgrade of the application influences the adoption rate (Marx, Gans and Hsu, 2014). The prices of Smartphone are becoming lower meaning that more customers would easily acquire the Smartphone and install the application (Isaac, 2014). However, the reliability of the Internet and attached costs may contribute to challenges associated with embracement of Uber technology. Like Uber, Spotify relies on Internet and the features of the phone. Streaming requires a reliable internet connection, which also raises issues associated with the cost of the Internet (Aguiar and Waldfogel, 2015). If the Internet becomes reliable and affordable, more consumers may acquire the services of Spotify. It also translates into additional revenue generation for Spotify, which is then transferred to the producers. Therefore, the technological development is important to the success of any technology and continues development and engagement with Internet Service Providers are crucial to engaging the consumer behavior. HTML5 would easily transform the needs and requirements of the consumers and retailers (Schrock, 2014). The technology is readily available and can be integrated into the development of the websites. For example, applications releases of use of different forms of applications and the HTML5 would easily transform the development of the applications (Oliveira, Thomas, and Espadanal, 2014). eCommerce realizes on the clarity of the imagines because the image is the selling point of numerous products (Schrock, 2014). HTML5 incorporates the numerous factors meaning that the consumers would be satisfied or decision influenced by viewing the information regarding the retailer and the nature of the product (Krammer, Bernoulli, and Walder, 2014). In general, the success of any technology depends on the presence of supportive technologies. For example, most technologies need the Internet and devices that can access Internet (Boccardi et al., 2014). HTML5 success depends on the Internet and devices while the use of cloud computing requires Internet and appropriate devices (Kushida, Murray, and Zysman, 2015). Therefore, the presence of these supportive technologies is important in making consumers use the available technologies. 3.3 Reliability and Accessibility For customers and users to embrace any technology, reliability and accessibility are important. The users can easily link with the seller and communicate easily. For example, Uber application enables the traveler and Uber driver to communicate and fulfill the requirements of travel (Marx, Gans and Hsu, 2014). Both the users should be comfortable with the technology and provide mechanisms to address any complication (Olsen and McDarby, 2015). Therefore, the Uber application, for example, is reliable because it has been introduced and used in numerous countries around the world. However, any challenge may affect the credibility of the application and make the consumers think of alternative means, such as traditional means of accessing transport (Isaac, 2014). The technological change and the changing consumer behavior means that newer technologies are embraced provided it accomplishes specific consumer needs and requirements. The Spotify platform is a good example because consumers can easily access the music and even sometimes download for offline listening (Oliveira, Thomas, and Espadanal, 2014). The consumers are likely to continue using these technologies because it is easier to search and listen to music. The producers are also able to produce the music easily and upload to Spotify. The producers understand that it is easier to upload the music and allow the consumers to acquire the music. The approach in which music producers take as changed in which music is used to market live events. For example, a singer releasing a new song will attract more crowds, which increases revenues. Hence, the Spotify, for example, is used as a marketing platform for the music producers. In the use of 3D printing, the manufacturers reduce the cost and ensure a high-quality product is produced. For example, computer technology can be used to design a product, and the 3D technology is used to convert the design to an actual product (Sandström, 2016). The entire process is reliable because the addictive process associated with the 3D printing uses easily available resources, and also the design can be stopped and changed to meet the requirements of the designer (Hahn, Jensen, and Tanev, 2014). The technology is also easily accessible and can be compared to normal printing technologies (Oliveira, Thomas, and Espadanal, 2014). Therefore, the significance of the technology and its impact on the developmental requirements makes the manufacturers to be attracted to the technology. Reliability and accessibility are the important components that determine whether a technological product continues to be embraced (Boccardi et al., 2014). Cloud computing, for example, requires reliability and accessibility meaning that the providers of the services should create measures to ensure availability of the services (Kushida, Murray, and Zysman, 2015). Therefore, consumers and retailers may decide to use the technology provided it is accessible and reliable. 3.4 Applicability The significance of any technology is applicability. Does the technology fulfill a given requirement and the importance of the technology towards achieving the requirements and expectations of the users? For example, Uber application enables consumers to engage with the Uber drivers and also process payments (Isaac, 2014). Therefore, the Uber application because a communication tool and also a platform that allows payment of services. Hence, the applicability of the technology determines the extent in which it can be embraced (Marx, Gans and Hsu, 2014). For example, in India, the Uber application has introduced cash means of payments. It is aimed at addressing the regions in which people do not have alternative means of payments except cash. Therefore, the adjustments and continuous development ensure that the Uber application continues to fulfill the different requirements of the users (Olsen and McDarby, 2015). Information available indicates that music listeners like to listen to music when they travel or relax. These consumers use applications that store music but the level of access is limited to the music stored on the devices. In addition, the source and legal nature of most of the music stored on these devices may be questionable (Aguiar and Waldfogel, 2015). Therefore, the use of Spotify provides a platform in which it enables the entire process to be legal and generates income for the music producer. Furthermore, the music that the listener can access is voluminous preventing the consumers from acquiring more storage devices to store the music. Stored music is vulnerable to theft and misplacement meaning that more consumers would prefer the Spotify platform since it addresses numerous requirements of the consumers and also the needs of the retailers (Aguiar and Waldfogel, 2015). Any technology should be applied easily (Sandström, 2016). The technology world complements each other in terms of technology development. For example, the 3D printing enables the designers and other interested stakeholders to preview a product before completion (Hahn, Jensen, and Tanev, 2014). It enables the designers to make appropriate adjustments based on the needs and requirements of the consumers. The 3D printing technology is applicable and is continued to be embraced because of the numerous benefits of applicability. Apart from the 3D printing technology, the HTML5 technology address challenges associated with previous hypertext languages (Sandström, 2016). For example, a user was required to install add-ons, which are sometimes expensive, or unreliable (Kushida, Murray, and Zysman, 2015). However, the presence of the technology has reduced these challenges because the sound and video techniques, for example, have been integrated into the programming language. Moreover, applications developed through the HTML5 can be used to devices reducing the need for creating multiple applications. HTML5 is a technology used in developing websites and applications, and cloud computing can complete the requirements of HTML5 because it storages and provides computing services (Schrock, 2014). A retailer embracing both the HTML5 and cloud computing, for example, benefits because of reduced costs and improvement of services to the consumer (Boccardi et al., 2014). Cloud computing is applicable to numerous processes and applications meaning that the business health of the different stakeholders is considered and used to benefit the consumer (Schrock, 2014). In addition, the costs of storage and acquiring infrastructure is reduced meaning the consumers and retailers may acquire the services easily. 4 Specific Industries where the Technologies may be particularly Relevant 4.1 Education These technologies are applicable to the education industry because of the dynamics associated with the learning process. For example, HTML5 enables embedding of sound and audio that enables the learners and instructors to share information easily (Boccardi et al., 2014). The cloud computing enables institutions to store information, which both the students and school administration can access easily (Oliveira, Thomas, and Espadanal, 2014). Moreover, the education system is interlinked with research and development allowing the use of 3D printing to visualize a design (Hahn, Jensen, and Tanev, 2014). Therefore, the numerous technologies improve the learning process and advance the requirements of the different stakeholders in the learning environment. 4.2 Research and Development The research and development industry aims to address the requirements of consumers through creating transformative products and services (Olsen and McDarby, 2015). The research process requires tools and techniques to speed the process. It can be achieved through the use of technological platforms. For example, voluminous data may need analyzing and requires huge computing capability. The cloud computing platform can then be used to fulfill these requirements. In addition, the researchers and developers may use 3D printing to develop a prototype, and usually, it takes a shorter time to accomplish such requirements (Sandström, 2016). Hence, the technological advancement provides a platform in which continuous research and development can be achieved (Hahn, Jensen, and Tanev, 2014). 4.3 Marketing and Engagements Retailers and industries produce different products and engagement with the customers are important is important so that the consumers can purchase the product or service (Kushida, Murray, and Zysman, 2015). Effective communication process is important and also the platforms used should engage the consumers easily. The HTML5 technology enables easiness in the creation of the application, which can be used in different devices (Schrock, 2014). The platform can also be used easily in eCommerce whereby the retailers display available products and provide a mechanism for fulfilling payment requirements (Boccardi et al., 2014). Therefore, the advancement in the different technologies provides an effective platform to engage with the consumers fulfilling the requirements of both the retailers and consumers (Oliveira, Thomas, and Espadanal, 2014). 4.4 Transportation Uber application is applicable to the transportation industry (Boccardi et al., 2014). It is a disruptive technology, which has changed the processes associated with traditional taxi business. The easiness of the use of the application and easiness in providing feedback improves the quality services and accomplishing the requirements of the traveler (Marx, Gans, and Hsu, 2014). In addition, the costs associated with the entire process are minimized meaning that the consumers and the Uber drivers continue to benefit (Isaac, 2014). In general, the advancement in the Uber application and similar technologies change the transportation industry fulfilling the requirements of consumers and transporters (Olsen and McDarby, 2015). Moreover, the continuous feedback enables the different stakeholders to develop mechanisms to improve the services (Oliveira, Thomas, and Espadanal, 2014). 5 Conclusion Technological advancement has enabled the improvement of the quality of services and products, and the entire experience of doing business. The businesses engage the customers easily while the customers receive value for money. For example, the Uber application improves the level of quality of services based on the numerous feedbacks. Cloud computing reduces the cost of doing business because the businesses require minimal infrastructural investment. Through the use of HTML5, the businesses can develop websites easily, which are easier to be used by the customers. Therefore, the disruptive technologies and eCommerce has improved the experiences of doing business and general satisfaction of the customers. References Aguiar, L., and Waldfogel, J., 2015. 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