Electronic Business: Concepts, Methodologies, Tools, and Applications (4-Volumes) P196 docx

1884 Analysis of Business Process Models in Enterprise Web Services will not cause suboptimization of processes. On the contrary, organization can use standard forms of software, and still create unique solutions at user/task level. Similarly, ideas to improve operations can be implemented. WfMSs can be used to help both managers and end-user understand the business process better. It also helps manag- HUVWRFRQWURODQGGHOHJDWHWDVNVPRUHHI¿FLHQWO\ and effectively. The management of the new information based company is the entrepreneurial spirit through user computing. Exchanging and distributing knowledge allow people at the line levels more aggressively setting their own direction and ob- jectives. Individual managers feel more control and satisfaction with the end product to resolve issues on their own. Mentoring opens wider communications between the systems personnel and levels of employees closest to operations, customers, and their associated problems. Such strategy continues to encourage the creativity and team cooperation in the business functions of the company and ultimately the systems achieve us- ability from the people who design and develop themselves, the users. Although WfMSs provide us a promising solu- tion to help understand and control processes and motivate communications among different levels of personnel in an organization, current commer- cial WfMSs still have limitations in supporting ÀH[LELOLW\DQGDGDSWDWLRQDQGODFNRILQWHURSHU- DELOLW\WRVXSSRUW%%ZRUNÀRZFRQWURO$VWKH gap between academic and industry standards reduces, the above weakness can be overcome. This article aims to address a guide to practi- WLRQHUVWKURXJKDVHULHVRIZHOOGH¿QHGVWUXFWXUDO steps necessary to make informed, consistent DQGHI¿FLHQWFKDQJHVWREXVLQHVVSURFHVVHV7KH research has also contributed to the new knowledge in Web-based services with the collabora- WLYHZRUNÀRZDSSOLFDWLRQV7KHPHFKDQLVPVRI LQWHURUJDQL]DWLRQDOZRUNÀRZVFRXSOHGZLWKWKH performance incentives of the process framework enable the users to integrate enterprise applications in a distributed environment. In order to gain a sustainable competitive advantage in the wide VSHFWUXP RI HVHUYLFHV ZRUNÀRZWHFKQRORJLHV coupled with cross-functional business processes offer fully automated coordination support. Future debates include the standardization to bridge between systems with an organizational boundary, where the internal systems meet the external Web systems and other ways of using value-oriented patterns to improve performances. REFERENCES Adams, M., Edmond, D., & Hofstede, A. 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(2005). Business process modeling with URN. International Journal of E- Business Research, 1(3), 63-90. :RUNÀRZ 0DQDJHPHQW &RDOLWLRQ  5H- trieved November 19, 2007, from http://www. HZRUNÀRZRUJVWDQGDUGVLQGH[KWP Zhang, D. (2005). Web services composition for process management in e-business. Journal of Computer Information Systems, XLV(2), 83-91. Zhao, J.L. (2002). ,QWHURUJDQL]DWLRQDOZRUNÀRZ and e-commerce applications. Presentation at HICSS-35. Retrieved November 19, 2007, from http://attila.stevens-tech.edu/sigpam/publica- tions/tutorial/HICSS-35/Interorganizational_ :RUNÀRZSGI This work was previously published in International Journal of E-Business Research, Vol. 4, Issue 2, edited by I. Lee, pp. 69-87, copyright 2008 by IGI Publishing (an imprint of IGI Global). 1890 Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 6.11 Doing International Business Online for the Small and Medium Enterprise Sam Edwards Nagoya University, USA and Japan ABSTRACT 7KLVFKDSWHUDGGUHVVHVWKHSULPDU\GLI¿FXOWLHV that small and medium enterprises face when doing business online with international partners. The guidance provided in this chapter is primar- ily for owners of small and medium enterprises rather than legal for professionals. The two main problems inhibiting online transactions are a lack of trust between the parties and the risk inherent in the exchange. This chapter analyzes ways to address these problems. Many of the practical suggestions in this chapter are inspired not by million dollar deals but by playground transactions between children. Often the simple solutions are the best ones. INTRODUCTION Scene One You run a small shop that specializes in imported art from native artisans. Although you do not have the budget to travel to every place that might have interesting items, you still want to offer a variety RIJRRGV:KLOHVXU¿QJWKH,QWHUQHW\RXORFDWH a site that shows items that look to be perfect but the seller appears to be located in Kenya. How can you do business with someone you will never meet face-to-face? From the small digital pictures and limited descriptions, how can you be sure the goods will be as portrayed? How can you protect 1891 Doing International Business Online for the Small and Medium Enterprise yourself from all of the scams you hear about on the net? If you decide to buy, how can you resolve any disputes that might arise? Scene Two Your uncle produces hand-carved wooden statues and sells them in his small stall in a Nairobi market. Since the statues have proven popular with foreign tourists, he has asked you to help expand his business. Being a computer savvy student, you quickly put together a Web page with pictures of his works in hopes of exporting them. After a few months, despite having an ever-growing page hit count, you have not received any orders. What can you do to improve the chances of selling? How can you protect yourself from all the scams that exist in the wilds of the Internet? Increasingly small and medium businesses are expanding to do business on the Internet. This is nothing new, however, as more people gain ac- cess to the Internet, international transactions for these smaller businesses will increase. For a large company, experienced teams handle international transactions. These teams normally travel and meet their counterparts face-to-face. Smaller enterprises do not have the resources and must rely on remote com municat ions if t hey w ish to do international business. Can the same Internet that IDFLOLWDWHV¿QGLQJSRWHQWLDOWUDGHSDUWQHUVKHOSWR solve some of these problems with international transactions and disputes? This chapter focuses two aspects of online commerce: 1. how the various e-commerce systems can increase trust and reduce risk, and 2. should a dispute arise, how online dispute resolu- WLRQFDQHI¿FLHQWO\UHVROYHSUREOHPV In addition to direct business-to-business transactions, this chapter will examine private marketplaces such as eBay. With eBay recently signing up its 200,000,000 th member, eBay has EHFRPHE\SRSXODWLRQWKH¿IWKODUJHVW³FRXQWU\´ in the world(Whitman, 2006). Given eBay’s domi- nance, this chapter will examine the practices that help mitigate risk in international transactions. Moreover, eBay’s acquisition of Skype, a voice over IP telephony service, opens up the potential for much more interesting features to help bring buyers and sellers closer in spirit, if not space. This chapter will conclude with recommenda- tions for small and medium businesses looking to engage in international business through the Internet. TWO BASIC PROBLEMS INHIBITING ONLINE TRANSACTIONS In our examples, the two biggest problems facing our parties are: trust and risk. First, neither party trusts the other. Moreover, there is a general distrust of Internet based businesses. Second, there are substantial risks when dealing online. The combination of low trust and high risk creates substantial barriers. Using a variety of techniques and resources, the parties can eliminate or at least reduce these two fundamental concerns. BUILDING TRUST BEFORE THE EXCHANGE \HDUVDJR7XVVHUVDJHO\REVHUYHG³>D@IRRO and his [or her] money are soon parted” (1557). This sage advice is no less true today. In fact, one can become parted from one’s e-money in a single, careless click on the Internet. Just how can one trust someone in cyberspace? Know Thy Partner Who exactly is the person at the other end of the transaction? Knowing someone is part of building trust. In a face-to-face exchange just JHWWLQJWR³ORRNVRPHRQHLQWKHLUH\HV´FDQKHOS build trust. Online this can be accomplished in a variety of ways. 1892 Doing International Business Online for the Small and Medium Enterprise Communication The more communication between the parties the easier it is to build trust. Communication falls into two broad categories: synchronous and asynchronous. The primary difference is that in synchronous communication the parties communicate in real time. In asynchronous communication the message is sent and later received by the other party. Synchronous communication includes: text chat, voice chat, video chat, and any other real time communication. Asynchronous communication includes: e-mail, voice mail, video mail, and any other communication that does not link the parties in real time. Synchronous communication can be more affective in building trust since it allows more information to pass between the parties. For example, if the seller hesitates when asked if her carvings are real ebony wood, the buyer might question the seller’s claims. While synchronous communication is preferable, asynchronous communication can be more convenient given the time differences when dealing with global transactions. Moreover, parties operating in their second (or more) language are often more comfortable with asynchronous communication. There are also other advantages to text-based communication. Epstein (2001) suggests that parties are less likely to lie when their comments are ³RQWKHUHFRUG´LQZULWLQJ(SVWHLQZDVGLVFXVV- ing attorneys in negotiations but the principle remains the same; having a permanent record of all communications can be an effective deterrent to parties engaging in untruths. For example, a seller can build trust with potential buyers by offering several methods of com- PXQLFDWLRQVXFKDVOLYHWH[WFKDWD³92,3PH´ 1 button on their Web site, and e-mail. Regardless of the method, prompt responses to all inquires are important in building trust. An e-mail that goes unanswered for weeks would dissuade the most interested buyer. Further, the more personal the communication, the better it will help build trust. For example, a personal e-mail rather than an automatically generated response from the seller generates much more trust. In addition to personalized responses, the content of the communication is also important in building trust. For example, in asynchronous ZULWWHQ FRPPXQLFDWLRQ LW LV GLI¿FXOW WR MXGJH the feelings of the author since the reader only has the sterile words. In fact there is evidence that even the wording of something as simple DVWKHFORVLQJ³6LQFHUHO\%HVW&KHHUV´FDQVLJ- QL¿FDQWO\DIIHFWWKHWHQRURIWKHFRPPXQLFDWLRQ (Ogunnaike, 2006). Judge a Person by Their Past By looking to someone’s history you can learn ZKDWWRH[SHFWIURPWKHP,I\RX¿QGRXWWKDWD local seller has a reputation for good quality you are more likely to trust them. Use the Internet to research the history of a seller or buyer. Private auction sites such as eBay incorporate history of users into their site. With a quick glance you can easily learn someone’s reputation. A seller with a long history of good comments IURPVDWLV¿HGEX\HUVZLOOKDYHDKLJKHUOHYHORI trust and will be able to sell goods at a higher price than a seller with a poor or no reputation. Even if a seller is selling directly to consumers she can offer a list of past clients (with their permission of course). A customer testimonial section on the seller’s Web site or even a public forum where members can voice their satisfaction can help to build trust. However, none of these measures of trust are foolproof. Reputation can EHIDOVL¿HGXVLQJVKHOODFFRXQWV0RUHRYHUZKR LVWRVD\WKDWDFRPPHQWE\DVDWLV¿HG³FXVWRPHU´ was real? &HUWL¿FDWLRQE\7KLUG3DUWLHV 0DQ\RUJDQL]DWLRQVRIIHUFHUWL¿FDWLRQVIRUPHU- FKDQWV7KHVHFHUWL¿FDWLRQVDUHGHVLJQHGLQSDUW 1893 Doing International Business Online for the Small and Medium Enterprise to build trust for consumers by showing that the merchant meets certain standards. Online, simi- ODUDQGRIWHQWKHVDPHFHUWL¿FDWLRQVH[LVW)RU H[DPSOHRUJDQL]DWLRQVRIIHULQJFHUWL¿FDWLRQIRU online businesses include: the Better Business Bu- reau Online, 2 Webassured, 3 and SquareTrade. 4 7KHUHDUHDOVRVSHFLDOL]HGFHUWL¿FDWLRQRUJD- nizations that address areas such as Web security and protection of user privacy. 5 7RJHWFHUWL¿FDWLRQE\RQHRIWKHVHLQGHSHQ- dent groups, a seller must meet certain standards. Knowing a seller has met these standards can help build trust for buyers. 8QIRUWXQDWHO\ HYHQ FHUWL¿FDWLRQ E\ D WKLUG party is not a sure sign that there is no risk. Edel- man’s (2006) recent empirical research suggests WKDWRUJDQL]DWLRQVRIIHULQJWKLUGSDUW\FHUWL¿FDWLRQ DUHRIWHQOD[DQG³>WKHLU@DSSURDFKJLYHVULVHWR adverse selection: The sites that seek and obtain WUXVWFHUWL¿FDWLRQVDUHDFWXDOO\VLJQL¿FDQWO\OHVV WUXVWZRUWK\WKDQWKRVHWKDWIRUHJRFHUWL¿FDWLRQ´ Edelman found that certifying cites had a revoked YHU\IHZFHUWL¿FDWLRQVDQGUHODWHGWKLVWRWKH ¿QDQFLDOLQFHQWLYHVWRNHHSVLWHVSD\LQJIRUDQ- QXDOFHUWL¿FDWLRQ Thus, in order to build trust there are several steps one can take before entering into a transaction. None of these suggestions are new but there are some new twists particular to the online environment. Even if the parties are able to build some level of trust, once the parties decide to engage in an exchange, how can they reduce risk? REDUCING RISK DURING THE EXCHANGE Rather than a complicated legal analysis of the exchange of goods in trade, this section will approach things from the perspective of children. We can learn a lot by watching how children interact as their world is one mostly without enforceable ODZV:LWKRXWDQ HDV\ZD\ WR HQIRUFH³ULJKWV´ children have developed their own methods to reduce risk. The Law of the Playground: Simultaneous Exchange If you have ever watched children engaging in a trade of prized items such as a toy, you will notice that they are often very distrusting of their ³WUDGHSDUWQHUV´:LWKRXWDQ\EXVLQHVVRUOHJDO WUDLQLQJFKLOGUHQKDYHGHYHORSHGD¿QHPHWKRG of overcoming this distrust. The children will face each other, toy in hand, and simultaneously grab the toy offered by their partners. Only once both VLGHVKDYHD¿UPJUDVSRQWKHRWKHU¶VWR\ZLOOWKH\ release their toy and complete the transaction. This simultaneous exchange protects both parties to the transaction. The parties can size up the item offered in exchange and eliminate the risk of not receiving the toy in exchange since they only release their toy once they have the other ¿UPO\LQWKHLUJUDVS )RULWHPVVXFKDV³YLUWXDOJRRGV´WKDWFDQEH exchanged simultaneously online, one can follow the rule of the playground. For example, for virtual goods in online environments such as Second Life, 6 the parties to a transaction can see exactly what is offered for exchange before clicking the ³,DFFHSWEXWWRQ´2QFHERWKSDUWLHVDFFHSWWKH transaction automatically occurs. Although this method can work for some online transactions, simultaneous exchange is normally impractical for transactions involving non-virtual goods. Moreover, part of the attraction of online transactions is the fact that you do not have to meet anyone in person. This means that our online parties must seek out other methods to reduce their risks. . LQ D multilevel secure environment. In P. S. Sandhu &. R. S. Sandhu (Eds.), Database security X: Status and prospects. Chapman and Hall. Andreescu, F. (2006). Organisational challenges. company and ultimately the systems achieve us- ability from the people who design and develop themselves, the users. Although WfMSs provide us a promising solu- tion to help understand and control. between the systems personnel and levels of employees closest to operations, customers, and their associated problems. Such strategy continues to encourage the creativity and team cooperation in