Use of Customisation and Personalisation in E-commerce

Management
Information System

Table of Contents
PART A...........................................................................................................................................1
Question 1........................................................................................................................................1
Mention Use of customisation and personalisation in e-commerce. Mention business value of
these techniques......................................................................................................................1
How internet make competitive rivalry among businesses more intense ..............................2
Question 2........................................................................................................................................3
Importance of data mining tools and discuss about what kind of information they generate. In
what circumstances a company can use data mining.............................................................3
Describe the term “data base” and mention three reasons why DBMS are good than flat files. 3
Question 3........................................................................................................................................4
Define the term GIS? Mention three ways by which GIS can be used by businesses
organisations...........................................................................................................................4
Mention two benefits of using enterprise system...................................................................5
Question 4........................................................................................................................................6
Name Authentication technologies that benefits in preventing hackers from getting access to
organisational systems............................................................................................................6
Discuss why organisations require to implement policies to protect themselves..................7
Question 5........................................................................................................................................8
Analyse the illustration and tell which IS does it represent and why. At which level this IS is
used in business firms.............................................................................................................8
Mention benefits of socio-technical design approach to information system......................10
PART B..........................................................................................................................................11
a. What steps should you take to develop an international information systems architecture? 11
b. What are the four specific types of business challenges to global business systems? Which
one do you think will be easiest to solve? Why?..................................................................12

c. How does the Internet benefit the development of a global information system? Should all
global systems be based on the Internet?.............................................................................13
d. Explore the Web for latest World Internet Users Population Stats for 2019 comparing at
least four regions in terms of Internet users distribution % and penetration rate (%
population)............................................................................................................................14
e. Apply Porter's Five Forces analytical framework to the internet with justification.........15
Porter’s Five Forces model:..................................................................................................15
f. Four general cultural factors and four specific business factors driving global business
including two elements most problematic at current moment and why?.............................17
g. General benefits can the retailer expect from a globalisation system..............................18
h. Describe four of the challenges involved with international networks...........................19
References .....................................................................................................................................22

PART A
Question 1
Mention Use of customisation and personalisation in e-commerce. Mention business value of
these techniques
Personalisation in E-commerce is referred to the practice of developing personal
connection, experience and interaction on e-commerce applications or sites with the help of
product recommendations and media content. E-commerce personalisation is used to remove
obstacles so that customer experience can be improved and people can purchase services or
product without any complexities. Customisation in E-commerce is defined as adjustment of a
service or product in accordance with the opinion and perception of customer. Customisation is
used to increase the satisfaction of users by offering them the chance to personalise their services
and products as per their requirements. This benefits the business organisations in sustaining a
positive image in marketplace (Abiteboul, André and Kaplan, 2015).
Business value of personalisation and customisation
Personalisation is very essential for business organisations as it forms an important part
of customer's experience. With the help of personalisation, a company is able to retain their
customers for maximum time period as each customer is targeted on individual basis. Business
value of customisation is that it assists an organisation in effectively targeting potential and
existing customers in accordance to their needs, opinion, choices and preferences. This will
allow the customers to have repeat visits due to which business firms can earn high revenues and
competitive advantage within marketplace. Both personalisation and customisation multiplies the
value of business. In earlier time, when these techniques or concepts were not popular, people
prefer to avoid purchasing if they do not get product of their choice. But now, this concept has
changed. With the help of these techniques, individuals can themselves design the products and
pattern they need to satisfy themselves (Shobaki and Naser, 2016). Main benefits of
personalisation and customisation to a business are enhanced sales and profits due to improved
conversions. According to the study carried out by Infosys, 86% of customers and approx 96%
of retailers thinks that personalisation and customisation influences their purchasing decisions in
a considerable manner. Also, these aspects benefits a business firm to gain high loyalty from
customers due to their increased satisfactions with the products and services offered by a
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company. This shows that both personalisation and customisation has positive business value
and benefits e-commerce firm in sustaining strong place within marketplace and minds of
customers.
How internet make competitive rivalry among businesses more intense
Intensity in competitive rivalry is defined as an extent up to which a business firm in a
business sector exerts pressure on another firm and limits profits of each other. Earlier, business
firms were competitive and tries to surpass the profits of rivals within a specific region. But due
to the advancement of internet, different business sectors and regions have integrated due to
which competition among business firms for survival has became more severe. Due to internet,
people are able to do digital shopping where that get substitute of every product. This is the
reason, customer is not dependent on the products of a single brand. This has create insecurity in
the minds of business organisation about their position and market shares. To avoid such
situation, every organisation is beaming digital and provide offers via online sites so that their
customer base can be maintained (Allen, Karanasios and Norman, 2014). For example, in
today's time entry and exit barriers are declining due to less cost of digital business models. This
is the reason without any infrastructure and physical assets also, a company can successfully
operate in market.
One instance in this respect is Club Factory or Amazon which are UK based online
shopping sites. These business do not have retail outlets but still it is successfully operating in
global manner and giving tough competition to big retail brands. Other than this, with the use of
internet, business firms can get customer data and identify their buying habits due to which they
can formulate effective marketing strategies to allure them. With the help of online shopping
sites and digital media, a company can snatch away the customers of other companies by
offering good discounts and benefits. Internet is the main reason due to which customers are
becoming more particular about their choice and shift their preference towards those companies
which are offering good value in less amount (Almarashdeh, 2016). To avoid this situation,
other company also retaliate and tries to provide best services in genuine prices. This creates a
rift between business firms and their main objective became to overcome the revenues of
opposite firm rather than comparing their overall performance with previous results. In this way,
competitive rivalry increases in businesses due to the increased use of internet.
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