Flashcards in 7 - E-commerce and Cyber Security Deck (9)
What is electronic business?
Any online transaction
What is e-commerce?
Part of e-business and involves use of telecommunications to provide or exchange products and services
Requires the Digital transmission of accounting transaction info
Benefits of e-commerce?
Geographically dispersed customers
Large volumes of data
More time to fulfil orders
Increased range of inventory
Lower stock cycle times
Better customer service
Lower sales and marketing costs
Competitive disadvantage not to have one
Benefits of e-commerce to consumers?
Electronic delivery straight to device
Increased availability of info
Greater range of products
Browse and purchase 24 hours
Locate more competitive prices
Risks of e-commerce
Reputation always - poor website
Legal - laws and regs
General business risks for e business?
New venture being unsuccessful
Loss of competitive advantage
Cash flow difficulties
High customer expectations
Loss of intellectual property
Reduction in customer satisfaction
Accounting policies and issues with e business?
Revenue recognition - principal/agent, offers and discounts, cut off
Specific risks of e-commerce? And controls
Data theft and loss - encryption
Electronic contract - disclaimers, t&c tick box
Server failure- remote service, back up, anti virus
Compliance- training, legal advice
Returns- inventory management, policy
Impersonation - passwords, training, software
Privacy (keep customer data secure) - passwords, secure systems