Trust in eBusiness - Coursework Example

Trust in eBusiness By Name Id # Date Table of Contents Trust in eBusiness 1 Table of Contents 2 Introduction 3 Trust and e-Business 4 Factors contributing to trust 6 Trust Management 7 Types of Trust in eBusiness 9 Increasing Trust among Buyers and Sellers 10 Minimizing Buyer Risk 10 Building Buyer Confidence 10 Performance Outcome 11 Conclusion 12 References 12 Introduction Only a small number of tools, techiniques, and technologies have received as quick recognition as the internet. Additionally, the internet technologies are changing and modernizing the ways through which business activities are carried out. In addition, these technologies are also modernizing the basic technological structures on which various corporations are eastablishing their internal information systems (Turban et al., 2005; Shelly et al., 2005). E-Business (Electronic Business) is transforming the way of communication between external and internal stakeholders of a business. In addition, the e-business is able to lead a business to an enhanced corporate and business competitive advantage as well as at the same time, augment productivity (Velmurugan, 2009). There are numerous aspects which affect the success of e-business. In this scenario, one of the most significant aspects is trust. Additionally, gaining client’ trust relies on a wide variety of objects that an e-business setup controls. In this scenario, some of the concerning aspects for attaining clients’ trust are: demand of the online business website, service/product presented, QOS (quality of service), branding and trusted seals. In fact, trust can be considered with a variety of angles for example information content, transaction, technology, product and institution. There is a great deal much influence of the trust on the means companies believe about developing, designing and deploying Web-supported applications. Web services can be enhanced and evolutionary steps in developing and implementing distributed applications; though, they are not without issues. Consequently, we have to unease on the problems those are connected to the privacy and security in web based services of e-business arrangement (Velmurugan, 2009). Success in case of an e-business arrangement is reliant upon numerous aspects. One of the significant contributors is trust. In case of e-business arrangement “Trust” is something that has to be established over a period of time. Attaining the client trust depends on a variety of aspects that e-business manages. Though, customer's trust similarly is not under the management of the e-business (Srinivasan, 2004; Benbasat et al., 2008). This report presents an overview of trust and its role in e-business. This report will discuss how trust affects the transactions that are conducted using e-business. Trust and e-Business Trust is a fundamental element in web based business arrangement, both in e-shopping formulated by customers and in case of the e-business that happens among the businesses. In web based arrangement visible site trust states whether possible customer shall perform purchases or not. In this scenario, the customers who buy over the web not simply require having trust in the website presenting services or products, however as well has to have trust in web itself as a platform for communication, commerce and distribution. Normally, risks associated with the exploitation of client reliability, information, payment and fraud stop customers from making purchases on the Internet. It is seen that the e-commerce arrangement holding both the web and individual websites from a social organization (SIRKEMAA, 2010; Benbasat et al., 2008). In addition, the organization based trust is further divided into 2 subsets, situational normality and structural assurance. In this scenario, structural assurance refers to a belief that there present “protective structures” that makes sure that a transaction will be made effectively on the Internet, for instance. The other constituent of organization-based trust is situational normality that outlines that it is predictable that states, procedures and transactions will guide to predictable results. Additionally, in web based transactions there is different way to carry on as they would exist in real-life scenario, there are related steps concerned in implementing for baby-care whether this is being performed with an e-service or completing the application in an office. Consequently, there is a entrenched principle that web is an arrangement of a shopping and communications environment concerning unsurprising procedures and results, eventually guiding to trusting profitable behavior (SIRKEMAA, 2010; Benbasat et al., 2008). In addition, the purchaser has to have a great deal of confidence when making use of the Internet and performing transactions in the digital environment. However, it does not outline that companies and services over the web can be trusted blindly. In view of the fact that if the business has standard processes as well in real life (brick-and-mortar business) the clients are probable to produce their views as well based on real life experience with the business in question. On the other hand, in a complete web based business the trust is built simply from digital experiences. In this scenario, the web based trust develops from past activities and follows company way of keeping promises. Therefore the reliability of the company service provider associated with user’s awareness of the provider’s ability and honesty to carry out as promised (SIRKEMAA, 2010; Benbasat et al., 2008). Factors contributing to trust Trust in e-business is not so simple to determine. It is built over time with company’s better and efficient policies and services. In fact, people trust a company depending on their own earlier experience and with 3rd party approvals. In the world of web based commerce the aspects that considerably add for improving transaction trust are: Simple access to details of services and products Simplicity of placing business orders Order confirmation management Simple order handling and tracking Post-sales service The above given qualities facilitate business working for better definition of trust for its clients. Therefore, clients who want to feel good about every aspect of its shopping and dealing process before they build the opinion that the company is dependable. In addition, a tree-structured design of the business’s services and products will facilitate simple navigation intended for the client. At the present, there are several tools available for web based system design to develop site in a smart way as well as it is simple to navigate. Hence, by taking benefit of database methods and tools, a business could be able to simply present the web real time data for example quantity on hand. Additionally, the businesses for example Amazon.com has added considerably to the expansion of software that makes orders in a much better and enhanced way. Nowadays there are numerous 3rd party dealers who offer the web cart support. The web shopping cart virtually parallels the performance in the BAM world of services and product ordering (Srinivasan, 2004). Trust Management When dealing with trust based aspects in e-commerce arrangement, its administration point of view is approximately the hardest issue to face. For the management of such aspects the idea of the trust management evolved. In this scenario we have a proposed idea of PolicyMaker scheme that is an enhanced solution for trust management areas. Additionally, PolicyMaker is a common and influential solution that allows use of some programming language to program the nature of the power being established and the entities to which it is being decided. In this scenario, idea of KeyNote was projected to enhance two major features of PolicyMaker those are: (Katsikas et al., 2010; Jourdan & Ingram, 2011) Attaining standardization as well as to support for its incorporation into applications As well, keynote makes use of a precise assertion language that is elastic enough to manage the privacy and security strategies of dissimilar applications. Afterwards, other analogous systems have been anticipated for trust management ideas. As some researchers outlined a general problem is that those applications are employed to recognize a static appearance of trust (typically at the judgment of the application coder). Though, trust is able to transform with time, and that is the reason why several researchers judge that digital records (attribute and identity) can be as well recognized as trust management tasks. More specifically, the arrangements employed to deal with those certificates, like PMIs and PKIs, offer measures as well as functions that can be considered as a higher technique to administer trust. These are enhanced solutions; however they are as well biased with authorization and authentication services (Katsikas et al., 2010; Jourdan & Ingram, 2011). Actually, trust management is extremely dynamic, particularly in digital business situations. In this scenario, it is argued that trust of one user/client/person can vary because of following main aspects: (Katsikas et al., 2010; Jourdan & Ingram, 2011) After making some additional deals, the trusting body has a superior idea of the trusted entity’s potentials and motivation to perform the way the trusting entity wants in a given situation The trusted body’s potential or motivation to do something in a given situation the way the trusting entity requires might transform with time The trusting body, after obtaining suggestions from other entities, will be familiar with more regarding the trusted entity’s potential and motivation to take action im a way that the trusting body desired in a given context. As well, they classify the lively nature of trust as “the transformation in the dependability worth of an entity, allocated to it through a given trusting body by means of the passage of time in diverse time slots (Katsikas et al., 2010; Jourdan & Ingram, 2011). Types of Trust in eBusiness This section outlines some of the important types of trust in e-business arrangement. Here my basic intention is to select and assess basic forms of the trusts in e-business and e-commerce environments: One of the basic e-business trusts is institution based trust that is a category of trust that is attained from economic or political systems or official institutions. In addition, some of the well known instances of such kind of truest can be online business ISO certifications, offering quality assurance services for product quality by some intermediaries (Leijden, 2009; Pittayachawan & Singh, 2004). Another kind of e-business trust is impersonal trust that is not rooted in personal relations in e-business arrangement. In addition, it illustrates a type of social organization that builds its trust for its clients. These are as well incorporated in institution-based trust as mediators. For web based products quality and excellence of services (Leijden, 2009; Pittayachawan & Singh, 2004). One of the popular kinds of e-business trust is incentive based trust that is foundational upon awarding of an additional benefit when the web based transaction is performed effectively. In addition, it as well approaches from contractual contracts or from the organizational system. However, such kind of trust is fundamentally the contradictory of deterrence based as well as is furthermore element of the Institution based trust (Leijden, 2009; Pittayachawan & Singh, 2004). Reputation based trust in case of e-business atmosphere is attained by building corporate web based performance and reputation. In addition, any business in e-business atmosphere earns its potential and performance aspects for a great deal of enhanced handling and management of the client services for e-business reputation (Leijden, 2009; Pittayachawan & Singh, 2004). E-business environment has also a great deal of relationship based trust. Such type of trust is foundational upon building social relationships and embedded joins. It is one more instance of characteristics based trust that is attained by building customer relation based on quality and excellence of services in a web based E-business atmosphere (Leijden, 2009; Pittayachawan & Singh, 2004). Increasing Trust among Buyers and Sellers This section outlines some of the useful ways and methods through which we can improve the trust on the buyer and seller. I have outlined below some of the important methods and arrangements through which we can enhance potential trust among buyer and seller: Minimizing Buyer Risk For improving trust, it is the buyer’s job is to reduce associated risks. In fact, buying decisions are not immediately about the benefits and costs aspects that are somewhat simpler to determine. They are as well concerning the probability of those costs and benefits and some other outcomes that can arise (Mahadevan & Venkatesh, 2000; SellerInsights, 2010). Building Buyer Confidence In case of building buyer trust the seller need to offer confidence at the organization policies. Here main need to offer trust that company will offer what is promised. Here one main aspect is that seller needs to look out for buyer personal interests. There is need to offer enhanced services and quality aspects for better and improved performance (Mahadevan & Venkatesh, 2000; SellerInsights, 2010). Performance Outcome The most significant performance results and outcomes are expected from superior inter organizational associations to reduce the overall business cycle time within the supply chain management operations. In this scenario, one of the fundamental ideas is to assess the high velocity business situations those are forcing corporations to react rapidly to altering competitive priorities. Fast shifts in the foundations of competition are forcing corporations to place superior importance on cycle time based potentials so as to gain the advantages of flexible reaction to altering situations (Hacker et al., 1999). Here we can also enhance the trust through: (Raisanen, 2008; Broomstick, 2012) Bigger apparent buyer dependence linked with lower levels of dealer responsiveness that leads to enhanced trust among buyer and seller. For the sake of potential enhancement of trust the suppliers need to invest highly on human specific assets those are connected with higher levels of supplier reaction. Trust among buyer and supplier can also be improved through higher levels of buyer trust those build through better quality assurance. Conclusion This report has presented a detailed analysis of different types of trust in eBusiness. In this report, I have assessed and analyzed the procedures those can be adopted to potentially enhance trust among buyers and sellers. E-commerce has turned out to be a most important part of almost every business. Since, at the present, almost every organization is using Internet to carry out its business activities. In this scenario, trust becomes a critical factor. Since, it is impossible to run business on internet without winning customer’s trust. In this report, I have determined the development and validation of trust measures for e-commerce. This research has also analyzed the main areas and intentions of web based and ecommerce trust, how they are measured, and how they could be improved. I this research initiation document will offer an insight of the overall research. References Benbasat, I., Gefen, D. & Pavlou, P.A., 2008. Special Issue: Trust in Online Environments. Journal of Management Information Systems, 25(4), pp.5-11. Broomstick, R., 2012. Selling Online - How to Build Trust. [Online] Available at: http://ezinearticles.com/?Selling-Online---How-to-Build-Trust&id=6639414 [Accessed 10 August 2012]. Hacker, S.K., Israel, J.T. & Couturier, L., 1999. Building Trust in Key Customer-Supplier Relationships. [Online] Available at: http://satisfactionstrategies.com/paper4.pdf [Accessed 12 August 2012]. Jourdan, Z. & Ingram, W.R., 2011. Trust in E-Business: A Cross-Disciplinary Analysis of the Literature. [Online] Available at: http://www.aabri.com/NC2011Manuscripts/NC11031.pdf [Accessed 11 August 2012]. Katsikas, S.K., Lopez, J. & Pernul, G., 2010. Trust, Privacy and Security in Digital Business. [Online] Available at: http://www.nics.uma.es/sites/default/files/1-Katsikas_Lopez_Pernul.pdf [Accessed 10 August 2012]. Leijden, F.v., 2009. Founding Trust in an eBusiness Environment. [Online] Available at: http://tbm.tudelft.nl/fileadmin/Faculteit/TBM/Over_de_Faculteit/Afdelingen/Afdeling_Infrastructure_Systems_and_Services/Sectie_Informatie_en_Communicatie_Technologie/medewerkers/jan_van_den_berg/news/doc/Fabian_Final_Public.pdf [Accessed 10 August 2012]. Mahadevan, B. & Venkatesh, N.S., 2000. A framework for Building On-line Trust for Business to Business E Commerce: Issues & Challenges. [Online] Available at: http://onemvweb.com/sources/sources/building_online_trust_ecommerce.pdf [Accessed 10 August 2012]. Pittayachawan, S. & Singh, M., 2004. Trust Models in the E-Commerce Environment. In The Fourth International Conference on Electronic Business (ICEB2004). Beijing, 2004. Raisanen, M., 2008. How brands can build trust among consumers. [Online] Available at: http://www.imediaconnection.com/content/20847.asp [Accessed 11 August 2012]. SellerInsights, 2010. Want to Build Trust? Then Minimise Buyer Risk. [Online] Available at: http://buyer.sellerinsights.com/2010/08/06/want-to-build-trust-then-minimise-buyer-risk-2/ [Accessed 11 August 2012]. Shelly, Cashman & Vermaat, 2005. Discovering Computers 2005. Boston: Thomson Course Technology. SIRKEMAA, S., 2010. The Role of Trust in e-Business: Understanding the Customer. [Online] Available at: http://www.wseas.us/e-library/conferences/2010/Corfu/COMPUTERS/COMPUTERS2-60.pdf [Accessed 10 August 2012]. Srinivasan, S., 2004. Role of trust in e-business success. Information Management & Computer Security, 12(1), pp.66-72. Turban, E., Leidner, D., McLean, E. & Wetherbe, J., 2005. Information Technology for Management: Transforming Organizations in the Digital Economy. New York: Wiley. Velmurugan, M.S., 2009. Security and Trust in E-business: Problems and Prospects. International Journal of Electronic Business Management, 7(3), pp.151-58. Read More