ASSIGNMENT

SUBJECT: Challenges in the adoption of E-Commerce technologies in India: The role of organizational factors

SUBMITTED TO, SANTOSH SIR

SUBMITTED BY JASITH M.V MBA (T.T)

Challenges in the adoption of E-Commerce technologies in India: The role of organizational factors
ABSTRACT
Organizations differ significantly in their inclination to deploy E-Commerce (EC) technologies. It is necessary to analyse the factors that determine the organizational inclination to deploy EC technologies because this would help firms design appropriate interventions in order to control it. This paper proposes a framework that explains the influence of organizational factors on the propensity to employ EC technologies. The framework is based on qualitative data on EC adoption from four firms in the financial services industry in India. It explains why organizations vary in their propensity to deploy EC technologies, and highlights the role of top management, aspects of organization culture, characteristics of Information Systems professionals, and organization structure. Overall, the paper provides a structure by which specific organizational drivers of EC deployment can be analysed and controlled and relevant managerial issues can be addressed. India is yet to witness a breakthrough ecommerce success story particularly in online retail. There are number of barriers, most of them out of your control, which makes this space difficult to conquer. Travel and Matrimony ventures are doing relatively good and we will see why the case is so. India still hasnt developed a matured ecosystem which will help small, low on fund startups to grow. At some point or the other, you will have to get your hand dirty and make efforts to put all these auxiliary services in place. Not only you have to look for services with minimum service level but also make sure that it doesnt put a hole in your pocket. This paper examines and identifies factors that determine the organizational inclination for the adoption of EC, and explains the nature of their influence. It also points towards appropriate management interventions for managing these factors, so as to increase the organizational inclination towards EC deployment. In doing so, it provides a framework for identifying and directing relevant issues for managing organizational and cultural aspects of the EC adoption process.

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Overcoming the problems in information systems commitment Original

development by building and sustaining

Article

Research

Accounting, Management and Information Technologies, Volume 5, Issues 3-4, July-December 1995, Pages 283-309 Rajiv Sabherwal, Joyce Elam

1. Payment Collection: You could end up giving a significant share of your revenue here (~4% or more) even when you get paid by netbanking. With a business of thin margin, this effectively means you are parting away with almost half of your profits. Fraudulent charges, chargebacks etc. all become merchants responsibility and hence to be accounted for in the business model. To add to it, you still dont get that world class service which gives a seamless experience for users. They might be greeted by a poorly designed landing page of your gateway which will ask a million questions even if user wants to pay by netbanking. This might lead to low conversion rates. 2. Logistics: You have to deliver the product, safe and secure, in the hands of the right guy in right time frame. Reaching this Holy Grail with not spending too much is a dream for Indian ecommerce initiatives. Regular post doesnt offer an acceptable service level, couriers have high charges and limited reach. Initially, you might have to take insurance for high value shipped articles increasing the cost. Low value articles will have significant shipping cost which will make them costly.

3. Vendor Management: However advanced your system may be, you will have to come down and deal in an inefficient system for inventory management. This will slow you down drastically. Most of them wont carry any digital data for their products. No nice looking photographs, no digital dat a sheet, no mechanism to check for daily prices, availability to keep your site updated. 4. Taxation: Octroi, entry tax, VAT and lots of state specific forms which accompany them. This can be confusing at times with lots of exceptions and special rules. Finding a solution to these problems requires experience meaning the ride will be very bumpy for a garage startup.