Return to our archives page
EBUS500.1 Week Two
Lecture
Business Processes, Architecture,
Protocols, Security, and "e-"
In your design and implementation of a business strategy and
system it is extremely important to remember the common thread that runs
throughout these course materials. That is the concept of business process. As
is pointed out in the course text, ". . . the real key is the way in
which the technology is employed and the attention given to the business aspects
of the site." (Turban, et. al., 2000, p. 381). As we shall see, while
we implement technology and grow ever more dependent upon it, the implications
of its use reach far outside the beige cabinet of our computers.
Internally, the technology affords us the opportunity to
reexamine and perhaps redefine the processes that take place in the
organization. When those changes are implemented without due consideration of
the overall business scene the results can be disastrous. The story is probably
familiar to all of us, the company implements a technological "improvement", but
somewhere along the way we lost sight of the employees and their role in making
it all work. So personnel training is of critical importance and, unfortunately,
too often neglected. There is also the effect of such change on the employees
themselves and the impact on the internal corporate culture and politics. While
the technology may make dealing with those issues a bit easier, it also has the
potential to be a source of surprising new problems for management and staff
alike.
Computer Viruses, Fraud, and Employee
Training
Everyone is aware of the problem of computer viruses and the
threat that they pose to us today. We have invented all sorts of security
devices and technical methods to deal with the threat. However, the threat isn't
a pure electronic play, to put it in Wall Street terms. I can cite two examples
from personal experience. The first, an "email virus", isn't a "virus" at all,
but one of the common hoax email viruses. The unfortunate individual that first
receives the email is told that this email has been sent to warn about a virus
that is sweeping computers all over the world, and that the recipient should
proceed to take evasive action. That action usually involves deleting a file
from the recipients computer, and depending upon what is deleted, disaster can
strike at the next system startup (or boot up), or even earlier. What is worse,
the recipient is instructed to forward the email to "all" of his or her friends,
which then gives the message an extra air of authenticity. This example
exemplifies the crucial need to train all employees on procedures to handle such
bogus activities. The company should have some internal staff ready to advise
and help when needed, and employees should be kept aware of such issues and be
informed on how to deal with them. The anti-virus software vendors all have
useful information on this subject on their web sites. Oops, I forgot you
deleted that file as instructed and now you can't get connected to the Internet.
Oh well! These hoax viruses are completely human driven, and yet can wreak
havoc very quickly. One that I received had approximately 150 email addresses in
the send-to line.
The second example is one of simple business fraud perpetrated
via email. About four years ago I received an email from an individual
identifying himself as a Professor of Physics at a local state university. This
person wanted to know if I could help him establish and maintain a web site for
his students. My suspicion was aroused by the short length of the message, not
that Physicists are particularly long-winded in my experience, but rather by the
lack of any real detail. I took about five minutes to craft a reply, indicating
that I would certainly be interested in the project but needed a few more
details. I specified about six specific questions. After watching for a reply
over the next few weeks, I finally decided to contact the university by
phone. As it turned out, there was no record of any such individual, and
after informing the head of the Physics Department of the situation, a
trace was made back to a student at another college on the other side of the
state. Whether that person was a student working on a school project or just
"joy-defrauding", I was lucky that I didn't jump the gun and give away
proprietary or trade secret information, such as my pricing schedules and so
forth. This is an extremely important issue to consider in training employees,
given human psychology and the impact technology has had on us to "speed things
up" in the name of efficiency, customer service and so on. All of our business
processes must be fully examined and as well defined as we can reasonably and
economically make them.
Business and Industry Characteristics and
Considerations
Depending upon the business or other organization involved,
implementation of technological solutions will demand varied levels
of investment in capital equipment, personnel, security,
procedures and other areas. This can range from no more than a simple
anti-virus program on a small businesses personal computer system running a
simple advertising-only billboard type web site, to elaborate and expensive
equipment and very complex software applications. Certain obvious differences
exist between the typical small business and larger more complex organizations.
Banks are one industry segment with an extreme need for security in the total
enterprise. While many banks have recently established B2C sites for their
customers, they also maintain their B2B extranet systems for communication with
other banks, businesses and the government, independent of the B2C system.
This also applies to their internal intranet systems. Each system component is
protected in some fashion from the others.
There are other situations where human resources make or break
the technology. For the average personal computer software application the lines
of code that are generated in a commercial home/business application are
numbered in mere millions. The applications are tested, certified, and
usually work. But, as we have all experienced such things as the famous
"blue screen of death" and other error messages, imagine the complexity of
systems that absolutely must work, without fail, at all times. Systems at that
level must also meet other business and regulatory requirements, and in some
cases the code must be formally proven. That is the extreme of software
documentation and testing, and, of course, it shows in the price.
To stress the need for system testing, consider the plight of a
textile company that built a state-of-the-art plant in the 1980's. They
neglected to test before the grand opening celebration. When the switch was
symbolically thrown to start the equipment a few lights blinked, but
nothing else happened. The communications lines to the equipment were working,
but the line back from the equipment wasn't. Since the central computer didn't
hear back from the equipment, it failed to give the necessary start commands.
The end result was a terribly embarrassed CEO and Board, and the company scraped
a $40 million dollar facility.
Summary
Architecting, implementing, and operating an
e-business system requires that we consider all possible factors and take
appropriate action. The factors span the complete organization as well as its
customers and intermediaries. Protection and fraud detection are necessary
components, yet they are under constant development and, we hope, improvement. A
timely set of articles that relate to this workshop are in Information Week
magazine on "digital identification and authentication" (Hulme, George V.,
2002, pp. 22-23) and security considerations with business partners (Hulme,
George V., 2002, pp. 38-42). Another pair of articles of current
interest appear in Upside magazine and examine the current situations at Intel,
AMD, and the overall chip industry: (Borrell, Jerry, 2002, pp. 30-37), and,
(Draenos, Stan, 2002, pp. 38-42).
Workshop Three will examine Internet consumers, market
research, and e-commerce advertising. Please be sure to read Chapters 3 and
4 in your Electronic Commerce text.
Also, please be reminded to submit your written assignments and
responses to the weekly discussion questions as per the schedule published
in the course syllabus.
Works Cited
Borrell, Jerry, 2002, The Last Man Standing: Jerry
Sanders gives his valedictory interview to Upside. Upside
Magazine, www.upside.com, April
2002, 30-37.
Draenos, Stan, 2002, Intel vs. AMD: AMD accuses Intel of not
playing fair. Upside Magazine, www.upside.com, April 2002, 38-42.
Hulme, George V., 2002, Opportunity: ID: Businesses pursue new
initiatives involving the digital identities of customers. Information
Week, www.informationweek.com,
March 18, 2002, 22-23.
Hulme, George V., 2002, In Lockstep On Security: More companies
are doing detailed assessments of their business partner's information security.
Failing grades can end a collaborative relationship. Information
Week, www.informationweek.com/880/security.htm,
March 18, 2002, 38-52.
Turban, Efraim, Lee, J., King, D., & Chung, H. M. (2000).
Electronic commerce – A managerial perspective. Upper Saddle River, NJ:
Prentice Hall.
--
Michael E. Ewing
March 27, 2002