Assignment 2

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Week4.pptx

Part 1

Introduction

Chapter 4

Key issues in the digital

environment

Digital Business and E-Commerce Management Seventh Edition

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Learning outcomes

Identify the different elements of an organisation’s macro-environment that impact on an organisation’s digital business and digital marketing strategy

Assess the impact of legal, privacy and ethical constraints or opportunities on a company

Assess the role of macro-economic factors such as economics, governmental digital business policies, taxation and legal constraints

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2

Management issues

What are the constraints, that such as legal issues, that should be taken into account when developing and implementing a digital business strategy?

How can trust and privacy be assured for the customer while seeking to achieve marketing objectives of customer acquisition and retention?

Assessment of the business relevance of technological innovation.

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3

Table 4.1 Factors in the macro- and micro-environment of an organisation

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Activity 4.1 Introduction to social, legal and ethical issues

List all the social, legal and ethical issues that the manager of an sell-side e-commerce website needs to consider to avoid damaging relationships with users of his or her site or which may leave the company facing prosecution.

You can base your answer on current issues which may concern you, your friends or your family when accessing a website.

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5

Activity answer – this lecture

Cookies – laws and consumer perception on placing these

Are we limiting access to information from certain sections of society (social exclusion)?

Privacy of personal information entered on a website

Sending unsolicited email

Replying promptly to email

Copyright

Site content and promotional offers/adverts are in keeping with the different laws in different countries

Providing text, graphics and personality in keeping with social mores of different countries

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6

SLEPT factors

Macro-environment

Social

Legal

Economic

Political

Technological

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7

Figure 4.2 ‘Waves of change’ – different timescales for change in the environment

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8

Table 4.2 Significant laws that control digital marketing

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Table 4.2 Significant laws that control digital marketing (Continued)

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Source: File:Problems encountered when buying over the internet, EU-28, 2016, Eurostat.

Figure 4.6 Problems encountered when buying over the Internet

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Types of internet applications used by age group. Figure 4.7

Need to understand online influence by age group market

Source: EuroStat (2012)

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Development of experience in Internet usage Figure 4.10

It takes longer for customers to be confident in purchase decisions with more expensive or complex products. The way companies should use digital technologies for marketing will vary according to product type.

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13

Ethical issues and data Protection

Ethical issues concerned with personal information ownership have been usefully summarised by Mason (1986) into four areas:

Privacy – what information is held about the individual?

Accuracy – is it correct?

Ownership – who owns the information, and who has responsibility for the care of the information, and how can ownership be transferred?

Accessibility – who is allowed to access this information, and under which conditions?

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14

Types of information collected online and related technologies Table 4.3

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Types of information collected online and related technologies (Continued) Table 4.3

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Ethics – Fletcher’s view

Fletcher (2001) provides an alternative perspective, raising these issues of concern for both the individual and the marketer:

Transparency – who is collecting what information?

Security – how is information protected once collected by a company?

Liability – who is responsible if data is abused / misused?

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The eight principles for data protection

Fairly and lawfully processed, clear oversite required by data controller who has authority

Processed for limited, specified, legal, purposes

Adequate, relevant and not excessive ie the data requested is the minimum needed eg do we need sex?

Accurate, and kept up to date so an individual is not disadvantaged

Not kept longer than necessary for the purpose collected

Processed in accordance with the rights of the person (organization) that provided the information

Secure, both technically and organizationally, care taken to ensure no accidental or intentional loss or damage to the data

Not transferred to countries without adequate protection.

www.dataprotection.gov.uk

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General data protection regulation (GDPR)

You must be able to demonstrate how the data subject has consented, which means marketing must record how and who gave consent

The data subject must be able to withdraw consent at any time and it shall be as easy to withdraw consent as to give it

Consent should cover all processing activities carried out for the same purposes

If processing for multiple purposes, consent should be given for all those purposes

Consent should not be considered freely given if the data subject has no genuine or free choice

Silent consent, pre-ticked boxes or inactivity should not constitute consent

www.gov.uk/data-protection

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19

Localisation

Singh and Pereira (2005) provide an evaluation framework for the level of localisation:

Standardised websites (not localised). A single site serves all customer segments (domestic and international)

Semi-localised websites. A single site serves all customers; however, there will be contact information about foreign subsidiaries available for international customers. Many sites fall into this category

Localised websites. Country-specific websites with language translation for international customers, wherever relevant. 3M (www.3m.com) has adapted the websites for many countries to local language versions. It initially focused on the major websites

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Localisation (Continued)

Highly localised websites. Country-specific websites with language translation; they also include other localisation efforts in terms of time, date, postcode, currency formats, etc. Dell (www.dell.com) provides highly localised websites

Culturally customised websites. Websites reflecting complete ‘immersion’ in the culture of target customer segments; as such, targeting a particular country may mean providing multiple websites for that country depending on the dominant cultures present. Durex (www.durex.com) is a good example of a culturally customised website

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Economic/political

Ensuring companies competitiveness

Funding for education and technology

Promoting new technology, for example, broadband 12% in UK, 70% Taiwan, South Korea

Achieving government efficiencies

E-government – the European Commission’s eGovernment Action Plan 2016–2020 to facilitate a ‘digital single market’

Singapore ‘Intelligent Island’

Taxation regimes

Legislation for offshore trading

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22

Technological issues

Rate of change

Which new technologies should we adopt?

Monitoring for new techniques

Evaluation, are we early adopters?

Re-skilling and training

Customer perspective

Cost / benefit analysis

Are our systems secure?

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23

Diffusion–adoption curve

(adopted from Rogers, 1983) Figure 4.18

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Gartner hype cycle Figure 4.19

Source: Gartner Methodologies, Hype Cycle, https://www.gartner.com/en/research/methodologies/gartner-hype-cycle

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Figure 4.20 Alternative responses to changes in technology

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Questions

How should the e-commerce manager monitor and respond to technological innovation?

Select an internet related technology, (a technology that works in conjunction with internet technologies) and assess its viability/usefulness in two contexts of your choice. How do you make the assessment? What are the criteria?

Identify the different layers of governance that are needed for the internet and internet related technologies in an organisation?

If you were the e-commerce manager at

AUT

An airline

A bank

Other (choose an organisation of interest, or an organisation you know a little about)

 

You were scanning the e-business environment looking for trends, successes and failure what would you be noticing and how would you be responding to what you see?

 

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Summary

You should be able to identify the different elements of an organisation’s macro-environment that impact on an organisation’s digital business and digital marketing strategy

You should be able to assess the impact of legal, privacy and ethical constraints or opportunities on a company

You should be able to assess the role of macro-economic factors such as economics, governmental digital business policies, taxation and legal constraints

Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved