Opportunities in

Implementation E-Commerce
Opportunities
To gain competitive advantages over other organization.
Open up new distribution channel and increase sales.
Support buy and sell product on Internet from any place to anywhere all
over the world without traditional intermediaries. Example Amazon, E
Bay.
Process and transaction can be done rapidly at reasonable cost.
Cost saving for the organization and their customer.
E-Commerce appears to be generating a significant amount of new
economic activities.
Customer are able to choose and discriminate among alternative
product and services.
Issue and Challenges of Global Implementation
E-Commerce (Economic Factors)

Cost Justification
High cost of implementation.
Mistake due to the lack of experience inflate the cost.
Justification of cost not on tangibles factors.
Justification of cost always based on intangibles factors such as improved the
customer service, increase the value f advertisement and gain competitive
advantages.

Number of sellers and buyers.

Number of people connected to the Internet.
E-Commerce project are viable to the developed country which majority of
resident have high income or salary.
Issue and Challenges of Global Implementation
E-Commerce (Economic Factors)

Issue on Internet and Telecommunication Infrastructure

Digital divide between the developed world and most developing countries.
Accessibility to the Internet is still expensive.
Global infrastructure of the web is unevenly developed.

Skill Shortage and lack of trained personal.

The dynamism of the technology and emerging skill such as XML, ASP and PHP
programming.
Need to hire the additional foreign workers form abroad.
Issue and Challenges of Global Implementation
E-Commerce (Technical Factors)

Security Issues
Consumers are distrustful about the safety of information.
Incident on unsophisticated hackers can steal information easily.
Many company are not pay enough intention on security.
Reduce the consumer confidence.
Reliability Issues.
Network Infrastructure and application systems must be continuously upgraded,
fine tuned and maintained regularly.
Vulnerable of sites to denial of services attack.
Vulnerable to the virus spread.
Reduce the consumer confidence .
Issue and Challenges of Global Implementation
E-Commerce (Social Factors)

Privacy and Security Issues

Customer are reluctant to buy online, reluctant to disclose the confidential data
such as home address, identification number and credit card number.
Companies did not give guarantees on security of information.
Cultural Diversity.
Ability of customization the interface for individual and group needs.
Customization process is expensive.
Translation of language from English into local languages.
Issue and Challenges of Global Implementation
E-Commerce (Social Factors)

Lack of Trust Issues

Customer trust is important such as friends recommendation, previous
experience, or through transparent legislative infrastructure.
Company also need to well established the “brand identity” of company.
Absence of “Touch and Feel” functions.
Most of business working around on this limitation.
Customer only buy a reasonable price on E-Commerce website.
Customer did not buy a high price product online. Therefore, web site still in used
for customer for conduct research on product and making comparison on price
offered.
Issue and Challenges of Global Implementation
E-Commerce (Legal Factors)

Protection of Intellectual Property Right Issues

Digital media are compact, easily stored, easily to being replication, transmission
and alteration.
Internet was designed to be open and transmit information freely around the
world.
Different country have different attitudes towards intellectual property rights.
New laws should be design and inadequate action should be impose to protect
the original copyrighted contribution.
Taxation Issues.
Collecting the Internet sales taxes are rather complicated.
Different country or nation have different tax structure.
Issue and Challenges of Global Implementation
E-Commerce (Legal Factors)

Product Sale that are restricted or illegal by another country

Companies should more careful and fully obey the rules and laws of other
country.
Example such as selling the wine, weapons, restricted chemical items or online
gambling.

Legal Validity of the Electronic Transaction.

Traditional business are based on face to face meeting, paper documentation
and “wet signature” as verifier.
Electronic documents must be customize and should have the same legal validity
standard as written signature.
 Security Issues

Security is one of the most addressed issues in implementing e-

commerce whether it is safe to conduct on-line transactions
As business move towards adapting on-line trading, issues of on-
line transaction security become more important.
The major threats to business are information losses, theft of
data, infection with a computer virus, and manipulation of their
internal systems or software applications.
Based on survey on Malaysian companies’ interest in e-business,
70 % believed that security was the most important barrier to
ecommerce development.