E-Commerce Management

1. E-Commerce Management Joanne Jacobs Brisbane Graduate School of Business Queensland University of Technology

2. Scope of the presentation • Issues with E-Commerce Management for Equestrian sector • Packages and solutions in place or available • Corporate Accountability • Trust, Privacy and Access & Equity • Key performance measures

3. E-Commerce & Equestrians • Dominantly volunteers, but for legal purposes, volunteers are regarded as ‘employees’ of an organisation for corporate accountability and information privacy issues • Presently experienced low take-up but there is increased demand for electronic registration for entry to events days, stable hire and competition entry • Integrated or collaborative approach to e-commerce management may reduce administrative burden on clubs and members

4. Communication systems

5. Virtual communications • In traditional business settings, management of e-business exchanges via ICT infrastructure involves • Monitoring • Codes of practice • Automated filtering • Intra-organisational communication using ICT infrastructure and programs fosters trust among employees

6. Enterprise Resource Planning (1) • Definition of ERP • Software solution to address enterprise needs using tightly integrated EDI processes to meet organisational goals • ERP facilitates company-wide integrated info systems. It performs core corporate activities and customer service (improving organisational image) • ERP can handle payment systems but is best used as an integrated solution across a series of member organisations in this context, and thus would require a partnership for implementation among equestrian organisations

7. Enterprise Resource Planning (2) • Implications of ERP: • Process automation • Culture change for management • Panoptic (transparent processes) • Increased need for security and document handling authentication • Increases management control??? • Centralises information and transactions systems which permits information updates • Increases financial burden of membership

8. Possible applications for EFAQ • Registrations and other event-oriented sales (see next slide) • Promotional sales (merchandising for clubs, training programs and even annual purchases such as calendars and annual fees) • As most organisations are non-profit, the requirement for annual audits to be submitted to the Registrar General’s department places enormous strain on volunteer staff. Electronic paper trail can simplify this process.

9. Existing systems • Many clubs are using Nominate.com.au for registrations. As an outsourced organisation, the administrative burden for registrations falls to a specialist organisation. However, this involves: • 5.5% commission for all sales • Contract orientation for each event day • Implications for client privacy and trust • Constant monitoring of cost-benefits of implementation

10. Accountability, privacy & ethics

11. Corporate Accountability • Provision of a service • Responsible citizenship (support of public interest activities and/or ideals) • Responsibility for employees’ or volunteers’ actions in collecting and transmitting information (private or in-confidence information) • Responsibility for equitable volunteer and client access regimes • Financial accountability for investments and decision making

12. Trust • Roger Clarke defines trust as one of the most crucial aspects of business exchanges. Gaining trust involves ethical e-business exchanges • Ethical e-business practice involves: • Acting in a trustworthy manner in strategic alliances and in conducting e-business exchanges • Active protection of private or in-confidence data collected from clients or business partners • Development of a history of ethical business practice using ICTs

13. Privacy • Surveillance is the systematic investigation or monitoring of the actions or communications of one or more persons • Privacy is the power of organisations and individuals to maintain control over information kept about them by information collection agencies • Privacy regarded as a key issue in non-adoption of e-commerce transactions • Key issue with, and threat to, information privacy is the phenomenon of datamatching

14. Why datamatching? • To improve bureaucratic and administrative efficiency, thereby cutting operational costs to the taxpayer • To provide better services to the community at large, and to provide information about entitlements. • To minimise public fraud, e.g., datamatching is used so you can’t claim the dole and study allowance at the same time. • Ultimately, the argument is that the money saved will allow for more services. Thus it becomes a trade-off, between privacy and improved services. • Government frequently moves to reassure the public about confidentiality and data security.

15. Arguments made by Privacy Advocates • Data matching contravenes the spirit of the Privacy Act (1988/1990), in that information given for one purpose can be used for another. • Sensitive information given to organisations is accessible by large numbers of employees within collecting agencies and there is often no clear sense of how that information is stored and updated. • Data matching can inappropriately profile clients, flagging poor credit rating or other private information, and this can be transferred to ratings among participant organisations • Wrongly entered data can have legal and financial implications

16. Cookies are often used by websites to track visitors, and most users don’t know they’re there. • Hacking and cracking are security risks for information based systems and can be used to obtain private information on clients • Mailing lists are regularly sold - most users are on 10-100 databases. This often results in unsolicited emails. Organisations who do not wish their databases to be tapped or on-sold must state this explicitly with all trading partners. • Concerns over privacy are stalling e-commerce - recent survey found 41% of users quit a website rather than reveal details. 25% lied.

17. Uses and Abuses of Data • Every time we pay for goods electronically, all the details are recorded. Security of data thus becomes paramount. • Loyalty programs designed to sustain customer loyalty add a new layer of complexity for information security, and are another avenue for info collection - they enable a profile of consumption to be constructed. • Direct mailing companies pay large sums of money for lists of people and their consumption habits, and may well offer efficiencies for your clients but you may find yourself in breach of privacy principles if you adopt.

18. Privacy and the Law • The Privacy Act of 1988 was designed to establish a code for public bodies. Phone conversations, medical reports and tax returns are protected. • The Privacy Commissioner can only provide advice - each state has its own standards for privacy. • QLD privacy scheme applies to Queensland Government agencies and covers all personal information including information kept in both paper and electronic databases. All other private bodies are regarded to have been covered under federal law. See: http://www.justice.qld.gov.au/dept/factsht29.htm

19. Privacy Act Amendment (Private Sector) Act 2000 • An Act to amend law relating to privacy, and for related purposes • This ACT commenced July 1, 2001 • The main objectives of this ACT are: • To establish a single comprehensive national scheme providing, through codes adopted by private sector organisations and National Privacy principles, for the appropriate collection, holding, use, correction, disclosure and transfer of personal information by organisations;

20. And to do so in a way that; • meets international concerns and Australia’s international obligations relating to privacy; and • recognises individuals’ interests in protecting their privacy; and • recognises important human rights and social interests that compete with privacy, including the general desirability of a free flow of information (through the media and otherwise) and the right of business to achieve its objectives efficiently.

21. The Privacy Act 2000 V 1988 (I) • The 1988 Act applied to government agencies only; • The 2000 Amendment is designed to protect information from being collected, stored, sold by the private sector; • The new privacy Amendment includes the national Privacy Principles that the 1988 Act included; • The new legislation is supposed to allow the private sector to develop their own codes for the collection, storage, use and disclosure of personal information; • These codes are approved by the Privacy Commissioner

22. The Privacy Act 2000 V 1988 (II) • The new Privacy Amendment Act 2000 is designed to ensure data quality, data security and openness to databases. • In theory, it allows people to access records about themselves and to correct those records if they are wrong. • Under the legislation, people will also be able to complain to the Privacy Commissioner or an approved complaint body if a private sector organisation breaches the privacy rules.

23. Exemptions to the Amendment • The following exemptions apply: • 1. Employee records are not protected under the new amendment. That means that Australians will not have any privacy rights regarding job and personal files held by the companies they work for or recruitment agencies that we give our details to. • 2. Political groups; • 3. Small businesses (with a turnover of less than $3 million per year); • 4. media organisations. • The data that these groups collect is not protected by new proposed laws.

24. Privacy References • Australian Privacy – http://www.privacy.gov.au/ • Bainbridge, D., and Pearce, G. (2000). ‘Tilting the windmills - has the new data protection law failed to make a significant contribution to rights of privacy’ in The Journal of Information, Law and Technology (JILT) Available - http://elj.warwick.ac.uk/jilt/oo-2/bainbridge.html • Clarke, R. (1998). ‘Australian privacy charter’. Available at http://www.anu.edu.au/people/Roger.Clarke/DV/PrivacyCharter.html • Davis, S. (1996). Monitor: Extinguishing privacy on the information superhighway. Pan Macmillan: Sydney

25. Access & Equity • There is a difference: • Access involves providing skills and facilities for accessing content and services offered through ICTs • Can involve staff reskilling • Can be based on target markets • Ethical considerations include providing alternative access regimes for people with disabilities or special needs • Equity involves providing a workplace environment that embraces a diverse cultural selection • Can involve consideration of gender, religion or race differences • Can involve consideration of access regimes for clients and business partners

26. Access & equity in e-business • Access issues include: • Providing network infrastructure and training programs for e-business applications • Usability interface for all publics • Equity issues include: • Promotion of diversity (encouraging e-business practices among groups who are traditionally not technologically literate user groups) • Uniformity of (or at least appropriate) training programs among an employee and client base for e-business applications

27. Performance measures

28. Key Performance Indicators • Value addition per human unit • ROI for human capital investment (per person basis) • Value addition per human replacement • ROI for technology investment (per technology basis) • Wealth creation, revenue and profit • Per employee basis and per innovation basis • Total costs • Mission objectives • Social and environmental as well as strategic goals

29. KPI metrics (I) • Quality Indicators Model • Associated frequently with education. See Heywood, L. and Scott, G. (2002). A comprehensive framework for quality evaluation and improvement in universities, Quality Development Unit, University of  Technology Sydney,http://www.qdu.uts.edu.au/news/report.html • Human/Social Indicators Model • Based on primary and secondary data • Disparities/inequity model • Generally used in public sector institutions • Market leadership model • Based on innovation

30. KPI metrics (II) • Innovation diffusion model • Based on existing adoption diffusion models (eg: Rogers 1983, Parthasarathy et al 1997, Bass 1969) • Outcomes and objectives model • Based on desired and expected quanta, and on external responses to innovation implementation • Core benchmarks and quality improvements model • Industry standards based on the technology (eg: SQL server benchmarks) • Standards across the sector (eg:IndustryWeek.com standards) • Quality improvements based on quotient of ROI and intangible benefits

31. Obvious E-Business KPIs • ROI for technology solution • Increased speed of business exchanges • Increased accuracy of business exchanges • Uniformity or integration of strategic technological objectives and overall business objectives • E-Project management of architecture implementation • Maintenance/support systems

32. Difficult E-Business KPIs • Sustainability • Harder to predict due to lifespan of the technologies and adoption-diffusion of Really New Products (RNPs, Aggarwal, Cha and Wilemon, 1998) • Net gains from loss of a human • Technological interface cost cutting must not come at the expense of customer/client loyalty and trust • Alternative scenarios • Mapping scenarios for failure to implement a technology-based solution, or for implementation of alternative ICT solutions as a basis for comparison with the existing implementation

33. Contact Details Joanne Jacobs Lecturer, Brisbane Graduate School of Business Queensland University of Technology Phone: (07) 3864 2065 Fax: (07) 3864 1299 Email: joanne@joannejacobs.net