EFFECT OF INFORMATION SYSTEMS ON THE PERFORMANCE OF E-COMMERCE

CHAPTER ONE

1.1      Background To The Study

The evolution of information system has evolved diverse means of doing business.  Information system fundamental objective is to support the management, operations, and decision-making. An information system consists of the information and communication technology (ICT) that a firm uses, and the technology people interract with in support of business processes. Information systems include ICT component but are not purely concerned with ICT, focusing instead on the end use of information technology. Information systems are also different from business processes. Information systems help to control the performance of business processes. It has connected the globe into one unit and enhanced the communication and exchanges of not only information but also of buying and selling of goods and services over the internet. Therefore E-commerce can be defined as the application of internet facility in the process of buying and selling of goods and services over short and long distances. E-commerce involves the use of technology such as the internet, , fax, e-payment, money transfer systems, telephone,  e-data inter-change in conducting the business of buying and selling of goods and services’-Ecommerce enhances  direct access to overseas markets and fosters the globalization of commercial activities; It connects domestic and foreign companies and easily provides an easy means of doing business over the internet-commerce has led to the development of new ways of doing business. It facilitates the business transaction of investment, payments, purchasing, supply, research etc. over the internet.  Electronic commerce consists of all commercial transaction that is concluded over an electronic medium and the internet. The potential of the internet to connect different parts of the world in market place using global technology and information exchanges exact a great and positive significant impact on the developing economies like Nigeria. E-commerce has enabled an overwhelming   increase in the volume of trade and economic activities existing on-line. The total level of electronic commerce business transaction carried out over the internet currently within this period has been appreciative and growing at a rapid pace. E-commerce extends beyond the use of electronics and commerce added together. It is a complete new way of doing things. An entirely new way of conducting business over a medium that has changed the old pattern of conducting   business. E-commerce is conceived as far more about strategy and business management than  about technology-commerce involving the use of  the internet, if  effectively  utilized for development, can become an  instruments for determining future sustainable economic growth The various  aspect of   e-commerce can be  grouped  into two parts .

 E-merchandise: which involves the selling of goods and services using the electronic process and transferring goods through distribution channels, such as using the internet to shop for items as cloths, hardware, travel, book, flower groceries, tickets, music, or gifts?

 E-finance: This consist of the application of technology including the internet to conduct transaction involving banking, insurance, financial service , use of  debit cards, smartcards,  telephone and internet and mortgages. The great flexibility of the internet has enhanced ecommerce, which has also influenced the traditional method of business management. Including all the   facets of the business tradition which people are familiar with in the physical environment. And which can now be applied over the internet including online banking, investment, auction and professional services. Advertising, ordering, publishing, banking,

 E-commerce entail implementing business through the use of modern communication tools such as: telephone, fax, e-payment, and the internet. E-commerce consists of not only a new technology but a new platform for international and home business and trade. However it is   still evolving. It constitutes an essential, aspect of doing business in our contemporary society. The research therefore seek to investigate the Effect of Information Systems on the performance of e-commerce

1.2      Statement of the Problem

The advent of information system is mainly responsible to the rapid change of processes in conducting business in modern society. Commerce was previously understood primarily to the physical exchange of goods and services through trade and other ancillary services with much limitation over destination and time however the advent of information system has led to e-commerce which entails the   application of internet facility in the process of buying and selling of goods and services over short and long distances. E-commerce involves the use of technology such as the internet, , fax, e-payment, money transfer systems, telephone,  e-data inter-change in conducting the business of buying and selling of goods and services’-Ecommerce enhances  direct access to overseas markets and fosters the globalization of commercial activities;

However significant challenges exist in the process which include; Problem of   consumer’s confusion and apprehension of the safety involved in doing business over the internet.,  Problem of risk associated in internet business as there exist a high level of cybercrimes which is being addressed in Nigeria; The consumers are physically unable to examine the product personally; The problem of Online Purchasing Security; The cost of maintenance of hardware and software of Website for the transaction of business activity is high; The customers often get stoked to the business website as any problem could lead to loss of customers and business.;The cost of Training of online business is high among others

Therefore it is important that deficiencies are addressed in the process of e-commerce. Consequently the problem confronting the research is to determine the Effect of Information Systems on the performance of e-commerce

1.3      Objectives of the Study

To determine the Effect of Information Systems on the performance of e-commerce

1.4      Research Questions

What is information system and E-commerce?

What is the Effect of Information Systems on the performance of E-commerce?

1.5      Significance of the Study

The study shall proffer fundamental information on the role and Effect of Information Systems on the performance of e-commerce

1.6      Research Hypothesis

Ho The Effect of Information Systems on the performance of e-commerce is not significant

Hi The Effect of Information Systems on the performance of e-commerce is significant

1.7      Scope of the Study

The study focuses on the Effect of Information Systems on the performance of e-commerce

1.8      Limitations of the Study

The study was confronted by some constraint including geographical factors and logistics.

1.9      Definition of Terms

INFORMATION SYSTEM DEFINED

An information system consists of the information and communication technology (ICT) that a firm uses, and the technology people interract with in support of business processes. Information systems include ICT component but are not purely concerned with ICT, focusing instead on the end use of information technology. Information systems are also different from business processes. Information systems help to control the performance of business processes

E-COMMERCE DEFINED

E-commerce can be defined as the application of internet facility in the process of buying and selling of goods and services over short and long distances. E-commerce involves the use of technology such as the internet, , fax, e-payment, money transfer systems, telephone,  e-data inter-change in conducting the business of buying and selling of goods and services’-Ecommerce enhances  direct access to overseas markets and fosters the globalization of commercial activities;

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