Scenario:
Assume you are a manager at a medium-sized brick-and-mortar organization based in the Middle East and are looking to enter the global market. You have been asked to assess the company’s current business model and come up with a recommendation for scaling it up with IT security in mind.
A description of the following business models:
Brick-and-mortar:
A brick and mortar business applies to those businesses that are established in actual physical locations and deal with their customers face to face. The term 'brick and mortar' refers to the fact that these businesses are run out of actual buildings, where they interact in person with their retail environment. This is opposed to the idea of an e-business which generally conduct their transactions in an online environment. Brick-and-mortar businesses both conduct their operations and production through traditional means and ship out of a physical facility. It is evident that “a number of traditional enterprises have moved to integrate e-commerce into their channel mix, using the Internet to supplement brick and mortar retail channels” (Steinfeld, Adelaar, & Lai, 2002, p. 1). The best method for keeping customer data in brick-and-mortar settings is confidentiality and not allowing those that work for the business to give out customer data or information.
E-business:
The development of web-based technologies and capabilities many businesses are switching from the traditional brick-and-mortar business model to an e-business mode. These types of business models are based on the development of online interactions and the change of business models and structures to meet the growing demands of online commerce. While it is evident that these forms of commerce are becoming more possible due to advances in technology, it is also evident that there are various challenges that businesses face in making this transition. It is therefore certain that e-business can be defined as “the use of the internet to network and empower business processes, electronic commerce, organizational communication and collaboration” (Combe, 2006, p. 1). Keeping personal data safe in this type of setting is more difficult than in a traditional brick-and-mortar setting. The use of encryption and demonstrating to customers the need for careful consideration of their own passwords and personal information would be essential as well.
E-commerce:
While e-business is associated with the operations of a business in an online environment, e-commerce is the result of the growing capabilities of the internet to extend beyond simple online transactions. “E-commerce is the use of electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals” (Andam, 2003, p. 6). The major difficulty in keeping personal data safe in e-commerce settings is in accounting for the need to maintain careful scrutiny across the various transactions that occur and to make sure that any servers that have private information on them are kept secure for customers.
Recommended Model:
The model that is best suited for global expansion is the e-commerce model. The advancements in this type of model in the current technological environment demonstrate the most efficient means of providing safe and secure transactions in a fast and effective way. Through partnerships with security companies businesses are able to “ensure delivery and payment” in the most effective and efficient way possible (Kearney, 2014, p. 6). Through development of their infrastructure, businesses are able to create new and capable methods of maintaining, selling, and delivering goods.
References
Andam, Z.R. (2003). E-Commerce and E-Business. ESEAN.
Combe, C. (2006). E-Business Management and Strategy. Elsevier: Boston.
Kearney, A.T.. (2014). E-Commerce Is the Next Frontier in Global Expansion. BIP.
Steinfield, C., Adelaar, T., & Lai, Y.J. (2002). Integrating Brick and Mortar Locations with E- Commerce: Understanding Synergy Opportunities. HICS.
