Question

(In case of JollyChic an online boutique ) Discuss the limitations and challenges while implementing recent technology with respect to traditional business methodologies.(at least 300 words)

Answer 1

The technology has advanced to a level where almost all basic human social needs are being online or through technology enabled solutions. Right from socializing and meeting new people to ordering regular supply of groceries, all work can be done using the fingertips in few easy steps. Online shopping has become a bigger sensation and promoter for using online technologies. There are many advantages of using online shopping but for the case mentioned, we can restrict it to the negatives of online shopping while comparing it to traditional modes of shopping.

Few major drawbacks of online shopping are:

• No ability to physical perceive the items being ordered. While we can always return the items, it becomes much easier to feel the item we wish to buy rather than go to the hassle of buying online and return them.

• Not every website is trustworthy. While browsing online retails stores, multiple cases of fraud have been observed. Many shops register themselves on websites but do not provide the correct product as displayed in the product catalogues.

• Huge dependency on internet and web service provider. For anything to be done online, you need a secure web connection. If the web connection is not proper, the orders will not get placed and if the stock is limited, the product may be sold out before we even get to payment stage. While in shops, once we select the item, we can either return or pay before we checkout from the store.

• Delay in delivery is huge problem. If the products are ordered during shopping season`s it is quite possible that there will be a significant delay in delivery of the product.

While implementing the technological solutions to do an online purchase all the above issues must be considered. For a traditional store to start selling online, following major activities need to be done:

• Prepare up to date catalogue of products
• Buy a domain and update it with all necessary security certificates
• Ensure consumer data security and prevent data leaks
• Frequent update of product inventory with the master data base
• Improve user connectivity using the website/portal/app
• Enable secure payment gateways
• Enable reliable logistics partners
• Ensure the supply chain is ready to meet demands supply issues

If the shops are able to resolve these issues, then they can start selling their products online. Few challenges they might face while trying to implement these solutions are:

• Lack of interest from customer to move from traditional shopping to online mode
• Inability to secure trustworthy data security agencies
• Unable to do ties ups with payment gateways
• Unable to build profitable relationships with logistics partners
• Reduction in data movement speed
• Delay in updating the inventory master data
• No response to online customer queries etc.

These are few major issues the shop will encounter when trying to move from traditional shops to an online mode. It has also been studied that shopping give an opportunity to move out from the stressful areas of life and get into a relaxed atmosphere. Traditional shopping can only provide such an emotional connect with the customer.