Electronic Commerce

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Electronic Commerce

Emerging technologies today are causing continuous changes in all areas of companies including structure, management control systems, and human resources. Technology presents a tremendous impact on changing business functions, they provides a means to improve there operations. Electronic Commerce is one of the newest emerging technologies, it is a web based interactive application that can manage business services. When an organization is introduced to a new technology, they need to examine the level of impact it will have on the company's current IT structures. They need to determine the degree of required change and whether it even needs to be changed and why.

I am going to set the scene with me working in an office furniture and supply sales business, and my associate just recently attended a seminar about electronic commerce and was very excited about possibly reengineering a good portion of the company. The company consists of about 40 employees about 0 of them are in direct sales the other 0 are customer service, or administration. They're sales functions mostly through outsourcing, a catalog, phone order, and walk-in sales. At this point the only type of electronic marketing strategy they have is a Web Page that tells a customer a little bit about the company, and allows them to view there catalog. Electronic commerce would provide another way of marketing and selling there companies products to the world. It would potentially increase sales revenue and attract new customers and give them a more flexible and convenient way to order their products over the web. To implement the new technology the company would have a lot of factors they would need to consider. To begin, a project planning and initiation would need to be assessed, by developing a project scope and feasibility analysis. Feasibility factors include economic, technical, operational, schedule, political, legal and contractual. These six factors validate the reasons for a business to expend their capital of resources on the project. The economic feasibility study identifies the financial benefits and costs that are affiliated with the development of the project. It is important to make a reasonable assessment and identify the potential benefits of the project. A feasibility study can identify both tangible and intangible costs and benefits. It also identifies the one-time costs that refer to the project initiation and development costs, and the recurring costs are the ongoing evolution expenses and use of the system. A break-even analysis needs to be performed to determine the point at which the benefits equal, costs.

The larger projects are riskier than smaller projects but any good project is going to have to have some risk involved in it. A system where the requirements are easily achieved and highly structured will be less risky than one in which the requirements are unstructured. Results of not assessing a projects potential risk could be

1.) Failure to reap anticipated benefits from the project

.) Incorrect cost estimates

.) Project duration estimates inaccurate

4.) System performance levels will not reach potential

5.) The inability to integrate the new system with the existing organizational procedures.

For a company this small this project would be probably be a medium size project to participate in. If the company is familiar with the systems development procedures and applications then this helps reduce risk, but unfortunately the organization has no employees that have any knowledge of electronic commerce. They can also manage potential risk on a project by changing the plan, which will avoid risk factors. They could develop teams to be assigned within the company to manage the uncertain project contingencies. The development of a system should employ a standard technology, which is less risky, rather, then a non-standard technology. The organizations should analyze a project portfolio to determine the level of risk involved, which include high, medium and low risk percentages. A high level percentage of risk is going to cause a project to have difficulty, which a company can not sustain to much of. On the other hand a low-percentage is going to cause a company to be more assertive to discover more innovative uses of the system.

Companies can determine the likelihood that the project will reach its preferred objective by performing an operational feasibility study. The operational study determines the degree to which the proposed system will solve the organization problem or objective. They also need to assess schedule feasibility to determine the time frame and completion date for the project to be met and that meeting these dates will be compatible with the needs of the organization. They also need to assess legal and contractual feasibility, to help the company understand the ramification of legalities. Possible consideration could include labor laws, antitrust legislation, financial reporting standards, contractual obligations, etc. They need to perform a political feasibility, to obtain an understanding of how stakeholders view the designed system through an evaluation process.

The project initiation and planning is a very important part of the design strategy. Once the company has determined the system is feasible, the company will need to perform a study of the current operations to provide information for the system requirements, a detailed analysis of the actual information system activity, and recognize possible improvements of the old systems. The organization has to determine the proposed systems effects on the divisions and business functions. If they implement the new system in the company it would most likely directly effect the sales and customer service division of the company. Potential clients instead of calling up a sales representative or customer service for advice or to order a product could get information and details over the web for potential furniture or supplies to purchase. It would effect the amount of incoming calls. If they were to implement the project they will probably have to hire someone to maintain the new system or transfer someone from one of the departments, and get him/her trained to maintain the system.

The results of evaluating the companies processes and procedures provide the necessary information that is pertinent in the steps involved in the conversion of the additional system. All factors need to be considered when implementing a new technology including Data Storage, Data Transportation, and Data Transformation. The company will need to determine if the data will be stored in a centralized, decentralized, or distributed locations. They need to develop a communication plan by determining the type of equipment and standards they are going to use to transport data, and if any can use any from there current system. The company also has to determine what type of application software, development tools and maintenance will be needed to integrate into their system. Electronic commerce has a lot of alternative solutions for companies to use.

Once the company has reached this point they should have all the facts they need to execute the new information system. At this point they need to come up with a set of alternative design strategies. A Company should always have at least three good design strategies to build their new information system. Three alternatives represent the high end of the spectrum, it goes further than just solving the problem but finding the best solution to the problem. They need a baseline project plan in order to implement the design strategy one that leads to the most desirable outcome. The next thing is what method are they going to implement it through outsourcing, sources of software, or off the shelf software? Electronic commerce has a variety of hardware and software technologies available on the market today. The Office Equipment Company would need to seek a professional help to select the type of software and hardware they need to start their electronic commerce sales system. They would need to come up with the three technical solutions that they would want to implement into their system.

In order for the company to reengineer the business processes an understanding of the current business functions is very important. Business Process Reengineering is a fundamental redesign of the business processes, which the information systems are designed to support. Business transformation is an evolutionary process for all growing corporations in the market today if they want to survive. Information technologies have influenced the transformation of many companies and provide a means for a more flexible and manageable way to accomplish their business objectives. IT provides a widespread connectivity for individuals throughout an organization and beyond an organization boundaries. It helps to manage uncertainty, and is one of the key evolutions of company's continuous process of change.

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