M-Commerce Assignment - Solution
M-Commerce Assignment - Solution
1.0 Prospects and challenges of adopting mobile commerce as another channel of business transactions in the country [25 Marks] ............................................................................................. 1 2.0 Evaluate the legal, ethical and social challenges that must be addressed for the successful implementation of such an initiative from the government [ 25 marks] .................. 6 3.0 Identify the infrastructural requirements and security issues that must be addressed in adopting mobile commerce as another channel of business transaction [25 Marks] ............. 11 4.0 Identify and explain the various electronic commerce models and critically analyze which of these models would be appropriate for the operations of any SME. [ 25points] ................ 15
1.0 Prospects and challenges of adopting mobile commerce as another channel of business transactions in the country [25 Marks]
Introduction
Mobile commerce can be used to increase the productivity and competitiveness of SMEs. M-commerce has become another channel for the distribution of goods, products and services. This paper attempts to enumerate the prospects, usage, challenges and recommendations for the adoption of M- Commerce as a channel of distribution in Ghana.
Prospects of M Commerce
M-Commerce started off by providing Information, Communication and entertainment services such as email, SMS, chatrooms, news, city guides, weather forecast, maps, music, games video and graphics however several other transaction application have been
developed for banking, m-ticketing, brokerage, shopping mobile purse and finance. Mobile commerce has prospects in several unexplored areas in Ghana such as Agriculture, Tourism, Health and Automobile industry and other areas that cannot be ignored by government businesses and entrepreneurs.
Agriculture
Farmers through their mobile devices are able to determine competitive prices for their produce. Indeed this has already started in Ghana where farmers check their produce through an application called Esoko. According to WTO (2013) report farmers in Northern Ghana have had 10% increase in revenue since they began receiving Esoko delivered market
prices by SMS. What this implies is that M-commerce could be explored by SMEs to serve as be a catalyst for growth of SMEs. Fishermen could also harness and adopt M-commerce for checking the weather from the meteorological service before going fishing. They could also use SMS to check pricing information in their neighbouring communities.
1. Cost of deployment
The cost of deploying M-commerce is prohibitive thus discouraging people from investing and adopting M-commerce as a channel of trade. Many small business think there is no return on investment in implementing M-commerce.
2. Culture
One on One or Face to face interaction is a cultural norm, people still have not come to terms with working with faceless organisations. Touch and feel of products before buying is
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also dominant in our culture. Ghanaians would want to touch and feel a product before buying, yet this is absent in M-commerce.
3. Lack of infrastructure.
The underlying infrastructure such as power, interconnectivity, systems failure and connectivity has been a challenge in the adoption of Mobile commerce. Power is an underlying infrastructure for both consumers and Telecom providers. A continued power issue could challenge the use of mobile devices.
5. Trust
The menace of 419 and Sakawa; has created a mistrust between consumers and sellers. People mistrust giving their personal information out on the internet for fear of internet fraudsters. Inability to verify the credentials of the seller is what is fuelling this suspicion.
the adoption and implementation of M-Commerce and a way forward is for a Public Private Sector partnership to help resolve some key challenges. The government must seek to support and initiate programs to encourage the adoption of M-commerce and its benefits to SMEs. The government must put up an initiative to improve current infrastructure by investing into private initiatives that seek to deploy M-Commerce infrastructure. Though the internet cannot be regulated the government should seek to improve security and the perceptions of internet insecurity to the general public. Cyber Laws on crime should be enforced and those found to have committed cybercrimes should be punished to serve as deterrents. The government should support and encourage National ICT and M-commerce awareness campaigns, policy debates on issues that militate against the adoption of M-commerce and ICT as a whole. This would go a long way to give credence to Government commitment to M-commerce given its benefits to SMEs and the general public. In conclusion persvasive computing has come to stay and we must all do our best to ensure that we reap the maximum benefit out of it.
2.0 Evaluate the legal, ethical and social challenges that must be addressed for the successful implementation of such an initiative from the government [ 25 marks] Introduction
SMEs must understand that M-commerce is not just about technology perse but a way of doing business in a ubiquitous and pervasive manner. M-commerce as a technological innovation is influenced by culture which helps to define the law and ethical standards. For SMEs that wish to adopt M-commerce It is worth understanding the social, ethical and legal issues involved. This paper discusses social and ethics as well as the legal issues underpinning M-commerce.
Privacy
M-commerce systems would normally collect detail information about the buyer. This makes the information of the buyer available anytime anywhere. The ethical dilemma is whether this information should be collected on people in the first place and what and when the data on people is used. The major social and cultural issue is the expectations of privacy and norms. Europeans are more critical about the rights of the individual than Africans and Asians. Some of the ethical questions is whether people need to be informed when their credit history is to be divulged to some other people?. Indeed there is a moral right of individuals to be left alone, without surveillance or interference from other individuals, organizations or government.
It is advocated for SMEs that seek to go into M-commerce to be ethical and guided in their use of customer data by: Using buyer data to improve customer service Not to use customer data with others outside organization without the customers written permission Inform buyers what data is being collected and what is being used for. Customers be given the right to delete data collected on them.
Web tracking
Almost all M-commerce organizations collect Personal Identification Information (PII) and use cookies to track customer behavior. The data is normally collected with the intention to be used to identify, locate, or contact an individual however this information could be used for other purposes such as profiling and other uses not acceptable to the buyer. The use of cookies raises serious privacy concerns as the nature of data collected and when the data is collected is unknown by the customer or buyer. Though they may be good intentions in collecting this information to improve the buyers purchasing experience the ethical issue that arises is whether the buyer is in agreement that data be collected on him. If even the buyer is consulted, what if the data is being shared with others. The use of cookies can be minimized or prevented by using software such as Privacy Guardian, My Privacy and many more softwares on the market today. These programs erase the browser cache and cookies and surfing history.
Acceptable Content
What is it that constitutes an acceptable content, pornography, sale of drugs on the web, gambling and language used are issues that affects peoples culture and sensitivity. What is socially acceptable somewhere might be unacceptable elsewhere. What mechanism exists to ensure that peoples sensitivities are not hurt given our respective background and cultures.
Legal Issues
SMEs that adopt are willing to adopt M-commerce would be subject to the same laws as the brick on mortar organisations. Legal concept of jurisdiction on the Internet is still unclear and almost non-existent.
under which law would the hacker be tried. Does his action constitude a crime in his own country?. These are some of the legal challenges ensueing. Today online warfare and cyber terrorism has become a global phenomenon.
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3). Identify the infrastructural requirements and security issues that must be addressed in adopting mobile commerce as another channel of business transaction [25 Marks]
The successful implementation of M-commerce by SMEs is highly dependent on the technological infrastructure and the security measures put in place. The technological infrastructure must be chosen with due diligence so as to ensure that it can be integrated with legacy systems and also support large volumes of transactions from clients. To determine the infrastructure it is worth considering what is needed under the five assets categories (Hardware, Software, Medium, Data and Users) and the security challenges that must be addressed under each asset area. Security is the protection of these assets from unauthorized access, use, alteration, or destruction. SME that wish to adopt M-Commerce should ensure these asset are operational twenty four seven (24/7)..
Hardware
A key decision to be made by SMEs is whether to host their own web servers or outsource to third party. If the decision is to host then a server environment equipped with suitably configured wireliine or wireless WAN modem, Web server with wireless support, Application or database server, Large enterprise application server and a GPS locator used to determine the location of mobile computing device carrier are required. Security considerations under hardware are Physical in nature and seeks to protect the hardware against theft, vandalism and disasters . It uses such devices as alarms, fireproof doors, security fences, vaults, biometric devices and motion detectors. For cases of force Majeure the disaster recovery plan and Business continuity plans are invoked.
Software
The web server software must have Web server software to perform fundamental services Security and identification, Retrieval and sending of Web pages, Web site tracking, Web site development and web page development
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Security: The server operating system, application softwares could be infected with Virus. Viruss are malicious programs that infect good programs to make them bad. To prevent against these malicious codes Anti virus softwares such as Mcafee, Norton are used. Management of user accounts on both server and application is important to prevent against an authorized access to the Operating system or applications. Password policy should be strong to prevent people from guessing or easily decoding the password.
Medium
It is important to investigate the media of transmission and propagation of signal, Some of the Wireless transmission media could be: Microwave, FDDI, Satellites, Radio, Infrared, Cellular radio technology, Any suitable wireless systems. Security is very important in a wireless environment as the signals can be tapped by hackers especially when the SSID (Service Set Identifiers) is known. Eavesdropping and wiretapping are also common security breaches that are encountered on a wireless environment. To mitigate against these breaches it is important to ensure that strong encryption of data is done over the media. Firewalls could also be used to fend against intruders. The media itself could be disguised to the hacker. Wireless Application Protocol (WAP) is the Standard set of specifications for Internet applications that run on handheld, wireless devices
User Payments from mobile devices have to be secured. Digital certificates obtained from Certified body (Certificate Authority CA) should be used to verify the identity of a sender or a website. Secure Sockets Layer (SSL) should also be used to secure sensitive data.
Conclusion
Indeed apart from the security measures to be put in place SMEs must also put in place control measures to ensure there is data confidentiality, integrity and availability all the time. Some of the control measures involve putting in place a information system security policy, with a disaster recovery and daily backup procedures in place. The backups should be tested regularly.
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4.0 Identify and explain the various electronic commerce models and critically analyze which of these models would be appropriate for the operations of any SME. [ 25points]
Ecommerce business models are the essential methods that show how SMEs could make money online. These models have originated from the traditional brick and mortar business models. The Success of any SME would depend largely on the on the E-commerce model it adopts. This paper intends to analyse the three major models and some other models that would help SME to generate cash and recommend an appropriate model for Ghanaian SMEs.
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This model is very popular model used by "bricks and clicks". The term coined to represent businesses that have both an offline, "real world" store and an online presence in the form of an Ecommerce store. With cost of Ecommerce site coming down this is a model SMEs in Ghana could adopt to run both an offline and an online business. Orders could be made online and payment done at the brick and mortar shop or use of electronic payments such as credit cards.
Business to Government and Consumer to Government basically relates to how business and individuals deal with government. These models are not in the domain for discussion for SMEs. The other models which augment the three major models above are.
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Conclusion
It is good to combine several of these business models to have several streams of income however it is worth planning and strategizing to determine the E-commerce initiative that would yield the best return on investment based on situation and environment. In Ghana in more recent times blogging and social media is the trend of the day. E-commerce and Mcommerce models must be tailored to make use of these online communities. Some of these online communities have a specific niche interests and have a huge following. When people with the same interest form communities online it will lead to trading within that online community. A website or blog or social media site can charge a small fee for advertising on such a page or site. Indeed of the major models Consumer to Consumer Ecommerce business models seems to be a good model for our current situations as people want to interact with other people. There could be adding services like trading on these sites. This explains the popularity of sites like Business Ghana. Business to Consumer is now emerging with people trying to have both brick and mortar and online shops. For now SMES could have compe titive advantage by exploring Business to Consumer or Consumer to Consumer or both as business models. These models are the likely to offer quick wins for SMEs in Ghana.
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Bibliography and References E commerce Models [Online] at http://www.ecommerce-web-hostingguide.com/ecommerce-business-models.html accessed 10 April, 2013
Amoako, A (2012), Assessing the Impact of Mobile Commerce (M-Commerce) On the Financial Services in Ghana. (The Case of Ezi Savings and Loans Limited), International Journal of Business Management, April Vol . 1 No.1. Jobodwana, Z (2009), Ecommerce and Mobile Commerce in South Africa: A Regulatory Challenges, Journal of International Commercial Law and Technology. Vol. 4 Issue 4.
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