E-commerce Systems: Future Disruptive Innovations and Migration Plan
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This document discusses the future disruptive innovations in the e-commerce industry and provides a migration plan for developing e-business capability from scratch. It covers the impacts of e-commerce on businesses, benefits of e-commerce, and risks involved in e-business.
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E-commerce Systems1 E-commerce Systems Student Course Tutor Institutional Affiliations State Date
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E-commerce Systems2 1.An original question in e-business that would be worth further research In the current technology pervasive world where we live in, technology has become a necessity for businesses. As such, its adoption in the e-commerce sector is no longer an option but a matter of compulsion; this has been the reason why there have been competition in major five key determinants in business including communication, convenience, cost, time and quality. The five aspects of business are also critical when it comes to competition in the current competitive business environment (Yoo, Henfridsson and Lyytinen, 2010, pp.724-735). It is essential for every e-commerce to stay current as far as the technological innovation is concerned. The e-commerce has experience paramount innovation since it begun. It started with the innovation of a simple “click here” link to invention of cloud computing to mention a few. However, that seems to be just but a start. The sector is yet to face a disruptive innovation in the ever changing technological innovationenvironment. Thisis also based on the fact that customers have become tech savvy and as a consequence, business have to keep the pace of technological innovations to meet their customers’ needs (Govindarajan, Kopalle and Danneels, 2011, pp.121-132). As such, this area has captured the attention of many researchers. However, many research majorly focus on the sustainable innovations in the e-commerce industry; the disruptive innovation has been rarely looked at. This has precipitated the need to venture into this critical aspect of the technological innovation. In this rationale we propose a research question for the study. The question include: What are the future disruptive innovation in the e-commerce industry? Studies convey that businesses, especially in the e-commerce sector are yet to be disrupted by a new wave of innovation. This innovation promise to open up better ways of improving customer experience and reduction of
E-commerce Systems3 the operation cost. The changes also promise to create more opportunities for new business dimension, new market as well as new products. The innovation of machine learning and block- chain technology are paving the way for a more cost effective business approaches that assure improvement in customer experience (Baur, Bühler, Bick and Bonorden, 2015, pp. 63-80). This hints that this is an area that is worth research. We therefore look to explore the disruptive innovations that promise a better future in the e-commerce sector. Methodology. In order to achieve solution to the question above, we will do literature search in various libraries/referencemanagementapplications.TheproposedlibrariesincludeACMlibrary, google scholar, EndNote and IEEE library. In the search process, we will key in various terms in the library database. The proposed terms that would be searched in the database include “Current Disruptive technological innovation”, “the disruptive technological innovation on e-commerce”, “Futuree-commerce”“blockchaintechnology”,and“Machinelearningtechnology.”the keywords will be limited to the publications ranging from 2010 to 2019. The returned results will be filtered through inclusion and exclusion criteria so as to remain with the relevant sources which are peer reviewed and coherent with the subject of study. The articles retrieved will be read and reviewed and further filter the most relevant sources which will then be analyzed for the study. 2.A report to a senior manager of UGO organization on migration plan to develop e- business capability from scratch. Introduction
E-commerce Systems4 E-commerce have been adopted by many business in the current technology ubiquitous environment. However, Ugo Inc. has been lagging in implementing the technology. This retail has been one of the rapidly developing business in the United Kingdom since it got developed. Ugo retail was developed in the year 2011 and already the business acquire twenty medium size physical retail in the country (Soult, 2011, pp. 01). If the organization can dominate these regions with physical retail, it can be inferred that migrating its operations online could lead to paramount reputation in the entire country and even worldwide; the organization would have been competing with the current reputable e-commerce stores like Alibaba, Amazon and E-bay among other globally known e-commerce giants. This is due to the immense impacts which results from migrating a business online. Impacts of e-commerce on Ugo Organization. E-businesshasanotableimpactsontheproductivityandcostofthebusiness.The technology has a chance to be widely adopted by many organizations because of the simple applications that it promise to businesses. As such, e-business can offer great economic impacts on the Ugo business. This technology can offer the business an opportunity to buy and sell products and even share information through the internet as well as other online platforms Ramanathan, R., Ramanathan, U. and Hsiao, 2012, pp.934-943). The technological innovation in the 21stcentury can suggest that the economy in the today’s worldistrulyglobal.Thebusinesscansignificantlyreducetheunnecessaryoverheads, investments, capitals and costs by outsourcing to another organization which specialize in a given function. This give the business a lot more room for its operations and concentrate in providing its consumers with a value products that lead to success of the business.
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E-commerce Systems5 With the increase in the use of the internet technology, business without online platforms will findthemselvesbeingoutweighedbysmallerlearnerorganizationsandevenstartups associations which are based on the e-business model and that will be the end of Ugo Corporation if it still lag in adopting this fundamental innovation. This model will provide an opportunity for e-business to grab a hold of a larger market share that is currently grabbed by physical retails very quickly (Sila, 2013, pp.199-236). This is based on the fact that the businesses does not consider inventories in many occasions and thus they don’t have to deal with large overheads as physical retails. The e-business can enable the organization to emphasize on the intangible more than the tangible and bring them in the front line which ultimately changes the value into income. It will also make communication between the organization and suppliers as well as its customers easy and cheap thus enabling the intangible assets to get leveraged across a buyer base which is quite larger compared to the physical retail (Ghobakhloo, Arias-Aranda and Benitez-Amado, 2011, pp.1238-1269). As such, if Ugo could leverage all these benefits that have been brought about by the internet. The organization could be full steam ahead in its business. However, despite the immense positive impacts that e-commerce promise to businesses, just like everything else, this technology is also accompanied by its drawbacks. One of the major concern that have been associated with the e-business technology is concerning security and privacy. Customers’ need an assurance that their personal information which they share in organization’s online platforms remains confidential and not shred with any third party for marketing reasons (Grandón, Nasco, and Mykytyn 2011, pp.292-298). Other customers, on the other hand are trying to keep off technologies that monitor and record their personal data including purchase of a product. There is also fear among customers that the websites they visit
E-commerce Systems6 may not be offering the required security services and hence they may be penetrated by hackers which might lead to loss of personal information. Additionally, the e-commerce today is going with the pace of the technological innovations. Many innovative technologies are now implemented by various organizations. The technologies including machine learning and internet of things are currently adopted by many business organizations (Choshin, and Ghaffari, 2017, pp.67-74). In order for the corporate to be among the best in the competitive environment, the organization has to follow the trend. As such, there will be need for installing various IT infrastructures for implementing the technology. For instance, in order adopt e-commerce, the infrastructures for cloud computing, machine learning, internet of things may be of high cost and the organization may not have a good financial base due to the reasonthat it is just a startup business which started in the year 2011. As such, this may be a considerable negative impact on the business. The major benefits of the e-commerce with the suggestion of how to measure them E-commerce promise overreaching benefits to organizations which implement it. One of the most important benefit is overcoming the geographical limitation. As Ugo only have currently have physical store at present, the organization is limited by the geographical area in which it serves. Establishment of an e-commerce platform, the organization will have the whole world as its playground (Ahmad, Abu Bakar, Faziharudean and Mohamad Zaki, 2015, pp.555-572). Moreover, the mobile commerce (m-commerce) innovation has further dissolve all the remaining geographical limitations. As such, if the business competitors adopt these strategies ahead of the organization, the business may end up knocked out of the race by its competitors. This can be measured by the number of internet users in the world today. The Internet World Stats as at March 2019, reveals that out of over the seven billion world population, the internet users are
E-commerce Systems7 over four billion which account for more than fifty percent of the world’s population. And most interestingly, the growth rate is ambiguous; from this, it can be inferred that almost 90% of the total world’s population will be using internet in the next ten to twenty years. This is enough to show the direction where people are headed. It can therefore be seen that through e-commerce, many organizations are going to conquer the geographical limitations as have been demonstrated by a few organizations like Amazon and Alibaba among other giant e-commerce who are almost dominating the world. Another noteworthy benefit of the e-commerce is gaining the new customers through the utilizationofthesearchenginevisibilities.TheUgophysicalretailisonlydrivenby relationships and branding within the UK. E-commerce, on the other hand combine both of the two plus the traffic which originate from search engine. Moreover, there are innovations which facilitate the searching process including artificial intelligence and machine learning. The e- commerce can utilize these innovations to provide automations which ultimately reduce the human task. The innovations like chatbots can help in handling some tasks that would be otherwise done by human beings thus reducing the cost. Additionally, the application of artificial intelligence and machine learning can enable the business to predict the future which has a considerable contribution towards the business success (Sun, 2010, pp.07; Hannak, Soeller, Lazer, Mislove and Wilson, 2014, pp. 305-318). These additional opportunities can be a tipping point for an e-commerce business. This benefit can be measured by the lead generation and conversion rates by the online businesses. Organizations like Alibaba which operates online have a profound lead generation due to their online presence and the use of the above mentioned strategies for attracting more customers.
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E-commerce Systems9 its IT security management department in order be aware of risks. Along with this, if the e- commerce utilize the cloud storage, it is essential to select the vendor with the best security management features in order to prevent the occurrence of such security risks (Featherman, Miyazaki and Sprott, 2010, pp.219-229). However,itmaysoundsomewhatnegative,individualsincludingtheorganization’s employees are security threats. Human beings are the weakest link in system security in any business, however, this may cost the organization considerably if it is not taken to note. According to Boulton (2017) it is noted by many experts that negligence by employees to execute their duties including ensuring system security is the biggest risk in information security in many organizations. There are also chances that the employees may get overwhelmed by a difficult task of ensuring system security (Zheng, Favier, Huang and Coat, 2012, pp.255; Yen, 2015, pp.145-160). We are all human beings and human beings are prone to making mistakes, however, these simple mistakes may be exploited by a plethora of some individuals which may consequently lead to a great financial loss in a business. Such risks can, however be mitigated through reinforcement of training and awareness to employees. Technical solutions can also be implemented, however, it does not promise realization of the full expenditure made on the technical solution. As such, coupling it with the training and awareness would be the most preferable to ensure a robust security for an e-business. Conclusion In conclusion, it can be noted that the impacts of the e-business are far reaching. E-business promise a considerable impacts. Through e-business, an organization can be able to buy and sell goods as well as share information at a considerably low cost, thus leading to reduction in the investment costs. Additionally, the e-business can enable the organization to emphasize on the
E-commerce Systems10 intangible more than the tangible and bring them in the front line thus consequently changing the value into income. Among these impacts, we could also identify some negative impacts including security problems. However, security is a major issue in every organization including the physical retail. Besides, there are various ways through which these security issues can be mitigated. With these fundamental impacts, it is noteworthy that e-business is an essential facet that Ugo should not overlook. Along with the impacts, we can also identify some benefits e- commerce promise to business including overcoming the limited geographical location; we find that with e-commerce, business can operate anywhere under the sun. Another critical benefit is the utilization of the search engine visibilities and technologies including machine learning and artificialintelligence;itisrevealedthatthisaspectissoundinbusinesssuccess.Most importantly, e-business is more cost effective thus help in saving. Overall. It can be concluded that e-business should be the way to go for business which seek success like Ugo Inc.
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E-commerce Systems11 Reference list Ahmad, S.Z., Abu Bakar, A.R., Faziharudean, T.M. and Mohamad Zaki, K.A., 2015. An empirical study of factors affecting e-commerce adoption among small-and medium-sized enterprises in a developing country: Evidence from Malaysia.Information Technology for Development,21(4), pp.555-572. Antoniou, G. and Batten, L., 2011. E-commerce: protecting purchaser privacy to enforce trust.Electronic commerce research,11(4), p.421. Baur, A.W., Bühler, J., Bick, M. and Bonorden, C.S., 2015, October. Cryptocurrencies as a disruption? empirical findings on user adoption and future potential of bitcoin and co. InConference on e-Business, e-Services and e-Society(pp. 63-80). Springer, Cham. Boulton C., 2017, April. “Humans are (still) the weakest cybersecurity link.” Retrieved on 19th May 2019 from: <https://www.cio.com/article/3191088/humans-are-still-the-weakest- cybersecurity-link.html> Choshin, M. and Ghaffari, A., 2017. An investigation of the impact of effective factors on the success of e-commerce in small-and medium-sized companies.Computers in Human Behavior,66, pp.67-74.
E-commerce Systems13 Ramanathan, R., Ramanathan, U. and Hsiao, H.L., 2012. The impact of e-commerce on Taiwanese SMEs: Marketing and operations effects.International Journal of Production Economics,140(2), pp.934-943. Sila, I., 2013. Factors affecting the adoption of B2B e-commerce technologies.Electronic commerce research,13(2), pp.199-236. Soult G., 2011, Will Ugo back? Checking out Britain’s newest supermarket chain. Retrieved on 29thMay 2019 from: <http://www.soultsretailview.co.uk/2011/05/08/will-ugo-back-checking- out-britains-newest-supermarket-chain/> Sun, H., 2010. Transferring attributes of e-commerce systems into business benefits: A relationship quality perspective.Journal of Electronic Commerce Research,11(2), pp.07. Tsai, W.H., Lee, P.L., Shen, Y.S. and Lin, H.L., 2012. A comprehensive study of the relationship between enterprise resource planning selection criteria and enterprise resource planning system success.Information & management,49(1), pp.36-46. Yen, Y.S., 2015. Managing perceived risk for customer retention in e-commerce: The role of switching costs.Information & Computer Security,23(2), pp.145-160. Yoo, Y., Henfridsson, O. and Lyytinen, K., 2010. Research commentary—the new organizing logic of digital innovation: an agenda for information systems research.Information systems research,21(4), pp.724-735. Zheng, L., Favier, M., Huang, P. and Coat, F., 2012. Chinese consumer perceived risk and risk relievers in e-shopping for clothing.Journal of Electronic Commerce Research,13(3), p.255.