E-Commerce Limitations, Reaction Paper Example

E Commerce

Even today where every technology interrelated to Information technology involves the dot com phenomenon; ecommerce is relatively an evolving field which is persistently changing. New fields are emerging from E commerce Wu and Hisa describes it as “Internet-Enables Commerce (I-commerce) and mobile commerce (M-commerce) is based on developments pertaining to the Internet and on prior technological innovations arising from the combination of telecommunication, and organizational computing”. E commerce can be divided into two separate domains, one is E commerce itself, and the other one is E business. ”Www.davechaffy.com” states a formal definition which describes“”e-business (e’biz’nis) – the transformation of key business processes through the use of Internet technologies”. Generally the business functions and processes which involves electronically and digitally within the organization are referred as E business.

E Commerce Limitations (Technology)

In the twentieth century, Internet and e commerce advanced for meeting every business requirement and providing paperless business processes for the organizations. Hence it was a “cure all” process but as the 3^rd law of motion by Isaac Newton states “Every action has an equal reaction” suggesting that there are also limitations for E commerce.

Not Enough Adequate System Security

There are many security breaches involving Internet business giants like Yahoo.com and several other organizations as per “business week “were attacked on “On Feb. 6, the portal giant was shut down for three hours. Then retailer Buy.com Inc. (BUYX) was hit the next day, hours after going public. By that evening, eBay (EBAY), Amazon.com (AMZN), and CNN (TWX) had gone dark. And in the morning, the mayhem continued with online broker E*Trade (EGRP) and others having traffic to their sites virtually choked off”. E commerce systems faces security breaches due to lack of proper reliability, not meeting updated security standards and communication protocols. As E commerce is a rapidly evolving technology, new threats and their protection techniques updates in parallel.

Business Model limitations

Often organizations are in a scuttle to develop new business models to create new opportunities resulting in conflicts with the organization strategies.  As E commerce enables the organization to emulate their business models on the web, which limits their long term competitive advantage. Organizations selling products online may face competition on price wars with the national and the international competitors, resulting in substantial losses for the organizations.

System Compatibility Limitations

There are conditions in which organizations cannot communicate with other organizations due to system compatibility issues. This probably happens due to communication between older and newer technology. The old business systems cannot communicate or transfer data to the new web based infrastructures, resulting in installing another system for communication as they cannot change the complete infrastructure at the same time. This results in creating a delay for the organization efficient business process and at the same time spending additional cost for the system.

E Commerce Limitations (Consumer)

“In electronic commerce environment, business-to-customer electronic commerce had developed rapidly for recent years. Researchers in the electronic commerce field constantly tried to gain and improved insight into consumer behavior in cyberspace”. For interacting with the E commerce environment, Customer need systems and computing equipments which require initial capital cost. There should also be a learning tutorial for the customer in order to interact with the organization processes which are conducted on the web. The initial capital cost for the computing equipments is not enough because the systems also need a maintenance cost along with the new emerging technology cost. Security issues involving personal data privacy are not guaranteed, because the servers containing the information of the customer are globally disbursed. This is a staid issue because every country does not have data protection laws. Buying products online does not enable the customer to touch or feel the goods; they cannot judge the face of the online stores because they are dealing with faceless computing equipments.

E Commerce Limitations (Society)

As people interacts with each other and recognizes each other by faces, e commerce enables breakdown in human interaction. People are becoming more comfortable by interacting digitally, rather than face to face interaction resulting in erosion of personal and social skills. The E commerce limitations related to society impacts on social divisions, where the technically trained employee will have better chances to get a highly paid job. People who are not familiar with the Information technology and emerging trends will unable to secure jobs for their future creating perilous social instability. Enabling Internet and e commerce services is a difficult task, because in some ‘undeveloped countries’, infrastructure is not available or insufficient for telecommunication installation, power equipments, and Information technology skilled personnel are also not sufficient. It is difficult to trace a victim who has conducted a ‘cyber crime’.

References

Jen-Her, W., & Tzyh-Lih, H. (2008). Developing E-Business Dynamic Capabilities: An Analysis of E-Commerce Innovation from I-, M-, to U-Commerce. Journal of Organizational Computing & Electronic Commerce, 18(2), 95-111. doi:10.1080/10919390701807525.

Chaffy, D. what Is Difference between Ebusiness and Ecommerce?. Define E-business and E-commerce . Retrieved November 1, 2010, from http://www.davechaffey.com/E-business/C1-Introduction/E-business-E-commerce-defined (2000, February 21).

Cyber Crime. Bloomberg Businessweek. Retrieved October 23, 2010, from http://http://www.businessweek.com/2000/00_08/b3669001.htm

Chun-An, C. (2009). Information-oriented Online Shopping Behavior in Electronic Commerce Environment. Journal of Software (1796217X), 4(4), 307-314. Retrieved from Computers & Applied Sciences Complete database