Decision-Making Process of Chinas Economic Sanctions

Decision-Making Process of Chinas Economic Sanctions It is undoubtedly that the rest of the world are increasingly concerned of Chinas economic power and how will China intend to use the power to advance geopolitical ends. China has enjoyed rapid economic growth since the introduction of market reforms in 1978. The unprecedented economic growth has made China becoming the second biggest economy in the world in the year 2010. Not only did Chinas economic power improves, the significant economic growth has also provided China with greater opportunity and strength to increase political influence abroad through economic means, so called economic statecraft. Today economic statecraft has become an ever more evident feature of Chinas behavior in the international system, as the level of interdependence between China and the global economic grows. To define economic statecraft more clearly, this study will rely on Baldwins (1985) definition. Baldwin defines economic statecraft as the use of economic levers by states attempting to influence other international actors through offering economic incentives or imposing negative sanctions[1]. In other words, economic statecraft is divided into positive incentives and negative sanctions, and these will take in the forms of trade and capital. For example, positive incentives in the form of trade are favorable tariff discrimination and trade subsidies, while capital incentives in the form of capital are foreign aid and investment guarantees. Examples of negative sanctions in the form of trade are embargo, boycott, and unfavorable tariff discrimination, while sanctions in the form of capital are aid suspension, freezing assets and financial control. Chinese leaders generally prefer carrots over sticks, as economic incentives provide mutual benefits to both economies and thus resulting in a win-win outcome. Examples are Chinas foreign aid activities in developing countries and Chinas free trade agreement with other countries, which both cases not only enable China to strengthen its relationship with other countries but also allow both countries to benefit economically. While the use of economic sanctions by China has been rather rare, which is not a surprising phenomenon. This is because China has a long-standing stance on the opposition of economic sanction[2]. It opposes sanctions as a way of resolving issues and condemns sanctions as an immoral punishment of vulnerable and the innocent populations. Chinas opposition is demonstrated through top Chinese leaders publicly criticized other countries for imposing economic sanctions to punish wrongdoers. One example is that a Chinese foreign ministry official, Jiang Yu responded to t he Frenchs call for massive sanctions against Iran to cease its nuclear program in 2009, China always believes that sanctions a pressure should not be an option and will not be conducive to the current diplomatic efforts over the Iran nuclear issues.[3] Another example is that the Chinese foreign minister, Wang Yi opposes sanctions on North Korea and expressed his view to the Japanese counterpart that unilateral sanctions were not the only answer to managing the situation on the Korean Peninsula and it would not resolve the nuclear issue of North Korea[4]. These two examples reflect Chinas belief of inefficacy of sanctions. Besides public critics of sanctions, China had also employed its Security Council veto to oppose against sanctions on countries including Myanmar in 2007, Zimbabwe in 2008, Syria in 2011 and 2012. Not only did Beijing thinks sanction is ineffective, but it also think sanction can inflict injury to the target countrys economy and the living of its people[5]. Beijing has repeatedly insisted that peaceful means should be employed as the priority option to resolve conflict, while sanction should only be used as a last resort[6]. Indeed Chinas opposition stance on sanctions is consistent with its commitment to peaceful development and its pursuit as a responsible power. Chinas peaceful development has been the central theme of Chinese foreign policy since 2004. Beijing sees peaceful development as crucial to preserve a peaceful environment for sustaining its economic development and stability. In other words, China advocates a world with peace and harmony, in which all countries are benef iting from the shared prosperity. China also has been working towards to build its image as a responsible power to mitigate Chinas threat theory through proactively involve in international affairs. Despite Beijings long standing negative perception of economic sanctions, there is a trend of China increasingly make use of economic coercion in the international arena, which marks a new and significant phenomenon that contradicts with Chinas rhetoric and its long-standing stance. This is evidenced in the four cases that will be further explored in the later chapters. The first case is Chinas proposed economic sanctions on USs companies that engages in arms sell to Taiwan in 2010. The second case is Chinas imports ban of crude soy oil from Argentina as a retaliation in response to Sino-Argentina tension in 2010. The third case is where China imposed an export ban of rare-earth on Japan in face of the Sino-Japanese tension in the disputed maritime island in 2010. The last case is Chinas restriction on Philippiness imported bananas following the Scarborough Shoal incident in 2012.These cases indicate the increasing propensity of China to exercise economic coercions. The question pres ents here is that provided Chinas negative perception of economic sanction, why China still imposes economic sanction on other countries as a tool of economic statecraft? What are the decision process driving China to exercise economic sanctions? What are the characteristics of Chinese economic sanctions? It is also worth noting that majority of the existing literature on Chinese economic statecraft focuses on the effects and efficacy of Chinese economic statecraft rather than on its motives and application. Because examples of Chinese economic coercion are relatively limited and understudied, an in-depth analysis of Chinas economic sanction is vital to understand the decision making process and what triggers China to resort to coercion especially in recent years. This study also further seek to explain how Chinas exercise of economic sanction fits into Chinas grand policy? This paper builds on Chinas economic statecraft literature specifically Chinese economic sanction in the field of International Political economy (IPE) by drawing key definition and concepts from influential works. 1. Economic Sanctions and its effectiveness As discussed in Chapter 1, economic sanctions are stemming from economic statecraft. Daniel Drezner (2003) defines economic coercion as the threat or act by a sender government to disrupt economic exchange with the target state, unless the target acquiesces to articulated demand.[7] Many scholars have used sender to refer to the state that imposes the sanction, while target means the sanctioned countries. However it is noted that many studies today have used the term economic coercion and economic statecraft interchangeably despite that they are different[8]. To align with the current studies, this paper will treat these two terms as equivalent. There two major weaknesses with this definition. First, Drezners definition of sanction is too restrictive. It only views the behavioral change as the only desired outcome of sanctions by the sender, which in this case is the acquiescence to the senders demand. However, sanctions can also have outcomes such as signal and deterrence. Second, t he definition limits itself to only one desired outcome by the sender. In fact, senders are able to achieve more than one outcome on the target by imposing sanctions. Lindsay and Giumelli demonstrate that economic sanctions can achieve outcomes other than behavioral change and hold multiple goals. Lindsay claims that sanction can take up to five different actions including compliance, subversion, deterrence, international symbolism, or domestic symbolism[9]. Giumelli also defines three dimension that sanction can take, which are coercion, constraint and signal[10]. For the purpose of this paper, I will utilize Giumellis three means of economic sanction to evaluate my dependent variables in Chapter 3. Most existing literature on economic sanctions focus on measuring the successful rate of economic sanctions. While the majority of literature in the 1970s and 1980s saw the low successful rate of economic sanction, many scholars concluded economic sanction to be ineffective. The study conducted by Hufbauer, Schott and Elloitt is one of the first to challenge the negative perception and finds that 34 percent of cases in economic sanctions were successful in the twentieth century[11]. However, the findings has later been contested by other scholars. Scholar like Robert Pape re-conducted the study using the same dataset, yet he finds less than 5 percent of sanctions had succeeded and concludes their study inflated the success rate[12]. On the other hand, Drezner holds an opposite view than Paper where he asserts that success rate is potentially undervalued as a result of selection biases[13]. He argues that there were many cases where economic coercion ended at the threat phase rather than the impositions phase. These cases show greater chances of succeeding than when they are imposed due to change of pre-emptive behavior. Since Hufbauer et al. select those cases that are less likely to succeed when sanctions are imposed, Drezner argues that they downplays the role of hidden hand of economic coercion and hence the success rate is far higher. These researches share the common weakness in which they have solely depended on the behavioral change criterion to gauge the successfulness of economic sanction. This problem is exactly the same as the definition earlier. Without taking into account other effects of economic sanction, the effectiveness of sanction cannot be measured. This raises a question if really economic sanctions are proved to be so unsuccessful in practice, why policymakers still depended on it for its state governance? Not to mention that today there is still no consensus reached as to the degree of success of economic sanctions. This is because of a lack of a shared model for the study of successful sanctions. However, in general scholars agree on that a successful economic sanctions is to keep the target costs of deadlock and potential vulnerabilities large while having the cost of imposing small. For instance, Hufbauer et al. in its 3rd book edition advise that policymakers require to evaluate both the vul nerability of the target country to prospective sanctions and the viability of maintaining the sanctions regime[14]. Drezner in his book the sanctions paradox illustrates the importance to enlarge the gap in the costs of sanctions impositions, meaning to maximize the targets costs of noncompliance and minimize the senders costs of imposition[15]. Beside this, he also argues that the low expectation of future conflict between the sender and target will make sanctions more likely to succeed. His argument has proven to explain why allies are more likely to take larger concession than the case with adversaries. It is worthy to note that the tools of economic sanctions are increasingly effective today than a decade ago, with improving abilities to enlarge the costs of targets while limit the senders costs. Smart or targeted sanction is one of them, where it was first introduced in 1990s. Smart sanctions are different to comprehensive sanctions in that they impose sanctions by targeting an individual or limited sectors compared to targeting the whole country[16]. By doing so, smart sanctions are able to effectively increase the costs in that group while reduce the humanitarian effects on the target countrys population and disruptive economic impacts to other sectors. Asymmetric interdependence is another major tool that has been increasingly used by policymakers. Hirschman demonstrates that asymmetry interdependence serves as a source of power to the stronger and larger states as they have the coercive leverage over the weaker and smaller states, with the smaller states are depended on the economy of the larger state[17]. Building on the concepts of Hirschman, Robert Keohane argues that asymmetric interference can also apply to weaker states provided that they have the asymmetric advantage in certain groups of the stronger states[18]. This thinking has challenged the original idea of asymmetry and provide explanation of why would weaker states impose sanctions on stronger states. Undoubtedly, the recent evolution of sanction tools stemming from the classical ones has increased the proliferation of the use economic sanctions. 2. Chinese economic sanctions Few scholars have commented on Chinas economic sanctions, and little remains to be found in the literature on this topic. This is simply because, strictly speaking, China does not formally impose economic sanctions unilaterally on other countries. Instead, China pursues other economic maneuvers that essentially have the same effect. To remain politically correct and technically accurate though, scholars use the term economic coercion to describe Chinas behaviour. Despite sharing the same objectives, economic sanctions mainly used by rich western countries and economic coercion have its own defining characteristics. Specifically, Chinas use of economic coercion is informal and indirect[19]. The Chinese government would never declare the true reason for the economic restrictions. Instead, other unrelated reasons are cited, leaving the target country to connect the dots themselves. Some scholars are starting to believe that Chinas longstanding practice of shunning economic sanctions will soon come to an end. Beijing has become increasingly reliant on economic coercion to solicit policy change or as a means to send a message[20]. As the number and degree of tensions escalate, economic coercion may not be adequate. Chinas growing economic clout is another alarming development for some. With greater power, some scholars fear that China would be more inclined to use what is readily available at their disposal. On the opposite side of the argument, scholars believe that China would continue its limited use of economic policies as a tool. The argument goes like this: Economic coercion or sanctions are detrimental to Chinas core national interests[21]. In particular, Beijing places great emphasis on peaceful development and creating a good international image. Imposing sanctions or coercion on other countries can seriously undermine that objective. Moreover, the stringent rules of the WTO greatly restricts the range of options that is available to Beijing. Pursuing an aggressive economic coercion strategy puts undue risks of violating WTO rules and damaging the countrys economic health.   1. Hypotheses After the analysis of literature review of economic sanctions, the following hypotheses are made to address the research question why China imposes economic sanctions? What trigger the use of economic sanctions? What are the distinctive characteristics of Chineses economic coercion? H1: China exercises economic sanction on non-allied countries when they harm Chinas national interest provided that the gain derived from sanction outweigh the cost. This hypothesis is built on the foundation of Drezners Sanction Paradox theory, which argues that sanctioning states are more likely to sanction adversaries than allies despite a lower success rate. The adversaries would take a larger concessions if target incurs significant more costs than senders costs. Since China views economic sanction as a last resort of resolving conflict, China will only imposes coercion when its core interest is infringed. In this case, the independent variable is damage or no damage to Chinas national security, while the dependent variable is the use of sanction. H2: China uses economic sanction where there is a sectorial asymmetric economic advantage over the target country Asymmetric economic advantage allows China to have a higher chance of success in achieving its political goals in target countries with limited costs. This hypothesis also considers the importance of smart sanction for Chinas decision to impose sanction. In specific, asymmetric economic advantage in a certain sectors offers coercive leverage and source of power to contest against equally strong or stronger countries. China takes advantage of the sectorial asymmetric advantage not only can generate the most optimal benefit-cost outcome but also minimize negative impacts on the whole economy and humanitarian impacts on the population. Independent variable is economic sanctions with sectorial asymmetric economic advantage, and dependent variable is the use of economic coercion. H3: China uses implicit economic sanctions as its prioritized option and uses explicit economic sanction as a last resort Implicit economic sanction indicates sanctions in a non-declared and closed-door settings. The implicit feature of economic sanctions allows China to gain flexibility and minimize diplomatic fallout. It also allows China to reveal a relatively more consistent image of a responsible power that advocates peaceful development and peaceful resolution. China will only adopt explicit economic sanctions if implicit sanctions cannot work. The independent variable in this hypothesis is implicit economic sanction, and dependent variable is the use of economic sanction. 3. Case Studies In order to examine the validity of these three hypotheses that together contribute to reasons why China uses economic sanctions. This study explores four case studies where China imposed economic sanctions against four different countries, which are the 2010 Sino-Taiwan arms war, the 2010 Sino-Argentina crude soy oil, the 2010 Sino-Japan rare earth war, and the 2012 Sino-Philippine banana war. In order to reduce the selection and personal biases, this study compares four case studies and identifies the similarities and differences between these studies. On top of that, quantitative measures is also adopted. In detail, the monetary costs of both the sender and target countries, the time period of the target countrys response to Chinas sanctions, as well as the impact of the sanction on the countrys economy are measured. Given that these four cases are all trade sanctions, trade statistics are collected from United Nations Commodity Trade Statistics (UN Comrade). These statistical results will also be contrasted case-by-case and is subsequently review together with the qualitative results. Even though the quantitative measures are not used to measure the effectiveness of Chinese coercion levers, they provide insights on the rationale why China employs these levers. The result can also confirm Chinas implementation of implicit economic coercions, as some may argue that Chinas moves are not economic sanction where they are independent of those incidents. Timeline/schedule for the thesis January: Amend and Complete literature Review and methodology chapters Research and examine the current literature on the four case studies February: Analysis of the qualitative analysis of four case studies and make comparison between the four Conduct quantitative analysis of the case studies and make comparison March: Interpretation of the results from both qualitative and quantitative analysis and make conclusion April Final submission [1] Baldwin David, Economic Statecraft (New Jersey: Princeton UP, 1985), 40-42. [2] James Reilly, Chinas Unilateral Sanctions, The Washington Quarterly 35, no. 4 (2012): 121-133. [3] Willem V. Kemenade, China vs. the Western Campaign for Iran Sanction, The Washington Quarterly 33, no. 3 (2010): 99-114. [4] Huileng Tan, China tells Japan sanctions against North Korea wont resolve nuclear issue, CNBN, September 14, 2016, http://www.cnbc.com/2016/09/14/china-tells-japan-sanctions-against-north-korea-wont-resolve-nuclear-issue.html (accessed December 8, 2016) [5] Mu Ren, Chinas Non-intervention Policy in UNSC Sanctions in the 21st Century: The Cases of Libya, North Korea, and Zimbabwe, Ritsumeikan International Affairs 12, (2014):101-134 [6] Ibid. [7] Daniel W Drezner, The Hidden Hand of Economic Coercion, International Organization 57, no. 3 (2003): 643-659. [8] Baldwin David, Economic Statecraft (New Jersey: Princeton UP, 1985) [9] James M Lindsay, Trade Sanctions As Policy Instruments: A Re-Examination, International Studies Quarterly 30, no. 2 (1986): 153-173 [10] Francesco Giumelli, Coercing, Constraining and Signalling: Explaining UN and EU Sanctions After the Cold War (Colchester: ECPR Press, 2011), 3 [11] Gary C. Hufbauer and Jeffrey J. Schott and Kimberly A. Elliott, Economic Sanctions Reconsidered: Supplemental Case Histories, (Washington, D.C.: Institute for International Economics, 1990) [12] Robert A Pape, Why Economic Sanctions Still Do Not Work, International Security 23, no.1 (1998): 66. [13] Daniel W Drezner, The Hidden Hand of Economic Coercion, International Organization 57, no. 3 (2003): 643-659. [14] Gary C. Hufbauer and Jeffrey J. Schott and Kimberly A. Elliott, Economic Sanctions Reconsidered: Supplemental Case Histories, (Washington, D.C.: Institute for International Economics, 2009), 690 [15] Daniel W Drezner, The Sanctions Paradox: Economic Statecraft and International Relations, (Cambridge: Cambridge University Press, 1999), 13 [16] Daniel W Drezner, Sanctions Sometimes Smart: Targeted Sanctions in Theory and Practice, International Studies Review 2011, no. 13 (2011): 96-108 [17] Albert Hirschman, National Power and the Structure of Foreign Trade,(Berkeley: University of California Press, 1980). [18] Robert Keohane, and Joseph Nye, Power and Interdependence, 238-240. [19] James Reilly, Chinas Unilateral Sanctions, The Washington Quarterly 35, no. 4 (2012): 121-133. [20] Bonnie Glaser, Chinas Coercive Economic Diplomacy: A New and Worrying Trend,CSIS, August 6, 2012, https://www.csis.org/analysis/chinas-coercive-economic-diplomacy-new-and-worrying-trend, (Accessed on 11 December 2016) [21] Jianwei, Liu. Is china an emerging sanctioning state? Cooperation for a Peaceful and Sustainable World Part 2, 2013, 225-240.   

Causation of Crime Essay

The two theories I chose to compare and contrast are the Trait and Choice theories. These two theories explain why people commit crimes but differ in reasoning. I found that the main difference in between the two is that the choice theory states that if people want to commit a crime they will if the benefits outweighs the punishment. The trait theory differs because it deals with testosterone and whether or not people with lower IQ’s are more liable to commit crimes. When looking at the two theories you will see that the first theory is more straightforward and the second one leans more towards taking the blame away from the individual and placing it their traits. I like the fact that the choice theory states that if a person is going to commit a crime they are going to do it. Not only does this theory cover the fact that the person committing the crime weighs his or her options but might also do it out of enjoyment of act. The trait theory takes the responsibility away from the individual and places it on traits such as testosterone. I feel that this theory allows people to commit crimes and later on say that it was due to producing too much testosterone or use their IQ as an excuse to escape the fact that they committed a crime. Making the person accept responsibility for their actions it what should happen and the choice theory seems to lean more towards that as opposed to the trait theory. I would associate the guns and crime trend to the choice theory. The reason for this is because most people who commit crimes with guns already have the intention to use it. This means that they already made up their minds and have chosen to commit the crime. For instance gang crimes that involve guns, these individuals use guns, in their minds, to gain territory or even for retaliation. In a ten year span that covers 1997 -2007 there were 650 homicides (Krueger, 2007), this means that 650 times the people have made the conscious choice to kill someone. Out of those numbers, 290 of them have been by shootings (Krueger, 2007). That is some real food for thought when you add the choice theory into the equation. Gutierrez, K. (2007). Albuquerque metro area saw 54 homicides in 2007. Scripps Newspaper Group. Retrieved from: http://www.abqtrib.com

Examining Reasons Why Kids Join Gangs Essay - 2158 Words

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How Social Inequality Is Too Much - 1441 Words

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To further explain this, an example of temporary inequality is the relationship between doctor and patient because the patient is encouragedRead MoreLocke And Rousseau s Theory Of A Social Contract1206 Words   |  5 Pagessome aspects they ultimately have a different political philosophy. Locke and Rousseau have clearly distinct social contract theories, interpretations of man and the state of nature. In his work, Discourse on Inequality, establishes the idea of a fraudulent social contract. Rousseau further develops his political theory and discusses contemporary themes like the state of nature in, The Social Contract. There i s a clear distinction between Rousseau’s theory and Locke’s theory as laid out in the, Second

The Effects Of Domestic Violence On Women - 889 Words

Domestic violence can often go unnoticed, unreported and undeterred before it’s too late. Unfortunately, recent awareness efforts have gathered traction only when public outcry for high profile cases are magnified through the media. Despite this post-measured reality, a general response to domestic violence (DV) and intimate partner violence (IPV) by the majority of the public is in line with what most consider unacceptable and also with what the law considers legally wrong. Consider by many, more than just a social discrepancy, the Center of Diseases Control and Prevention currently classifies IPV and DV as a social health problem (CDC, 2014). National data gives us an indication of the severity of this issue. When 1 in 5-woman report being victims of severe physical violence (NISVS, 2010), we must ask ourselves if enough is being done to prevent this from occurring. From a historical point, there has always almost been a distinction from men on woman violence. Based on the d isparity of cases reported, male inflicted violence on females is much higher and prevalent. When the perpetrators of DV, and IPV are predominately males, we can no longer dismissed this issue as a cultural, or psychological lapse in judgment. Currently the state of California requires all domestic violence offenders to take court order classes as a form of reprimand and in part to educate offenders. It is important to understand that a justice system intervention can sometimes fall short and failed toShow MoreRelatedThe Effects Of Domestic Violence On Women1652 Words   |  7 PagesDomestic violence is present in all regions of the world regardless of race, culture, or religion. It is not uncommon for men to experience spousal abuse. However, in reality abuse done by men towards women is a much more common occurrence. Men often abuse women as a result of negative domestic relationships experienced during childhood, the feeling of inadequacy and mental illness. However, the leadin g cause for this behaviour is the feeling of inferiority and the need to exert power. StereotypicallyRead MoreThe Effects Of Domestic Violence On Women1654 Words   |  7 PagesIntroduction Violence against women has been recognised internationally by the world Health Organization (WHO, 2013).Women has been facing different types of violence since the age of 15 such as physical, emotional or verbal abuse. The highest prevalence of domestic violence (DV) is from their intimate partner/perpetrator both physical emotional (WHO, 2013). It has been depicted by the Australian Bureau of Statistics (ABS, 2013) that rate of domestic violence against women by their intimateRead MoreThe Effects Of Domestic Violence On Women1601 Words   |  7 Pagesquestions that women who suffer from domestic violence ask themselves everyday. Thousands of women every year face abuse from their male partners. It is estimated that three women a day are murdered in the US everyday by a current or past male partner (Huffington Post), therefore proving that an argument between two people in love can result in more than just heartbreak. Partner abuse against women is an epidemic that needs to be addressed. Domestic violence is a very serious issue that women face in modernRead MoreDomestic Violence And Its Effects On Women1599 Words   |  7 PagesDomestic violence is a large social issue around the world that is commonly associated with the mistreatment of women. However, there are many different forms of domestic violence that affect men, women, and children (Domestic Violence 1). Victims of domestic violence may suffer not only physically, but emotionally and mentally as well. Domestic violence is a very important social issue because it negatively affects both the abuser and the victim. In the article, â€Å"Domestic Violence and Abuse: TypesRead MoreThe Effects Of Domestic Violence On Women Essay1246 Words   |  5 Pagesaddressed the domestic violence and continue to persist as a social problem affecting a large number of Canadian Women. The authors are trying to answer this question giving some statistics, how the women are abused from their partner, such as the violence reported when the relationship is ended, and is some other case the violence starts after the separation. Furth more the authors mention another key answer that I think could be a question, is what are the effects of domestic violence? Alaggia, RegehrRead MoreThe Effects Of Domestic Violence On Women1362 Words   |  6 PagesDomestic violence is a sensitive topic even though media and society are providing more information about this topic. Domestic violence not only affects women but children and family in general. 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Everyone in a homebound affiliation is at risk of obtaining a violent status. Domestic violence has had the grandest impact on women. It can be found all over the world, within various countries. Domestic violence has a harsh, negative, and destructive influence on women; domestic violence can lead to emotional, physical, and psychological damage. Domestic violence is defined as an act of violence within the household. The aforementioned is one of the most underestimated and underreportedRead MoreThe Effects Of Domestic Violence Towards Women2023 Words   |  9 Pages Domestic violence towards women is a problem that is often overlooked by society. Violence is defined in Webster s Dictionary as: â€Å" Physical force employed so as to damage or injure. As an instance of violent action.† (Webster) If this is the case, then why is it that so many women are beaten by loved ones each year? And little or nothing is done to correct this violent situation? 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Digital Business Environment Free Essays

string(67) " or different part of garment, or using alphabet-order brand list\." Introduction The scientists who developed the Internet probably did not realise their invention completely changed our world today. From how people communicating, connecting with social network, to how and where people work, Internet is now affecting our daily life in every dimension. Internet still and will continue change our life and behavior, according to data, nearly a third of world population are Internet user, and this number is still growing at an unprecedented speed (IWC, 2012). We will write a custom essay sample on Digital Business Environment or any similar topic only for you Order Now Internet affects almost every aspect of people daily activities, thanks to the Internet, people can virtually shopping without going out and get their items delivered to the doorstep in a matter of days. Information is now much more accessible over the Internet, people can share their life using blogging, and not to mention that business world has expanded to a whole new dimension. Company or individual can now target a much more wide consumers around the world. As much as the Internet has changed our personal lives, the business world has revolutionsied almost beyond recognition since the Internet era. Jeremy (2011) states the rise of Internet and other technologies is the start of Third Industrial Revolution. Although there is still ongoing debates about this theory, that the Internet has changed the face and pace of our modern business world. Hosted on the server, accessed using the Internet, the website or simply known as the site or web page, is one of the fundamental elements that forms the Internet we use today. It is also the most common way that a company or individual promote and conduct their business. This paper will thoroughly analyse and discuses a chosen website, the purpose is to take an insight to the digital business environment. Terms such as E-commerce, and CRM (Customer Relationship Management) will be mention and discuss. The technical details of how to build and maintain a website will not be discussed in this article. Overview The website chosen in this paper is Oki-ni, before further analyse the company and the website, it is essential to understand some of the basic about website. Organised by function, a website may fall into one of these catalogue (Yuan, 2005) * A personal website, e. g. blogging * A commercial website, e. g. company website, such as Microsoft, Apple * A government website, e. g. NASA website, City Council website * A nonprofit organisation website, Greenpeace, or RedCross website According to this catalogue, Oki-ni is a commercial website. Another terms that need to understand is Electronic commerce, or commonly known as E-commerce. There are many different definition of E-commerce from different perspectives in different discipline. Mamta (2005) summarised that E-commerce is the process of buying and selling or exchanging of products, services and information via telecommunication and computer networks including Internet. Mamta (2005) further generalised that based on the types of parties (business, consumer, etc) involved, E-commerce may be of the following types: * Business-to-Business (B2B) * Bsuiness-to-Consumer (B2C) * Consumer-to-Consumer (C2C) * Consumer-to-Business (C2B) * Intrabusiness Based on that definition, Oki-ni is a B2C type of E-commerce, different from other B2C website, the Britain based company focused on high-end menswear. The name originated from a Japanese dialect, means ‘Hello’, Oki-ni was created to work with established brands and progressive designers, to offer innovative products to knowledgeable fashion consumers. In another words, Oki-ni sells more than clothing, but a life-style. The company also collaborated with other fashion brands such as Paul Smith, Adidas, to produce unique pieces. This paper will focus itself on evaluating the use and implementation of digital information system on the chosen website, applications on the website will be paid extra attention and thoroughly analyse, such as inventory system, newsletter, multimedia applications. Furthermore, the OVP (Online Value Proposition), Online revenue models and other factors will be critically reviewed. Using researcher’s extensive knowledge, the concept and application of CRM on the website will be analyse. Lastly, researcher will proposed some recommendations to improve the website followed by the digital business strategy. Analyse of The Website For E-commerce site, the primary purpose is to sell. However, most online retailers fell to the wrong direction when even building their website. They spent heavily on how to attract more visitors to the site and simply forgot what is the point if the consumer visited the site but not buying anything. There may be many factors that contribute and affecting consumers’ buying behavior, but the inappropriate implementation of information system is more often seen in business operation. Customer cannot locate the item they want, or found themselves cannot checkout with the system, modern information technology brings a great convenient, however, sometimes it can be chaos without properly used. For an enterprise, it is critically important to aware its organisational goals and objectives as well as the implementation of information system. (Mehdi, 2006) For the company of Oki-ni, the website serve the purpose of sales and providing customer service. Thus, the inventory information and customer information are vital to the company’s lifeline. Furthermore, to provide an enhanced online shopping experience, the supply chain management, online information security, and multimedia interactive applications are equally important. Inventory Management When running an E-commerce, it is very easy to get caught up in other aspects and neglect the importance of inventory management. Ritendra (2008) emphasis that its crucial to run inventory management effectively for the business to be profitably. For Oki-ni, there are thousands of items and new items in stock everyday, how to manage it efficiently become vital to the company, what’s more, it has two layers of meaning. Firstly, for the staff, effective inventory system should allow them to locate specific item easily, and overview the whole inventory to see which items are running low on stock, and which are the best selling. Secondly, for customer, the inventory system should provide an easy accessible. Oki-ni website provide a simply and minimalism searching interface for the customer, customer can search the items they looking for by their preferable method, such as, using keywords, sort it by color, price range, sizing, or different part of garment, or using alphabet-order brand list. You read "Digital Business Environment" in category "Papers" On the top page of Oki-ni site, customer can easily find new arrivals or discount information. Customer Information Comparing with tradition in-store shopping, online retailer has the advantage on tracking, storing and anaylsing customer data. Oki-ni gathering customer information by encouraging customer registered with their e-mail address. By using these e-mail addresses with the concerns of customer, Oki-ni sends out newsletters to customer. Newsletters are an effective way to build goodwill and keep in touch with potential customer (Janice, 2004). Customer received promotion, new arrivals and other information from the website. When comes to place order, for security and privacy concern, the company only takes the minimum information that required for delivering, such as address, telephone number. Internet is an ever-changing, competitive-intensive environment, the recently raise of new social network drew a lot attention. As a company aiming itself not only sales, but to promote a lifestyle, Oki-ni has extended its content to other different social-network, such as Facebook, Google+, and Twitter, customer can find sales information, new product on these social network. Also, Oki-ni can gather customer information on other platforms, it’s a win-win situations. Multimedia Interactive One of the major advantages of E-commerce comparing traditional retailing is convenience; customer can search for product and compare it, finally checkout in a short amount of time by just clicking the mouse, however, E-commerce has deprived its users of the reality (Vincent Franck, 2004). Material color, texture, tactile impression, those physical details cannot be display or feel by the two-dimensional images and texts on a computer screen. Most people have on-line shopping experiences have those situations that sometimes the products they received are different from their expectations. In order to provide better shopping experiences, Oki-ni provide an enhanced multimedia interface. In every product description page, the website provides high-resolution photos of the products, customer can click zoom-in to see the details of the texture, and a short video to demonstrate the product. For music product, such as CD, preview services are provided. Critical Review In this part, the website’s OVP (Online Value Proposition), ORM (Online Revenue Model) and target audience will be critically reviewed. Online Value Proposition What’s the Online Value Proposition? It is a statement of the benefits of e-commerce services that ideally should not be available in competitor offerings of offline offerings (David, 2006). Michael Susan (2012) further states that in an E-commerce context the differential advantage and positioning can be clarified and communicated by developing an online value proposition. Simply speaking, OVP is the USP of the brand or the website, a strong OVP is a crucial way to attract new visitors into the site and decided to stay or leave, the decisions often made in minutes or even in seconds. Developing an OVP, involves: * Developing messages that reinforce core brand proposition and credibility * Communicate what a visitor can get from an online brand that other competitors can not offer or they cannot get offline (Micheal Susan, 2012) Translate these theories into simply language, a good OVP should answer the questions ‘Why am I here? ’ ‘Does this site offer me what I need? ’ In the digital business environment, the competition is much fierce and intensive then ever before. How to stand out from the crowd in a matters of seconds when visitor first open the site become vital to success. There a great numbers of online clothing retailer, from high-street brand, such as Topshop, ASOS, to luxury brand, e. g. Net-a-porter, Browns. Being good is not enough to win the competition, a good OVP is essential for Oki-ni to survive in the competition. More than ten years passed the establishment of Oki-ni, the website is still focusing on menswear, more specifically, they aiming to discover and break the most inspiring brands and products available, while hosting them in an rich, inspiring and innovative environment. The home page of Oki-ni featuring a simplicity style filled with inspiration contents. Existing customer can easily find what they want in a few clicks; in the meanwhile the video and music can attract the attention of new customer. The website keep updating its FEATURES section with vibrant and forward-thinking videos and music. There is no differentiated of so call ‘high-street’ or ‘luxury’ on Oki-ni’s product, customer can find shorts cost 20 pounds to a coat valued a few hundreds. But there is one thing in common, all product were carefully selected. Featuring more than cloth, customer can also buy books, CDs on the website. In order to keep a fresh look, Oki-ni redesign the website every six month, from layout to the content. To sum up, Oki-ni’s strong OVP is that they not only sell cloth, but the promote an innovation life-style. Online Revenue Model In the article, Business Models on the Web by professor Micheal Rappa (2006). He suggests that ‘business models are perhaps the most discussed and least understood aspect of the web. ’ In this regards, he summarised the business model into the following * Brokerage * Advertising * Informediary * Merchant * Manufacturer * Affiliate Community * Subscription * Utility The revenue model may be different in these business model, some website get paid by doing advertising, some website generated income by subscription. In the case of Oki-ni, the revenue model is easy to identify, the company produce service and sell it to customer. When the revenues from sales exceed the operational cost, then the company gets profit. Comparing to store retai ler, the website is relatively easier to operate. No rent, less labor cost, means the website can provide a much more competitive price than physical store. However, on the other hand, the maintaining of website post a great challenge to the company. Target Audience The company target a niche market of luxury product segment. Focusing on menswear only, the website sells a wide range of product from selective clothing line from Japan, Italy, to limited edition CDs. There is no particular age range on the Oki-ni’s customers, the company targeting a small group who required a innovated and forward-thinking life-style, and willing to the pay a premium price for that. Customer Relationship Management The term of CRM (Customer Relationship Management) is now much more frequently seen in the E-commerce article, what’s CRM? The followings are different CRM definitions by scholars CRM involves various different elements, which includes customer-prospecting, relationship with customers; interact between customer and business, understanding customer expectations, empowerment, partnerships, and personalisation, and son on. (Fjermestad Romano, 2006). CRM is an enterprise approach to understanding and influencing behavior through meaningful communication in order to improve customer acquisition, customer retention, customer loyalty, and customer profitability. (Swift, 2006) So far, there is no universally accepted definition of CRM. It not a software or a service, it is an overall business strategy. Shanmugasundaram (n. d) identified that the three main components in CRM system, namely * Operational * Analytical * Collaborative Nowadays, not only global companies seeking helps from CRM, more and more SMEs (Small and Medium Size Enterprise) were implemented with CRMs. Oki-ni is no exceptional, the company used the first hand data not only to promote its product, but to provide a better service. From time to time, Newsletters were sent to customer, the content of those newsletters were not just about product information. Featuring styling tips, or invitations to special events, the company always try to encourage customer come to visitor site. Recommendation Running an E-commerce is far more complicated than just setting up a website, other than the business and the customer, it involves many their parties, such as vendor, supply chain, banking. Researcher found a rather interesting phenomenal when customer rated Oki-ni’s service, some customer give top rate on both delivery speed and money transaction. However, on the other hand, some customer extremely disappointed on their service quoted ‘the clothes arrived and were excellent although delivery is very slow’ (Ciao, 2007). The inconsistence performance may due to the delivery company and Oki-ni should try to avoid in the future. Moreover, there is more potential of the CRM waiting to be discovered. Oki-ni using CRM mainly on providing customer ervice and promoting products, CRM is much more than customer service, researcher suggest the company analyse the customer’s shopping behavior, such as what kind of brand they like the most, how frequently they shopped on the site, etc. to improve customer shopping experience. The company can also use the data to collaborative with other parties, such as bank, to improve online payment security, or delivery company, to improve performance. Lastly, the competition of digital business environment is much more intensive than ever before. The OVP (Online Value Proposition) may be seems strong and unique at this moment, with successful of Oki-ni, more and more website will try to follow the same model. How to maintain the competitive edge is vital for the company’s future. Conclusion By discussing and critically reviewed the Oki-ni’s website, this paper take an insight into the digital business environment. In the Internet era, trading become much more easier, even individual can set up a website with the know-how and the equipment. However, the competition is much more intensive. E-commerce is a complex term that involved many aspects, the terms and concepts researcher discussed in this paper barely scratch the surface. with the fast advancing technology, new issues now raised, such as legal issue and Internet security. Concepts of CRM, Online business model may need further investigation in the future. Reference: Ciao. (2007). Review of Oki-ni. com. Available from: http://www. ciao. co. uk/Reviews/Oki_Ni_com__5315436 [Accessed 10 Nov, 2012]. Fjermestad, Jerry, and Nicholas C. Romano. (2006) Electronic Customer Relationship Management. Armonk, NY: M. E. Sharpe,. Print. pp. 121-65 Internet World Stats, 2011. World Internet Usage Statistics News and World Population Stats. Available from: http://www. internetworldstats. com/stats. htm [Accessed 12 Nov. 2012]. Janice,Reynolds (2004). ’The Complete E-Commerce Book: Design, Build Maintain a Successful Web-Based Business’. NewYork, Taylor Francis. Print. pp. 268+. Jeremy, Rifkin. (2011). ‘The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World’. London, Palgrave Macmillan. Mamta, Bushry. (2005). ‘E-commerce. New Delhi, Firewall Media. Print. pp. 69 Mehdi, Khosrow-Pour. (2006) ‘Cases on Electronic Commerce Technologies and Applications. Hershey’, PA: Idea Group. Michael, Rappa (2006). ‘Business Models On the Web’. Available from: http://digitalenterprise. org/models/models. html [Accessed 9 Nov, 2012]. Ritendra, Goel. (2008) ‘Electronic Commerce Technology and Prosecpts. â₠¬â„¢ E-commerce. New Delhi: New Age International Pvt. Swift, Ronald S. (2000) ‘Accelerating Customer Relationships: Using CRM and Relationship Technologies. ’ Upper Saddle River, NJ: Prentice Hall PTR. Print. pp. 25+ Shanmugasundaram, S. (N. d) ‘Customer Relationship Management: Modern Trends And Perspectives’ New Delhi. PHI learning, Ltd. Vincent, Roca Franck Rousseau. (2004). ‘Interactive Multimedia and Next Generation Networks: Second International Workshop on Multimedia Interactive Protocols and Systems’. Springer. Available from: http://www. springer. com/computer/information+systems+and+applications/book/978-3-540-23928-4? cm_mmc=Google-_-Book%20Search-_-Springer-_-0 [Accessed 8 Nov 2012]. Yuan, Gao (2005). ‘Web Systems Design And Online Consumer Behavior’. London, Idea Group Inc. How to cite Digital Business Environment, Papers Digital Business Environment Free Essays string(67) " or different part of garment, or using alphabet-order brand list\." Introduction The scientists who developed the Internet probably did not realise their invention completely changed our world today. From how people communicating, connecting with social network, to how and where people work, Internet is now affecting our daily life in every dimension. Internet still and will continue change our life and behavior, according to data, nearly a third of world population are Internet user, and this number is still growing at an unprecedented speed (IWC, 2012). We will write a custom essay sample on Digital Business Environment or any similar topic only for you Order Now Internet affects almost every aspect of people daily activities, thanks to the Internet, people can virtually shopping without going out and get their items delivered to the doorstep in a matter of days. Information is now much more accessible over the Internet, people can share their life using blogging, and not to mention that business world has expanded to a whole new dimension. Company or individual can now target a much more wide consumers around the world. As much as the Internet has changed our personal lives, the business world has revolutionsied almost beyond recognition since the Internet era. Jeremy (2011) states the rise of Internet and other technologies is the start of Third Industrial Revolution. Although there is still ongoing debates about this theory, that the Internet has changed the face and pace of our modern business world. Hosted on the server, accessed using the Internet, the website or simply known as the site or web page, is one of the fundamental elements that forms the Internet we use today. It is also the most common way that a company or individual promote and conduct their business. This paper will thoroughly analyse and discuses a chosen website, the purpose is to take an insight to the digital business environment. Terms such as E-commerce, and CRM (Customer Relationship Management) will be mention and discuss. The technical details of how to build and maintain a website will not be discussed in this article. Overview The website chosen in this paper is Oki-ni, before further analyse the company and the website, it is essential to understand some of the basic about website. Organised by function, a website may fall into one of these catalogue (Yuan, 2005) * A personal website, e. g. blogging * A commercial website, e. g. company website, such as Microsoft, Apple * A government website, e. g. NASA website, City Council website * A nonprofit organisation website, Greenpeace, or RedCross website According to this catalogue, Oki-ni is a commercial website. Another terms that need to understand is Electronic commerce, or commonly known as E-commerce. There are many different definition of E-commerce from different perspectives in different discipline. Mamta (2005) summarised that E-commerce is the process of buying and selling or exchanging of products, services and information via telecommunication and computer networks including Internet. Mamta (2005) further generalised that based on the types of parties (business, consumer, etc) involved, E-commerce may be of the following types: * Business-to-Business (B2B) * Bsuiness-to-Consumer (B2C) * Consumer-to-Consumer (C2C) * Consumer-to-Business (C2B) * Intrabusiness Based on that definition, Oki-ni is a B2C type of E-commerce, different from other B2C website, the Britain based company focused on high-end menswear. The name originated from a Japanese dialect, means ‘Hello’, Oki-ni was created to work with established brands and progressive designers, to offer innovative products to knowledgeable fashion consumers. In another words, Oki-ni sells more than clothing, but a life-style. The company also collaborated with other fashion brands such as Paul Smith, Adidas, to produce unique pieces. This paper will focus itself on evaluating the use and implementation of digital information system on the chosen website, applications on the website will be paid extra attention and thoroughly analyse, such as inventory system, newsletter, multimedia applications. Furthermore, the OVP (Online Value Proposition), Online revenue models and other factors will be critically reviewed. Using researcher’s extensive knowledge, the concept and application of CRM on the website will be analyse. Lastly, researcher will proposed some recommendations to improve the website followed by the digital business strategy. Analyse of The Website For E-commerce site, the primary purpose is to sell. However, most online retailers fell to the wrong direction when even building their website. They spent heavily on how to attract more visitors to the site and simply forgot what is the point if the consumer visited the site but not buying anything. There may be many factors that contribute and affecting consumers’ buying behavior, but the inappropriate implementation of information system is more often seen in business operation. Customer cannot locate the item they want, or found themselves cannot checkout with the system, modern information technology brings a great convenient, however, sometimes it can be chaos without properly used. For an enterprise, it is critically important to aware its organisational goals and objectives as well as the implementation of information system. (Mehdi, 2006) For the company of Oki-ni, the website serve the purpose of sales and providing customer service. Thus, the inventory information and customer information are vital to the company’s lifeline. Furthermore, to provide an enhanced online shopping experience, the supply chain management, online information security, and multimedia interactive applications are equally important. Inventory Management When running an E-commerce, it is very easy to get caught up in other aspects and neglect the importance of inventory management. Ritendra (2008) emphasis that its crucial to run inventory management effectively for the business to be profitably. For Oki-ni, there are thousands of items and new items in stock everyday, how to manage it efficiently become vital to the company, what’s more, it has two layers of meaning. Firstly, for the staff, effective inventory system should allow them to locate specific item easily, and overview the whole inventory to see which items are running low on stock, and which are the best selling. Secondly, for customer, the inventory system should provide an easy accessible. Oki-ni website provide a simply and minimalism searching interface for the customer, customer can search the items they looking for by their preferable method, such as, using keywords, sort it by color, price range, sizing, or different part of garment, or using alphabet-order brand list. You read "Digital Business Environment" in category "Essay examples" On the top page of Oki-ni site, customer can easily find new arrivals or discount information. Customer Information Comparing with tradition in-store shopping, online retailer has the advantage on tracking, storing and anaylsing customer data. Oki-ni gathering customer information by encouraging customer registered with their e-mail address. By using these e-mail addresses with the concerns of customer, Oki-ni sends out newsletters to customer. Newsletters are an effective way to build goodwill and keep in touch with potential customer (Janice, 2004). Customer received promotion, new arrivals and other information from the website. When comes to place order, for security and privacy concern, the company only takes the minimum information that required for delivering, such as address, telephone number. Internet is an ever-changing, competitive-intensive environment, the recently raise of new social network drew a lot attention. As a company aiming itself not only sales, but to promote a lifestyle, Oki-ni has extended its content to other different social-network, such as Facebook, Google+, and Twitter, customer can find sales information, new product on these social network. Also, Oki-ni can gather customer information on other platforms, it’s a win-win situations. Multimedia Interactive One of the major advantages of E-commerce comparing traditional retailing is convenience; customer can search for product and compare it, finally checkout in a short amount of time by just clicking the mouse, however, E-commerce has deprived its users of the reality (Vincent Franck, 2004). Material color, texture, tactile impression, those physical details cannot be display or feel by the two-dimensional images and texts on a computer screen. Most people have on-line shopping experiences have those situations that sometimes the products they received are different from their expectations. In order to provide better shopping experiences, Oki-ni provide an enhanced multimedia interface. In every product description page, the website provides high-resolution photos of the products, customer can click zoom-in to see the details of the texture, and a short video to demonstrate the product. For music product, such as CD, preview services are provided. Critical Review In this part, the website’s OVP (Online Value Proposition), ORM (Online Revenue Model) and target audience will be critically reviewed. Online Value Proposition What’s the Online Value Proposition? It is a statement of the benefits of e-commerce services that ideally should not be available in competitor offerings of offline offerings (David, 2006). Michael Susan (2012) further states that in an E-commerce context the differential advantage and positioning can be clarified and communicated by developing an online value proposition. Simply speaking, OVP is the USP of the brand or the website, a strong OVP is a crucial way to attract new visitors into the site and decided to stay or leave, the decisions often made in minutes or even in seconds. Developing an OVP, involves: * Developing messages that reinforce core brand proposition and credibility * Communicate what a visitor can get from an online brand that other competitors can not offer or they cannot get offline (Micheal Susan, 2012) Translate these theories into simply language, a good OVP should answer the questions ‘Why am I here? ’ ‘Does this site offer me what I need? ’ In the digital business environment, the competition is much fierce and intensive then ever before. How to stand out from the crowd in a matters of seconds when visitor first open the site become vital to success. There a great numbers of online clothing retailer, from high-street brand, such as Topshop, ASOS, to luxury brand, e. g. Net-a-porter, Browns. Being good is not enough to win the competition, a good OVP is essential for Oki-ni to survive in the competition. More than ten years passed the establishment of Oki-ni, the website is still focusing on menswear, more specifically, they aiming to discover and break the most inspiring brands and products available, while hosting them in an rich, inspiring and innovative environment. The home page of Oki-ni featuring a simplicity style filled with inspiration contents. Existing customer can easily find what they want in a few clicks; in the meanwhile the video and music can attract the attention of new customer. The website keep updating its FEATURES section with vibrant and forward-thinking videos and music. There is no differentiated of so call ‘high-street’ or ‘luxury’ on Oki-ni’s product, customer can find shorts cost 20 pounds to a coat valued a few hundreds. But there is one thing in common, all product were carefully selected. Featuring more than cloth, customer can also buy books, CDs on the website. In order to keep a fresh look, Oki-ni redesign the website every six month, from layout to the content. To sum up, Oki-ni’s strong OVP is that they not only sell cloth, but the promote an innovation life-style. Online Revenue Model In the article, Business Models on the Web by professor Micheal Rappa (2006). He suggests that ‘business models are perhaps the most discussed and least understood aspect of the web. ’ In this regards, he summarised the business model into the following * Brokerage * Advertising * Informediary * Merchant * Manufacturer * Affiliate Community * Subscription * Utility The revenue model may be different in these business model, some website get paid by doing advertising, some website generated income by subscription. In the case of Oki-ni, the revenue model is easy to identify, the company produce service and sell it to customer. When the revenues from sales exceed the operational cost, then the company gets profit. Comparing to store retai ler, the website is relatively easier to operate. No rent, less labor cost, means the website can provide a much more competitive price than physical store. However, on the other hand, the maintaining of website post a great challenge to the company. Target Audience The company target a niche market of luxury product segment. Focusing on menswear only, the website sells a wide range of product from selective clothing line from Japan, Italy, to limited edition CDs. There is no particular age range on the Oki-ni’s customers, the company targeting a small group who required a innovated and forward-thinking life-style, and willing to the pay a premium price for that. Customer Relationship Management The term of CRM (Customer Relationship Management) is now much more frequently seen in the E-commerce article, what’s CRM? The followings are different CRM definitions by scholars CRM involves various different elements, which includes customer-prospecting, relationship with customers; interact between customer and business, understanding customer expectations, empowerment, partnerships, and personalisation, and son on. (Fjermestad Romano, 2006). CRM is an enterprise approach to understanding and influencing behavior through meaningful communication in order to improve customer acquisition, customer retention, customer loyalty, and customer profitability. (Swift, 2006) So far, there is no universally accepted definition of CRM. It not a software or a service, it is an overall business strategy. Shanmugasundaram (n. d) identified that the three main components in CRM system, namely * Operational * Analytical * Collaborative Nowadays, not only global companies seeking helps from CRM, more and more SMEs (Small and Medium Size Enterprise) were implemented with CRMs. Oki-ni is no exceptional, the company used the first hand data not only to promote its product, but to provide a better service. From time to time, Newsletters were sent to customer, the content of those newsletters were not just about product information. Featuring styling tips, or invitations to special events, the company always try to encourage customer come to visitor site. Recommendation Running an E-commerce is far more complicated than just setting up a website, other than the business and the customer, it involves many their parties, such as vendor, supply chain, banking. Researcher found a rather interesting phenomenal when customer rated Oki-ni’s service, some customer give top rate on both delivery speed and money transaction. However, on the other hand, some customer extremely disappointed on their service quoted ‘the clothes arrived and were excellent although delivery is very slow’ (Ciao, 2007). The inconsistence performance may due to the delivery company and Oki-ni should try to avoid in the future. Moreover, there is more potential of the CRM waiting to be discovered. Oki-ni using CRM mainly on providing customer ervice and promoting products, CRM is much more than customer service, researcher suggest the company analyse the customer’s shopping behavior, such as what kind of brand they like the most, how frequently they shopped on the site, etc. to improve customer shopping experience. The company can also use the data to collaborative with other parties, such as bank, to improve online payment security, or delivery company, to improve performance. Lastly, the competition of digital business environment is much more intensive than ever before. The OVP (Online Value Proposition) may be seems strong and unique at this moment, with successful of Oki-ni, more and more website will try to follow the same model. How to maintain the competitive edge is vital for the company’s future. Conclusion By discussing and critically reviewed the Oki-ni’s website, this paper take an insight into the digital business environment. In the Internet era, trading become much more easier, even individual can set up a website with the know-how and the equipment. However, the competition is much more intensive. E-commerce is a complex term that involved many aspects, the terms and concepts researcher discussed in this paper barely scratch the surface. with the fast advancing technology, new issues now raised, such as legal issue and Internet security. Concepts of CRM, Online business model may need further investigation in the future. Reference: Ciao. (2007). Review of Oki-ni. com. Available from: http://www. ciao. co. uk/Reviews/Oki_Ni_com__5315436 [Accessed 10 Nov, 2012]. Fjermestad, Jerry, and Nicholas C. Romano. (2006) Electronic Customer Relationship Management. Armonk, NY: M. E. Sharpe,. Print. pp. 121-65 Internet World Stats, 2011. World Internet Usage Statistics News and World Population Stats. Available from: http://www. internetworldstats. com/stats. htm [Accessed 12 Nov. 2012]. Janice,Reynolds (2004). ’The Complete E-Commerce Book: Design, Build Maintain a Successful Web-Based Business’. NewYork, Taylor Francis. Print. pp. 268+. Jeremy, Rifkin. (2011). ‘The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World’. London, Palgrave Macmillan. Mamta, Bushry. (2005). ‘E-commerce. New Delhi, Firewall Media. Print. pp. 69 Mehdi, Khosrow-Pour. (2006) ‘Cases on Electronic Commerce Technologies and Applications. Hershey’, PA: Idea Group. Michael, Rappa (2006). ‘Business Models On the Web’. Available from: http://digitalenterprise. org/models/models. html [Accessed 9 Nov, 2012]. Ritendra, Goel. (2008) ‘Electronic Commerce Technology and Prosecpts. â₠¬â„¢ E-commerce. New Delhi: New Age International Pvt. Swift, Ronald S. (2000) ‘Accelerating Customer Relationships: Using CRM and Relationship Technologies. ’ Upper Saddle River, NJ: Prentice Hall PTR. Print. pp. 25+ Shanmugasundaram, S. (N. d) ‘Customer Relationship Management: Modern Trends And Perspectives’ New Delhi. PHI learning, Ltd. Vincent, Roca Franck Rousseau. (2004). ‘Interactive Multimedia and Next Generation Networks: Second International Workshop on Multimedia Interactive Protocols and Systems’. Springer. Available from: http://www. springer. com/computer/information+systems+and+applications/book/978-3-540-23928-4? cm_mmc=Google-_-Book%20Search-_-Springer-_-0 [Accessed 8 Nov 2012]. Yuan, Gao (2005). ‘Web Systems Design And Online Consumer Behavior’. London, Idea Group Inc. How to cite Digital Business Environment, Essay examples

Business Intelligence System Public Sector -Myassignmenthelp.Com

Question: Discuss About The Business Intelligence System Public Sector? Answer: Introduction This report gives brief information about the use of POS system. In the first section, it describes the advantages and disadvantages of the POS system. The statistical data was shown in manual transactions made on the traditional cash registry that has cause some mistakes for every 300 characters and in the POS system for every 15,000 to almost 36 trillion characters of barcode scanned only few or one error found. Some of the competitive advantages has gain by the organization. In the final discussion, with the use of POS system what risk has arise and how to protect them. Advantages and Disadvantages of POS system Improved Efficiency: According to the statistical data, manual transactions made on the traditional cash registry has cause some mistakes with the type of every 300 characters and in the POS system for every 15,000 to almost 36 trillion characters of barcode scanned only few or one error found[1]. Further, data input for an item in the traditional cash registry system takes an estimation of up to 6 seconds whereas using barcode reader of the POS system takes less or just 0.3 seconds. Thus, POS system makes the process of transaction easier, faster and with efficient turnover. With just a click, the user could rectify the error or the mistakes by the POS system. Thus, this offers a better service to the customer with a friendly calm face[2]. Stock management: For any scale of business, traditional approach leads to time-consuming process and it is laborious, work for the Four Seasons Greenhouse and Nursery. However, with the modern use of the POS system, the stocks are scanned upon delivery and the data are digitally entered into the database[3]. Thus, Four Seasons Greenhouse and Nursery can make purchasing decisions accurately at a glance. Accurate Reports: A merchant can understand the business overall success by accessing the critical information of the report with the use of POS system[4]. Employee Tracking: With the Unique Identification code, the Four Seasons Greenhouse and Nursery are able to track the behavior of the staff particularly on the figure of strong and weak sales and enable the merchants to take action against the weaker employees. Disadvantages of POS Web access cost: The additional advantage of the POS come with an additional cost. The reason for this is that businesses do not go for software-based system rather wanted to have web-based system as it Optimize the POS system. Updates: Instead of investing, the cost for long-term return, businesses has to invest on new version of software updates and the hardware updates from a software or manufacturing company. Risk in security: While making payment through debit card in POS system customers PIN is at risk to get divulge to other customer. In addition, if the businesses have a web-based POS system can run into a risk of asking the system widely accessible which results in danger[5]. POS system Completive Advantage The competitive advantages of POS system are[6]: The software always updated. The user gets access to unlimited support. Subscribers get ongoing education The upfront cost is lower when expanded Centralize database advantages With the use of a centralize POS system, retailers get a POS station at the property-level of each location that are link to the central server. The corporate office then can get access to real time reports. By centralizing the level of data, the businesses can start building the data that need to complete. Even though the data are fairly gathered through POS system, retailer fined it difficult get the transactional data into the information with action. Retailers get benefits from the centralized system for the transaction of daily audit log that eliminate the need of data analyzing and integrating it for multiple systems[7]. In addition to security, role-based security and permissions maintains the access of the centralized system strengthening the financial oversight. For a retailer connectivity is the key to extend the network system to integrate and standardize the equipment. The same case is with the centralized database of the POS system. There are many other advantages for th e POS system to get a centralize database for data processing speed, connectivity and compliance. POS decision making By the use of POS system, the businesses can analyze the sales data and figure out the item and adjust the level of purchasing. The authorization of the credit card and the bar-code scanners will improve the accuracy of the pricing through the POS system[8]. The POS system work as an all-in-one business cash flow to keep the track. POS system software keeps the things up-to-date and the business can gather much more information than the manual system. Based on this information the business owner can take appropriate decisions regarding the order and merchandise. Telecommunication recommended for POS system In the telecommunication types of networks available namely LAN, WAN and MAN, types of media technologies are wired and wireless technologies. The high speed LAN connects with the network devices of the same group. The high speed WAN connects with several LAN having limited enterprise. The high speed MAN connects with the larger network area of same town or same city. The functionality of WAN has related to Dynamic domain name service (DDNS) to connect the POS system and the local PCs to the internet in the absence of static IP. Data interchange take place when the device has identified. The Point-To-Point Connection is used to connect the POS systems that manage the unit remotely in the network[9]. The wireless technology for a POS system provides better productivity and eliminates long lines[10]. It provides a mobile server and cashier which keeps better interaction with the customer. Employees will be able to process transactions which increase the sales. Risk and Protection with POS system Security Risk: Sometimes customers use debit cards at any POS stations. In that case, it is a high risk for the customer PIN if get divulge to any other customers. In addition this, a web-based system is running with the risk of security and privacy while doing any business in the internet. Even if most of the POS station provide protection on security cannot completely negate the risk of security. In addition, when the system is widely accessible, it leads to a certain level of danger. Privacy Risk: Privacy has been at risk from the day when internet started. Hackers are able to now access to the personal activities and information without the presence of the individual by invading surveillance to public video, browsing to activities, server hacks and spyware. It is advisable to take protections to privacy or it will be start to use against the individual person. Confidentiality Risk: Some companies use POS system and view sensitive information with no proper procedure that results in accessed or lost of such information due to password got into the wrong hands[11]. In that case, businesses should assure multi-factor authentication, unique credentials and setting some privilege to permissions. This will protect their confidential information. The employees must be given training to encrypt sensitive data, and manage the official password. Conclusion Thus, it has concluded that POS is best used with WAN connection and with wireless technology. This will make customer interaction higher and easier. By the use of POS the business owner can save time and utilize it to manage the business. The use of POS in the organization, the business has gained many competitive advantages and has realized the benefit of it. The POS system work as an all-in-one business cash flow to keep the track. Every organization should follow the technology that is use by the Four Seasons Greenhouse. Recommendation a) WAN network service for POS system: The functionality of WAN has connected the POS system and the local PCs to the internet in the absence of static IP. Data interchange take place when the device has identified. b) Wireless technology for POS system: The wireless technology for a POS system provides better productivity and eliminates long lines. 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