The Role of E-Commerce in Information Technology - Term Paper Example

A report on Electronic Commerce (E-commerce) Prepared By: Presented To: Affiliation Date Table of Contents Abstract This era is acknowledged as the era of information technology since the information technology tools and applications are everywhere in our daily lives. E-commerce is most attractive trend of information technology which is adopted by a lot of organizations in order to run their businesses effectively. The aspect of electronic commerce is considered as a tremendous option for business corporations to reach new consumers. Although, a lot of e-commerce applications have a short life. Thus success depends on numerous factors. This paper defines various fundamental aspects related to advantages, security concerns, firewall usage and social and ethical variations in some business environment. Introduction At the present, all the organizations regardless of their type and size make use of the internet in order to perform their business operation effectively. In other words, the use of internet has become imperative for the organizations in order to survive in this ever-increasing competitive world. Internet offers a lot of tools and technologies which facilitate companies in carrying out business activities effectively. In this scenario, e-commerce is a latest emerging internet technology which has become very common among businesses. E-commerce is way the conducting business which involves money related matters using internet. This will outline the role of e-commerce in this competitive era. This paper will show how organizations make use of this latest internet technology in order to grow their business. Seeing that internet brings a lot of advantages and opportunities for the businesses on the other hand it also causes various security issues. This paper will also discuss various security issues which are associated with this latest technology. Focus of the Report This report focuses on the role of latest internet technology which is known as e-commerce. The basic aim of conducting this research is to assess the role of e-commerce in this information technology based age. This report will show how e-commerce can be adopted by the corporations for running their businesses effectively. In addition, discussion on various issues and challenges in the way of e-commerce success will also come under the focus of this report. E-commerce Electronic commerce is an emerging challenging trend round the world and normally this term is used for some type of trade or business transactions that involve information conveying from one location to another through the Internet facility. However Electronic commerce covers a wide collection of dissimilar businesses that might be related from customer oriented retail sites or else through industrials point of view where companies sell their products. While another aspect that is usual in now a day happens through public sale or melody sites along with services among various organizations. As discussed earlier, at this time Electronic commerce is one of the most significant aspects of the Internet to emerge in whole of the world (NetworkSolutions Inc., 2011; Andam, 2003; Maamar, 2003). In this way through Electronic commerce, customers can exchange their supply through internet or simply or through an electronic way from one distant location to another. If people analyze the overall situation that they are facing in either in economic sector or in financial systems, they can easily come to know about its importance. Although this aspect has extended quickly over the last 5 years in addition to researchers and analysts’ argue that this rapid growth will continue at this rate or even go faster. Moreover in the coming period all the barriers among electronic commerce as well as conventional commerce will turn into gradually more blurred. It will happen due to the fact of shifting of business or due to the shifting of several parts of their business related operations over the Internet (NetworkSolutions Inc., 2011; McKnight et al., 2002). Another term that is mostly used when discussing electronic commerce is B2B or Business to Business. The concept of B2B is a little bit different from electronic commerce. In B2B or Business to Business electronic commerce is done among business partners instead of business and a consumer (NetworkSolutions Inc., 2011; Lumsden & MacKay, 2006). However electronic commerce helps the companies a lot in carrying out those dealings or business related transactions electronically that directly or indirectly affiliates with business conditions. Another aspect that can be discussed in relation to electronic commerce is that it enables a broad range of competitive advantages over the traditional methodologies that are used by the people normal life for business dealings. If it is implemented in proper way, electronic commerce is often works much faster than others, low cost for establishing as well as electronic commerce is more suitable as compared to the other conventional methodologies of bartering supplies and services (NetworkSolutions Inc., 2011; Laudon & Laudon, 1999; Turban et al., 2005). E-commerce is basically associated with dealings of selling and buying of goods along with services by prudent business operators and customers on the Internet. However some people use this word "electronic commerce" in order to explain encrypted payments methods over the Internet. With growing competitiveness and advance emerging trends round the globe Internet level of sale is increasing fastily. Hence it provides opportunities for consumers to take benefits of lower costs offered by wholesalers retailing their goods. Thus this rising trend will help the business in strengthening the relationship among customer and prudent business operators (Dynamic Web Solutions Pty Ltd, 2008). Electronic commerce facilitates business related persons with efficient electronic transactions along with other cost-effective techniques. These aspects leads the Electronic commerce toward the growth in electronic marketplaces where suppliers and potential customers can engage in business easily, also they can adopt trade like functionalities are brought together for mutually advantageous trade. In this way if a firm wants to initialize its business with electronic commerce it might require a successful online system for its business that could be a complicated but not impossible. Moreover if people are ignorant with the ideology of electronic commerce along with the aspects of e-commerce to online business they cannot easily adopt the features of electronic commerce. Better implementation requires appropriate researching and advanced level of understanding the procedures that are necessary for proper implementation of an electronic business plan (NetworkSolutions Inc., 2011; Ray, 2004). The Fundamental Concepts of E-commerce In view of the fact that electronic commerce involves various concepts in it as electronic mail for buying some thing online, payments methods that are normally used in financial systems for transactions of money from one location to another, used for advertisement along with market products. Moreover this emerging trend is rapidly growing in the past 5 years. Although considerable changes or advancements in e-commerce related applications still formulate an unexpectedly small part of the whole trade marketplace (according to a figure it is less than five percent (5%) for most retail segments). In this competitive era it is a hard truth that businesses in under pressure as compared to past. This pressure enables an e-commerce feature to maintain their business according to the growing market demands especially for those who put up for sale to customers (reoffered as or Business to Consumer or else “B2C”). Usually V perspective is seen definitely in electronic mail features and also in the structure of a web site (Tutor2U, 2011; Summers et al., 2003). In view of the fact that the main purpose of some website is to deliver valuable information, statistics and required data of some business organization. The type of this data might be varied according to demand; it may be used for employers of a business organization or used for general public. Although perspective of electronic commerce affiliates a lot with web site that can be used to endow with essential information on the products and also about business. Some business organization used it for providing a pace where deals can be made (Tutor2U, 2011; Summers et al., 2003; Kayne, 2010). Although Electronic commerce is used in various ways, its competitive advantages are a lot. Some general benefits that we gain by adopting electronic commerce are as following: Electronic commerce helps some business organizations in reducing expenses due to the reduction in labour strength. Moreover it helps the companies in reducing paper work, reduction errors and omissions in keying in data & information also help full in reducing costs related to posts (Dynamic Web Solutions Pty Ltd, 2008; Turban et al., 2005). One more but most valuable aspect of Electronic commerce is that people can save time that is most precious thing in today’s business environment. Reduction in time provides them to improve the quality of product. Hence organizations can make a strategically plan for business that leads to a competitive edge for them because they have enough time to implement these designed strategies. Also due to electronic commerce they need short lead time for payment withdrawal and payment transfer methods. In this scenario, the aspect of Electronic commerce helps business related dealings with fast as well as time delivery of the product (Dynamic Web Solutions Pty Ltd, 2008; Turban et al., 2005). Two major competitive advantages that organizations gain from electronic commerce are flexibility and also efficiency. Moreover the capability to handle compound situations, product ranges as well as consumer profiles without the circumstances that are complex to handle or those which becomes unmanageable (Dynamic Web Solutions Pty Ltd, 2008; Turban et al., 2005). Development in relationships towards trade associates is also a major key point of electronic commerce. Despite of barrier’s of communication among customer and supplier. As it is the fact that improved communications among business partners lead towards improved but enhanced long term relationships. This will be a great benefit for some organization while dealing in and implementing economical sector strategies (Dynamic Web Solutions Pty Ltd, 2008; Turban et al., 2005). In addition, if an organization is close to some of its consumers it will positively affect its business. In this way they can be engaged with them for business matters and more they work with them to transform from usual business performance to best practice electronic commerce (Dynamic Web Solutions Pty Ltd, 2008; Turban et al., 2005). Electronic commerce provides the businesses with an opportunity to search out new markets. And it is the main advantage of online business is that people can search out any organization either in any distant location of the world or near to them. However it is a fact that internet has the possible features to develop a business into wider geographical or in national level locations (Dynamic Web Solutions Pty Ltd, 2008; Turban et al., 2005). Security related issues There are also various security concerns in electronic commerce. These securities related issues are directly or indirectly related with end user or it may be rose from system application. However awareness of user as well as system supervisor has its own significance and its importance in the effort to counter electronic commerce attacks. In this way customers are gradually becoming alert due to adaptation of user easiness standard techniques. In this scenario, there is an example of a lot of security driven features like encrypted WEB dealings, important secrecy statements by organizations etc. However major (ISP) Internet service providers are adopting more suitable receptive techniques for fulfillment of complaints regarding Internet mistreatment originating from their sites. There are possibly various techniques that are concerned with electronic commerce security problems. But the main two aspects that are referred as Electronic commerce security strategies: first one is the protection of integrity of the business system or overall business network in addition to 2nd methodology is related to its internal systems (inside systems). Hence it results in completion of this transaction security among the consumer and the business. In respect to critical security issues that might result in considerable destruction or loss of valuable data the major tool in businesses that organizations have used mostly is the protection of internal network by means of the firewall. In this scenario, a firewall is basically referred as a hardware system plus software system that permits just those outsiders or peripheral users that have particular characteristics to access a confined network system. While talking about the original system design, it was supposed to use for allocation certain services. There is an example of email as well as web access. These examples are helpful only when sandwiched between the Internets and the internal network. Thus the firewall application has now grown to be the main point of protection or security in the business strategies or business related security architecture (Marchany & Tront, 2002; Tront & Marchany, 2007). These following aspects will define the major security related issues that organizations faced due to electronic commerce. These issues or problems might vary according to certain circumstances and conditions. However these methods will clarify the security related measures that make threats towards Electronic commerce web-site. This may include aspects like hack, virus propagation along with identity theft. Thus these effects can have a serious impact on the trade corporation (The UeeKa Project Global, 2011; Shelly et al., 2005). Avoidance from Hacking Usually Hackers obtain the necessary information of their entrance will occur due to the computer system through ports. In this way people can observe these aspects that if ports are open then the hacker could be able to get in. Hence in this way hackers can put viruses and other destructive programs into the computer peripheral devices that might cause in considerable destruction or loss of data. It may affect the overall working of computer along with critical software components. The implementation of firewall is a suitable solution to avoid from such sort of break up. For this purpose, people need to install a firewall on to the computer system and important applications or programs. Thus firewall block off the way in of the ports, through which a hacker cannot make entrance in it (The UeeKa Project Global, 2011; Shelly et al., 2005). Virus’s propagation A computer virus is a well known word or term that is normally heard in daily life. A computer virus is some sort of infection that easily affects our computer machine or installed applications on computer in a lot of ways. Its technique is different every time when it enters the computer or machine related some application. However it might approach our machine or applications from anything but mostly it attacks form the internet or electronic mails. Another significant aspect of virus is that it may copy it-self as well as easily manipulate a computer's files. In this way it is very harmful for computer or machine related applications because it might result in considerable destruction. Moreover by installing antivirus programs, end user can be able to keep away from the chance of virus attack that can affect the computer (The UeeKa Project Global, 2011; Shelly et al., 2005). Identity Theft Another important aspect that is a major issue in electronic commerce related web application is known as identity theft. This aspect occurs (identity theft) when a hacker make his entrance in some computer program or in computer machine all the way through to a users computer by means of a virus prorogation and successfully attain all of their individual or personal information that might include the secret information or data related to the credit card and its particulars. In this way hacker can use this data in some illegal activity that will be quite dangerous for people (The UeeKa Project Global, 2011; Shelly et al., 2005). SSL (secure sockets layer) SSL technique is normally used in today’s security related protocols. SSL stands for Secure Sockets Layer. Moreover a well liked implementation of the public key encryption is the SSL (although it is referred as Secure Sockets Layer). Secure Sockets Layer is manufactured by Netscape Corporation. Important information that is necessary to define here is that SSL Secure Sockets Layer is an Internet safety protocol. Normally this protocol is used by Internet browsers like internet explorer, Google chrome, Mozilla fire-fox etc as well as Web servers that are used in various ways but the most important aspect that is suitable according to the discussion environment is to transition of critical data or sensitive information from one location to some other location. Moreover, the SSL or Secure Sockets Layer has become a major part of an overall security protocol that are usually known as Transport Layer Security or it is abbreviated as (TLS) (The UeeKa Project Global, 2011; Shelly et al., 2005). HTTPS Some people think that Https are separate protocols but in actual this view point is considered as totally wrong. Although Http is not a dissimilar protocol, but it can be referred as a mix arrangement of a normal Hyper Text Transfer Protocol or HTTP interaction in excess of an encrypted Secure Sockets Layer that is usually abbreviated as (SSL). For some time people have used a word of Transport Layer Security (TLS) link. Thus it makes sure of sensible protection from eavesdroppers along with man-in-the-middle attacks (The UeeKa Project Global, 2011; Shelly et al., 2005). Strong passwords Strong password saves people from unauthorized or illegal access from outside. A password provides them secure environment, its allocation or need on the website is essential for prevention from hacker’s from nastily attempting to split in to the website. Although strong passwords are used in versatile ways, for implementation of a strong password it must be a combination of both text and alpha numeric digits. In this way people can use numbers, letters, lower case as well as upper case letters so it becomes more complex and difficult for somebody or hacker to guess it (The UeeKa Project Global, 2011; Shelly et al., 2005). Firewalls usage When a connection is established within the network, chances of failures, insertion of viruses become easier but more destructive. When people are connected with computer machine within a network structure, it becomes helpless due to the chances of attack. In this way a personal firewall helps the people a lot in protection of their computer through limiting the levels of traffic initiate through or else directed towards machine. Hence the interloper could also scan the hard drive in order to identify any stored passwords (Khusial & McKegney, 2005). Privacy issues Generally privacy refers to the term that can be described as the control over some other’s private data along with the unauthorized or illegal access to attempt data from others. According to researchers and analysts’ there are two fundamental problems that can be faced in customers and second one is the problems that arise towards sites (Ackerman & Donald T. Davis, 2005). In view of the fact that the privacy feature is one of the most serious issues that is faced in electronic commerce, no issue what source is examined by some one. ” According to a statistics publish by a / Business Week in cooperation with Harris Poll found that round about 40% of the people who are in touch with online business are much concerned towards their personal information and it’s usage, while fifty one percent are those who want proper law regulation about how individual information or personal data is collected along with its usage (Ackerman & Donald T. Davis, 2005). In this way, various researchers argued that critical concerns related to privacy were a significant cause of giving wrong online information by people or online user’s over the internet. Moreover tackling the privacy issues requires a substantial measure from avoidance although it is not as easy to implement as we observe. If nothing moreover, privacy debate some time turn heated extremely quickly. Thus a lot of people believe that privacy must be considered as a basic right not only in national legislation but also according to ethical management, but some others think it to be a tradable service (Ackerman & Donald T. Davis, 2005). Social and business issues Another important finding is that is believed among the numerous implications that stem from advance technological environment for customers along with various business dealing. Moreover this result in considerable advantages of data flows for business as well as for customers. While talking about various social ethical and business related concerns in this advance environment people require some rigid attempts in order to govern an environment which will far away from social and business related issues. However it is much important to recognize each one of these implications and issues, along with to the tradeoffs. In this way one of the important aspects is known as privacy. Privacy is a term usually used in business environment as a business issue which is particularly much responsive to changes in the nearby circumstance. In addition, the change in public perception or in regulatory governance (in this scenario, there are examples of new laws, official regulations or else even case law in the US) can significantly modify the business issues along with considerable implications as well as possibilities (Ackerman & Donald T. Davis, 2005). Additionally, the e-commerce has revolutionized the modern business trends by enhancing the market and helps a lot in redefining the conventional corporation arrangement. However it is a true fact that economic pressure has been one of the significant issues that might affect society as well as ethics. But the growing factors related to e-commerce shows that its future has brilliant. According to researchers and analysts, rapid expansion in this field will continue and might sooner or later take over from customary business dealings as people observe in society. Although there are a few acts that enables an efficient transition. In this business world where people are facing competition either with bigger powers or with growing economies, the trend of e-commerce has become global concept. While talking about its social impacts, on the other hand, people believe in state autonomy, loyalty along with segregation. However major ethical and social hurdles continue to avoid from efficient online transactions and delay the required potential for development in e-commerce. One of the significant issues that everyone faces in effective e-Commerce is known as security (McCartney, 2004; Ackerman & Donald T. Davis, 2005). In this way it can be said that the aspect of security is also a most important concern for electronic commerce sites along with customers. Moreover customers fear the loss of their monetary information, valuable data and electronic commerce sites fear about the financial losses. However it is a true fact that privacy along with safety measures is still ongoing research issues (McCartney, 2004; Ackerman & Donald T. Davis, 2005). Various observers and authors related to e-Business, describe that the World Wide Web (WWW) is an emerging factor in the development side and also from implication. In addition, the beginning of the Internet has encouraged the rapid enlargement in fields like e-commerce and telecommunication sector. But on the other side it has enabled some advance types of misdeeds as well: which can be referred to computer related crimes. Security implications related to e-commerce and various applications of the Internet and secrecy of its users make it perfect for crimes like illegal transfer of funds; seize system accounts, piracy in addition to machine viruses (McCartney, 2004). Other social and business implications include ownership and accountability. Both of described implications (like ownership along with accountability) results in prevention of e-commerce expansion. Presently, the Internet has provided its various operations as a split entity, not hold by some individual, corporation or state. Further more this autonomy facilitates in uninhibited access through each individual that have a computer machine. However it might results in making accountability virtually not possible. What are significant implications that are considered socially, politically plus ethically acceptable in some country may be prohibited. In this scenario, there are lots of examples to define this for example, cigarettes advertisement is officially authorized in some countries, for example in U.S.A (United States of America) on the other hand in Australia. But it results in strict consequences for those organizations that involved in violation of laws concerning cigarette promotion. Moreover if some organization makes use of the World Wide Web (WWW) for the purpose for its advertisement and marketing related activities, they might attain Australian audiences thus far they are not make violation of any law (McCartney, 2004). However with the rapid enhancement in the global economic competition the Internet poses primary challenges to those problems which are related with the society like namely complimentary speech, confidentiality matters in addition to nationalized sovereignty. Moreover with the arrival of electronic commerce, it fetches all those techniques that facilitate the people with moral and ethical implications that ate considered near to consumer privacy. In this way social and ethical implications in some business environment is considered much important. Thus the subject matters with the protection of individual as well as business related privacy as a most important ethical concern. These numerous concerns results in pressure towards official bodies or governmental legislators to make legislation. Through this way legislation and has created whole section of Internet industry corporations whose job is to facilitate and protect customers sensitive and private data on the web (McCartney, 2004). Electronic Commerce in the Kingdom of Saudi Arabia While talking about the existence of e-commerce in Saudi Arabia it can be said that development in Information Technology along with communication expansion is significant. As discussed above efficient technology is a critical factor in E-Commerce success for a country like Saudi Arabia other substantial implications will be faced. Although various factors like human, financially viable as well as other managerial matters might be taken. In the information given below we evaluate various existing status of electronic commerce in a country like KSA (Al-Otaibi & Al-Zahrani, 2010). Additionally electronic commerce is extremely essential for Saudi firms, but is not as much imperative for middle size and small organizations or firms. It is observed that majority of Saudi firms that have EDI and e-commerce use global standards, except only a small number of them have adopted E-Commerce. Thus Saudi e-commerce Solution Providers is not much efficient in the domain, but their expenditure is rational in contrast with their quality of service (Al-Otaibi & Al-Zahrani, 2010). Conclusions This paper has defined several methods to ensure reliable e-commerce. This paper has shown that e-commerce can be analyzed from diverse perspectives by unlike people. However a present e-commerce framework depends on rigid but specific elementary components of e-commerce. It is a true fact that e-commerce is continually facing advance challenges along with innovative situations. This paper has discussed various features in this paper and proposed a dynamic scale and a variety of implications to deal with in a challenging environment. Moreover this paper has offered an electronic commerce structure that can provide diverse views of electronic commerce and assists someone in creation of e-commerce description from his own point of view. Bibliography Ackerman, M.S. & Donald T. Davis, J., 2005. Privacy and Security Issues in E-Commerce. [Online] Available at: http://www.eecs.umich.edu/~ackerm/pub/03e05/EC-privacy.ackerman.pdf [Accessed 24 April 2011]. Al-Otaibi, M.B. & Al-Zahrani, R.M., 2010. Electronic Commerce in the Kingdom of Saudi Arabia. [Online] Available at: http://faculty.ksu.edu.sa/DrRasheed/My%20Publications/Ecommerce_in_KSA.pdf [Accessed 24 April 2011]. Andam, Z.R., 2003. e-Commercer and e-Business. 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