Problems and the Issue in the Management of E-Commerce Business

Executive Summary

The digitization helps in redefining the process of working which is being followed by the organizations. According to the journal of the digital enterprise 2016, around 65 percent of the companies have reported that they require making various changes in the operations of the organizations in order to be competitive enough to attain a sustainable competitive advantage for a longer period of time to maximize the profitability to a great extent. Furthermore, the main motive of the report is to analyze the contemporary problems and the issues in the sector of e-commerce management relying on the transactions of the e-commerce. Also, it will be analyzed that how the organization Conesys Electronics will handle the online business efficiently and effectively.

Introduction

The services of online business have been established in order to explore opportunities to a great extent and be competitive enough to attain the sustainable competitive edge along with the maximized profitability. The online business helps in attracting the potential clients and further retain them for a longer period of time. Further, the entrepreneurs develop an online presence to initiate and expand the operations of the business. Furthermore, it is essential to put all the relevant content on the website along with the complete information in order to make the website accessible. It is truly said that the website of the company reflects its image. So, it is important to make the website attractive to attract more and more customers to a great extent. Moreover, it has been observed that the online business has encouraged the customers to make purchases to a great extent. The online business makes the purchasing, and the payment of products easy for the customers and their needs get satisfied adequately. Further, the solutions of online business establish the online presence, and this allows to boost the revenue and the sales. It has been stated that it is essential to manage the expectations of the customers efficiently and effectively early in the procedure of developing a system of online business.

Furthermore, the report is being developed in order to analyze the contemporary problems and the issues in the management sector of e-commerce by extending our website of a prototype. The report will help in understanding the various models and the solutions which we will be considering for our online business and the one which we will be using in our business. Further, we analyzed some questions in order to make e-commerce presence to a great extent. Also, we will be considering various measures to attain a secure environment of e-commerce for our business. Moreover, the report will discuss the various challenges of our online business in comparison to the retailers who are physically operating the activities. Therefore, we will adequately analyze the strategy of our online business in order to achieve the desired goals. We will be offering affordable customized electronic appliance through our website so that the customers can avail it easily at the cheaper cost along with the best quality of products and the services. Also, we will try to work according to our vision and mission statement, and we will create an impactful online presence in order to be competitive enough.

Section 1: Cloud Computing

Cloud Computing Infrastructure

There are various cloud computing models which our online business will consider in order to operate the activities of the business effectively. Further, the infrastructure of the cloud computing is given which we will be considering along with the model (Hashem et al., 2015).

1. Public cloud

   In the infrastructure of the public cloud, the various sources and the storage are being provided to the general or the public users by a provider of service. Further, the applications of the processing of data are run by the distinct sources on the infrastructure which is being set up by the provider of the services and the users. Furthermore, it has been observed that this kind of infrastructure is the structure of the minimum security as compared to the other infrastructures of a cloud. Moreover, the infrastructure offers solutions of low cost, and it is being priced on the basis of pay-per-use. Sometimes, it is offered free of cost to the customers.

2. Private cloud

   The infrastructure of the cloud is being set up and run by the individual organization, the access to the third party or the public is not allowed at all. Further, in the architecture of the infrastructure is internally stored in the company and can also be stored by the third party on the organization’s behalf. Also, the infrastructure of the private cloud will help in prioritizing the security of the data. Furthermore, the infrastructure is costlier to some extent in comparison to the public cloud. Therefore, it offers various advantages on the basis of expenses and investments of the processing of data.

3. Hybrid cloud

   The infrastructure of the hybrid cloud is an opus of two or even more of public and the private clouds. Further, the applications which are critical and the secretive data is being stored in the infrastructure of the hybrid cloud within the private cloud (Bharadwaj et al., 2013). Whereas, the applications which need minimum security are being stored in the infrastructure of the public cloud.

4. Community cloud

   The community cloud is measured as sharing the infrastructure of cloud among the various organizations from a particular community along with the common security and purpose and the requirements of the compliance. Further, the community cloud can be created by the private or the public cloud.

   Therefore, we will be using the public cloud as the cloud computing infrastructure for our online business of electronics because it is easy to install the software and is economical in order to use. Further, the infrastructure of public cloud provides spontaneous ability in order to start with the service of the cloud. Moreover, it has been observed that this type of infrastructure is more reliable as compared to the other solutions of cloud computing. This solution offers a great level of security, but it varies relying on the provider of service. Furthermore, some of the risks are associated with this type of solution like it might not cling to the requirements of compliance with PCI, HIPAA, etc. Also, sometimes the cost is not predictable to some extent, and the organization cannot use the models of simple billing because of the unpredictable behavior. Also, this type of solution makes the process of backups complicated to some extent. But the solution is more effective as compared to the other ones.

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Cloud Computing Models

Further, the various cloud computing models are discussed which we will consider in order to run our operations effectively and maximize the profitability to a great extent (Avram, M.G., 2014).

1. SaaS, software as a service

   In this model of cloud computing, the users are given access to the software of application which is being hosted on the server through the provider of service. Further, the users can interact and access the applications of the cloud through the internet by utilizing interfaces like browsers of the web, without even installing such applications on the systems. Moreover, in this model, the software is being offered as a service through the internet, and further, the services rely on the basis of pay-per-use. In the model of SaaS, the users do not monitor or manage the components of infrastructure like platform, system of operating and the various devices of storage. Further, the users are authorized in order to transform the configurations and the settings of the structure particular to the application which is offered as a service.

2. PaaS, platform as a service

   The provider of the service offers the users a platform of computing where the personal applications can be developed and being used by using the various languages of programming, the tools, and the services, offered by the provider of service and also offers the services of supplementary. Further, in this mode, the users are not being authorized in order to manage or control the systems of operations, servers, spaces of storage and the various other elements which create the infrastructure of the platform. The authority of users in restricted to the adjustments in relation to the software which is being transferred to the settings of configuration and the cloud.

3. IaaS, infrastructure as a service

   In this model, the users can easily configure the storage, processing and the networks and various other fundamental resources of computing which are needed for using the applications and the installing the system of operations according to the requirements of the applications. Further, the users are not authorized completely in order to control and manage the infrastructure. Moreover, the users can manage the system at the storage level and can also manage the particular components of the network.

   Therefore, the software as a service (SaaS) cloud computing model will be used in our online business in order to be competitive enough to attain the sustainable competitive edge. Further, the model will help in reducing the cost to a great extent because it doesn’t require investments initially and there will be no need to maintain and control in relation to hardware and the network. Further, the model will help in coping up with the requirements of the customers, and the functionality will be made available from any place (Rittinghouse, J.W., and Ransome, J.F., 2016). Also, it will take less time in deployment. Moreover, fewer risks are associated with this solution as compared to the other solutions like issues in the security of data. The organization has to keep a close check on the system because the privacy of the significant information might get impacted to some extent. Also, the organization has to ensure that the model of cloud computing must adhere to the compliance in order to provide effective products and services to the customers.

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REFERENCES

Avram, M.G., 2014. Advantages and challenges of adopting cloud computing from an enterprise perspective. Procedia Technology, 12, pp.529-534.

Bauer, H.H., Albrecht, C.M., Neumann, M.M. and Haber, T.E., 2015. Enhancing Customer Trust in E-Commerce through Web Portals. In Revolution in Marketing: Market Driving Changes (pp. 57-61). Springer International Publishing.

Bharadwaj, A., El Sawy, O.A., Pavlou, P.A. and Venkatraman, N.V., 2013. Digital business strategy: toward the next generation of insights.

Brynjolfsson, E., Hu, Y.J. and Rahman, M.S., 2013. Competing in the age of omnichannel retailing. MIT Sloan Management Review, 54(4), p.23.

Fernie, J. and Sparks, L., 2014. Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers.