AGROWEB eCommerce Training Material
 
  | Benefits | Technical Limitations | Non Technical Limitations

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1.1.2 Technical limitations of e-Commerce
 
1. Lack of security, standardization, reliability
2. Insufficient communication bandwidth
3. Difficulty in integrating e-Commerce infrastructure with current organizational IT systems
4. Not all customers have access to the Internet
5. Extra cost needed for infrastructure

 

 

 



1. Lack of security, standardization, reliability
When operating in the Internet, a lot of reliability, security and standardization issues appear. This is due to the number of different competitors in the Internet marketplace as well as the inherent development philosophy of the Internet. Internet was initially developed for military and then educational purposes and little attention was given to how the network can be controlled. In fact, the network was supposed to be open, simple and able to continue operating even if some part of it was "down" or destroyed. Thus, security and reliability can hardly be guaranteed at the moment. On the other hand, people do trust networks that are controlled and reliable. For example, people extensively use the network of the Automatic Teller Machines (ATM) in the banks and trust it for everyday transactions.
 
 
 
 
 
 
 
 
2. Insufficient communication bandwidth

The network experiences serious problems of traffic and lack of bandwidth because of the rapid increase of connected users. In addition, the multimedia applications and the booming needs for more entertaining, informative, educational and other content hinder quick access to the services provided through the Internet. In real life terms, this is similar to having to direct 100 trucks through a small road, which was initially designed for 20 passenger cars per minute.

Even though the networking technologies are advancing fast, the need for bandwidth is increasing even faster and until this is handled, problems in the quality of services will remain.

 
 
 
 
 
 
 
 
3. Difficulty in integrating e-Commerce infrastructure
       with current   organizational IT systems
Many companies use IT systems, which are old (i.e. Legacy systems) and were developed to support different needs and different kinds of software and applications. These systems contain valuable business information but have to be integrated with the new ones; in many occasions this is extremely difficult. When it comes to full integration with back-office operations, for example, the cost of integrating legacy systems with modern ones may be greater than that of actually scraping them.
 
 
 
 
 
 
 
 
4. Not all customers have access to the Internet
Several countries like the Scandinavian countries or the USA have a penetration of the Internet reaching 35-50%. But in most of the other countries (even in western European ones) Internet users reach much smaller numbers. If people don't have access to the Internet, then much of the effort made does not actually reach the consumer. Still this is expected to change soon as the number of connected users is increasing dramatically.
 
 
 
 
 
 
5. Extra cost needed for infrastructure
Although companies comprehend the importance of e-Commerce in the modern business environment, the investment in infrastructure is a factor that needs to be agreed and realised.
 

 

 
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