Technical Limitations of EC
The technical limitations of EC are as follows: ·
The technical limitations of EC are as follows: ·
- There is a lack of system security, reliability, standards, and some communication protocols. · There is insufficient telecommunication bandwidth. ·
- The software development tools are still evolving and changing rapidly.
- It is difficult to integrate the Internet and EC software with some existing applications and databases.
- Vendors may need special Web servers and other infrastructures, in addition to the network servers.
- Some EC software might not fit with some hardware, or may be incompatible with some operating systems or other components. As time passes, these limitations will lessen or be overcome; appropriate planning can minimize their impact.
NonTechnical Limitations
Following are the major ones.- Cost and justification The cost of developing EC in-house can be very high, and mistakes due to lack of experience may result in delays.
- There are many opportunities for outsourcing, but where and how to do it is not a simple issue. Furthermore, to justify the system one must deal with some intangible benefits (such as improved customer service and the value of advertisement), which are difficult to quantify.
- Security and privacy These issues are especially important in the B2C area, especially security issues which are perceived to be more serious than they really are when appropriate encryption is used. Privacy measures are constantly improved.
- Yet, the customers perceive these issues as very important, and, the EC industry has a very long and difficult task of convincing customers that online transactions and privacy are, in fact, very secure.
- Lack of trust and user resistance Customers do not trust an unknown faceless seller (sometimes they do not trust even known ones), paperless transactions, and electronic money. So switching from physical to virtual stores may be difficult.
- Other limiting factors. Lack of touch and feel online. Some customers like to touch items such as clothes and like to know exactly what they are buying.
- Many legal issues are as yet unresolved, and government regulations and standards are not refined enough for many circumstances. · Electronic commerce, as a discipline, is still evolving and changing rapidly. Many people are looking for a stable area before they enter into it.
- There are not enough support services. For example, copyright clearance centers for EC transactions do not exist, and high-quality evaluators, or qualified EC tax experts, are rare.
- In most applications there are not yet enough sellers and buyers for profitable EC operations.
- Electronic commerce could result in a breakdown of human relationships.
- Accessibility to the Internet is still expensive and/or inconvenient for many potential customers. (With Web TV, cell telephone access, kiosks, and constant media attention, the critical mass will eventually develop.)
