E-Commerce and Information Technology - Essay Example

? E-Commerce and Information Technology Location Information systems researchers have tried addressing issues regarding the adoption of computers in organizations since the use of computers in organizations begun. The other important issue is how the organization is able to make most fruitful investment in IT because many investors have invested in IT for the main aim of making the most out of information technology. In order to be able to make the most out of information technology, organizations must try to implement new technologies in an effective way. IT implementation, therefore, requires evaluation measures that are effective in order to be successful in implementing the new technologies intended for the organization. Theories have been evolving in recent years that are able to give guidance to an organization in implementing innovations. Technology Acceptance Model Technology acceptance model theory specifies the casual relationship present in system design features, the behaviour of usage and how the toll is easy for usage. TAM predicts the acceptability of a specific tool and any modifications that should be put in place for the tool, to be acceptable by the end users. For an information to be accepted the users will analyse its usefulness and how easy it will be for them to use it. Behaviour intention affects the usage of information systems including the perception of how it is going to be utilised. An individual’s attitude and the impact the tool to be used has on the performance greatly affects the usage of a system. It is true to say that if an individual does not welcome the use of information system in the workplace but has perceptions that it will improve work performance; the individual will eventually use the information systems at the end of it all. With TAM, there is a link between what an employee at the work place perceives and the usefulness of the tool to be implemented. The extent to which technology will be used in an organization is mainly caused by technology diffusion;1 moreover, an employee’s ease of use attitude at the workplace will be influenced by a self-efficacy mechanism and his instrumentality. The behaviour and intentions a person creates towards a system will influence the person’s perception about the said system. In some cases, an individual may form a behavioural intention of a system and not necessarily have an attitude towards it. This creates a strong relation between a system that is the self-reported usage and has a perceived usefulness and it affects an individual’s intention. On the contrary, perceived ease of use has a significant effect on the behaviour intention of and individual and it later subsides over a period. Behaviour intention of a person towards a system, therefore, is greatly influenced by its perceived usefulness and the perception of ease of use. DHL Express Finland, in a case study carried out by Kuula and Annu, adopted an IntraShip application in order to improve on their B2B customers who make orders at DHL.2 The orders that were made to DHL gave the customers a number one experience. Shipping orders, being an important part of a company’s daily operations, made the consumers have a high level of usability and the experience they had been varied within a period of 6 months to 7 years. Majority of the users had been using the applications for a period not more than two years and later changed to other service providers other than DHL Express. The customers were satisfied with the changed situation at DHL Express, and it was problematic, but it is also smooth using IntraShip application. The main issue with the customers was the fact that there were issues relating to the ability to learn of IntraShip, and this was regarding facilitating conditions such as training. Even though, the application had certain features that were harder to learn, most customers thought the application was simple and in a matter of time, they would get used to it. Having internet and technology experience had a bigger effect on the perception of the functionality of IntraShip. It was assumed that even a Systems Specialist was able to use the application easily, but the specialist also had trouble similar to an individual who had no information technology background. Having an experience with different application is at times considered remarkable experience as comparing to having used only one application. All the users, being new to InfraShip, gave out many new ideas in improvements to be made on the application hence shows the application had some features, which were hard to adjusting to them from the beginning. Some factors affect the acceptance of e-commerce application and several moderating factors are key influencers. Technology acceptance is an issue addressed while considering customers.3 Technology acceptance is rated basing on its success, hence an application that satisfies the end users and all the stakeholders, then it will be considered a success. TAM model best assists in predicting the user’s acceptance of an application by explaining the causes of people rejecting or accepting an information systems technology. Revised e-commerce TAM factors contribute, to some extent, to the satisfaction of customers to the InfraShip. The satisfaction of the InfraShip was got from the inflexibility and illogicality the customers had towards the application. From these, there is a close connection between the perception of using an application and the ability to use that application. The perceived reliance of InfraShip was not very strong, and it was caused by the fact the many of the user were using other service providers, therefore, when they do not feel they want to use DHL’s application, they can opt for those of other service providers. Diffusion of innovation theory This theory is a process mainly used when influencing innovation or a new product to members of the society using specific channels over a period. DOI posits technology adoption decision to be a choice that is rational basing on the characteristics of technology.4 Most products, after being innovated will undergo the product life cycle and the integral part of the cycle are the production management. Having the concept of innovation involves inventing ideas, developing a channel of communication, employing time factor and involving social systems. It is much helpful to be able to understand and predict the way individuals are able to adapt to a new idea.5 Most individuals are exposed to innovation in one way or another during the first stages of diffusion, but lack of sufficient knowledge makes the individual let it pass. An Individual at this stage is usually uninspired and will not have much interest in finding more information about the product. At the stage of persuasion, customers seek information actively because they have developed an interest on the product under innovation. At the stage of decision, the individual will take the concept that is undergoing innovation and weigh the benefits got from the product verses the setbacks of using the product. This is the most difficult time because it is the decisive time and it will matter on whether the individual will take the innovation or leave it. An individual gets the opportunity to implement innovation at the implementation stage, and this is usually the perfect opportunity an individual gets to know the usefulness of a specific innovation. The individual will carry out more research to get to know the usefulness of the innovation. Confirmation stage comes up when the individual has decided to use innovation another time. The task of logistics usually depends on reliable shipment and hence most logistics companies rely on RFID technology in carrying out their operations. Many firms seek to increase performance in the value chain activities and, therefore, must understand the technology integration factors.6 Taiwan Logistics industry wanted to implement RFID system in the daily operations in order to improve on efficiency.7 RFID collect wireless data by the use of electronic tags to store information, which is later used in radio waves to identify tags that are RFID. The usefulness of RFID is that they have longer read range as compare to that of barcodes.8 Adopting RFID in a logistics company is beneficial because it will be able to enhance management of the company’s supply chain. The greatest challenges during the adoption of RFID are economic and technological barriers.9 Innovation taking place in this company went through communication by the use of several channels, and the process took a specified amount of time. The purpose of doing these was to ensure all the stakeholders involved are given the opportunity to familiarise with the system. By using both innovations, factors of the environment, and various attitudes towards RFID system, there were variables that potentially influenced the future intentions to use RFID system in Taiwan. There is a significant relationship and difference amongst relative advantages of RFID system, compatibility and other independent factors, which affected the adoption of RFID system in Taiwan. The main factor that affected the adoption of RFID implementation in Taiwan logistics industry was the relationship between the attitudes affecting adoption of RFID and the usage of RFID and these correlated to each other positively. The barriers that affected the adoption of RFID in Taiwan logistics Industry included environmental factors such as competition present in the logistics industry and other alternative products in the industry. The task of supply chain management and logistics is defined by levels of uncertainty that are high hence, it is importance to examine and reduce the uncertainties.10 The potential users of RFID system had perceived attributes and the attributes had significant power that assisted them in predicting on the usage of the system. The companies providing RFID services have the duty of promoting the attributes of this system, advantages it has when it is put to use by its potential customers; such include improved performance on a company’s operations among others. The service provider company also has to ensure the system is more user-friendly, and its compatibility allows users to adapt to the systems faster by being easy to learn. Technology-organization-environment framework TOE theory identifies three aspects that include technology, innovation and organization which will influence the process by which an innovation will be implemented in the organization. Technological context will explain internal and external factors of technology that are most relevant to a firm in the implementation of innovating. Technological context will include current practices taking place, in a firm, and internal equipment present in a firm; moreover, TOE is essential in studying contextual factors that greatly influence the assimilation of e-business.11 Organizational contexts describe measures relevant to the organization and include among others scope of the organization, its size and the managerial structure. Environmental contexts are key factors that surround and organization such as government and competitors. TOE framework is relevant in the analytical framework necessary for the adoption of various IT innovations in an organization. TOE framework explains well the adoption of intra-firm and hence, it is one of the most complete theories with a consistent solid base. The use of digital cockpit came into use ten years ago for the purpose of conveying aeronautical information in the air. The key drivers of e-business in the aviation industry were the ability of electronics to deliver, having good information intensity and availability of real time interface. The environmental contexts influencing the adoption of e-business in the aviation industry are competition pressure, readiness of the customers and the regulatory environment. All these three contexts are integrated in the airline industry. There are benefits if implementing EDI in small businesses although the difference between adopting and not adopting this innovation is small.12 For instance, a small flight company that wants to adapt to EDI will be influenced by its preparedness in terms of finance and the technological progress it has undergone. Therefore, in the readiness of the airline industry to adapt to e-transformation, the organization culture together with the change process will greatly influence readiness of the organization to implement electronic flight bag in the firm. For an organization to be ready to undergo technological innovation, it will have to make improvements in its technological infrastructure and have a good idea of the applications involved in that field. Innovations in the information technology sector do not only cater for an internal audience I n and organization but also external stakeholders (McMaster 2007, p.416).13 The pressure coming from competitors and the competition to improve on technology including e-business has made the airline industry adapt the electronic flight bags among other products that are digital. The main challenge in the adoption of this technology is the development of IT infrastructure, cultural transformation and optimization of new digital process. Bibliography Alexander C. A, (2006). A Study of Environmental, Organizational and Information Technology Issues in E-business Adoption and Assimilation in Small Firms. Miami: ProQuest. Bassavanthappa B. T. (2008). Community Health Nursing. 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