Assignment 2
orangepinkPart 1
Introduction
Chapter 4
Key issues in the digital
environment
Digital Business and E-Commerce Management Seventh Edition
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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.
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
3
Table 4.1 Factors in the macro- and micro-environment of an organisation
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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.
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
6
SLEPT factors
Macro-environment
Social
Legal
Economic
Political
Technological
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
7
Figure 4.2 ‘Waves of change’ – different timescales for change in the environment
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
8
Table 4.2 Significant laws that control digital marketing
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
Table 4.2 Significant laws that control digital marketing (Continued)
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
Source: File:Problems encountered when buying over the internet, EU-28, 2016, Eurostat.
Figure 4.6 Problems encountered when buying over the Internet
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
Types of internet applications used by age group. Figure 4.7
Need to understand online influence by age group market
Source: EuroStat (2012)
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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.
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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?
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
14
Types of information collected online and related technologies Table 4.3
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
15
Types of information collected online and related technologies (Continued) Table 4.3
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
16
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?
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
17
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
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
18
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
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
20
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
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
21
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
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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?
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
23
Diffusion–adoption curve
(adopted from Rogers, 1983) Figure 4.18
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
24
Gartner hype cycle Figure 4.19
Source: Gartner Methodologies, Hype Cycle, https://www.gartner.com/en/research/methodologies/gartner-hype-cycle
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
25
Figure 4.20 Alternative responses to changes in technology
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
26
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?
Copyright © 2019, 2015, 2011 Pearson Education, Inc. All Rights Reserved
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