i.Executive summary (pg.1)
In this report I will look into the benefits and risk of e-commerce, the types of legislation that have been introduced to protect the consumer and business alike. At the end of this report I plan to give my recommendation as whether I believe you should venture into e-business and set up your own online business. I will try and remain un-bias and give my opinion whilst give a fair account of the risks and benefits of e-business.
For this report I have to assume the role of a consultant who specializes in internet security. I am a consultant and also a member of the (BSC) British Computer Society. I have been asked by the managing director of a medium sized chain of high street shops to give advice on the desirability of e-business and specifically report on on-line payments and personal data security.
The managing director is rather worried after hearing adverse reports that internet fraud is rife. I intend to rid him of this perception whilst doing my utmost to supply him with a rounded, unbiased approach to the benefits and risks of developing an e-Business. I also intend to outline the various different types and options of on-line payments systems and data security available. Once I make him aware of the various benefits and risks of e-Business, the different types of data and online payment methods available I intend to give my own recommendation with regards to the course of action I believe would best suit his company and would lead them to achieving the safest, best possible outcome.
E-Business has now received world wide recognition as a business tool, which if utilized properly, enables companies to enhance their profitability, exploit potential new markets and provide consumers with a better quality service. The scale of its recognition is such that it in 2005 according to Business Communications Company Inc. (bccreserach.com) its total revenues exceeded $3 trillion. It seems that more and more business has become aware of the opportunities available and are clambering for the opportunity to start their own e-businesses and get their share of this revenue.
E-bay a business I’m sure you are aware of is a prime example of a successful e-business. They are responsible for creating the world’s largest online market and are currently valued at $ and have a client base that exceeds 34million in Europe and 300 million worldwide, a figure that is ever increasing. Their success has lead to the spawning of other similar business such as U-bid who runs a similar service and the online stores set up by many of today’s high street stores. As well as being influenced by e-bay’s success it is likely that they were also enticed by the general benefits of e-commerce as it has its own unique advantages that make it more desirable than opening and running a high street. However it can be and is used in tandem with having physical shops on the high street as companies such as Tesco have proved. As well as having high street stores they offer online shopping as do many other of today’s retail stores especially in the fashion and food industries. Tesco were the first U.K retailer to break the £2 billion profit barrier, some of which has to be attributed to their decision to open an online store. Therefore it would be perfectly feasible for you to open an online store which would work along side you high street store. There are several advantages to opening an online store including the following:
•Cost effective-automated systems replace manual systems effectively freeing staff to carry out core activities •Few staff required to maintain service
•Broadens customer base- the website can be accessed from anywhere in...