[ 3 ]
Information Management &
Computer Security
4/4 [
1996
] 3–9
© MCB University Press
[
ISSN 0968-5227
]
Doing business on the Internet: marketing and
security aspects
Karen A. Forcht
Professor in the Department of Information and Decision Sciences, College of
Business, James Madison University, Harrisonburg, Virginia, USA
Rolf-Ascan Wex
Former MBA student at James Madison University. Majored in information
management at the European Business School in Germany
Acknowledges that many
prospective business users
are wary of the Internet
because of existing and
potential security loopholes.
Gives an overview of the
security problems and solu-
tions and concludes that
doing business online involves
some risks, like any other
business transaction, but, if
attention is devoted to
installing secure procedures,
it is no riskier than other
business practices.
Introduction
The worldwide network of computers, called
Internet, provides good opportunities for a
company to do business in Cyberspace. Orga-
nizations find it increasingly important to
represent themselves on the Internet to get
more customers, increase the public’s aware-
ness of the company and its products and to
sell more of its products. Security implica-
tions hinder the business. Banks, credit card
companies and software producers work
together to develop a World Wide Web stan-
dard for safe transactions. Hackers try to get
as much information as possible, which they
can sell on the black market. Companies have
to follow specific guidelines to develop a suc-
cessful appearance in the Web.
The growing popularity of the
Internet
The ease and relative cheapness of publish-
ing information on the Internet has led busi-
nesses and entrepreneurs alike to rush into
Cyberspace. With an investment of as little as
US$30 a month, most people can set up their
own Web operations using a personal com-
puter and a modem[1]. The huge potential of
customers and consumers has businesses
scrambling to get on to the Web. Millions of
people all over the world can view these
pages on the worldwide Internet. It has
become affordable and easy to get access to
the Internet and most potential customers
like to see a company represent itself on “the
Net”. Customers can search the products of a
company and ask questions directly without
having to go to the store and waste a lot of
time there.
Although the commercial market of the
Internet might be small today, it is likely to
grow tremendously in the future. Commerce
will begin in earnest on the Web when the
computer becomes as easy to use as a tele-
phone or other household appliances. The
Net itself has to become more attractive for
customers, since unresolved privacy implica-
tions might hinder customers from purchas-
ing items on the Net. The security of transac-
tions is one aspect and will be discussed later
in this article. Another important factor is
the tracking of customers. Already, compa-
nies can collect data on a person’s entertain-
ment-viewing habits, their telephone-calling
patterns and their shopping behaviours. In
addition, they can record the time and pages
which a customer saw during his/her stay on
the Web.
Old-fashioned ways of advertising and com-
municating with customers are no longer
appropriate and cannot be used easily on the
Net. Companies will have to come up with
new ways of communicating with customers
and employees around the world.
Some disadvantages for a company doing
business on the Net include the “surfing” of
employees on the Net in company time[2].
The more fascinating the World Wide Web
gets, the more likely employees are to do
this. Employees have to discipline them-
selves to avoid sitting in front of their com-
puter surfing the Net and doing nothing
worthwhile for the company. It has been
calculated that the average employee spends
9.7 hours per week surfing the Net and
answering his/her e-mail in company time.
Furthermore, health-related topics might
become important, as people working with
computers are likely to develop eye-strain
headaches and some form of “computer
addiction”[3].
The Internet proves extremely useful for
eliminating costs while dealing with cus-
tomers. To provide information on the Net,
and allow customers to find answers to their
enquiries themselves greatly helps to reduce
telephone charges based on 800 and 888 num-
bers. Companies can also save money by
offering their software or trial versions on
the Internet, as people can simply download a
file. The company does not have to pay
postage any more.