E-business: advantages and risks in the period of digital transformation
The article substantiates the expediency of creating, conducting and developing e-business as a relevant business model in the period of digital transformation. The authors propose an approach to the definition of e-business as a type of economic activity, when information and communication technolo...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Zhytomyr Polytechnic State University
2021-12-01
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| Series: | Економіка, управління та адміністрування |
| Subjects: | |
| Online Access: | http://ema.ztu.edu.ua/article/view/249829 |
| Summary: | The article substantiates the expediency of creating, conducting and developing e-business as a relevant business model in the period of digital transformation. The authors propose an approach to the definition of e-business as a type of economic activity, when information and communication technologies and networks are used for the successful implementation of business processes.
There are various basic opportunities for starting an e-business. The key areas of e-business include the initial creation of an enterprise that provides services exclusively through the use of information and communication technologies and networks, the addition of traditional services with electronic already operating enterprises (with the subsequent separation of this type of activity into a separate line of business) and the gradual transition of the enterprise to conducting electronic business. The undoubted advantages of conducting e-business using network technologies in the economic activities of enterprises include: accelerating customer service, eliminating restrictions on the location of retail space, shops, offices and accessibility to customers, keeping the business up to date and focusing on improving business processes.
The study identified a number of risks associated with e-business, the main of which are: risks of network security, risks of marketing failures, risks of hidden costs (or costs of maintenance and modernization), business risks, risks of fraud, for example, with stolen bank cards, etc. In general, an understanding of e-business risks is necessary to determine the company’s approach to managing these risks, in particular the adequacy of the internal control system. Such a system may include security infrastructure and related control measures. Failure to take into account the risk factor can lead to a decrease in the overall expected outcome with different consequences. Such consequences may include: disruption of business viability, loss of competitive advantage, deterioration of business image and financial stability, reduction of aggregate economic benefits, additional financial and non-financial costs, etc. |
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| ISSN: | 2664-245X 2664-2468 |