E business means sharing and capturing data about

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E-business means sharing and capturing data about customers and business partners. To protect its customers and partners, an e-business should have a documented privacy policy. Two methods are used regarding use of private data: Opt in: Explicit permission is given regarding use of data. Opt out: Data is kept confidential after a specific request. An e-business must also know whether it is subject to privacy regulations. Federal statutes include the following: HIPAA: This is the Health Insurance Portability and Accountability Act, which governs health care and related businesses. Gramm-Leach Bliley Act: This governs financial institutions.
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States and foreign governments also have created regulations that govern privacy. Organization and Staffing A new e-business can pick the organizational and staffing model that best fits its needs. However, existing businesses and organizations moving to e-business face several decisions. The first decision is whether to create a new division or business unit to handle e-business. Companies have found that these new business units have more focus and commitment to the e-business effort. The second decision is whether to use existing personnel (technical and managerial) or hire new staff. One determinant might be the experience level of existing staff and whether the staff members can adapt to e-business. Integration With Third Parties A final area of consideration is how to integrate with third parties such as suppliers, shipping companies, and financial institutions. E-business systems are connected to these third parties, and decisions must be made about connections, levels of service, and mutual responsibilities. These need to be negotiated and set out clearly in contracts and service agreements. Activity Activity: Organizational Impact of E-Business You are a consultant at an e-business consulting company. Your current customer, George Johansen, has started an online business 3 months ago; he opened an online music store. George, however, is an e-business novice, so he needs you help him with some e-business aspects related to customer service, network security, and privacy issues. Activity 1: In his new e-business, George is seeking to define the boundaries of what the service is committed to deliver and under what circumstances. What is the best way to do this? The model answer is the following: The best way to define boundaries of what the service is committed to deliver is by establishing a service level agreement (SLA). Activity 2: Analyze the following decisions. 1. At one point, George realizes he has too many customer complaints. He decides to address them by establishing a service level agreement (SLA). Is this a good decision? Why? The model answer is the following: 1. No. Before engaging in SLA, the service provider should obtain customer feedback, seek to understand the complaints, and take some small but visible steps to resolve the complaints. The timing may then be better to establish an SLA.
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