E-Business
Introduction
The discovery of technology results in the adoption of technology in various fields. In the business sector, electronic business refers to the adoption of information and communication technologies to perform different tasks in a business setting. The adoption of the technology changes the processes involved in delivery and payment of services and goods in the business sector.
E-business eliminates the manual system of conducting business by introducing the electronic system that provides similar services in a faster and more efficient manner. Most of the businesses end up happening in the internet instead of the traditional face-to-face manner where people had to be in the same locality to do business. The primary function of this paper is to consider the use of Electronic in the Emirates Airlines in the United Arab Emirates.
Characteristics of E-Business
Communication
In electronic business, the communication is through the electronic media. Unlike in the traditional setting, where people had to access the offices of the Emirates Airlines to make inquiries, the electronic business enables communication from whichever part of the world. The computers installed with the internet services are able to link the company to the customers from any part of the world.
In most cases, the customer is in a position to get information from the company without having to talk to the attendants of the airlines. The availability of the information is possible through accessing the website of the company where the information is available (Koku, 2014, p. 104). Electronic business does not rely on the physicality of the person as the only way of getting information.
Access
Electronic business is easy to access. Most of the companies indulging in the e-business have websites containing all the general information about the company. For the more specialized information, the companies have portals where the concerned customers can make inquiries. For the Emirates Airlines, most of the information that the customers need to access is information on the flights and the charges within and outside the country. The company has the information on the website and there are contact details for further inquiry. The website eases the process of accessing information for the customers.
Electronic Payment
The process of electronic business not only adopts the electronic approach in service delivery but also in the payment methods. For people in need of the services, it is not necessary to travel to the business premises to make payments for the services. In the website of the Emirates Airlines, the customers have the chance to pay for the flights using credit cards. By putting the credit card number on the payment platform, the payments transfer electronically for the services rendered. Electronic business does not involve hard cash but rather cash in electronic format. In case of miscommunication, the company will simply refund the cash through the same system without any additional costs (Rao Sivaramakrishna, 2008, p. 362).
Business Diversity
Electronic business do not experience challenges based on boundaries. The electronic platform enables the business to operate beyond the borders of the country to an international level. Accessibility of the electronic platform of the business makes it easy for any customer from any part of the globe to access the business.
For the Emirates Airlines, all the customers from any part of the world where the airline delivers services can access the information. The business gets the chance to go beyond the borders due to information availability. Businesses grow bigger with availability of information to the potential customers. The electronic platform gives the Emirates Airlines this advantage.
Advantages of E-business
Saves Time
Before the era of technology, people had to access the offices of the respective companies for business. Customers from far and wide had to travel long distances in order to access the services. For the more specialized services, the customers had to book appointments with the relevant authorities for provision of the services required. The processes wasted a lot of time before the customers could get information and services. By availing the necessary information in the website, the time used is very small.
The customers will get the information they need from the internet saving the time used in travelling to the company. The company on the other hand saves the time when the customers access the information on their own. The employees of the company indulge on other activities instead of having to serve the customers in person. Emirates Airlines saves both the time of the customers and their own using the electronic platform (Tarnay, Imre & Lai 2013, p. 286).
Saves Funds
In setting up the electronic platform, the company invests a small amount of funds to keep the system operational. The system, however, gives the company the chance to operate with a small number of employees. With most of the information available in the electronic platform, the company will not need many workers to serve the customers since most of the customers are able to use the system to get the information they need.
The customers also benefit from the system since they do not have to incur the costs of travelling to the offices of the company for the access to services. The customers fulfill their needs from their own homes getting the services they need. For the Emirates Airlines, the customers are able to cut costs through access of the services from all over the globe. Booking of flights, making payments, and creating reservations is simple.
Sense of Security
Some businesses require huge amounts of money for completion. The customers have no choice but to carry the money to the business premise. Carrying huge amounts of money is dangerous due to the high criminal activities in the country (Stephani, 2014, p. 257). By having the electronic card used in transacting in the electronic business, the customer does not have to risk the heard earned money.
The customer only carries the card wherever they go but even if the card is lost, the money is still safe since the card required a pin number to access the funds. Emirates Airlines is giving the customers the chance to operate using the cards reducing the chances and the hustles of carrying hard cash. With the payments, the company does not have to deposit the cash after the customers pay for the services since the money transfers to their account electronically.
Limitations of E-business
Sectoral Limitations
Numerous online businesses have sectoral limitations whereby there exists certain lucrative market that cannot be served through a computer. E-businesses are unable to offer services to the food processing, hair dressing or dog walking. For Emirates airlines, they are unable to provide hospitality services online.
Customers will need to travel to the airport and board the plane to their various destinations. Therefore, not every company can participate in e-commerce because of challenges such as technological ability, or dealing with products that cannot be shipped electronically. Besides that, some products may have legal restrictions due to federal or state laws and the nature of commodities for example explosives.
Security Questions
The major security risks in e-commerce are client to server risk, data transfer and transaction risk, or virus risk. Emirates airlines, like any other company are prone to fraudulent online activities. Some consumers may be reluctant to buy products and services from an e-business because of fear of fraudsters. Other customers refuse to make large purchases online because of the general online security; nonetheless, online security information varies differently across different states.
Example of other online-related security issues is hacking. Hackers tend to manipulate online business websites ripping them of their financial data. For instance, they use customer-booking details, which the hackers use to initiate the crimes. There is need for online business people to guarantee integrity in transactions. Furthermore, learning and implementing good security measures for example digital signatures and data encryption is important to protect client information in case it lands in the wrong hands leading to a lawsuit.
Available Customers
The e-business is limited to customers with access to technology and who have the credit or debit cards to spend. Those individuals unable to access are the low-income earners who make the higher population e-commerce unreachable. The global economy loses large revenues as a result. Besides inaccessibility to the low-income individuals, other customer related limitations include loss of customer contacts. Not everybody can afford to pay a flight ticket, therefore, the airline loses out on the many individuals who can only afford the road means of transport. This makes it difficult to reach the customer for more sales and the customer feels insufficiently serviced if there are no updates of new or current sales.
Instant Purchase Delivery Time
Most e-business purchases have a time lag period from the time of purchase to the physical delivery of goods. Therefore, if a customer has urgent need of an item equally fast the internet is not able to process the immediate command. Other delivery related limitations occur because of technical hitches, for example, the ticketing system may be inactive forcing customers to make physical bookings at the airlines offices.
Such customers would rather physically go to a physical shop and obtain the item instantly after purchase. To add on, although delivery assurance is quicker than expected, delays are inevitable at times. A weather condition in a particular area may a stall the shipping system of another across the board. Other factors include loss or misplacement of the commodity or delivery to a wrong address (Turban, 2015, p. 217).
Support Systems
Operational and Enterprise Systems
Various support systems make e-business successful and dependable in the economic arena. The operational and enterprise systems are transaction systems that make it possible for products to be designed, produced, and delivered. The operational support system used by the Emirates airlines are the information systems such as the human resource, the sales and marketing, production and finance departments. Such support systems are value additions to the company because through mass customization services are delivered just in time (Dorantes, 2013, p. 280).
Supply Chain Management Systems
Transaction systems serve to integrate a company’s overall supply chain. Therefore, with such systems, Emirates airlines will be able to conveniently design, produce, market, and deliver products as well as services to the customers. This system manages flow of information, products, services, data, and money. With the use of a Supply Chain Management the airlines is able to access the database and schedule efficient and timely ticket deliveries. The system borrows from procurement, logistics, operations management, and information technology, hence providing a strategic integrated approach. Nonetheless, global e-businesses are dependent on such systems to establish strategic alliance, joint ventures, and business partnerships.
Customer Relationship Management
Also known as, CRM, customer relationship management is helpful in dealing with in marketing, sales, and new product development. The importance of a customer relationship management is giving a company the unified image of each individual customer dealings, promoting a proactive customer relationship. Most e-business transactions have online systems facilitating the transactions for example online shopping, banking, and securities/ bond trading.
A sufficient customer relationship management will help facilitate customer related interactions making it convenient for all passengers’ book tickets or other service with the airline company through online transactions. Other CRM aspects that can be utilized are the e-CRM, which is a social networking forum for online business individuals that are effective, relaxed to use (Heller Baird, 2011, p. 187).
Companies can easily adopt easily the effective communication provided on this platform through exercising its own marketing and sales. Other significant support system is the Professional Support System. Tasks that require specific professional performance get back up from professional support system. These facilities range from machinery, technical and other technicalities. For Emirates airlines, some professional support systems facilitating its operations include automotive engines that use computer aided engineering, which is backed-up with virtual software. This support system helps control fuel efficiency, cargo handling, and passenger protection (Raab, 2012, p. 272).
Conclusion
Electronic business simplifies the art of doing business through simplification of the process. The customers and the service providers interact in the electronic platform making the interaction simple and fast. Electronic business provides the company with higher growth chances through availing of information in the websites therefore making it easy for the customers to access the information. The company gets the chance to advertise the products in a simpler manner compared to the traditional means.
Emirates Airlines is benefiting from the electronic business in interaction with the customers and service delivery. However, the business experiences challenges from the fact that some of the customers are not able to operate using the technology. In this case, the electronic system discriminates against such people. With the increase in cybercrimes, the business stands to lose money if strict measures are not in place to ensure full protection of the business from such vices.
References
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Tarnay, K. I. (2013). Research and development in e-business through service-oriented solutions. Hershey, PA: Business Science Reference, 286.
Turban, E. K. (2015). Electronic commerce: A managerial and social networks perspective. Springer.