Concepts and explanation
E-business uses digital networks for internal and external processes; e-commerce is the buying and selling component. Benefits include reach and faster information flow. Risks include privacy breaches, cyber fraud, platform dependence, service failure and digital exclusion. Outsourcing assigns selected activities to specialists; evaluate quality, control, confidentiality and dependence as well as cost.
Business example
An online catalogue can expand a small retailer’s reach, but the owner still needs customer-data safeguards, delivery standards and a complaint-resolution process.
Case-based practice
- A firm outsources customer support to reduce costs. Identify two benefits, two control risks and a data safeguard it should include in the service agreement.
- Write a short answer that names the relevant concept and applies it to the facts.
Quick revision
Revision cue: Define the term, distinguish it from a related concept and support the answer with a relevant example.