E-Commerce Business Environments
Any business that launches into the internet has to decide whether to operate in an open insecure e-commerce environment or a closed secure environment. One has to weigh the advantages and disadvantages of utilising each system
An Insecure Open Environment
In an open environment, the users are able to navigate on the site at a faster rate than in a closed environment. The users do not have to log in. Anyone can access the site and purchase items on the site. In this system, there are no passwords, encryption or firewall security features. The site may also have low customer interaction or purchase options because of the lack of security features. The sites are very easy to use. The internet has made it easy for companies to market and sell their goods. Many companies that are utilising the insecure open system want to attract as many people as possible. First of the entire web is an open market which is universal able to reach as many people as possible throughout the world. When websites are highly easy to use and user friendly there will be more visits from the customers who are looking at the various goods that the company is selling.
The costs of operating an open environment are also lower than the costs associated with operating a closed environment. There are several disadvantages in operating an open environment. First of all, it is not secure enabling computer hackers to easily access the sensitive data on the website. The site is also more vulnerable to virus attacks. The main disadvantage of the site is that customers may not feel comfortable shopping on the site.
The rate of cyber fraud is really high and making purchases online may be hard for the customer to make in an insecure open environment. The business as mentioned above may have to limit itself to low customer interaction and lack of a purchase inter phase. This is because of the low security features on the site. The company may want to avoid legal hurdles in the future. In the event the customer financial details are obtained from the site by outsiders and used fraudulently, the company may be sued. Where security is compromised, the company’s reputation is ruined (Vant, 1999)
Overly Secure Environments
The main advantage of this kind of system is the security of the customer’s credit card information which they use to purchase items in the internet. Companies in the website are maximising on selling their goods in an online platform. It is faster and the marketing costs are lower. They can be able to have links in other websites leading customers to their websites. Ann overly secure environment offers the best confidence to the customers. In an open system, the site may be visited by many potential customers, however in a secure environment is where there will be many purchases. There are also customers who fear their health information being hacked into and being used without authorisation (Rayport & Jaworski, 2004). This system gives a higher level of assurance to the management that their customer’s information is secure.
There are also fewer incidences of hacking and computer viruses (Wright, 2001). There are e-commerce sites in the insecure open environments that have been affected by denial of service attacks. This is where a hacker enters into the system and while he tampers with the system and commits fraud, customers are unable to access the sites.
The customers have increased confidence as they navigate the site that their information is protected. With the increase of security features in the website, it becomes a complex site to operate. The customers may feel tired of such commands as to increase the strength of the password or change their passwords frequently (Herbett, 2008). Before an individual makes a purchase they will have to create an account. This lengthens the amount of time that the individual takes to make a purchase. The costs of operating the system are costlier than the open system. This is because of the security costs that are incurred.
The recommended system for the pastry business
In order to practice responsibility over the customers I would implement a hybrid of the two systems. It is really a question of how to manage the priorities of the company. Is the availability and easy use of the website preferred over the security features of the website and to what extent. This is to mitigate the disadvantages of the two different systems. I would like to take advantage of the net and allow as many people as possible to peruse through the catalogues of pastry products in the supply section.
An individual will be able to load the shopping carts with items. Only when the person wants to make a purchase will the person be requested to put in a password and password credentials. The site will only ask for the necessary information so as to prevent or minimise the storage of bulky customer information which poses a security threat. The fact that the site will ask for pass words will give the customers assurance that their information is secure. It will increase customer goodwill and loyalty towards the company.
Herbett, S(2008). E-Commerce Privacy and Security. Retrieved from:
Rayport, J. & Jaworski, B. (2004). Introduction to e-commerce . New York: McGraw-Hill/Irwin.
Van, C. (1999). E-commerce security: How much is enough? Retrieved from:
Wright, A. (2001) Controlling Risks in E-Commerce Content. Computers and Security,