Electronic trends in E Commerce has a radical impact

Electronic
commerce is recognised as one of the leading business area of the world which is
simply the process of carrying out transactions over the internet. According to
the US Census Bureau (2016), E-commerce sales in 2014 accounted for over 60% of
total sales of all the manufacturing activities in US. (Electronic commerce 2018 book). E-commerce has proved its
potential for retail, manufacturing, service operations and in particular revolutionised
the supply-chain management through the recent years.

 

The
use of E business tools for data analysis, prediction and decision making in
order to ensure best costumer experience through the application of artificial
intelligence and personalisation has become the latest order of the day.
Changing trends in E Commerce has a radical impact on the organizations that
depend upon internet based applications for handling their business processes
and day to day transactions. (E-Commerce
Evaluation and E Business Trends). As according to estimates, the volume of
business data worldwide, across almost all companies, doubles every 1.2 years (1-s2.0-..). This big data is used to
provide and ensure market transaction cost efficiency, managerial transaction
cost efficiency and time cost efficiency (s12525-…).
Therefore, taking advantage of sophisticated machine learning techniques to
exploit the knowledge hidden in this huge volume of data, commerce businesses
successfully improve efficiency of their pricing strategies and advertising
campaigns. The management of their inventory and supply chains also
significantly benefits from the large-scale data warehouse.(1-s2.0-..)

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However,
changing trends in information technology has provided the E-commerce industry
with huge challenges to consider. One of the challenges is the current server
designs, that are based on homogeneous processors, will not be the most efficient
in terms of performance for the emerging applications that use big data (homayoun) because these applications
require computing resources and storage sub-systems that can scale to manage
massive amounts of diverse data. (07357128).(07363745).
As discussed by the researchers, the semiconductor industry has reached its
physical scaling limits and is no longer able to reduce power consumption in
new chips (07363748.. use in text). Therefore,
several solutions have been proposed to use already existing microprocessors
and servers in the market in order to cope with the above mentioned challenge.
One of the solutions for this dilemma is the use of low power processors
designed for mobile devices to replace the high power desktop processors. To
further analyse the proposed solution, In the following sections, the use of
low power processors for example Intel Atom Servers (07357128)(0736745), Intel xeon servers (p762-loghin) , intel core i7, and ARM cortex-A8 (ARM Cortex A8 vs intel) has been evaluated.

 

In
addition to the challenges from the server perspective, there are numerous challenges
to consider from the client perspective of E-commerce business as well. As the
advancement of mobile technologies has made handheld devices an integral part
of people’s daily life (2 kaur),
mobile commerce has also become a market with great potential and has enabled
users to conduct business activities via wireless telecommunication networks. (1-s.2.0-so747…). The key drivers of
mobile commerce service adoption are ease-of-use and convenience, as well as
security, privacy and reliability (1-s2.0-s09205…).

Moreover,
one of the most important applications of mobile commerce is mobile banking.
The main obstacles that prevent many consumers from using mobile banking
services at the moment are the uncertainties and risks involved.(s-10799) and one  way 
of  alleviating the  consequences 
of  identified  risks is building customer trust for vendors
in mobile commerce (1-s.20-s0747….). In
order to cope with the challenge, well-known companies as Apple, Google,
Samsung, PayPal etc have released their own mobile payment systems which are
available on either iOS, Android OS or both operating systems (07440226). SMS based systems were
adapted as a solution earlier but with the advancement of NFC technology, e-wallet
applications based on mobile operating systems have emerged in market that
provide a better usability methodology framework and user friendly solution to
mobile commerce challenges. By the same token, an electronic wallet is an encrypted
storage medium that holds credit card and other financial information. Wallets
can be used to complete electronic transactions without facing the hassle of re-entering
the stored data at the time of the transaction (IFI-2012).

Furthermore,
Mobile OS is a  software  platform 
for  mobile  devices 
which  allows  mobile 
devices  to  run the 
applications and  programs. It
combines the features of a personal computer operating system with logic that
translates to achieving maximum efficiency to convert static system to mobile (06637558…from security section). Two
most recent business model innovations in mobile payment technology at
operating system level are Google wallet that uses Android operating system and
Apple pay that uses Apple operating system (1-s2.0-s1567422….).
In the following sections, technological solutions from both the operating
systems are compared and contrasted in order to unveil the application
feasibility of the one that better suits as a solution to the E-commerce users
trust issues with the new technology adhering to payment systems.

 

Advantages:

 

Datacentres
are unarguably considered as the backbone of Commerce industry’s computing
infrastructure and achieving energy efficiency has become a first class design
concern in regards to this. (energy case
for hybrid datacentres).  The Intel’s
Atom processor being Intel’s smallest processor features a 10x reduction in
power consumption and has been providing high energy efficiency and fast data
transfer on mobile devices (story
behind…).

As
a matter of fact, it was evaluated after a couple of experiments done by — on
various low power processors as intel core i7, Intel Atom d525 and Nvidia ION
platform that Atom system consumes much less power comparatively and the increase
in their power per thread added is also less than 1W which is commendable. The
power increase in Atom, as number of threads increase, is also not as rapid as
in the Core i7 because of Atom’s simpler architecture. At the same time,
execution time in Atom processor reduces considerably with more threads, and
hence the energy consumption decreases. (SCC
CPU GPU)

On
the other hand —- conclude after their experiments done on Xeon and ARM
processors that ARM has much better energy efficiency while processing I/O
intensive tasks. (p762-loghin). As
established by —, the single thread performance of ARM is only slightly worse
than Atom. But it achieves consistent gain in energy than the Atom processor(06165071). — implies that the ARM
Cortex-A8 provides significant power savings while the Intel Atom’s pure
processing power is unmatched. (A8 Vs Intel).

 

In
contrast, while considering the mobile payment solutions, a serious advantage
that Apple Pay has got over Google wallet is that it is potentially designed
with the main purpose of protecting the user’s personal information. Apple pay
doesn’t collect any transaction information or purchase history that can be traced
back to the user, and payment transactions stay between the user, the merchant,
and the user’s bank. (07084774). On
the other hand, although Google wallet collects information about user’s
purchases, it makes use of this information by providing several personalized
discounts to the users. It interacts with Google Offers, that is a service similar
to “Groupon” that provides group discounts, and features “Single-Tap”
technology, which incorporates coupons and loyalty points, and applies them
directly to user’s purchases.(Near field
communication).

Correspondingly,
as better usability experience is the most important reason for users to use
tap-and-pay, Apple has an advantage over Google wallet as the Apply pay users
find it easier to ‘just use their thumb’ to authenticate the transaction in
contrast to Google wallet that requires users to unlock their phone, open the app
and then verify the identity and authenticate the transaction (apple pay usability and security..). Furthermore,
in general terms, Apple users do not require an antivirus to be installed on
their devices since checking is being done in the App-store. However, in Android
handsets, antivirus can be downloaded from the Android market where it is
easier for a mobile phone to become a victim of a virus attack since no
protection and checking is done before an outside web source application was
downloaded. That, in turn, makes Apple more secure for carrying out sensitive E-commerce
transactions (06637558)

 

Disadvantages:

 

As
discussed by —, although Intel Atom processor uses less power, however, it
has a relatively longer execution time as compared to core i7 platform
therefore it is less energy efficient as compared to other processors analysed
in the research.(SCC GPU CPU). Regarding
the web cluster of servers, according to a study, although a homogeneous
cluster of Atom machines performs close to the heterogeneous mixture in terms
of energy savings, it is not a compelling recommendation because of the
physical space it uses and its worthlessness in certain classes of applications
for instance large database servers (NapSAC).

In
addition, the Intel Atom processor is also not suitable for CPU intensive
applications for the under discussion E-commerce business. As discussed by – , Intel
Xeon processor performs comparatively better for CPU intensive applications as
the data increases. (07357128). —
also notices that ARMCortex-A9 has a superior efficiency only for a small
number of problem sizes, and then its performance decreases. (1-s2.0-s074373…)

 

On
the other hand, taking mobile payments for E-commerce into account, Apple pay
has a major usability disadvantage as third parties are compelled to integrate
their services into Apple’s platform and pass through a review process to be
available only on Apple’s App-store. This makes Apple less Integratable with
external services that gives Google wallet a plus of being more flexible as
contactless payments through its platform can be done using any Android NFC
handset.(Erol kazan). Having said
that, the review process also allows Apple to publish only high-quality
applications whereas on the android platform, customer feedback has identified
a lot of low-quality applications (1-s2.0-s07365…).
One of the other main disadvantages that Google wallet possesses over Apply Pay
is its potentially unsecure authentication system as Google Wallet’s PIN
Authentication can be easily bypassed because its design seems to be based on
proprietary technology instead of the recognized standards and processes
(1-s2.0-s13613…).

 

Legal and
Ethical:

 

As
discussed in the previous sections the use of low power processors is analysed
in the place of high power desktop processors in order to accommodate for upcoming
challenges of big data in E-commerce. However, big data comes with some fatal
ethical and security issues that need to be addressed. E-commerce consumers disclose
personal and transaction information within a set of controlled privacy rules,
and sharing that information with other firms in the supply chain may breach
their privacy presumptions. For-example, location information provided by a
customer of a tourist attraction website could be expected to be used for hotel
or restaurant recommendations or discounts for their destination. However, the
customers would not expect the information to be passed to data aggregators and
used a year later to make pricing decisions (SSRN-id2598956).
This way, the information that the users disclose with a purpose in mind and within
an implicit confidentiality agreement would be breached.

 

Also,
potential legal and social issues may arise if children are asked to provide
personal information to make purchases as abuse can occur against the rules
provided by Children’s online privacy protection act (ftc.gov). Similarly, while
using android and apple mobile payment systems, in addition to the security
risks, there are legal and social risks as well, because data breach may occur.
As a result, sensitive information as credit card numbers and purchase records
etc can be exposed through which user’s privacy will be at risk. There is also
a risk of identity theft in this case. (07440226)

 

 

Conclusions and
Future Importance:

 

E-commerce
is recognised as one of the leading business area of the world and upcoming
information technology trends require the server models of e-commerce
management systems to be updated according to the latest big data requirements.
Although there are excellent servers for desktops that are available for these
high scale businesses produces by leading companies as Intel and ARM but these
servers are not capable of handling big data and its overload. Several studies
in the academia suggest the use of small low power processors to replace high
power consuming processors as a solution. According to our research, Intel’s
atom processor seems to consume much less power as compared to the rest of
processors and the increase in power per thread is also lesser comparatively. As
according to the business scenario, E-commerce applications are mostly I/O
intensive compared to being CPU Intensive, Intel’s Atom processor performs much
better for I/O intensive applications as compared to the other processors. Although
ARM is also implied to be more energy efficient in one of the studies than its
opponent however it was established that its performance decreases as the
number of problem sizes increases. Therefore, it can be easily noticed that for
the upcoming challenge of managing big data, Intel’s Atom seems to be the most
appropriate solution at present.

For
future work, the emerging technology called as field-programmable gate array
can be used in combination with the low power processors in the E-commerce
server system. FGPAs are integrated circuits that can be programmed to work as
processors and they can provide added benefits of large data processing but
with high efficiency. (06189226). Several
studies have already been done on the topic but the solution has still not been
applied on high scale commercial platforms because of its disadvantage of
requiring the use of a lot of resources to program them individually and specifically.(p46 singh) Regardless, FGPAs look like
the best building blocks for the big data challenges in the future innovative E-commerce
applications (a16-cong).

 

To
conclude the analysis of mobile payment systems for E-commerce applications, it
is safe to say that Apple and Android have always been at the top of the App-design
feasibility race for technological innovations in their operating systems. For
an application that needs a customer’s bank account details to operate, it has
to earn a costumer’s trust first. Several factors factored on the operating
system level contribute to this trust factor of which privacy of a customer’s
transaction data and purchase information can be established to be of high
importance. Apple pay has been designed to take care of this specifically as it
does not collect any costumer data giving them a sense of trust. Google Wallet,
however, collects and uses that data for the benefit of customers in proving
them with useful deals however in the comparison equation, privacy gets more
value that money benefits.

In
addition to that, our study has established that people consider ease of use as
an important factor while using a mobile payment application instead of their
credit cards. In Apple pay, transaction can occur with just a thumbprint
however Google has some more steps that include unlocking the phone first in
order to verify phone owner’s identity and then opening the application and
verifying the identity in order to pay. Thus Apple clearly gets a plus point
for that matter.

Security
can un-arguably be established as the most important factor in the trust
building process where Apple takes the lead again as all the applications that
are uploaded in App store go through a review process and security is applied
at the App store stage therefore it doesn’t need any antivirus to be installed.
Google apps however don’t go through necessary security checks and thus need an
antivirus to be installed, which makes a user’s phone vulnerable to several
security breaches. Although Google wallet has various advantages towards being
flexible for third parties, regardless, more number of advantages of Apple Pay
makes it the better solution to mobile commerce payment system challenge.

For
future work, financial cost and institutional pressures can be investigated as
additional decision variables for companies to adapt mobile payment
applications for their clients. As many developed countries and banking institutions
have already invested heavily in Internet and card-based payment systems,
therefore, they may not be motivated enough to change to an mobile payment  system.(evaluating
_the_…).

In
addition, as Google wallet is currently only available in US and Apple Pay is
currently available in a few selected countries, the question that how would
the trust factor built up if these systems move globally can be investigated.
As Apple Pay and Android Pay are fairly new technologies, there is not much
work done to date on investigating people’s perceptions on their usability and
security. —has tried different quantitative methods to evaluate user behaviour
for Apply pay usability and security however more study needs to be done for
heterogeneous participant sets (Apply pay
usability…).