A Comprehensive Study: E-commerce System Migration Impact on Business

This report investigates the multifaceted impact of e-commerce migration on businesses, focusing on the transition from traditional, non-technological systems to online platforms. It addresses the research question of how the implementation of an e-commerce system affects a business, covering various aspects such as the expansion of the customer base, the integration of IT infrastructure, and the importance of data management. The report explores the benefits, including increased productivity, improved customer service, and the potential for global market reach. It also examines the challenges, such as the need for IT expertise, the importance of data security, and the potential for operational changes. The research methodology involves both qualitative and quantitative analysis to identify the impacts of e-commerce on business operations, infrastructure, and employee training. The report also considers outsourcing, infrastructure as a service (IaaS), and the importance of securing user data, including the need for firewalls and other security measures. Furthermore, the report highlights the importance of employee training, the need for IT personnel, and the potential for cost-cutting through automation and outsourcing. Overall, the report provides a comprehensive overview of the key considerations and impacts associated with the migration to an e-commerce system, offering valuable insights for businesses looking to enhance their online presence and improve their operational efficiency.

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Research Question
What is the impact of rolling out an e-commerce system in a business which previously had no
technological solutions in place?
Ecommerce is a process which involves the buying and selling of goods and services over
the internet. Ecommerce has revolutionized the way in which people buy and sell goods today.
The most common way of doing transactions were usually physical transactions but with the help
of the internet borders have become thinner and thinner enabling individuals and businesses from
different corners of the globe to transact fast and efficiently (Nissan off 2006, p. 246).
Ecommerce has been able to have a great impact in how businesses run today. In order for most
businesses to survive they have been forced to adapt and offer their goods and services to a
growing online clientele. It is therefore very important for a business which has done its due
diligence on the current trends in the market to adopt an ecommerce structure which can enable
them to grow their market share. The migration plan for a business to develop e business
capability should be carefully thought out and planned to ensure that it is successful (Palmer
1988, p. 27). Most businesses today are aware that ecommerce is the next frontier in doing
business and are now focusing their efforts on such ventures to ensure that they remain relevant
and competitive in the market.
Research methodologies
The following project the use of both qualitative and quantitative analysis to identify the
benefits an e-commerce system has on a business.
There are various factors to consider as you wish to develop e-business capabilities in
your business. They include developing of an ecommerce platform for the business and

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migrating of data to the ecommerce platform to ensure that all the business transactions can be
successfully carried out online. An ecommerce platform being a technological solution has the
following benefits to a company. It helps them expand their customer base. This happens by
enabling a company to advertise and sell their products to individuals across the globe. This
translates to the company getting an increased customer base that will source for their products
and which will also bring in more revenue to the business (Lowry, Wells, Moody, Humphreys &
Kettles 2006, p. 19). The use of technological solutions such as an ecommerce site incorporates
outsourcing and collaboration to ensure that the services they offer work efficiently. Outsourcing
helps a business cut on costs in a specific area of their work and that money can be used to grow
the business in other areas. Outsourcing is usually present especially to help small businesses
which ran on a limited budget. Technology can also be outsourced so that a business may not
need to incur heavy initial costs as they migrate to an ecommerce solution. They can simply
outsource what they need and run their business and slowly scale as they gain more clients and
revenue. The use of technology also increases the productivity of a company. The use of
programs and computers enables the employees of a company to achieve more in their daily
output as compared to them using traditional methods (Kotler 2009, n.p.). The increased
productivity attained from use of an ecommerce system will ensure that the company is able to
do more transactions in a more efficient manner. The use of technology enables a company to
have a personalized feel of their users’ experience. The company can be able to communicate
easily with their clients through the ecommerce platform. The company can also get feedback
from their clients on various ways they can improve on their services. This will help the
company to clearly identify the areas in which they can focus most of their effort on so as to
boost sales and increase revenue (Eisingerich & Kretschmer 2008, p. 21). Good communication
also helps a company build a customer service experience which is very useful and attractive to
users. Users will prefer such a site because they can be assisted easily on the platform. They will

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also recommend the service to their friends which is a good word of mouth marketing strategy.
In this case the company is able to market their products without even spending on a marketing
campaign.
The impacts of having a business incorporating ecommerce in their operations are varied.
The impacts also affect a business in various ways which are both positive and negative. The
changes that are caused by ecommerce in regard to the infrastructure of a company include the
following. Ecommerce being a technological solution means that a company will need to have
the necessary IT infrastructure to ensure that they can use ecommerce to boost their business
operations. The buying and installation of servers will ensure that the business can be able to
host their data within their business premises. Servers can be used to easily store all the data that
is generated and used by a company (Burgess, Sellitto & Karanasios 2009, n.p.). The migration
of this data by a company that has no prior IT use in their operations such as use of ledgers will
need them to do data entry to ensure that the data can be digitalized and stored in their servers.
The data can then be integrated to the ecommerce solution so that the business is able efficiently
operate an ecommerce platform.
A company can also utilize new solutions such as Infrastructure as a Service (IaaS).
Infrastructure as a Service is whereby a company can be able to rent out and use infrastructure
that is being offered by another company. Infrastructure as a service is important for an
organization especially if they wish to cut on infrastructural costs. When a company chooses to
use infrastructure as a service they wish to avoid having any IT infrastructure on site such as
servers (Tkacz & Kapczynski 2009, p. 255). They outsource this infrastructure to other
companies which ensures that they do not have to incur most of the IT expenses which may
include maintenance and security of the equipment and software being used. Infrastructure as a
service is also advantageous because an organization can simply host their ecommerce platform

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and have it run smoothly and securely on infrastructure which is usually new and optimized to
operate at peak levels. The use of an ecommerce platform means that an organization will be in
charge of handling user data. The data generated by users is confidential which means that the
company is obliged to take care of that data and secure it. Securing of that data means that a
company should have firewalls and other security measures in place to ensure that their users’
data is always protected. When a big organization migrates to an ecommerce site they may need
to automate some of their operations to ensure that they keep up with demand (Delia 2008, p.
241). This means processes such as handling of products from the moment an order is made to
the moment the product is ready for delivery is automated. A good example is a cosmetic
company migrating to an ecommerce platform. They may have been doing their operations such
as packaging manually. The implementation of an ecommerce platform may increase their sales
which may require them to have machines which will automate the packaging process. If they
chose to continue using manual labour they would be forced to hire more workers which would
need them to budget for it. The implementation of these packaging machines means that the
company will have to buy them which makes them a worthwhile investment in order for them to
operate efficiently.
The impact of that will be witnessed on an organization as they migrate to an ecommerce
solution are based on the direction in which the company may want to go to. When a company
migrates to an ecommerce platform in terms of their operations the impact on the organization
will be highly significant. The use of the ecommerce platform needs constant monitoring to
ensure that it is always up and running. An ecommerce platform is one of the main paths used by
a company to make sales and advertise their products (Teriz 2011, p. 750). The ecommerce
platform also is usually available all day night unlike a normal business premises which is
usually open during official working hours. The extra hours the business continues to run its
operations apart from the normal business hours means that the company can make more sales

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and increase their revenue. There needs to be qualified IT personnel who are on standby to
ensure that if the ecommerce platform is facing any issues they may be able to resolve it and
guarantee an almost 100% uptime (Bakos 2001, p. 70). There also needs to be an IT department
including an individual such as a chief technology officer who will guide and expand the
horizons of the company’s ecommerce platform so that they can grow and adapt their business to
satisfy the needs of their clients.
The employees of the company may also need regular training to ensure that they are able
to adapt to the new ecommerce system and use it effectively to better serve their clients. The
training on use of the ecommerce site spans across the company because individuals such as the
customer service support team will be able to help clients navigate through the platform as they
order some products. The implementation of an ecommerce platform may force the company to
cut down on some expenses through dismissing of staff (Li 2015, p. 3827). There are staff who
may become redundant after the implementation of the ecommerce platform which may force the
company to let them go. A good example are data entry clerks. Big organizations usually had
many data entry clerks who helped in inputting all the data that was associated to the company.
The implementation of any system including an ecommerce platform usually has mechanisms
that handle the management of data. The data entry clerks become redundant and therefore most
of them are not needed anymore (Chaudhury & Kuilboer 2002, n.p.). The company will also
need to spend more on IT. They will need to hire more IT professionals who will handle the
maintenance of the ecommerce platform. If a company was running on ledgers and books they
will need to bring in various IT infrastructure such as computers, printers and servers which
means that the company will need to invest in these resources. The management of these
resources also needs to be put in the company budget so that the business is able to run smoothly
as they migrate to an ecommerce platform.

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There are various benefits that can be attributed to migrating from a traditional system to
the use of an ecommerce platform for a business. When a business migrates to using an
ecommerce platform from their normal physical premises they open themselves to a large base of
clients. This means that they are able to grow their business by breaking geographical boundaries
using the power of the internet (Laus 2014, n.p.). The business using ecommerce will be able to
sell their products to a wide range of clients including those who are near the business to those
who are on the farthest part of the world as long as they have internet access. The business can
also sell their products to users who may need their products but do not have a personal
computer. Clients can be able to use mobile devices to access the ecommerce platform and order
what they need wherever they are by the push of a button (Delone & Mclean 2004, p. 36). An
ecommerce platform enables a business to market itself in various ways which may not have
been possible while it was not online. The opportunities that come with search engine visibility
enable a business to get more airtime simply by users searching for a specific product in which
they may be looking for. The new ways of getting noticed online through search engines enables
the business to gain new leads and clients whom they previously would not have been able to
get.
The migration to use of ecommerce benefits the business especially on cutting of costs.
The use of an ecommerce platform enables the business to cut on real estate costs. This means
that they can use less space in operating their business or none at all. (Graham 2008, p. 771)
They can have their business run smoothly at the comfort of their home without having to incur
any real estate costs. The money saved can be channelled to other areas of the business to help it
grow. The number of employees needed to run a business after migrating to an ecommerce
platform are fewer as compared to when the business runs manually. The advertising costs that
can be attributed to using an online platform can be more cost effective as compared to using
digital or print media. A very affordable advertising project can be run and it can be targeted to

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reach a specific audience which may grow their business. Targeted marketing is very effective in
terms of modern marketing strategies such as targeting individuals in specific areas and based on
a specific demographic to sell appropriate products to them (Dimkota 2012, p. 395). The
presence of an ecommerce platform enables an individual to scroll through many products being
offered without having to use a lot of effort (Kohli 2016, p. 92). Previously clients used to have
to visit a business and walk around as they searched for products which sometimes took a lot of
time and effort to find. Businesses also used to miss a lot of sales because they were not able to
get clients to view all the products that they sold. An ecommerce platform is easier for both the
business and clients because the business will be able to display all their products and product
descriptions easily. The clients will also be able to easily scroll through the various products they
need and order them therefore fulfilling their needs and growing their business. An ecommerce
platform reduces the time and travel costs a client may have to incur as they source for a specific
product (Kawa 2017, p. 431). They can be able to search for a product on the internet and easily
order it without having them travel long distances or wasting time on travelling as they source a
specific product.
Businesses today which operate and compete together usually have an ecommerce
platform. The presence of competing businesses can enable a client to do comparison shopping
so that they are able to browse products from different businesses and find the best rates for the
product they wish to purchase. The use of ecommerce has also brought about various deals
which encourage clients to shop more. There are deals, discounts, coupons and groupons that can
easily be rolled out and given to clients so that they may shop for various products. If clients get
good deals there is a good chance that they will also recommend the ecommerce site to other
clients which will grow the business. The information clients give while they sign up to an
ecommerce platform enables the business to target specific products to be displayed first. The
interests of a client will generate a list of products based on it and therefore clients will not need

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to search for products all over the ecommerce site (Januszkiewicz, Parker, Hayes & Gill 2017,
n.p.). As they login they will get a displayed list of the best and most appropriate products
available based on their interests. A huge advantage of having an ecommerce platform to sell
your products is that it is open all the time (Miller 2002, p. 741). This means that the business
can operate day or night without need for the employees to intervene. When clients are able to
access the ecommerce platform at any time it becomes more convenient for them to shop.
Ecommerce platforms have also helped individuals who deal in niche products to easily locate
each other easily. An example of this is when a dealer in vintage car parts may need to sell his or
her products. There are not many people who may want these parts but with the use of an
ecommerce platform there is a link between the buyer and seller where they can be able to get
the necessary parts they may need. The benefits of having an ecommerce platform are many and
we can be able to measure them by looking at whether the company gains increased revenue. We
can also be able to measure them by increase in number of clients, the number of site visits and
the ease of doing large volumes of transactions for the company. An ecommerce site usually has
the capability of taking tallies on the number of site visits in a specific period (Laudon &
Guercio 2014, n.p.). When there are many people visiting the site it means that there is high
traffic and therefore the site is generating a good number of leads. An ecommerce site with good
traffic can also get paid to market products which are from its suppliers. This increased revenue
will boost the profits in a way that may not have been possible without the ecommerce platform.
When migrating to an ecommerce platform for your business there are various risks that
are avoided as the business changes over to use of technology. There however are new risks in
which the business will face for them to clearly achieve their mandate. When you have an
ecommerce platform for your business there is need to create various hierarchy of access to
ensure that people are able to access only what they may need on the platform. The process of
trying to avoid unauthorised access by individuals ensures that users’ data is protected and the

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operations of the ecommerce platform run efficiently (Humeau & Jung 2013, n.p.). When the
ecommerce platform is built or configured in a poor manner it may also cause there to be cases
of unauthorized access. It is important that when implementing or migrating to an ecommerce
platform high industry standards of quality should be adhered to so that access is granted to only
the necessary individuals and security is maintained at peak levels. When setting up passwords to
use on the ecommerce platform users should use strong passwords to ensure that their accounts
are not easily hacked by unauthorised users (Kessler 2003, p. 5). Ecommerce happens to be
online which means that the transactions will be online and therefore they will be prone to most
of the known online attacks including defacement and sabotage. It is important to have security
measures for your system such as an updated antivirus and recommend the same to your clients
so that they can have a secure and enjoyable experience as they use your online platform. The
use of an ecommerce platform to sell your products makes your business better. It however also
comes with some problems such as heavy traffic or a busy network (Schafer, Konstan & Riedi
2001, p. 133). Upgrading of systems and allocating more bandwidth to the ecommerce platform
may help but it is always a risk which will be faced. The hardware and software used can also get
damaged or stop working. It is important to keep both the hardware and software in check so that
operations on the ecommerce site will keep running efficiently.
There are other risks including legal matters which may be faced by the company as they
migrate to an ecommerce site. A company needs to mitigate any legal risks by having a legal
team which has done a threat analysis (Frieden & Roche 2006, p. 2). This enables them to be
aware of most of the problems or risks they may face and the ways they can be able to mitigate
them. When migrating to an ecommerce site there is a need to hire professionals who can be able
to monitor, manage and grow the platform. If you do not do so the site faces a major risk of
becoming inefficient. It is also important for there to be firewalls and updated antivirus which
will protect the platform from unauthorised users (Weinclaw 2013, n.p.). When a company

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ensures that they keep up to date with changes in technology they will ensure that they are
always a step ahead of their competitors. It will also ensure that they have the best software and
hardware running in order for them to give their clients a smooth shopping experience.
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