The Impact of Web Analytics on E-Commerce from the Perspectives of Management, Technology - Assignment Example

BUSINESS REPORT ON The Impact of Web Analytics on E-Commerce from the perspectives of Management, Technology and Organizational NAME: UNIVERSITY: COURSE: INSTRUCTOR: DATE: © 2013 INTRODUCTION Electronic commerce which is abbreviated as E-commerce simply implies the act of doing economic transactions over the Internet. Gunasekaran et al (2002) further argue that E-commerce encompasses the act of consuming business ideas amongst entrepreneurs particularly through the Internet. In this sense therefore, the World Wide Web (www) provided by the Internet has become the sole driving force that is controlling contemporary businesses in modern times. The continued use of the Web in doing business has thus led to the emergence of Web Analytics coupled with myriad impacts on E-commerce. It is in this new dimension in the world of economics that this report has been incepted with a view of exploring the impacts of Web Analytics on Electronic commerce from various perspectives such as management, technology and organisational as illustrated by Avinash (2009)). The task of the present report will therefore be to address the impacts of Web Analytics on Electronic commerce from the perspectives of management, technology and organisational. Similarly, the report purposes to identify the various theories of contemporary management. CONTEMPORARY THEORIES OF MANAGEMENT At the start of the current century, majority of organizations that have a name to boast about had grown so enormously to the extent that managing them traditionally was quite problematic. To overcome this shortcoming, these organizations have now turned away from using traditional methods of management and shifted towards the contemporary means of management. This form of management has a long history of evolution and is supported by a number of theories enumerated by Boddy (2011) as: “the contingency theory; the systems theory; the chaos theory as well as the concept of learning organization”. Among these identified theories, I intend to explore each one of them briefly in order to discover their relevance in organizational management. This relevance will, at a later stage be considered alongside Web Analytics to assess how it copes with the impacts therein. According to the views of Chaffey and White (2011), contingency theory of contemporary management has grown robustly in popularity within the arena of management. This theory asserts that managers should be all inclusive when making decisions. In view of this therefore, proactive managers must consider all features affecting the situation at hand and hence make decisions based on the most suitable aspects for the present situation (Chaffey and White, 2011). Looked at on a light note, contingency theory happens to be very flexible and basically controlled by the prevailing conditions of the problem at hand. This is a very tricky style of management and is considered to be very risky because not all situations are the same, and therefore making decisions on the crux of the moment may not be one of the best practice (Jones and George, 2010). There must be laid down procedures to follow in case a certain type of situation avails as observed by Robbins and friends (2010). The systems theory on the other hand is basically similar to the scientific theory of management forwarded by Frederick Taylor in 1890-1940 as reported by Robbins and friends (2010). According to Jones and George (2010), the systems theory of contemporary management is important in the area of management science as well as in understanding organizations better. A definition of a system will suffice in this instance. From a general point of view, a system is taken to mean a collection of subsets that are unified to work together so as to achieve a common goal (Bradley, 2007). If one or more of these subsets are faulty or missing, then the system is bound fail. A very good analogy of what a system is can be found in the working of a car where the components therein including the wheels, the engine, the cooling system as well as battery are all equally important for the car to function. If one of these components is missing, then the car can no longer function. The same will apply to an organization when looked at as a system. Organizations as systems are found to encompass such aspect as “inputs, processes, outputs and outcomes” and must share feedback among each of these four aspects as noted by Boddy (2011). In conclusion, the systems theory of contemporary management thus requires that organizations be managed as complete systems where all the subsets of the system are coordinated in such a way that the organizations’ objectives are fully achieved. Bradley (2007) underlines the basic subsets of the system as: “inputs; outputs; and feedbacks”, each of which must be considered in totality. Apart from the foregoing two theories, there is the chaos theory that supposes that organizations are as chaotic and random as world events seem to be today (Chaffey and White, 2011). Despite this realization, managers have taken a back stage and behaved as if everything in the organization was under total control for quite a long period of time. This calmness with which chaotic situations have been addressed is a real replica of the chaos theory in the highlights of Chaffey and associate (2011). But in reality, the chaos theory has come to recognize that events are indeed very rarely under control as is wrongly assumed. In trying to explain this scenario, those who believe in the chaos theory equate organizations to biological systems in an effort to explain the application of their theory (Robbins et al, 2010). According to them, the more complex systems become, the more susceptible they become and thus require more energy for maintenance (Robbins et al, 2010). If not addressed effectively, these systems are bound to collapse and sink into an abyss from where is not easy to be rescued. This analogy is applicable to organizations and life in general. WEB ANALYTICS Several definitions of Web Analytics have been forwarded in equal measure by a number of individuals interested in the said discipline. But for the purpose of this report, all the available definitions have been harmonized to remain with one working definition which cuts across all the others. In view of this said definition, Web Analytics simply gives a reflection of all Internet usage or visits to the Web either by individuals or corporate within a given period of time (Avinash, 2009). Apart from being used as a tool for estimating the amount Web traffic coming from the public, Web Analytics can equally be used as a business implement as well as a data collection tool for market research (Peterson, 2004). Similarly, Clifton (2010) further asserts that Web Analytics can also be used in assessing and improving the effectiveness of a web site. Generally, there are two categories of web analytics as identified by Johnson and Staddon (2007) namely on-site Web Analytics and off-site Web Analytics. On-site Web Analytics on one hand will only allow one to assess a visitor’s as long as one remains on the Website (Clifton, 2010). This is contrary to the off-site Web Analytics where measuring Web traffic does not require to remain on a Website or even own one. The extent of transacting business online, otherwise referred to E-commerce can easily be tracked using Web Analytics. For this reason, Web Analytics has been found to impact E-commerce in a number of ways. In line with this argument therefore, this report purposes to address the impact of Web Analytics on E-commerce from the perspectives of management, technology and organizational. The said impacts are discussed in greater details in the following sections of this report including an appendix at the end. IMPACT OF WEB ANALYTICS ON E-COMMERCE Web Analytics have impacted on E-commerce in a number of ways as indicated in the foregoing section. This impact has been shown to traverse across a number of perspectives. But for the purpose of the present report, the impacts of Web Analytics on E-commerce are thus considered from the perspectives of management, technology and organisational as discussed hereunder. a) From The Perspective Of Management Research has effectively demonstrated that E-commerce has taken the world by storm in recent times and completely revolutionalised the business world. The society at large has not been left out by this monumental milestone as underlined by Avinash (2009). Shoppers are currently buying things online in the comfort and privacy of their own homes without the need to ever come out. This advancement has effectively forced managers to go hi-tech in the way they are doing things particularly in the development of human resources. Potential employers and employees alike have turned to the web to advertise for vacant positions that need to be filled as well as seek for suitable placements respectively (Gunasekaran et al, 2002). Similarly, many manufacturers, retailers, and service providers have now turned into advertising available job openings on their own sites, hence making it easy for qualified applicants to contact them (Loudon and Laudon, 2011). Additionally, it has become very possible for all would be employers to build databanks of all applicants interested in gaining employment in their organizations by using Web Analytics. This in effect has lessened the work of the HRM personnel in the concerned organizations from examining huge volumes of data even for those applicants who don’t meet the minimum qualifications (Rainer et al, 2010) and instead concentrate on those meeting the basic criteria. Through the consultation of the Web Analytics, it has also emerged that major companies in the world have gone online where all employees’ benefits and retirement accounts are now managed through the web (Vladimir, 1996). Account details and other personal information have been availed online for each employee to access and make relevant alterations at the click of a button without bothering the HRM personnel as whatsoever. Rainer and colleagues (2010) claim that this provision has proved very convenient for both the employees and the management especially in saving the much needed time to attend to other chores. Apart from these direct impacts to the HRM department, Web Analytics has further demonstrated that education and multimedia training online has gained a lot of popularity in recent times (Loudon and Laudon, 2011). More frequently than not international institutions of learning are placing adverts over the Internet notifying the public of the courses and programs on offer online. This approach has been lauded to be most convenient for most learners as it can offer the flexibility needed in terms time, pace and location as opposed to traditional physical form of education and training that requires learners to conform to laid-down norms and procedures (Avinash, 2009). In fact online education and training is considered more interactive and interesting in nature to the learner and to some extent even cheaper on the whole. b) From The Perspective Of Technology The second perspective on which the impacts of Web Analytics on E-commerce are considered resides in the technological advancement. Just like it has been discovered on the perspective of management, the use of the Internet in business transactions has caused a stir in the development of the technological infrastructure for electronic commerce. Vladimir (1996) reports that because everything is happening so fast due to the use of the Internet, then the technology for dissemination of information need to be of the state-of-the art in order to measure up. This aspect is firstly found in the complicated world of telecommunications which cover a wide-area both locally and internationally. This area is therefore in need of good telecommunications network coverage using equipment such as “fiber-optic and coaxial cable (Rainer et al, 2010), and wireless transmission media such as satellite microwave and radio” (Gunasekaran et al, 2002) under computerized control. Vladimir (1996) observes that these networks span the globe and are therefore very crucial because E-commerce is also considered a global function. Web Analytics also indicate that the Internet has become the driving force behind E-commerce basically because of the invention of the World Wide Web (www) which is critical in sharing information. For this reason therefore, the Internet has become the universal medium through which all global transactions are conducted ranging dissemination of information through messaging via E-mail to electronic money economy through electronic funds transfer (EFT) that has helped inter-banks transactions virtually (Loudon and Laudon, 2011). Indeed the development of electronic money (E-money) in recent times has resulted in the advancement of technological infrastructure to take care of the issuance of necessary items like the credit and debit cards for example (Avinash, 2009). The huge volumes of money passing from individuals in this E-commerce economy requires very advanced technological infrastructure that is being witnessed currently. Thus the availability of large “digital libraries; electronic catalogs and directories; smart agents helping to seek out a desired good or service; electronic authentication services helping to establish the bona fides of a partner; copyright-protection services like the use of digital watermarks; and traffic auditing to establish the worth of an electronic site for advertising purposes” (Gunasekaran et al, 2002), all prove the concerted efforts being made in improving technological infrastructure to be in line with the current trends of E-commerce. c) From The Perspective Of Organizational To embrace the changes that have been brought about by the E-commerce, organizations are bound to adjust accordingly. Just like it has been demonstrated on the changes that have been occasioned by E-commerce in the areas of management and technology, then organizational perspectives has seen major impacts in the same way. According to Susan et al (2002), the rapid speed with which E-Commerce is progressing, then organizations will be forced to adapt quickly to the new technology and management styles so as to get an opportunity of experimenting with new products, services, and processes (Rainer et al, 2010). For this to happen therefore, new organizational approaches must ensue. Susan et al (2002) for example, underscore the necessity of changing the structure of the organizational unit dealing with E-Commerce from being similar to the conventional sales and marketing departments. Moreover, the organization must put all the necessary processes in place in order to fit in the new world order of business. This will require flexibility and responsiveness to the prevailing market situation on the part of the organization. For the management to achieve a corporate change of this magnitude, then careful strategic management will be fundamental (Loudon and Laudon, 2011). Web Analytics reveal that E-commerce has largely impacted on the organization in a number of ways. Firstly, the entry of “digital age” has completely disrupted the order in which things organizations had been doing business. The first casualties have been employees who have been rendered redundant due to increased competition and development of state-of-the art technologies that can cope up with the demands of the global market (Vladimir, 1996). This has also been necessitated by the need to cut on employee wages whereby outsourcing for services from other countries seems to far much economical. Additionally, workers in the digital age are now forced to be very flexible in the way they view their job securities. In order for most them to remain relevant in the job market, then they will need to be willing to train, retrain and learn to adapt into the new world order (Gunasekaran et al, 2002). In the ideals of E-commerce, organizations are forced to rethink about how they carry out their operations in order to redesign their products as well as come up with new ones that are in line with the global markets standards. In line with this restructuring, E-Commerce opens a grace window for all suppliers to conduct market research about their customers for the purposes of knowing their tastes and preferences in order to improve existing products or design new ones fit for them. The information so gathered can be used in profiling all the customers so as to group them into categories for serving them better according to views proffered by Loudon and Laudon (2011). Similarly, these customer profiles can be placed in a databank for future reference if need be, particularly when customizing products for specific groups of customers with specifications (Avinash, 2009). The foregoing impact slightly touches on manufacturing sector which has been affected variously by E-commerce. Due to the volatility of the global market necessitated by electronic commerce, manufacturing systems have completely changed their mode from “mass production to demand-driven and possibly customized, just-in-time manufacturing” as highlighted by Rainer et al (2010). This is in an effort to avoid mass production of products that have a general appeal and as such may remain unclaimed by anyone. E-commerce has also caused organizations to put up with unprecedented financial implications occasioned by the new marketing strategies, new customer base, and other functional systems that need extra financing (Gunasekaran et al, 2002). This financial implication is further complicated by the fact that the payment systems that have been traditionally in use are no longer sufficient for E-commerce purposes. It is hoped and highly anticipated that very soon new payment systems such as electronic cash will hit the world economy. For now, we just wait and adapt to make do with what is at our disposal. CONCLUSION From what has been established throughout this report, E-commerce is yet to present us with a multiplicity of impacts including yearned opportunities as well as dreaded challenges. Web Analytics clearly demonstrate that E-commerce has profound impacts on the world economy from certain perspectives such as management, technology and organizational. The management part of it has to first of all depend on the style of management used. Jones and George (2010) identify several theories of contemporary management but three types name contingency, systems and chaos theories were exhaustively discussed in this report. These theories were found to have a positive bearing in the manner which organizations are run and as such must clearly be understood by all operating as managers. The use of Web Analytics in measuring how much traffic has been going into the Web was demonstrated throughout this report as a very significant tool in E-commerce. This tool helps business entrepreneurs to track information for the purpose of carrying out market research in order to improve their services or even know what new products are in the market or even what type of products are demanded by the potential customers. The report also revealed that Web Analytics have impacted on E-commerce from the perspectives of management, technology and organizational. The management of organizations has been forced to go hi-tech in addressing the affairs of their human resources while the employees themselves need to adapt in the right ways in order to fit in the new digital age. Technologically, organizations must put in place state-of-the-art technological infrastructure so as to match-up with the demands of the E-commerce. Finally, organizations are forced to shape up and restructure their operations and outfit so as not to be left out. BIBLIOGRAPHY Avinash, K. (2009) Web Analytics 2.0 – The Art of Online Accountability and Science of Customer Centricity. Sybex, Wiley. Boddy, D. (2011) Management: An Introduction (5th Edition). Financial Times Press. Bradley, N. (2007) Marketing Research. Tools and Techniques. Oxford University Press, Oxford. Chaffey, D. and White, G. (2011) Business Information Management: Improving Performance Using Information Systems (2nd Edition). Financial Times Press. Clifton, B. (2010) Advanced Web Metrics with Google Analytics, 2nd edition, Sybex (Paperback.) Gunasekaran, A et al. (2002) E-commerce and its impact on operations management. International Journal of Production Economics 75 (2002) 185–197 Johnson, R and Staddon, J. (2007) “Deflation-secure web metering”. International Journal of Information and Computer Security 1: 39. Jones, G. and George, J. (2010) Essentials of Contemporary Management (4th Edition). McGraw-Hill Higher Education. Loudon, K. and Laudon, J. (2011) Managing Information Systems: Managing the Digital Firm (12th Edition), Pearson. Peterson, E. T. (2004) Web Analytics Demystified: A Marketer’s Guide to Understanding How Your Web Site Affects Your Business. Celilo Group Media Rainer, R., Turban, E., Potter, R., and Cegielski, C. (2010) Introduction to Information Systems: Enabling and Transforming Business (3rd Edition), Wiley. Robbins, S., De Cenzo, D. and Coulter, M. (2010) Fundamentals of Management (7th Edition). MyManagementLab Pack. Susan, L et al. (2002) The impact of e-commerce on supply chain relationships. International Journal of Physical Distribution & Logistics Management, Vol. 32 No. 10, pp. 851-871. Vladimir, Z. (1996) Electronic Commerce: Structures and Issues. International Journal of Electronic Commerce, Volume 1, Number 1, pp. 3 - 23. APPENDIX Designing comparison diagram for Asda and Marks and Spenser covering management, technology and organizational Aspect Asda Marks and Spenser Management Promotion through Asda price campaign Corporate social responsibility: Energy efficiency Ethical Trading Initiative (ETI)-respects workers' rights for freedom of association and a living wage Sponsorships to several groups Charities-Asda supports 6 main charities through its stores Asda's Smart Price logo Employees managed through trade unions Managers not able to adopt change very fast -Poor management - failure to recognize and react to changing market trends -Decentralised marketing function: inconsistent brand image -Fast changing market and tough trading conditions -Consumers’ change of taste -Increased competition locally and from foreign companies Technology Superstores constructed with the state-of-the-art technology Distribution of products using state-of-the-art technology Use of E-commerce like credit cards to do business Adopted the Internet to transact business Low performance on technological change Slow to change technologically where they lack newness Not fully embracing the Internet in transacting business Some steps towards the use of E-commerce in doing business Organizational No typical organization structure Has a market share of about 18% Has close to 565 outlets all over the United Kingdom and beyond Embraces the idea of Corporate Social Responsibility (CSR) An employee base of about 180,000 across the globe Marketing through vigorous and unique campaign slogans like “lowest prices ever” Poor market segmentation, lack of product differentiation Acquired a reputation/brand of products Own market share through online shopping Keep renewing their women’s wear range Stores refurbishment: provide a more upbeat look Uses of good CRM systems that can help them keep track of customers’ demands. Loss of market share as a result of intense competition-e.g. in the food sector from Asda Read More