Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope?

The limitations of electronic mode of doing business are given below: 

• Low personal Touch: It lacks the warmth of interpersonal interactions. Therefore, such products which need personal touch like beauty products, garments, fashion accessories etc. can’t be traded through e-business. 
• Mismatch between order giving/taking speed and order fulfillment speed: Sometimes websites take a long time to open which may frustrate the user. Even after giving or taking order, it takes enough time to give physical delivery of goods. It also plays on the patience of the customer. 
• Knowledge of technology is must: For e-commerce both the parties need fairly high degree of familiarity with the world of computers. It divides the society into two parts i.e; one who are familiar with digital technology and other who are not. 
• Increased risk due to parties being unknown to each other: When two parties are involved in e-business, they are unaware of personal identities of each other. They do not even know the locations of the parties involved. It makes e-business risky. There may also be problems of virus and hacking. 
• People Resistance: People are resistant to change their ways and adopt new technology. Change is perceived as a source of stress and insecurity by many. 
• Ethical Concerns: These days companies use an electronic eye to keep track of the websites being used by employees, computer files that they use, their e-mal accounts etc. It is not ethical. But in spite of these limitations, e-business is the way. No, these limitations are not severe enough to restrict its scope. 
• Improvement in Information Technology: With the improvement in information technology and emergence of internet the process of outsourcing and e-business is on an expansionary path. Anti virus and improved security measures are increasing to make e-business more secure and safer option. 
• More and more Interactive Websites: Websites are becoming more and more interactive. It is removing the problem of ‘low personal touch’. 
• Improvement in Communication Technology: Communication technology is continually evolving and increasing the speed and quality of communication through internet so that customer does not get frustrated in processing the order. 
• Diffusion of E-Commerce in all nooks and corners of the country: An order to diffuse ecommerce in all nooks and corners, India has undertaken about 150 such projects. It is increasing the number of people acquainted with digital technology. We can conclude that e-business will continue to stay and reshape the businesses, governance and economies.

e-business has its otyn limitations as discussed below:

(i) Low Personal Touch e-business lacks the warmth of interpersonal interactions and personal touch for satisfaction of customer. Thus, it is relatively less suitable mode of business for product categories requiring personal touch for convincing the customers such as garments, etc.

(ii) Incongruence between Order Taking/Giving and Order Fulfillment Speed In e-business orders can be placed at the click of a mouse, but the physical delivery of the product takes time. Customers are sometimes not patient enough to bear with this incongruence. At times the users even get frustrated due to technical reasons when web sites take unusually long time to open.

(iii) Need for Technology Capability and Competence of Parties to e-business e-business requires the parties to be fairly familiar with computers and internet. The digital divide has thus limited the use of e-business.

(iv) Increased Transaction Risk Internet transactions occur between cyber personalities and it is difficult to establish the identity of the parties or know the location from where the parties may be operating, e-business is also risky due to additional hazards of impersonation and leakage of confidential information such as credit card details. Problems of ‘virus’ attacks and ‘hacking’ also pose security concerns in ebusiness.

(v) Resistance to Change The process of adjustment to new technology and new way of doing things causes stress and a sense of insecurity due to change. As a result, people may resist a change from traditional business to e-business.

(vi) Ethical Fallouts Companies use an ‘electronic eye to keep track of the computer files, e-mail account and the websites visited by their employees or others who use their network systems which is not considered right on ethical grounds. But most of the limitations of e-business discussed above are in the process of being overcome. Websites are becoming more and more interactive to overcome the problem of ‘low touch. Speed and quality of communication through internet is being improved through communication technology innovations.

Efforts are on to overcome the digital divide through setting up of community tele-centres in villages and rural areas with the involvement of government agencies, NGOs and international institutions. Thus, we can say that despite limitations, e-business is here to stay and bring a positive change in the businesses, governance and the economies.