Module 5 Special Topic in e-Commerece

What is e-Commerce Utilize telecommunications technology and networks for – Conducting business transactions – Sharing business information – Maintaining business relationships – Developing business strategies

A Framework to identify e-Commerce Application (1/3) Two main dimensions for characterizing e- commerce (Riggins & Rhee, 1998) – Location of application user relative to system firewall Internal External – Type of relationship affected Technology enhanced Technology facilitated

A Framework to identify e- Commerce Application (2/3) E-commerce domain matrix

A Framework to identify e- Commerce Application (3/3) A unified view of ecommerce

Inhibitors of e-Commerce 10 Dimensions Difficulties in organizational change Lack of e-commerce strategy Problems in project management Lack of IT expertise and infrastructure Unresolved technical issuesFear and uncertainty Unresolved legal issuesLack of interoperability Lack of top management support Difficulties in cost benefit assessment

Difficulties in Organizational Change (1/2) Organizational context – Difficulties in making organizational and management changes – Difficulties in making changes to current corporate culture – Difficulties in making changes to existing organizational structure – Difficulties in redesigning the business processes for e-commerce

Difficulties in Organizational Change (2/2) – Lack of support from functional managers – Lack of champion – Difficulties in gaining cross-functional cooperation – Inadequate support from other departments

Problems in Management Organizational context – Lack of appropriate methodology – Inadequate training on e-commerce for organizational staff – Not enough time to develop new skills – Lack of external consultant support – Lack of dedicated team or decision maker for e- commerce – Difficulties in keeping IT staff adequately trained on up-to-date e-commerce technologies

Unresolved Technical Issues Technological context – Unresolved security, encryption and authentication issues – Inadequate mechanisms for protecting data and information in e-commerce transactions – Lack of adequate payment systems for conducting financial transactions with business customers and suppliers – Lack of robust and stable infrastructure

Unresolved Legal Issues Environmental context – Complex legal issues involved in conducting electronic transactions with business partners – Lack of international access and trade barriers to do e-commerce across national borders – Inconsistent taxation laws related to ecommerce – – Lack of clear legal environment for conducting e- commerce

Lack of Top Management to Support Organizational context – Lack of top management support – Lack of top management leadership – Lack of top management understanding about potential benefits and issues related to e-commerce

Lack of e-Commerce Strategy Technological context – Lack of adequate IT/e-commerce expertise in the organization – Lack of adequate IT infrastructure in the organization – Limitations posed by existing database infrastructure in the organization – Limitations posed by current telecommunication infrastructure in the organization

Fear and Uncertainty Environmental context – Internal fear of opening corporate systems to suppliers and customers – Uncertain response of customers – Uncertain response of suppliers – Uncertain response of business partners

Lack of Interoperability Technological context – Lack of interoperability between new ecommerce applications and legacy systems – Difficulties in integrating e-commerce applications with existing applications and systems – Lack of interoperability between ecommerce applications and those of business partners (suppliers, customers, etc.)

Difficulties in Cost-benefit Assessment Organizational Context – Difficulties in financially justifying ecommerce investments and benefits – Problems in measuring benefits of ecommerce efforts