The potential negative impact of consequences on IS strategic planning, feasibility, analysis and design of e-commerce. A main reason for the rapid growth of e-commerce, especially the B2B, its significant impact on cost associated with inventories, sales execution, procurement and distribution and with intangible like banking. To reap the potential cost saving fully, firms must be willing to open up their internal systems to suppliers and customers. As firms integrate their operations more closely, issue of security and potential anti-competitive effects arise.
It increases the risk of viruses and hacker attacks. If the internal system information lost, it may affect the revenue of the firm and even the worst may cause the firm to close. Indeed the data security problem is a threat not only t the firms but also to customers. Online payment, transactions, money transfer, etc. all require personal information and password to access. If the online security is low, it may cause a great loss (money) to customers and even cause the firm to bankrupt. The data access method of the e-commerce increase the number of fake web-site.
In the past few years, we can easily find from the newspaper that many fake bank web-sites were appeared, like the fake HSBC web-site, which caused many customer lost money. Recently, there are also some fake charity web-sites found to cheat donation money which originally are donated for the tsunami victims. To protect safety of the customers, and the business of themselves, the firms must development high security system and up-date the system time to time. The rapid growing of e-commerce caused the keen competition on firms and the markets.
In order to maintain competitive, the firms must provide more additional services (e. g. storage volume, security) to their customers. This greatly increase their production costs. However, the costs can’t be transferred to customers. Therefore, it may cause many SMEs to close. Besides, the closing of online firms, many traditional firms are also affected by e-commerce. In moving baking out of branches and onto networks, many branches closed and cause the increase of unemployment. For example, Finland has seen a 30% annual decline in employment, resulting a cut of more than a third of the jobs between 1984 and 1996.
Janes Culberson, President of the American Bankers Association, predicts a similar trend in the US in the near future, with half of all transactions electronically and one-third of all branches closing. To survive, many firms (especially popular one) allow people to post advertisement on their site to gain profit. A lot of pornography is then widely spread. Even though there’s a warning not to visit the site if the visitor is under 18. However, under curiosity, they may still keep on visiting. Without parental guidance or correct guidelines, a wrong perception about sex may be built on them and increase the sex crime among their age.
Dealing with too much data at the same time may slow the running of the system which waste the time of the users and affect the transaction process. The system may be downed under this situation. The down of the system cause a shock negative consequence especially to MNCs (e. g. The Stock Exchange Market and Bank). For example on Dec 2004, the internet system of HSBC was downed. Some customers found that the savings in their account were disappeared; and some found that the balance in their accounts were added suddenly. The back up system is important in this case.
If the bank does not have the back-up of her customer’s information, then she has to compensate for those “loser” and also can’t get back the money from those “gainer”. Email service is a good way to transfer virus and attack by hackers. The virus & worm may cause the down of the servers, systems of both SMEs & MNCs. It can also cause the loss of information (partially or completely), and infect the program. The “thousand worm” caused the loss of information and infected the program of all the computers all over the world. To home users, the negative impacts may be lesser. To small business, it may cause to a great lose of money.
To large business, it may affect the world economy. However, to government, the impact may be the most serious. It may cause a threat to the nation security (the hacker may steal the nation confidential document / information and sell to the terrorist / damage the programs or system of the nation military), the deployment of the troops, the ejection of the weapons. To fix the problem, IT professional should take sensible precautions in general and using up-to-date software. E-commerce also caused the rapid increase of illegal up-load and download of music, movies, software.
This may decrease the profit of all these companies and eventually led to the close of these companies and no one is willing to invest in these fields. Recently, in HK, the film production co-operated with the government to against the illegal upload and download of movies, especially to against the BT. They successfully arrested a person who illegal upload the film “Kung Fu” to the internet. People can obtained their degree, master easier than before through distance-learning. However, many programs on this base are assignment base.
Some students may cheat the universities by asking the others to do the assignment for them or copy the work from the others. Therefore, the qualification recognizing of these course are relatively low. Some employers are not willing to employ these qualified graduates and even look down on them. In HK, many qualification obtained through distance-learning are not recognized by the government. The status of distance-learning university graduates is lower than the non-distant learning university graduates. So, when planning and running the distance-learning program, the prestige and the way of teaching and learning need to be consider.