The Role Of It Management In The Digital Economy
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THE ROLE OF IT MANAGEMENT IN THE DIGITAL ECONOMY – INFORMATION TECHNOLOGY IN TRADE TRANSACTIONS
MASTER STUDENT IN EMIT: TUDOR CARSTOIU
SCIENTIFIC COORDINATOR: PROF. ROBERTO MAVILIA
2016
CONTENTS
Table 1 Users advantages and disadvantages of online products and services 24
Table 2 The tangible and intangible benefits that can be obtained using e-commerce 26
Table 3 Households having access to the internet at home 43
Table 4 Analysis of the evolution of the percentage of households having Internet access at home in Romania in the period 2006-2015 46
Table 5 Swot analysis of electronic commerce 57
ABSTRACT
This paper is an overview of the research into how information technology generates a major change in the economic environment. Computer technology is evolving and with it the economy is gradually transforming to a new economy „digital economy”.
A particularly important role in the "" of the economy it has a branch management, IT management that has emerged with the advent of the first computers. IT management has evolved over time from a management-oriented to technology management services. IT services are generated by the use of computers, tablets, iPods, mobile phones and other technologies. These elements became essential business development. Thus emerged a sub branch of IT management called „IT Service Management”. With the evolution of economy and IT management term appears the CIO (Chief Information Officer) that assigned the job occupied by the highest executive in an enterprise responsible for information technology and information systems.
The research questions I try to answer are:
What is the role of IT management in the digital economy?
What is the role of the CIO (IT managers) in the digital economy?
Did the role of the IT executive change from operational to a strategic one? How?
The emergence of e-commerce is an effect of the evolution of IT and the digitalization of the economy?
What impact has the appearance of e-commerce worldwide? What about on Romania? It would be very interesting to learn how the digital economy is impacting the e-commerce Transactions in Romania.
To all these questions I will try to find the answer by using the bibliography by collecting necessary information, their analysis and drafting this paper.
This study will help me to better understand the evolution of the digital economy and IT management.
After analyzing these topical issues will draw the necessary conclusions at the end of this work and will come up with several proposals to remedy the current situation.
The purpose of the paper to analyze and understand, the importance of electronic commerce in the new economy (digital economy), especially the contribution it can make in boosting national and international trade.
INTRODUCTION
Worldwide there was a postindustrial phase characterized by information technologies leading also to the evolution of classical economics economy digital economy. The spread of information in real time via the Internet lead to the digitalization of the economy, the emergence of "e- business" and electronic commerce (e-commerce). The new economy is actually more than just a digital economy. It involves globalization, regionalization and accelerate economic process through fundamental change of the system of production and the system of functioning of the market. It involves an evolution of management through the appearance of a new branch management, IT management. With the advent and evolution of IT management of large companies is a new term: CIO. This term is allocated IT manager who has a very important role in any company, but especially in large companies.
This globalizing business environment influences all companies. To face competition in the market and companies need to evolve continuously to keep pace with new technology and create their own competitive advantages.
A key factor is the emergence of globalization of business and the use of information technology for commercial transactions (business to business, E-commerce and E-retailing).
Computerization and digitization have triggered a number of changes at the political, social, economic and cultural. Using computer technology and the Internet in companies has become a major factor in the development of companies and the rules and mechanisms of the market economy.
The main causes of the evolution of the new economy are upgrading computers and laptops with more performance, high-speed telecommunications and the Internet. Digital economy is not just the high technology and the Internet. It is more. Most technology companies do not produce collaborates with manufacturing companies using their products and services.
Electronic commerce is an essential component of industrial society, representing the connection between consumers, companies and governments. Electronic commerce is based on a world where creativity is more important than production scale.
Developments of information technologies in recent decades have generated the need for quick storage and transmission of information at the lowest cost. Electronic commerce is associated with increased profit.
The evolution of the IT environment and the emergence of electronic commerce generated an increase in the competitiveness of companies opening new perspectives for better organization of work leading to the creation of new jobs thus contributing to reducing unemployment.
Internet and digitization have changed the rules of the competitive environment. Electronic signal is capable of transporting any information (financial, presentation of companies, business scenarios and proposals, product offerings, prices, exchange rate etc.) the speed of light and regardless of frontiers or media transmission.
Companies use the web to communicate with their business partners to connect their systems and databases to quickly transact business. E-Business is thus the power of information technologies in traditional blends with the Internet, but also with a new vision of business management. E-Business is not just a way to sell using the Internet, but also contributes to continuously improving customer service, developing relations "business to business". E-Business automates the process controls, increasing efficient business process and reducing costs. E-Business eliminates the conditioning program and allows businesses to be active 24 hours a day, 7 days a week.
The literature speaks of usage and standardization of business practices "digital economy" (electronic business), but also electronic "gap". So the EU institutions are aiming to promote and foster the development of "new economy". For businesses in Romania appear two main objectives:
Positioning in global competition by expanding the use of information systems and e-commerce practice;
Connection developments "European information society".
E-commerce helps eliminate borders in international trade. They still exist but diminish the importance of electronic commerce. The absence of international tariffs or other barriers to e-commerce encourages the use of electronic commerce and help companies increase profits by eliminating time and additional costs for both clients and companies.
This brings to one of the most publicized and controversial issues, impact on contemporary society: the use of information technologies in trade transactions. I will address this issue in detail in this paper.
IT management and CIO are important factors of the new economy. Large companies pay particular attention to information resource is one of the most important components to identify a strategic advantage that could annihilate the competition.
Companies without a good plan of information management market will have difficulty for a long time. The success of large companies due to a strategic management based on defined goals and a CIO who is very involved, plan, direct and coordinate appropriate activities data processing and collecting electronic information, information systems, systems analysis and computer programming. Therefore IT director or CIO plays an important role for any company but especially for big companies.
This vast and of special importance in the economic development of each country has been analyzed in this paper over four chapters, as follows:
Information Technologies general aspects
Rules for the use of electronic commerce
E-commerce at national and international level
The new economy national level
The objectives of this analysis are:
Demonstrate strong dynamics of the new economy thanks to digital technology that make everything easier and cheaper access, processing, storage and transmission of information.
Discover the role of IT management in the digital economy.
Find out what is the roll of the CIO (IT managers) in the digital economy and what is its importance for large companies.
See how the emergence of e-commerce is year effect of the evolution of IT and Digitalization economy.
See what impact has the appearance of e-commerce worldwide and Romania. It will be very interesting for me to see how the economy is impacting the digital e-commerce Transactions in Romania.
THE NEW ECONOMY TECHNOLOGIES
GENERAL ASPECTS
Information society is a new era of human civilization, designed to offer a higher quality of life given by the intensive use of information, with a major economic and social impact. Information society allows broad access to information, a new method of working. Technological support of the new company comprises three factors: information technology; communications technology; digital content production.
Organize information and influence these institutions requires an organizational structure designed to ensure the collection, processing, transmission and provision of information IT management. Between the organizational structure and information system there is a strong connection. Information system influence, the content and configuration of organizational structure and this in turn determines the organization of information system.
This complicated technological process has allowed the emergence of new services and applications that combine sound, image and text and use all means of communication. The development of these new means of communication and information technology is an important factor for increasing the competitiveness of companies, opening new perspectives for better work organization and helping to create new jobs. Wide access to education and culture can be achieved through new technologies. Information becomes the key resource and input for the digital economy.
IT EVOLUTION LEAD TO A NEW ECONOMY
Evolution of Internet communications and information technology leads to appearance of the new digital economy. The new economy is associated with the emergence and development of two trends in the global economy: globalization and the unprecedented developments in information and communications technology (Pohjola, 2002).
These structural trends in the world economy looming – according to some analysts – a new industrial revolution based on information and communications technology advancement that will fundamentally transform the entire economic and social development of the XXI century. As a result, most often it described as the century XXI century information society, knowledge society or, as some authors calls it, the Internet economy.
Researchers economic transformations generated by new technologies brought several names for the new economy, both to express the importance of these transformations and to highlight how new technologies can influence growth.
The most popular names for the new economy are: the digital economy, net economy, network economy, Internet economy, virtual economy, knowledge-based economy, knowledge economy etc.
Some researchers associate the new economy with some applications of information and communication technology, among which: electronic commerce, electronic business (e-business), digital commerce, marketing cyber or virtual marketplace (Choy Soon Yong and Winston, 2000). In continuation of the work I will try to highlight the concept of e-commerce association motivation with the new economy.
FACTORS THAT FAVOR DIGITALIZATION
Digital economy, the new concept of the end of the millennium, generating issues that was held under the Sixth International Conference on Informatics, 8 to 9 May 2003, organized by the Department of Informatics of the Academy of Economic Studies (Aron Cristina Elena, page 78-82).
Previous editions have recorded marked qualitative leaps in computer science, jumps that have made these realities that they encounter daily average citizen.
Factors favoring the emergence of the digital economy are so many that they should be listed and analyzed separately.
Professional computers appeared small but with huge storage capacity and affordable. They favored the creation of new posts in many companies, at universities, but also in people's homes or offices.
Reducing the distance imposed by creating accessible software, the emergence of graphics applications and multimedia applications has transformed from an instrument computer oriented numerical processing in an instrument made for entertainment given by expanding gaming market increasingly sophisticated.
Connecting computers to the Internet to give local networks have helped to create new vision software and hardware resource management is creating new jobs. The balance between the volume levels of input data, and aggregates obtained from manipulating databases led to interconnection to achieve territorial extensions and new approaches to development flows transfer plan, all the more complex by the day.
Creating image processing equipment and sound recording yielded a new generation of applications, large-scale. In competition with conventional approaches, the digital generation has prevailed due to the quality products and services.
Creating software and hardware protection that led to a change in mentality regarding money transactions and transmission of orders and business decisions. The decrease vulnerability to disposal has created a sense of security.
Defining legal rules for conducting new activities coming to revolutionize the whole society and stimulate growth territorial coverage, with new facilities. Although costs for creating new generations of software to protect data and transactions are very large, the effect generated by the digital economy justifies these financial efforts.
Development of a legislative framework oriented towards specific problems IT applications, creates a new context on resource allocation, policy shaping and implementation of specific rhythms achieving economic and social activities right products enhanced by knowledge.
Evolution software and exclusive use of licensed software resources, corresponded to the new demands of work in public jobs, dispersed in the territory, which facilitates transactions in various databases.
Laws regulating and encourages the generation, management and use of digital signature, electronic commerce, exchange transactions, transfers to banks and especially those who establish relationships specific to new forms of work are meant to encourage labor force orientation by reducing waiting times generated the manual movement to sign some documents.
New institutions that appear revolutionary mentality is shaped by the mission computer and reflect the thinking humans of the computer era (IT era).
The emergence of mobile telephony has stimulated the development of new approaches to the structure of computer networks and certainly revolutionized the communication system, destroying all the barriers that fixed telephony has imposed.
Mobile phone, small computer-oriented communications technologies that exist because of specific qualitative information gained miniaturization in terms of maximizing the operating range.
FEATURES OF INFORMATION TECHNOLOGIES
Information technology (IT) has evolved due to information processing needs. Today, few issues remained uncontaminated IT influence and for companies they are truly a strategic stake to combat competition.
Defining IT is difficult due to the difficulties faced including all relevant issues. Essentially defined by TI a collection of several technology areas which initially were developing separately, their further development are closely related. These areas are mainly: computer science, electronics, and telecommunications.
A common definition, which belongs to the Department of Trade and Industry of Great Britain shows that allow IT "gathering, processing, storage and transmission of information as voice, image, text and numeric based on microelectronics, through combining informatics and telecommunications".
Seen in a global perspective, IT is manifested in a two-dimensional space: computing and telecommunications. This is why the often used phrase "information and communication technologies" instead of "information technology". A broader definition considers IT a paradigm of technical and economic development including communications, photonics, and computer science, manufacturing systems, networks, software, data storage devices and memories.
A particularly important effect of the evolution of IT awareness and information value, it is the generalization of information systems in organizations. We can differentiate between three main elements of IT that there is a close relationship of interdependence: computer science, telecommunications and information systems technology. So it is more suitable use of the term "information technology" instead of "information and communication technologies".
IT extraordinary evolution makes difficult any attempt to define clear their characteristics, at least globally. Knowing them is important to realize their roles in the company and to benefit from the opportunities it offers. The prestigious French economist Herbert Simon defines the following characteristics of IT:
Any information as verbal and symbolic man will be accessible via computer;
Large storage capacity information processing systems;
Use human language to query memory information processing systems;
Any information that is useful may be transmitted to another in the same system or in another system with low costs;
Information processing systems are increasingly able to inform, to support decision-making and more, even to learn.
The survival of companies in the current business environment is becoming more difficult as competition increases in the market or tends to globalize, but also because of fundamental changes occurred competitive nature.
EU INITIATIVE ON THE TRANSITION TO THE NEW ECONOMY
The company's future – Information Society – put before the European Union issues the highest priority and urgency: creating a new regulatory framework, promoting a new culture and entrepreneurship in business, achieving leadership in new technologies, education and training of citizen’s implementation of new methods of doing business.
As early as 1997 in the preliminary report "Construire la Société Européene de l'Information pour tous", whose title and principles were resumed in 1999 by the European Commission initiative "e-Europe – An Information Society for All", show that:
The technology itself is neither good nor bad; its use can lead to benefits or dangers. A deployment new technology does not automatically generate benefits for all citizens; Practice has shown that for most technological innovations, benefits and costs are unevenly distributed: while some individuals or groups have big benefits, others may be seriously disadvantaged.
For the future can be considered different models of information society, as we have in the world today various models of industrial companies. These companies differ because of the way in preventing social exclusion and create new opportunities for disadvantaged people. The European model should pay utmost importance to the social dimension, by switching from passive to the solidarity concept of active solidarity.
First, it is essential to consider the information society as a learning society, which gives the ability to transform information into knowledge, which involves much more than providing access to information and communications technology, or maintaining the current educational system.
Given that information plays an increasingly important role in everyone's life, an essential feature of the information society "with a human face" is to guarantee the possibility that individuals can control the information and not vice versa. With the proliferation of detailed information which records every movement, purchase or risk personal profile of individuals to realize an information society intrusive and tiring.
Human activities (work, leisure, contacts with government, banks and other services, etc.) will focus increasingly on "representation" of reality than reality itself. This trend presents important advantages such as faster supply of products or services, reducing accidents and perhaps even physical stress, but can also present risks. Virtual life is not real life. It is likely that some of us may not be able to bear to live found only a representation of reality.
In all periods of evolving social, economic and technological balance between costs and benefits of social suffering variations and Information Society is no exception to this rule. Adapting to the information society is a great challenge to the sectors of the economy, businesses, qualifications and professions, service providers, public or private. Besides producing major changes in the organization and quality of work. Businesses need to be increasingly flexible to operate in the new context of competition, quality, customization and rapid innovation. Employees are asked increasingly more to adapt to new skills, tasks and forms of work organization; appear new relations between function paid work and the work. Getting or keeping a job becomes a major problem for the lives of individuals in new type of society.
The report referred concludes that the information society produces large mutations social scale, could open possibilities for: new jobs, more efficient use of resources both human and material and energy contributing to sustainable development, revenue growth and individual well-being, new forms of organization more decentralized, more consistent regional and urban development, thus ensuring a more democratic and decentralized. Economic growth and productivity depend crucially harmonize the dimensions of technological, economic and social. As the level of private companies adopting new technologies is based on a careful analysis of the challenges and risks only in terms of the effectiveness of technology, so must ascertain and society on the basis of political debate and research carefully the measures needed achieve an integrated information society both economically and socially.
The European group of high level experts on social issues of the information society is one of the few groups of the European Commission to have struggled against this conception of a uniform space by entering in its final report the need instead enhance European diversity and take advantage of the various companies of the emerging information considering that the fundamental challenge of the information society is to look undeniably competitiveness based on cultural diversity, educational and social .
Speaking in this regard plans e-Europe. This is one of the most ambitious EU plans related to the new economy, in the case of e-Europe, the old continent that is computerization, networking of EU Member States, companies and households. This involves the construction of a chain of networks between individuals and / or organizations, the adoption of sale system, education, computerization in line, leading even to the proposal to carry out an election by the network.
E-Europe initiative was launched in 1999 with the adoption by the European Commission Communication e-Europe – An Information Society for All, which proposed accelerating the deployment of digital technologies in Europe and providing the necessary skills for their use widespread . This initiative plays a central role in socio-economic renewal agenda and it proposes that EU and forms the key element for modernizing the European economy, the transition to the new knowledge-based economy for 2010.
The application of digital technologies has become a vital factor in ensuring growth and jobs in the new economy. Although Europe is a technological leader in many fields (Mobile, digital TV), in others – especially in Internet use – is lagging behind compared to the U.S. and Canada. Accordingly, the e-Europe initiative aims to bring Europe in a position to benefit from the advantages of the digital economy, the priorities to maximize its technology, to increase educational and entrepreneurial potential not necessary.
The key objectives of e-Europe are:
ensuring communication online for every home, school, company and institution of public administration;
creation of digital culture and entrepreneurial Europe, the dynamic investors willing to fund and develop these new ideas;
Ensuring the principle that the transition to the digital age is a process that includes the whole society, to ensure consumer confidence and strengthen social cohesion.
To achieve these goals, the European Commission aims to pursue ten priority issues. These are:
Bringing European youth into the digital age – Using the computer must be turned into one of the basic skills of young Europeans. Internet and multimedia resources must be introduced in schools and education must be adapted to the digital age. To live up to expectations in Romania aims at introducing digital textbooks in education.
Internet access cheaper – Competition should be close to determining reduces prices prompting consumers to choose their service provider. Although services telecommunications market was liberalized traditional suppliers continue to be market leaders.
Accelerating e-commerce – Europe needs to accelerate the growth of e-commerce, especially for SMEs. This is why a legal framework should be reliable for the domestic market soon.
Fast Internet access for researchers and students – aim at European level is to open up access to the Internet for all education and research communities. This wills conduce to effective cooperation between various universities and research laboratories in Europe for research and training.
Smart cards for secure electronic access – "smart cards" means cards giving access to health services, electronic payment, mobile Internet, public transport, Pay TV, etc. New infrastructure throughout Europe so that such cards can be used anywhere. So a consumer who bought a cable subscription in Romania can use it abroad through the card.
Risk capital for high tech SMEs – European venture capital market is very underdeveloped and creates negative effects on the performance of the EU in the new economy. It should be created financial conditions to develop ideas for commercial applications which could be financed within the Union.
E-participation for the disabled – the European Commission to ensure that the information society development takes into account the needs of persons with disabilities.
Healthcare online – Use of networks and technologies for health monitoring, access to information and smart healthcare could help improve health services.
Intelligent transport – With digital technologies, it is possible to increase levels of security for safer transport and to improve the quality of public transport.
Online government – the Internet could facilitate access to the public sector. In other words the public is requested to give all citizens easier access to information on-line administrative services and decision-making procedures.
E-Europe objectives are paramount not only for the EU but also for the countries of Central and Eastern Europe candidate. The rate of development and use of ICT in all sectors of economic and social will directly influence the pace of European integration and will also offer new opportunities to overcome the difficulties faced by countries in the process of reform. Ministerial Conference of the countries of Central and Eastern Europe and the representatives of the European Commission (Warsaw, May 2000) decided to develop an action plan e-Europe + for countries acceding complementary to that of the EU countries, but convergent objectives.
E-Europe + has been officially launched by the prime ministers of the candidate countries at the European summit in Gothenburg on 15-16 June 2001. Compared to the objectives and actions set for the EU, the e-Europe + contains an additional objective, which refers to speed up the delivery fundamentals for the information society in the candidate countries through the development and accessibility of communication services and adopting elements of the acquits communitarians information society. Achieving the objectives of e-Europe + requires sustained political commitment from candidate countries, given that the implementation of the acquits communitarians is considered insufficient progress towards the information society and reduce the disparities in EU countries.
The Europe guarantees all citizens’ access to the benefits of the information society of Europe, closer to rural and urban communities to create wealth in this way, knowledge sharing and improved quality of life for all members of society. It is estimated that the changes that will occur in the next five years will create new jobs and increase productivity European economy. It also seeks, through programs and actions, progress towards the information society to strengthen social cohesion and not division, integration and not isolation of certain social categories or geographies. To this end, e-Europe objectives are:
Entry into the digital age to all citizens, homes, businesses, schools, institutions of public administration by providing online access,
Developing a new digital culture also supported by an entrepreneurial spirit favorable financing and development of new ideas,
Tracking these processes have a vocation for social integration, giving consumer’s confidence and strengthen social cohesion.
EVOLUTION OF INFORMATION TECHNOLOGY IN ROMANIA
SHORT HISTORY OF IN ROMANIA
In the past 15 years in Romania communications technologies (ICT), recognized as strategic in 1990, they have grown relatively rapidly in a market largely competitive, which demonstrated the benefits of action of private capital in these circumstances, but also the disadvantages of maintaining monopoly. IT market development depends on a considerable extent the state of the economy and state procurement opportunities in this area. It can be appreciated that the development of IT field has been limited by cultural barriers, economic and management, for example:
legal proceedings, almost entirely technology-based paper and pencil;
the high cost of communications;
development of computer applications by departments of the institutions and other organizations, necessarily based on outdated technology, can sometimes be an obstacle to the development of their organization;
insufficient involvement of executive management, resulting in waste of resources for systems with insularity and insufficient awareness about the importance of standardization methods;
Deficiencies of many auctions, for reasons of lack of rigor in enforcing the law and, above all, transparency, which is a Community acquits.
After many years of development unpolarized, there was the political will to promote the information society in Romania. The assertion is supported by the following arguments:
The establishment of the Ministry of Communications and Information Technology, ICT and is thus represented in the Government;
Create Promotion Information Technologies Group, chaired by the Prime Minister, responsible for: setting the strategic directions for the transition to the Information Society in Romania and approval of major projects for the use of ICT and related budgets;
Provide a chapter on information society development program of Romania 2001..2005;
Promoting or preparation of specific laws: the law of electronic signature; e-commerce law; anti-fraud law electronic commerce; electronic notary law; package of laws relating to communications; package of tax regulations beneficial for those working in ICT;
Approval of about 25 programs in ICT, of which 12 projects of IT systems and launch tenders for 7 projects of IT systems.
The above shows the gradual removal of legal barriers and particularly important executive management involvement of the state in the information society problem. It can open a new perspective:
Completing the necessary legislative and infrastructural development of e-Business;
Development of e-Government on the condition that public funding and private actions initiated.
ROMANIA'S ACTIONS FOR DEVELOPING THE INFORMATION SOCIETY
In Romania, the implementation of information society as the basis for growth, attracting foreign investment, creating new jobs and increasing the share of information technology products and services in the export of our country means supporting small and medium enterprises (SMEs).
In all developed countries economically, the small business is the fundamental concept of strategies, programs and actions that propelled the company to the standards that need to be achieved in Romania.
SMEs are key to economic changes across the globe. Since the 80s of last century, John Naisbitt said: "Recent studies have strengthened the faith of the government and economic observers that small businesses, not large corporations, are responsible for creating most jobs and most of the economic growth nation and they are also more efficient and innovative."
Currently, increasingly recognizes that these enterprises are more flexible and thus more able to adapt quickly to changes in the economic environment in which it operates.
Recognizing the importance of the SME sector in ensuring sustainable economic growth of our country justifies the inclusion of measures to promote the development of small and medium priorities of the government. From this point of view, the policy of supporting the development of this sector envisages harnessing the potential of SMEs, thus contributing to sustainable economic growth, creating new jobs, increasing exports of products with high degree of processing and increase competitiveness throughout economy.
In this regard, it encouraged the use of ICT in SMEs and encouraging through tax policies, investment in these technologies. Also, SMEs should be encouraged to use information technology to do business. For this, following the example of the European Community initiative was launched "transition to the digital economy" (Go Digital) which, through activities linked and coordinated, contributing to the dissemination of best practices and the introduction of e-commerce companies strategies of business Romanian.
Objectives are pursued:
identifying the main obstacles SMEs face in the transition to e-business;
proposal for specific actions to help SMEs to use ICT;
Ensuring consistency of policies and initiatives to support SMEs in the digital switchover.
To achieve these objectives, the priorities of the Go Digital for SMEs
Sites are:
promoting a favorable business environment and conditions for business development through electronic means;
facilitate the development of electronic commerce;
with the skills and knowledge needed to use information and communication technologies;
incentives for the purchase of ICT products that contribute to business internationalization of SMEs through access to new information technology and particularly the Internet.
To assist SMEs to use ICT in the economic activity they perform, Romanian companies should be encouraged to participate in the campaign "Euro Info Center e-Business" launched by the European Community. This campaign is the establishment of the European Information Centers, which coordinates activities within the Go Digital.
To monitor progress of SMEs in the transition to e-business, the European Community launched the ICT and e-Business Market Watch Function (e-Ba'sizWF). The purpose of this initiative is to provide an ongoing analysis of the transition to e-commerce businesses in different sectors.
Exists at European and international network for SMEs INSME (International Networking for Small and Medium Enterprises. The founding members are Italy, Romania, Spain and Sweden. INSME is a non-profit organization open to the participation and international cooperation in the field of innovation and technology transfer for the benefit of SMEs.
With the same objectives and priorities is ROMNET-ERA project (Romanian inventor and networking for integration in ERA) that it lasts for three years (2004-2007) and receives financial support from the European Commission under the 6th Framework Program. The main goal of this project is an inventory of highly competent research centers in Romania and their interconnection with national and international networks for better participation in FP 6. A special feature of the project is ROMNET implementation of advanced software technologies in knowledge management. At the same time a specific task ROMNET project is to assist small and medium enterprises for participation in European projects.
In the context of the information society offer to SMEs was designed a webpage of the European Commission that provides information and resources for small and medium-sized companies with technological guidelines, which will enter the category of innovative and international.
The strategic objective of the Government Program of the Communications and Information Technology is to create sustainable premises implementation Information Society by resuming privatization, liberalization and development programs.
In this framework will:
promoting and supporting an open and competitive market for communications and services that can ensure quality facilities at favorable rates;
reducing the technological gap and closing the gap with the European Union legislative and world by developing new technologies and services, so that consumers and operators have a homogeneous treatment, non-discrimination and competition;
Development platforms and Internet technologies for building a digital economy nationally.
The absence of a legal framework to regulate the fight against cyber crime would induce the possibility of transforming our country into a "bad information" hacker, in a space which could be launched attacks against information systems of the international community. This situation would not remain without consequences. In the most advantageous situation for us would only lead to market restrictions and national barriers in the way of free information, but could also have incalculable and, in any case, want.
THE ELECTRONIC COMMERCE AND THE NEW ECONOMY
GENERAL ASPECTS OF ELECTRONIC COMMERCE
The digital revolution triggered by inducing techniques and modern technology in the new economy trends and processes, such as: accelerated evolution of communication technologies; the explosion of the Internet; development of e-commerce; the emergence of new ways of doing business and restructuring / re-engineering companies; promoting new rules and forms of organization based on innovation and expansion activities and forms of tele-working facilitated by use of the Internet and new technologies informational etc.
Electronic commerce is one of the most important elements of electronic business. Through electronic commerce (e-commerce) meaning any form of understanding about the business, where cooperation between the parties takes place electronically instead of exchange or physical contact between the parties and after which the right of use or ownership of goods or Service is transmitted from person to person.
Electronic markets (e-markets, e-marketplace) occurred in the late 90s of last century with the development of electronic shop windows (electronic storefronts). Virtual electronic market is the place where they meet suppliers who own electronic catalogs of products and services with potential buyer companies in order to exchange information, business and collaborate in order to obtain new profits.
Markets may be considered virtual commerce, virtual platforms when performing online transactions easier and can be considered business (e-business including e-commerce) where it facilitates the integration of internal processes between companies (e-Market Services).
Virtual market has three major components: virtual actors, virtual goods and digital processes.
Virtual actors are sellers, buyers and intermediaries registered and identified by their addresses online.
Virtual products are digital products and services that we encounter on the Internet in the form of text, graphics, video and audio components. In the category virtual and physical goods and services fall classic computer-assisted design phases, design, production, marketing, control, electronic payments and some post-delivery services, from delivery and other commercial transaction phases of the procedure follows the traditional trade.
Digital processes are the result of interaction of electronic applications on computers and infrastructure in the process of virtual goods transactions between virtual actors.
ADVANTAGES AND DISAVANTAGES OF USING E-COMMERCE
Except the advantages of computerization common, commerce and businesses have several characteristics. The most important advantages of e-business and e-ecommerce are:
Increased business dynamics;
Expanding area markets for products and services, leading to price competition and improved quality of products and services;
Facility Constant finding popular products on the market;
Reduce the time period doing business and manufacturing products and terminating the contracts.
Reducing the cost of doing business including costs for commercial transactions because removing intermediate operations,
Virtual cooperation between buyers the opportunity to increase business volume generating reducing advertising costs;
Diminishing the difficulties of making international trade eliminating boundaries;
Facility opportunity of defining businesses through online products and services include;
Improving the quality of work for doing business;
Unfortunately the implementation of e-business and e-commerce default also faces some difficulties. Among them mention:
The need for a developed IT infrastructure (PCs, mobile phones, tablets, laptops and other computer technologies, telecommunications, etc.) that require some expensive costs depending on the model and the level of performance of each product or service;
Costs for access to Internet services;
Generating suspicion due to mistrust between business partners;
Suspicion information on security transactions (this problem is almost solved due to the emergence sophisticated software designed to provide information security that encourages more and more lately e-business and e-commerce);
The difficulty in trying to eliminate the need for direct meeting with business partner, eye contact that encourages confidence in the business partner;
Difficulty in knowledge of a language common communication to business partners (a problem that will disappear soon due to online platforms that offer language courses encouraging the learning of foreign languages quickly and easily without wasting time moving out of home) ;
Need a good possessions to use IT tools through which it is possible to introduce the required fees for transactions via the Internet;
Explosive evolution of electronic commerce as a necessity generates information and communications technology sector growth. Depending on the products concerned and the industry, it presents many advantages for users and disadvantages which I present in Table 1.
Table 1 Users advantages and disadvantages of online products and services
If classical trade where consumers move their own products purchased at its own expense, if using e-commerce company must cover the cost of home delivery of products. Traditional warehouses and distribution plants are not adapted to the requirements of electronic commerce, which led to finding an appropriate solution to this type of transaction. Companies working in the field of e-commerce relying increasingly on alternative contracting a third party (outsourcing). For example, the company UPS (United Parcel Services) specializes in rapid delivery of individual postal packages took over much of deliveries of products ordered through the Internet. Regarding taking goods from producers, a solution is the construction of automated warehouses. Another company offering courier services for goods ordered on the internet is Fan Courier. Fan Courier has special deposits for such parcels because their number is growing.
Consumer benefits in terms of using electronic commerce are:
globalized choice: the opportunity to choose products and services in a market increasingly large that tends towards globalization;
quality of services: e-commerce requires a continuous growth of competition on the market generating diversification of products and services at high quality consumer advantage;
Quick response to the request: classic trade operations are shortened by eliminating the intermediary stages and due to automation activities. One example is the direct delivery of electronic goods over the Internet (software, music, newspapers, movies) that do not require physical delivery they can be distributed electronically;
substantial price reduction due to the elimination of costs from some intermediate steps such as salary directly from the vendor stores;
customized products and services: the client can select both the product / service that is customized to its requirements without a price increase for the product;
New products, new services: outside redefining existing products and services, appearing new products and services for which ICT (Information and Communications Technology) is vital.
All these benefits are coupled, however, a number of risks, which limit consumer confidence in the new type of service, due to the specific nature of this trade: payment before receiving the goods, the site e-commerce less tangible than traditional store ("Brisk and mortar 'shop), the risk of transmission of financial data and personal security detail, uncertainty over the possibility of returning to a transaction.
Table 2 The tangible and intangible benefits that can be obtained using e-commerce
Electronic commerce faces a number of difficulties and obstacles bigger or smaller depending on a number of factors in the economic, social, technological, cultural, etc.
Globally, Marian Swidzinski found the following types of electronic commerce barriers in international trade:
Infrastructural barriers – related to the overall level of security affairs in various countries: protection of traders, security of assets, payment security;
Human barriers – motivation negative market operant’s international trade (corruption), lack of competence actors in international trade, knowledge of languages, cultures and traditions of different partners, lack of trust and ethics operant’s heterogeneity business partners;
Procedural barriers – include: outdated laws and regulations, excessive bureaucracy, outdated business practices, lack of coordination between government entities and the private sector, the lack of clear rules, lack of regulation on the taxation of electronic commerce.
In a study on the digital economy Professor Philip George coordinator identifies the following obstacles to economic trade development:
the inadequacy of global delivery and ongoing systems;
the difference in culture, language and business practice;
fragmentation in the industry; and self-regulating global legal framework;
Specific barriers small businesses; shortage of appropriate marketing strategies.
To remove these difficulties in using the Internet for e-commerce is vital recommends the following remediation methods :
Self-education – seeking information and solutions for risk detection and removal, security, knowledge of specific legislation on Internet transactions;
Start slow and cautious drive – requires companies to begin action to implement the system methodically and cautiously;
Protecting information assets adequately – resorting to encryption, authentication techniques, and protection against viruses, it is necessary to ensure the security of customer data, as well as its own data against intruders or threats caused by hazard;
Allocate sufficient resources – providing human, material and financial resources.
Although there are some elements that might hinder the transition to the digital economy and commercial transactions electronically, may apply the principle of "nothing venture nothing have" as any area of business. Therefore, to have ensured the success of using electronic commerce should be to confront the advantages and risks involved and be aware of measures and actions that are available to every entrepreneur to avoid as much risk and benefit the biggest advantages offered by this new medium of commercial transactions.
TYPES OF ELECTRONIC COMMERCE
A lot of e-commerce, observed over the early years, refers to trade between enterprises and individuals and is generally known as the 'business to consumer' or briefly B-to-C. Another type is the type of commerce that was used between enterprises, companies and it is known as the "business to business" or B-to-B.
Last but not least, ecommerce is used between governments and public entities, on the one hand and business on the other hand, in the context public purchasing of goods. This latter type is called "business to government" or B-to-G.
Specialty materials consulted point out that, on the one hand B-to-C has attracted attention due to the rapid growth in the US economy However B-to-B is the area that has the greatest expansion of electronic commerce, because it is about international trade. At the same time, this represents the area that developing countries should consider a priority, as a possible source of integration into the global information economy. The third type of ecommerce, B-to-G can be also a major source of efficiency and experience to developing countries.
Participating directly in e-commerce transactions, governments could prove effective in the area of public procurement (government) and the level of practical knowledge in e-commerce technologies. In this process, cooperation and respect between the private and the public can be revealed significantly.
Currently, the most common classification is by nature electronic commerce transactions or interactions between participants. The following types of ecommerce:
Business-to-Business (B2B) – All participants in the trade business to business are either companies or other organizations. For example, some of the applications used by Dell and Mark & Spencer in B2B transactions involving their relationship with suppliers. Today over 85% of B2B e-commerce is;
Business-to-Consumer (B2C) – Electronic commerce business-to-consumer transactions include retail products and services from companies to individual buyers. The buyers who purchase products and services from Dell online or from Amazon.com are a typical consumer (consumer) e-commerce B2C type. This type of ecommerce is known as e-tailing;
Business-to-Business-to-Consumer (B2B2C) – In ecommerce this, a company provides to a customer, all company products and services it needs. The client company, in turn, offers to its customers, but without adding any value. B2B2C is an example of a company that pays AOL to provide its employee’s access to the Internet. Thus, each employee gets access to the Internet without paying separately directly to AOL.
Consumer-to-Business (C2B) – This category includes individual consumers who use the Internet to sell products and services to other companies or individual consumers who are looking for sellers willing to negotiate for products and services on sale.
Consumer-to-Consumer (C2C) – In the category C2C consumers trading directly with other consumers. Examples ecommerce consumer-to-consumer include individuals who sell their online houses, cars, property or other goods. Also, online advertising services you offer a person selling on the Internet has knowledge and expertise in a field are other examples of C2C;
Peer-to-Peer Applications – Technology "peer-to-peer" can be used both in and C2C e-commerce B2B and B2C e-Commerce. This technology allows computers networked pair to access the same files and process data simultaneously.
Mobile Commerce – e-Commerce transactions and other activities led in part or entirely in a wireless environment are known as mobile commerce or m-commerce. Many applications involving mobile devices m commerce. If these transactions up to target individuals in a certain location at a certain time, they are called location-based commerce or ecommerce. Many define m-commerce as all transactions made by individuals outside the home or workplace. These transactions can be made by wireless and wire line systems;
Intra-business e-commerce – trade category electronic intra-business includes all internal activities of an organization involving exchanges of goods, services, information between its different units, divisions, departments and individuals. Activities can range from selling products to employees of the organization, the training online. Usually, ecommerce intra-business is achieved through corporate Intranets and portals;
Business-to-Employees (B2E) – Category Business-to-Employees is a subcomponent of the category in which companies intra-business delivers services, information or products of their employees.
Collaborative Commerce – When various individuals or groups communicate or collaborate online when are involved in collaborative commerce.
Non-business e-commerce – A number of increasingly large institutions non-business such as academic institutions, nonprofit organizations, religious organizations, social organizations and government agencies using electronic commerce to reduce costs or to improve their operations and customer serving.
E-learning – In e-learning, training and formal education are provided online. E-learning it is widely used by organizations for training employees (called e-training) and practiced extensively at universities, so-called virtual universities;
Exchange-to-Exchange (E2E) – Of course, exchange electronic describes a public market with many sellers and buyers. As happens in B2B commerce, it makes sense for exchanges to be connected to each other. Ecommerce E2E is a formal system that connects two or more exchanges between them with access open to the public.
E-government – In e-commerce e-government, a government entity buys or provides goods, services or information to / from various companies (businesses) (G2B) or from / to citizens (G2C).
BUSINESS MODELS USED IN E-COMMERCE
The Internet has become a conduit for trade with undeniable power in facilitate and increase sales of a range of increasingly broad product and services. Literature specialized in identifying these models included in the electronic commerce business:
Shop (e-shop);
Supply electronic (e-procurement);
Store (e-mall);
The market of a third (3rd party marketplace);
Virtual communities (virtual communities);
Value service provider channels of commerce electronic;
Collaboration platform;
Information brokerage and other services.
Electronic store – The store is managed by an electronic company for marketing and sales of their products or services. Minimal contains the catalog of products / services, technical descriptions and Catalog shopping for each position. The catalog is described in language (html, dynamic html, java etc.) interpretable by web browsers. The descriptions of products / services are managed, in general, a system general database (DBMS). Medium variant includes facilities taking orders (via e-mail or interactive forms) and extended version it includes the possibility of making online payment (by credit cards or other electronic means). The main motivation to create stores Electronic is attracting a greater number of clients without the distance to longer an impediment. This is the shortest path to a a company's global presence. The gains come from reducing costs promotion and sale, and the sales increase.
Electronic Supply – For procurement of goods and services, large companies and public authorities organize auctions. By Web publishing tender specifications lowers both time and cost transmission, most important being still considerable increase in the number of companies become aware in good time of auction, resulting in Finally to increase competition and therefore lower prices.
Electronic store – electronic department store is a collection of electronic stores, united under an umbrella common, for example, a well-known brand. Generally accepted method Payment village, guaranteed.
Market a third party – in this case, resort to a "user interface" the company's product catalog, which belongs to a third interface (in generally, an Internet service provider or a bank). This unique interface for many producers of goods became known buyers. It is fond of frequently accessed information channels.
Virtual communities – the most important value of a virtual community is given by its members (customers and partners) that add their own information base over medium provided by the company. Each member may offer to sell or claims for purchasing products or services. Membership of community Virtual involves paying a fee.
Value service provider channels of commerce electronic – Service providers are specialized for specific functions, such as providing logistics, electronic payment and management expertise production and stocks. Payment for these services is based on tariffs or a percentage rate.
Collaboration platforms – platforms for collaboration include a set tools and information environment for collaboration between companies. They may address specific functions, such as conception and design in collaboration. The gains come from management platform and sales of specialized tools (for design, workflow or document management).
Information brokerage and other services – there are a lot of services that add value to the mass of information available networks open or business from the integrated systems such as providing customers catalogs classified on profiles, selling business opportunities, investment advice, consultancy specialized.
LEGISLATIVE AND LEGAL ELECTRONIC COMMERCE ISSUES
THE REGULATION OF USE FOR E-COMMERCE
E-commerce development requires simultaneous and coordinated development of three key infrastructures: the technology, the processes and the regulations. Two issues of particular importance to the expansion of electronic commerce and protection of consumer confidence are the unwanted incidents.
To this end, they are under development – both at international, European and national level – a series of regulations, frameworks, research and technological developments to limit these shortcomings.
One of the documents on this issue is clear OECD Recommendation on consumer protection in the context of electronic commerce, which proposes a coordinated international approach to address this problem. The guideline in this document is intended for governments, businesses, consumers and their representatives and relates mainly to:
Protection transparent and effective – at least equivalent to that afforded to traditional forms of trade;
loyalty commercial practices, advertising and marketing – without harming consumer interests and privacy;
consumer clear information on the identity of the supplying establishment, the way of solving disputes, persons responsible and contact, codes and procedures applied to incidents;
clear Informing the consumer of goods and services;
consumer clear information on the ways, conditions and costs of the transaction;
The possibility of a trade confirmation – completion or discontinuation of the transaction in full knowledge of the facts of the consumer;
Ensure safe and easy means of payment and means of security known and accepted by the consumer;
clear legal regulations on dispute resolution;
Privacy and transboundary flows of personal data;
Ensure education and consumer awareness about the benefits and risks of e-commerce.
ROMANIAN LEGISLATION ON ELECTRONIC COMMERCE
Though it should be, unfortunately there is no specific law or regulation only where electronic commerce is found all applicable legislative provisions. There are provisions that apply to legislation on electronic commerce, distance contracts, personal data protection and copyright. For example there is no article in the laws that specify certain rules about about SPAM or Hosting to know whether or not their use is illegal. That's because SPAM is called unsolicited commercial messages, which are found in about 3 acts, and hosting is included in the category of information society services referred to an entire law, there are specific provisions Liability hosts web pages. Therefore interpretation of the legislative framework and legislation are very important tools that you need to understand to properly use electronic commerce.
In e-commerce for a long enough period, legislation has continued to have goals that only concrete situations confronting them gradually filled. Current legislation today completes the different circumstances involved online commerce.
For electronic commerce in Romania, will meet the following legal regulations:
The provisions of Law 365/2002 on electronic commerce that the GD 1308/2002 approving the Methodological Norms for Law 365/2002 on electronic commerce.
To Article 2 of OPANPC 72/2010 on some measures consumer information according to which "All economic operators that manages sales websites, online order taking and / or advertising products and / or services, services tourism marketing package tours or tickets, including e-commerce (electronic commerce), are required to submit the first page of the site (home page) a prominent link to the official address of the web National Authority Consumer protection (www.anpc.gov.ro) called CONSUMER PROTECTION – ANPC
The website must include information on art. 74 of Law 31/1990 commercial companies as amended and supplemented, respectively:
Company name, legal form (SRL);
social capital
headquarters
Trade Register and the number of unique registration code;
The provisions of Law no. 677/2001 on the protection of individuals with regard to the processing of personal data and the free movement of such data. Become operator of your personal data when you ask your customers to fill out the application form in store for finalizing the order. So must notify the National Supervisory Authority for Personal Data Processing before doing any processing or of any processing assembly having the same or related purpose.
According to Article 1 paragraph (1) of OUG 28/1999 regarding the obligation of operators to use fiscal electronic devices, the companies conducting retail deliveries of goods and provision of services directly to the public are required to use fiscal electronic devices.
According to article 2 letter k) of GEO 28/1999 are exempt from the provisions of article 1 paragraph (1) retail salesman through and through correspondence, except for deliveries of goods to the doorstep of shops and catering establishments, on demand;
Your company billed for the delivery of goods to customers (natural or legal) document accompanying the goods delivered by courier.
In conclusion, it is not mandatory cash register for online commerce in the following situations: the collection is made by bank transfer, card through a courier company.
Courier Company earns money based on the document (literally) "cash receipts collecting account.
If the company makes direct delivery of the good or service by an individual customer and collection is made in cash, the cash register is mandatory.
Regarding the lack of adequate CAEN code, according to Article 1 of Law no. 12/1990, republished, constitutes unlawful commercial activities and attract liability or criminal, as appropriate, to those who have committed acts or acts of trade as those stipulated in the Commercial Code or other laws, without fulfilling the conditions set by law.
According to Article 6 of the enactment above mentioned goods or products that have served or were intended to serve to commit any of the acts stipulated in art. 1 if the offender or undertaking and the amount of money and things acquired by committing shall be confiscated and harness under the law, their value being made to the budget of the central public administration. Revenues illicit activities of individuals or legal entities mentioned in art. 1 and proceeds entirely from commodities whose provenance is not proven shall be confiscated and income to the central public administration budget.
OFFENCES ARISING FROM USING OF INFORMATION TECHNOLOGY IN FOREIGN TRADE TRANSACTIONS
On the concept of cyber crime, most experts in the field have tried to define it, but has not reached a wording which leaves no doubt about the importance or usefulness definition. Therefore, it is appropriate to adopt a functional approach to the concept, without trying its formal definition that would create more problems than it would solve. This functional approach is specific to each state, which defines by its own legal system that works owned or directly related to cybercrime.
Council of Europe adopted a recommendation – Recommendation R (89) 9 – on crime in relation to computer and published a report that contains a minimal list and a list of optional computer crimes. Thus, the minimum list includes acts such as computer fraud, false information, damage to data or computer programs, sabotage, unauthorized access, unauthorized interception or unauthorized reproduction of software protected and the list of optional covers offenses such as corruption of data or computer programs, computer espionage, unauthorized use of a computer or unauthorized use of a computer program protected.
The Internet has fundamentally changed the way society works and communicates, by providing a cheap and fast environment, with global coverage, for obtaining and communicating information. Along with some remarkable advantages, the rapid development of the Internet has raised a number of legal issues that must be dealt with very carefully.
Among the legal issues raised by Internet we can mention distributing obscene material, contractual issues arising from the realization of contracts on the Internet question about the commercials, the admissibility of messages on the Internet as evidence in court, the applicable jurisdiction issues on intellectual property rights, data protection, digital signature, and more.
Numerous national and international bodies and institutions analyze and tackles these issues (government institutions, the European Council, Parliament, the Council and the EU Commission, G7 / G8, OECD, UNESCO, WB, etc.) and representatives of business and civil society.
Risks, fraud and disputes:
Malfunction or misuse of systems can have serious consequences, such as financial losses or damages resulting from the disclosure of confidential information relating to companies. The damage may be in the form of loss of confidence or reputation or may paralyze the entire activity of an undertaking.
In business transactions, for example, it is desirable to use a computer system secure, so once received an order, it is not only authentic content unchanged, but equally there is no possibility that the sender no longer recognize.
It was estimated that in 2003 generated e-Commerce frauds in financial losses of about $ 1.8 billion, 1 of 6 buyers card was, in one form or another, the victim of financial fraud and one of 12 buyers have seen identity stolen. Internet fraud is about 17 times higher than that place in real shops, fraudulent e-commerce transactions representing approximately 15% of the total, compared to only 0.06% fraudulent transactions occurring in real stores.
Or easy money carding activity grew in Romania, forces many young people stealing from off the Internet. Romanian hackers have become among the most feared in the world, they order products from the Internet to other people's money, but making the order on their name and address. There were devastated virtual stores in this way, the most popular shops and taking precautions to commands from Romania. For example, the most famous shop address www.amazon.com not meet orders over a hundred dollars coming from Romania.
Dirty money laundering law provides for imprisonment from 3 to 12 years for cybercrime. Perhaps this law will scare hardly have started business, most finding solutions to avoid authorities. To arrest a thief "virtual" should be caught red-handed when receiving the package ordered online with a card used fraudulently.
To reduce the possibility of accessing data or mixture transactions between two or more persons, can be used several methods such as passwords, identity testing, measuring act of writing for electronic signature, signature voice, hand geometry. However, as there is a security system absolutely safe, it is recommended that awareness of the risks of the running of businesses using information systems.
E-COMERCE AND THE NEW ECONOMY AT NATIONAL AND INTERNATIONAL LEVEL
E-COMMERCE – AS LARGE TRADE
In the last decade, the Internet has evolved into a formidable tool having a major impact in all aspects of life. Every half a year of important changes occur so that it is impossible to predict where he will arrive in the next 10 years. Currently, all involved in a revolution taking place in commerce and telecommunications. Large company’s century will originate in this decade.
Online commerce with goods in big companies of the world will increase three times over the next five years due to increasing numbers of customers and campaigns undertaken by international retailers, according to a study released by PayPal, a division of eBay.
International trade on the Internet between the US, China, Germany, Great Britain, Australia and Brazil will climb from 105 billion dollars this year to 307 billion dollars in 2018, according to a study by Nielsen for PayPal, according to Bloomberg.
The main product categories by turnover will be clothing, footwear and clothing accessories, followed by health and beauty products and electronics, according to the report.
EBay, the largest online trading market in the world, looking to expand internationally, particularly in emerging markets, where the growth potential is higher compared to developed economies.
About a quarter of the revenue eBay and PayPal over half of businesses last year were generated by operations outside the US.
PayPal focuses mainly on China, according to company president David Marcus.
„If we analyze the opportunities in China, we see that there are 40 million small businesses of which only 5 million export goods via the Internet. So there is an enormous potential for growth,” Marcus said in an interview with Bloomberg.
Nielsen Online estimates that international trade development will be accelerated to a great extent and spread of mobile devices with Internet access, such as Smartphone’s and tablets. The company anticipates that in 2018, mobile devices will serve as a platform for international transactions of 106 billion dollars compared to 36.4 billion dollars this year.
EXPERIENCES USING E-COMMERCE
Electronic commerce between consumers and companies (B2C) is the form that involves the largest number of participants, even if its value is insignificant volume compared to the volume of e-Commerce value that occurs between businesses (B2B).
We include selling Internet services to travel agencies, ticketing agencies, adult products, gambling etc.
Merchant sites are very diverse: from merchants that sell a single product or service to merchant sites that show thousands of products (such as English electronic components company Maplin Electronics – www.maplin.co.uk – offering over 12,000 different products).
The US company Amazon (www.amazon.com), based in Seattle, and is the largest retailer on the Internet and an example of quick success in B2C e-commerce site. The company launched commercial Web location in 1995 and already in 1999 the volume reached market capitalization of 25mld. $. Debuting as a bookseller, the company has expanded greatly, currently sell various products (electronics, computers, music, software, DVDs, etc.) And at the same time, to offer for sale by its sites and products other large companies that signed agreements in this respect is a true marketplace. There is also the possibility that any person must sell through Amazon: presents its product (price), Amazon offers the product for sale and announce the person via email when the product was sold, the person delivering product to the buyer, and Amazon them send money to a bank indicated.
In essence, the company is a great intermediary between buyers and producers, as it lacks the stocks of products is not a bank and does not deliver the goods at home, having contractual arrangements with all participants in the act of commerce. But Amazon has a catalog very well developed, ie a methodology of presenting the products and their features sophisticated (and interactive) and a payment system fine-tuned.
The payment methods are varied: by card (Visa, MasterCard, AMEX, JCB, Dinners Club, Discover), electronic checks, money orders, electronic (money order, purchase order) and for companies especially through credit account Amazon that electronic purchase orders are issued. Through links with various acquirers, are in several countries, the company enjoys an international presence.
Delivery of products purchased is through a means which can be chosen by the buyer, and the route they follow the product to the delivery address specified in the purchase order can be followed via the Internet on the website of the transport company chosen (UPS, DHL, FedEx, Eagle, Air bone Express and others).
American company IAC is the largest operator of travel services companies owning Expedia.com (www.expedia.com) and Hotels.com (www.hotels.com).
The main product sold is package travel (travel package) comprising various combinations of travel: flights, hotels, car rentals, sightseeing tours, tickets for shows etc., which can be customized to the customer's wish. Payment is by all major cards (Visa, MasterCard, AMEX, Dinners Club, and Discover).
Other major suppliers of travel services over the Internet are Travelocity and Orbits (US), e-bookers and Opodo (in England) or for reservations of hotel, Hilton, Marriott and Hyatt (US), Accor Hotels in France and Le Meridien ( from England).
Google, Yahoo!, MSN and AOL are companies not only famous Internet search engines, they are direct participants in e-Commerce (Microsoft's MSN site, www.msn.com, is a portal-market electronic e-Commerce). Their services are used by search increasingly harder to find and buy products on the Internet. It also offers price comparison service displayed by several vendors for the same product (ie Fro ogle service offered by Google – http://froogle.google.com).
Electronic marketplaces and electronic auctions are another great experience of e-commerce. The first e-auction was launched in the US in June 1997, and by the end were attended by more than 100,000 thousand people; exposure during the entire period of its tender was accessed daily by about 3000 people.
The electronic markets both e-Commerce (B2C or B2B) and can be public, universal, accessible to any buyer and seller and specialized (and somewhat closed, accessible only to those in the field.)
A specialized ecommerce between companies is Chem. Connect (www.chemconnect.com) for chemicals, plastics and fuel. The company says the largest global electronic market e-Commerce between companies and offers service through Internet auction. The company has an own telecommunications center (Central Connectivity Hub), through which all members can be linked together and can exchange all kinds of information (market, auction, payment and delivery).
Create a universal electronics markets opened, not specialized in one area or another, it is a more difficult problem. Three systems are already known in this regard: WWRE, Bolero and Trade card. Each aims to provide all facilities necessary for conducting Internet commerce between companies, whatever their country of origin and the nature of the products the company sold or purchased.
The WWRE (Worldwide Retail Exchange, www.wwre.com) is dedicated to the retail of companies. The system currently has 64 member companies worldwide (including Tesco, JCPenney, GlaxoSmithKline, Marks & Spencer) and more than 100,000 suppliers. The member companies can submit their product catalogs and can bid and negotiate with each other through the Exchange platform based on software called B2B Commerce Platform, the company Ariba and Trade Matrix, the company’s two.
Bolero system, created by the American company Bolero International Ltd. (www.bolero.net) in partnership with the famous bank cooperative SWIFT (Society for Worldwide Interbank Financial Telecommunications) creates an international community of participants that can switch between them by protocols secure all information necessary act of commerce.
Trade card system, created by the American company Trade Card Inc., New York (www.tradecard.com) provides essentially the same as the system described above and provides both domestic and cross-border payments.
Public Electronic marketplaces are open to any buyer or seller is a natural person (consumer) or company, and any product or service, from old books and music, to jets. There are many such markets: eBay, Amazon, MSN, or Yahoo! Barclaycard
EBay (www.ebay.com) is the largest and most popular marketplace in the world. Community eBay has over 100 million registered members worldwide. The company has sites local (under different names) in 28 countries, each adapting to local conditions respectively in France is sold mainly wine, and South Korea in particular cheese, besides, of course, any other product. China's Each Net site belonging to eBay has about 2.4 million members.
Shoppers can purchase goods or services at varying prices through auction or fixed price, depending on the seller's offer. Payment can be made in the way the two parties agree or the Internet, through the famous service company PayPal, which belongs to eBay in 2002.
PayPal American Company, based in California, is the largest provider of Internet payment service, with over 45 million members with a PayPal account, are in 45 countries and making annual transfers over 17 billion dollars. PayPal payment service accepts payments through mobile phone via WAP protocol. The stated objective of the company is to become a global de facto standard for Internet payments, intending to expand local sites in major countries in Europe and Asia.
Another major provider of Internet payment service Bib it Global Payment is European Services company, headquartered in the Netherlands and branches in other European countries. It is geared specifically to cross-border payments (international e-Commerce) and is distinguished by the extraordinary richness of payment methods (70 methods), bearing the specifics of many countries. Bib it payment system offers a complex and very powerful. Among the major clients of the company include: Dell, NEC, Expedia, and Yahoo.
THE ROLE OF THE INTERNET IN ECONOMY
Digital technologies are available for over 30 years, and companies have invested heavily in them over this period. Despite that, overall productivity began to grow in the US only in recent years, EU countries still not recording this trend.
The sustained growth in productivity in the US began in 1995, with the advent of the World Wide Web, which effectively marked the beginning of the Internet as a mass market medium. The Internet has made the decades of technological accumulation to finally produce increased productivity. This statement is supported by concrete practices, that the Internet is playing a key role in lowering business costs; making markets more efficient and competitive, thereby increasing the productivity of the economy.
Why the Internet is considered the engine of future prosperity and one of the most important features is that its impact reaches beyond the high-tech industries, being felt by all industries and services. Businesses in all sectors have become e-businesses. Indeed, companies that have failed to incorporate the Internet in manufacturing and distribution chain are those recording the most successful and highest growth.
The most important factors that lowers costs and increase productivity are:
cheaper raw materials purchasing of prefabricated and Internet services lead to significant savings by contacting multiple vendors and create increased competition of bids;
lower inventory activity: incorporating the Internet in the supply and distribution systems in real time reduces the need for inventory and thus lowering costs;
reduce the time to promote products on the market: the Internet enables companies to cut distribution time by linking orders to production and more efficient distribution services;
lowering transaction costs: financial transactions are cheaper online, customers have greater choice and better information about products and internal networks are used increasingly more to lower management costs and increase efficiency;
better overall penetration: Internet sales on new markets open higher;
Market entry cost less: the establishment and maintenance of a Web site are cheaper than traditional marketing methods.
Joint Statement by the European Union and the United States on electronic commerce, emphasizing the role of global electronic commerce in the development of the global economy in this century. It also highlights the role that it will play in boosting small and medium enterprises. Global framework for electronic commerce is still under development, existing international bodies and associations (OECD, WTO, WIPO, UNCITRAL, etc.) working on essential aspects of this framework.
Specialists argue that the reception is electronic business solution for enterprises that want to be competitive in the new economy – digital. To this end, companies must meet some basic requirements: to work nonstop; be present on the Web; maintain regular contact with customers, partners, and employees; have networked storage solutions that enable the management of huge volumes of information; have solutions for virtual applications by ensuring constant availability, scalability, performance and security.
THE IMPACT OF USING ICT
Information and communication technologies (ICT) have a multiple impact on the lives of everyday people, both at home and at work, for example the communication or purchase products online. EU policies ranging from the regulation of entire sectors, such as e-commerce, to attempt to protect the privacy of individuals.
Table 3 Households having access to the internet at home
Source: http://appsso.eurostat.ec.europa.eu/nui/show.do
ICT has become available to the public, both in terms of accessibility and cost. A threshold has been exceeded in 2007 when the majority (55%) of EU-28 households had Internet access. This percentage has continued to rise and in 2014 reached 81%, an increase of 2 percentage points compared to the percentage recorded in 2013.
Access to broadband Internet, widespread and affordable is one means of promoting a society based on knowledge and information. Broadband was by far the most common form of internet access in all EU Member States: it was used by 78% of households in the EU-28 in 2014, representing an increase of 36 percentage points since 2007 (see table 3).
The highest percentage (96%) of households with internet access in 2014 was recorded in Luxembourg and the Netherlands (see Table 3) and the figures reported by Denmark, Finland, Sweden and the United Kingdom also indicates that at least 9 of the 10 households had internet access in 2014. the lowest percentage in internet access in EU Member States were registered in Bulgaria (57%). However, there had been a rapid expansion of household access to the Internet in Bulgaria; given the increase by 27 percentage points the share of households with internet access between 2009 and 2014, a larger increase recorded among Member EU, only Greece (28 percentage points), and while in Turkey there was a slightly higher increase of 30 percentage points. Czech Republic, Romania, Estonia, Spain, Hungary and Italy have also increased by at least 20 percentage points during the same period. Not surprisingly, increases relatively small were recorded in several Member States that were already close to saturation, such as Sweden and the Netherlands, although Lithuania reported the second lowest growth (6 points) despite a relatively small share of internet access (66% in 2014).
Figure 1 Households having access to the internet at home in Romania
Table 4 Analysis of the evolution of the percentage of households having Internet access at home in Romania in the period 2006-2015
In order to obtain the results shown in this table have been used in the formulas:
Δi/1 = yi – y1 , fixed-base growth
Δi/i-1 = yi – yi-1, spore-based chain
Ii/1 = yi / y1 , development index with a fixed base
Ii/i-1 = yi / yi-1, index-based chain development
Ri/1 = Ii/1 – 1, the pace of fixed-base
Ri/i-1 = Ii/i-1 – 1, the pace of the basic chain
y = ( Σyi ) / n , media series; n = Number of years; i = 1,n
Δ = ( yn – y1 ) / (n -1), average gain of evolution
I = n – 1 √ yn / y1, average index of evolution
R = I – 1, The average rate of evolution
yi = percentage recorded by Romania
∆i/1– yi– y1 fixed-base growth
∆2006/2006=14-14=0
∆2007/2006=22-14=8
∆2008/2006=30-14=16
∆2009/2006=38-14=24
∆2010/2006=42-14=28
∆2011/2006=47-14=33
∆2012/2006=54-14=40
∆2013/2006=58-14=44
∆2014/2006=61-14=47
∆2015/2006=68-14=54
In 2015 compared to 2006 the number of households that have Internet access at home in Romania increased by 54 percent, from 14 to 68.
∆i/i-1- yi– yi-1 spore-based chain
∆2006/2006=14-14=0
∆2007/2006=22-14=8
∆2008/2007=30-22=8
∆2009/2008=38-30=8
∆2010/2009=42-38=4
∆2011/2010= 47-42=5
∆2012/2011=54-47=7
∆2013/2012=58-54=4
∆2014/2013=61-58=3
∆2015/2014= 68-61=7
The largest increase number of households that have Internet access at home in Romania was registered in the first three years of analysis, it has steadily increased by 8 each year of the analysis.
I i/1– Development index with a fixed base = yi/ y1 for which:
I 2007/2006=22/14=1,57
I 2008/2006=30/14=2,14
I 2009/2006=38/14=2,71
I 2010/2006=42/14=3
I2011/2006=47/14=3,35
I 2012/2006=54/14=3,85
I 2013/2006=58/14=4,14
I 2014/2006=61/14=4,35
I2015/2006=68/14=4,85
I i/i-1– Index-based chain development = yi/ yi-1 for which:
I 20072006=22/14=1,57
I 2008/2007=30/22=1,36
I 2009/2008=38/30=1,26
I 2010/2009=42/38=1,11
I2011/2010=47/42=1,12
I 2012/2011=54/47=1,14
I 2013/2012=58/54=1,07
I 2014/2013=61/58=1,05
I2015/2014=68/61=1,11
R i/1– The pace of fixed-base = Ii/1 – 1 for which:
R2006/2006= 1-1=0
R2007/2006= 1,57-1=0,57
R 2008/2006= 2,14-1=1,41
R 2009/2006= 2,71-1=1,71
R 201102006=3-1=2
R2011/2006=3,35-1=2,35
R 2012/2006= 3,85-1=2,85
R 2013/2006= 4,14-1=3,14
R 2014/2006=4,35-1=3,35
R2015/2006=4,85-1=3,85
R i/i-1– The pace of development with basic chain = Ii/i-1 – 1 for which:
R2007/2006= 1,57-1=0,57
R2008/2007=1,36-1=0,36
R 2009/2008=1,26-1= 0,26
R 2010/2009=1,11-1=0,11
R2011/2010=1,12-1=0,12
R2012/2011=1,14-1=0,14
R 2013/2012=1,07-1= 0,07
R 2014/2013=1,05-1=0,05
R2015/2014=1,11-1=0,11
_
y = ( Σ yi ) /n, Media series, where n=number of years, for which:
_
y =(14+22+30+38+42+47+54+58+61+68)/10=78251045/6=43,4
∆= (yn- y1)/n-1, average gain of evolution, for which:
_
∆=(68-14)/9 =6
I -The average index of evolution = I = n – 1 √ yn / y1 = 9√68/14=9√4,85=1,19
R- The average rate of evolution = I – 1=1,19-1=0,19
FORECAST EVOLUTION HOUSEHOLDS THAT HAVE INTERNET ACCESS AT HOME IN ROMANIA FOR 2016 USING LINIAR REGRESSION METHOD
Simple linear regression prediction method is based on quantitative correlation between two variables (I / R). The accuracy of prediction is given by Pearson correlation coefficient between variables. The r is higher, the prediction values of a variable (called criterion) from the values of the other variables (called predictor) are better. At the limit, when r = 1, the prediction is perfect. Regression equation in terms of raw scores is y = a * x + b where y is the predicted values, b is the origin of the regression line, the inclination and x values predictor variable. The spreading value around the regression line is called residual variable (or estimate) and expresses the degree of error (inaccuracy) of the model prediction. Estimation error is 0 when the correlation is perfect and increasingly larger as the values of r are lower.
Let us consider in the following two sets of data X=(xi)iI and Y=(yi)iI , where I = {1, …, n}. To make a choice, we assume that exogenous variable X and Y – endogenous. In addition, X is non-uniform.
An econometric model is linear between X and Y to determine a relationship of the form:
Y = aX + b + u where a,bR, and not a random variable is called the residual variable.
If the first two terms of the above expression: ax + b is called deterministic component of its last: u – called stochastic component thereof.
For each pair of data so we have a relationship of the form::
yi=axi+b+ui, i=, where ui it is the residual variable corresponding pair (xi,yi).
For the construction of the model we assume a number of conditions to be met, namely:
M(ui)=0 i= – average each variable residuals (deviation from linear function model) is void;
residuals have a normal distribution of mean 0 (see previous condition) and the same dispersion D(ui)=2 i=
=0 ij= Residuals are uncorrelated (so basically we have a dependency between residuals). How =M(uiuj)-M(ui)M(uj)=M(uiuj) (First condition), resulting equivalence M(uiuj)=0;
=0 i= – exogenous variable is not correlated with the residuals;
și there are finite (if infinite number of data).
In order to determine the actual linear regression of the relationship or function f:RR, f(x)=ax+b, such that:
=minim
Normally should be considered a function which =minim the sum of distances between data points and points abscissa on the same graph of the function is minimal. But as the function module is quite difficult to analyze, it was adopted considering the above function. Considering F(a,b)=, provided by local extreme necessity requires that appeasement:
from which it follows that
After grouping result:
Determinant system is: ===n2D(X)0
The assertion that D(X)0 resulting from non-constancy of X.
System solutions are: a==
b==
To test the condition of local minimum, we first calculate second order partial derivatives: =, =, =2n
Hessian matrix is: HF= and diagonal main determinants: 1=0 (The non-constancy of X).
2==4n2D(X)0. Therefore the second differential d2F of F is positive definite, so the point (a, b) is the local minimum.
The abovementioned method is called least squares and is due to Gauss, called the linear regression.
In Table 4 we saw the evolution of households with internet access in Romania in 2006-2015. Whether regression table:
Calculating a and b using the formula above results:
a=(10*873033-20105*434)/(10*37421185-20105*20105)=(8730330-8725570)/(374211850-404211025)=4760/-29999175=-0,000158671
a=-0,000158671
b=(37421185*434-873033*20105)/(10*37421185-20105*20105)=(16240794290-17552328465)/(374211850-404211025)=-1311534175/-29999175=43,719008106
b=43,719008106
So regression function is: y = -0,000158671x + = 43.719008106 -0.319880736
For X = 2016 forecast obtain a relative 43,39912737.
It is almost impossible for it to fall in value, while it increased in all these years of analysis. This value is only a forecast.
GENERAL ASPECTS OF THE NEW ECONOMY IN ROMANIA
Knowledge helps to increase the competitive capacity of a state. Imports of products with high added value is preferable export of raw materials and food and agriculture. The position of our country on the road to access to knowledge is most favorable at this time.
Demystify the number of specialists. Annually, about 5000 new specialists graduate in computer science faculties. At least so say the Ministry of Education statistics. From the author's experience in a polling 100 students at the Faculty of Computer Science, Mathematics, only 40 people have the ability to translate the computer language problem and only some 15 people have a real potential for excellence. The fervor with which the figures are exaggerated recall of statistics before 1990.
Those who have the ability to work in the fields of high technology are forced to go abroad due primarily to the absence of the necessary framework manifestation of their potential (lack enterprises in the field) and secondly, if there are still opportunities to work in Romania, computer scientists and engineers abroad because our preferred material advantages.
Our country is facing a so-called paradox of transition: the general rule says that wages in export-oriented industries should be the biggest, export because it brings important benefits foreign country. Instead Romania exported labor, wages most industrial exporting – especially those in light industry wages are much lower than in the total of non-performing SOEs – Conel, various kings, etc. Romanians are thus perceived as „tailors” of Europe. While this may be considered a negative income arising from the export of these commodities have an important role in balancing the balance of payments and further investment in these sectors in stabilizing or even reducing unemployment. Romania's situation is not unique and not nearly as dramatic as it sounds.
The model followed in this case is that of Japan or South Korea. Both countries have started to export labor. In the '60s, South Korea was the largest exporter of textiles to the US market. In time, however, thanks to the efforts of local professionals, time and capital accumulation, the two countries have managed to achieve high-tech products, some products on the world market leader. Romania can rely on earned reputation of our experts, the quality of higher technical education – but the new wave frames do not live up to its predecessors thanks to wider horizons career, creativity inventors multi-medalists at international competitions. Weaknesses are: least-developed infrastructure, low cost of computing, research and development austere budget, small number of computers person according to population, lack of capital for investment, lack of entrepreneurship in the field of high technologies. Our country must take advantage of low cost labor to attract productive investment that can be the starting point of a knowledge-based economy. An industrial policy for the Government to focus on encouraging economic activities associated with the new economy is also an opportunity to consider.
The threats that can affect the development of the knowledge economy are not few: focusing research efforts worldwide in certain geographical areas (concentration of several companies together) that can bypass Romania, outlook negative growth of the internal market to support the development initial Romanian companies, a possible negative trend of the economy.
FORMS OF E-COMMERCE IN ROMANIA
Electronic commerce in Romania has grown rapidly in recent years and currently appears in three forms:
traders catalogs, Internet and pay on delivery- retailers with catalogs, Internet and pay on delivery is the first form of commerce appeared in Romania, currently there are a relatively large number of such traders. They present a catalog on the site, with description and price, and the buyer can use a shopping cart after launching the purchase order. Delivery is at home or products may be lifted from the seat of the trader. Some sites are only presentation of products, without the possibility of being ordered. Payment is due upon delivery of products, in cash, at the seller or the buyer, by check, bank transfer, postal order, in installments and even card on delivery.
merchants that accept payment cards in real time 3-D Secure protocol and- Internet Merchants with card payments. Since 2004, three major acquirers and issuers (BCR, Raiffeisen Bank and Tiriac Bank) and an issuing bank (AlphaBank) provides electronic commerce over the Internet in real-time payment by Visa and MasterCard. The processing of these transactions is ensured by Romcard. It can be said that due Romcard, Romania now has a modern e-Commerce with a much higher degree of safety.
Electronic auction sites, for government procurement- Electronic Procurement in the public auction. Electronic Procurement System allows buyers, contracting authorities appointed to organize auctions on products to purchase at the best price from vendors appointed bidders. In principle methodology is similar to eBay system and is described on the website www.e-licitatie.ro government.
Using ICT ensure the rapid dissemination of information, expertise, and faster implementation of innovations contributing to social progress by creating conditions for improving the quality of life of citizens, enhancing the efficiency of central and local government and ensure support for the development of industry and business environment.
THE IMPORTANCE OF IT IN THE ROMANIAN ECONOMY
E-commerce branch, which scored fairly well on the Romanian market and has seen some success, is the financial services through electronic payment systems, payment cards by type. Though credit cards continue to remain the preferred means of payment for over 99% of online purchases, their use is not without risks, in particular the security of transactions. There are other drawbacks of using them:
Currently, payment cards to replace cash only bank machine, where you get your cash needed for shopping;
Pay cards are accepted directly in a few places, such as, for example, department stores, luxury hotels and restaurants, which typically exceed the financial possibilities of the middle class. Acceptance if the area will not expand so as to be able to pay everyday purchases using the card, the system cannot justify the existence;
Relatively high fees charged for each transaction are as many cardholders are reluctant to use them for direct payments. For example, in the United States, where payment system using cards is widespread, the cardholder does not have to pay any commission for the deals, but the trader is one who pays a charge card issuer for payment authorization. Less known is the fact that in Romania, when making card payments at points of sales, the commission charged by the bank (2000 Ron per transaction) is paid by the retailer, not the consumer.
A major obstacle in the development of electronic commerce in Romania is the lack of trust in product quality. For many years the Romanian market was flooded with products of dubious origin, often with the guarantee expired and questionable quality. Given that the physical market for consumer goods is no such issues, then, the more confidence he can have in the Romanian consumer goods that cannot be seen and not trying is much reduced or even non-existent.
THE ROLE OF IT MANAGEMENT IN THE DIGITAL ECONOMY
SWOT ANALYSIS OF ELECTRONIC COMMERCE
SWOT analysis is a technique often used by management in organizations systematizes information collected from fulfilling a plan as strengths and weaknesses and the opportunities and threats in the external environment. Having a clear vision of weaknesses and threats can take measures to avoid and eliminate their contribution to improving the environment in which commerce is conducted. For instance deficiency can improve security by creating software aimed at increased security level contributing to the increasing number of users.
Table 5 Swot analysis of electronic commerce
CHIEF INFORMATION OFFICER (CIO) OR INFORMATION TECHNOLOGY (IT) DIRECTOR: A VITAL FUNCTION FOR LARGE COMPANIES
HISTORICAL AND JOB CARACTERISTICS
The Chief Information Officer (CIO) is a company executive who is responsible for the management, implementation and usability of information and computer technologies. The CIO will analyze how these technologies can benefit the company or improve an existing business process and will then integrate a system to realize that benefit or improvement.
In the mid 1980s, the CIO role was just a technical job. Given that storage, transmission and analysis of electronic information have evolved over time and have become increasingly important for industries 80 years, CIO has become essential for formulating strategic goals. In many companies, the CIO reports directly to the Director General (CEO), and at some companies is part of the CIO Executive Council. An important component of the CIO role was then to educate executive management and employees on the value of business and information systems.
Due to increasing strategic responsibilities, CIOs in large organizations usually delegate overseeing daily operations of IT to a deputy technology and relies on a team of specialists to manage specific areas of IT.
CIO number skyrocketed thanks to the advanced IT and business computing. IOC will deal with issues such as creating a website that will allow the company to reach more customers and integration software to help better management of activities.
THE NEW ROLE OF THE CIO
Shakespeare said that "Everyone's a stage and all the men and women merely players." This statement of Shakespeare leads us to think that people are driven by factors society and the environment they live.
Won Simpson Ernest write about new responsibilities and new role of the CIO within companies. He basically support the claim made by Shakespeare as valid also for the IOC. Simpson says their role is determined by technology and business strategy for talent is their own work. Turning back to Shakespeare's, same thing happens now with Twitter generation. Man is dominated by social networks. So Shakespeare is right. Technology directs man. Building local software require many programmers requiring a careful and continuous monitoring. Given that technology is advancing at its peak, it is clear that CIO role is a vital one for big companies where information technology is used at maximum. Large companies seek to keep pace with new technology, so they hunt everything that is new. To have the best results companies "hunt" CIO of the best existing on the labor market. Most CIOs had technical backgrounds, and many were recruited from outside the company, most often with little knowledge in business.
The explosive expansion of the IT sector from mainframe to distributed servers CIO role has exceeded the office computer. Since most software packages were delivered on premise, CIOs need less knowledge about the evolution of software and more about their installation. Outsourcing has become a major theme, which further reduced technical requirements and operational gone. By 1998, a good percentage of CIOs came from outside functions, and even more than that. They came from outside the company. A long tenure within the IT department was most unlikely springboard for a career CIO. That's about where the job title has come to stand for something „career is over.”
THE STRATEGIC CIO
Information technologies are becoming more advanced and more comprehensive for both companies and consumers and the barrier between the strategic and the operational applications gradually disappears. Evolution of business due to new technology and e-commerce leads to a need for several types of CIO for large companies. So his role is very important. The role of the CIO is now operational in one Strategic one. To analyze the strategically role of the CIO within a company, "The Economist Intelligence Unit" conducted a survey of 156 CIOs in May and June of 2013. In this study people at "The Economist Intelligence Unit" They reached conclusion that CIO role in the company is a strategic organization to maintain efficiency.
To increase the efficiency of a CIO, it must acquire extensive knowledge in business. Since the role of a CIO has now become one strategy to accelerate development of a company, a CIO must have more knowledge in business in order to apply the best strategies to achieve the company's objectives in the most effective way. Forte is hard to find a good CIO who can do all this. Most often companies face this problem. In short CIOs must adapt quickly to new demands and appearances technology, to be a good strategist to fulfill its duties effectively and to be more effective, they must acquire and knowledge in business in order to understand conducting business, so he will take the best decisions and apply appropriate strategies to achieve company goals efficiently.
CIO OR THE IT MANAGER IN ROMANIA
Chief Information Officer (CIO) is a title not widespread in Romania and its use related to the organizational culture of companies. In general, heads of IT departments are named IT Director or IT Manager. In the public sector in Romania, there is the term CIO and IT department managers do things that normally a CIO should not do, for example to manage the network.
During the third conference of IT managers in Romania, „Accelerating change. Fast Agile CIO” which was held on May 12 year 2015 at the JW Marriott Hotel Bucharest, gathered more than 250 CIOs, IT managers and professionals of the most important companies in Romania, as well as from the public. During this conference 30 speakers influential industry players caliber of IT scene discussed key topics for representatives of IT departments.
The first session of the conference was devoted entirely new order Agile, where representatives of large companies have shown us how the IT department contributes to organizational success, how can the CIO to influence the company's strategy, and the characteristics of IT leaders.
The importance of flexibility within companies when it comes to adapting to new technologies and integrates them into business models and strategies is an important aspect which was discussed at the conference Accelerating change. Fast Agile CIO in May 2015. The decision chain is longer, the company is accentuate rigidity – was one of the conclusions that were reached at the end of the conference.
Jordan Janeczko, Global cloud strategist and a member of the Atos Scientific Community states that „IT is changing how each interacts with the rest. Therefore it is very good to have an IT department to realize that technology gets old in a very short time.” Agility is the key word when it comes to implementing new solutions.
Agility is the key word when it comes to implementing new solutions. „Agility is supported by some important pillars: operational creativity – to bring ideas and put them on the front functional and speed decision-making.” says Valentin Tuca, CEO Aon Romania.
On the other hand, Oana Ciornei, Managing Partner Amrop Romania, says that the concept of agility should not be seen as a destination but as a journey.
„Cross that companies have to bear when they grow up is rigidity. They are not so agile. In small companies there is no need for committee meetings, the entrepreneur says IT spokesperson and the decisions are taken,” said Marius Ghenea, senior adviser 3TS Capital.
Marcus Frantz, CIO OMV Petrom & Group CIO presented in the closing session about the impact of digitization in the oil industry.
Luis Reina, Professor in Business Analytics and Big Data Master at IE Business School, Spain, drew a parallel between Traditional Analytics vs Big Data Analytics.
Jucovschi Peter made a pass in the agenda of the importance of IT architecture, through the Internet of Things, exemplifying through one of Microsoft projects – Rail Control System.
Optimization of processes within an organization and therefore reduce costs, are the main factors forcing companies to come in the area of IoT solutions.
There are industries where this happens for a long time, but when we talk about IoT, this has to do not only with connecting hardware, but also related to the people who interact through accessories. Many manufacturers of software or hardware enter the IoT. It's all connected to the internet software technology solution that can send the data further.
In Romania we are doing well if we refer to IoT, there are industries in which connectivity equipment, information retrieval and analysis is done for some time. There are expectations for other industries, energy for example.
Companies are very receptive to IoT a solution, opening that has emerged due to equipment costs.
Now, for how to assess solutions IoT look basically at the management control of devices and connectivity of their ability to connect, to shoot and process that data and all instance means submission to management business through various reports.
INCRASE PROFITABILITY, SUSTAINABLE IT COST OPTIMIZATION
Efficient management and performance measurement services are defining factors of success for IT organizations. CIOs are increasingly encouraged to provide a convincing answer to the question of the IT value contribution to profitability. We support the CIO functions with specific solutions in the following four areas of action:
IT strategy and planning: IT Strategy sets the guidance for the IT organization. Horváth & Partners has adapted the concept of Balanced Scorecard for IT to formulate IT strategy and monitor their implementation. This creates a close interaction with the business strategy, operational planning and budgeting process.
IT Management: For this field was developed so-called "IT Factory Framework". The fundamental idea is to treat an IT service provider in terms of economic management, as well as a manufacturing company. That means that for each output rendered transparent to the client there is a list of items, aligned with the IT value chain. This integrated approach allows the use of best practices in production management to ensure the relevant control methods in IT.
IT Performance Reporting: A report directed to key elements of IT value is key to a rapid response to changing conditions in the business environment. Together with you we will develop relevant performance indicators IT, based on a model of business value, thus facilitating a close link between quantitative indicators and the performance.
IT cost optimization: Developed by Horváth & Partners' approach to IT Efficiency Shape "help CIOs achieve a lean and powerful IT. Initial offer of services is simplified IT organization before optimizing organizational, procedural and flexible costs. At all stages of this approach keeping in view future IT management in order to ensure sustainable optimization measures.
CONCLUSIONS
Information and communication technologies are among the key factors contributing directly to the economic development of fundamental changes in the economy and ensure sustainable development.
Internet has brought the world economy, not to mention as academic, as expected, both good and bad. Appeared in the early years after 1990, the World Wide Web, which initially seem simple vehicle information in the scientific and academic community, comprised gradually key sectors of the economy: the exchange of goods, product presentations, payments, advertisements, hiring, university projects from various etc.
In this paper I tried to show that Information Technology, E-commerce and E-business plays an important segment in the global business market, taking over every year a growing segment of it.
Under the impact of this evolution in IT, patterns of production, consumption, distribution and exchange of products will be radically transformed; there are new conflicts: war legal rules and trade debate over intellectual property, content and management of new technologies, security rules of production and trade, the role of geographical frontiers, territorial states, learning content, education and national culture, national defense and order public, economic crime and international terrorism, etc., are all challenges for the common future of humanity, nations and the national economies now called.
It may be mentioned that the seriousness of the difficulties of implementation and use of e-business is all the greater as a least developed country is economically. Also, if the developed countries economic things can develop relatively well and by itself, through the efforts and cooperation entities, the countries economically weak asked support from the state, determining priorities, standards and monitoring respective things. Many countries leading an active state policy on e-business. They created committees or working groups and special research aspect centers on e-business.
In a world dominated by the little „e” in a world that does not stop talking about electronic commerce (e-commerce), electronic business (e-business), a world that is becoming virtually „e-everything”, there is a interesting concept, which highlights one of the most important facilities of the Internet: communication skills across boundaries of time and space.
The effects of these digital technologies have been felt in Romania. Thus, a specialized community of Romania considers electronic commerce hope for small and medium-globalization increasingly apparent in all areas. Even if current market in the country lacks a sufficient number of computers connected to telecommunications networks and even if the legislation is still incomplete, the new practice trade interest is growing in Romania.
Although we have many graduates in the IT environment, Romania continues to lag behind the UNCT of the technology that seemed exploded lately, and the new economy. This is because IT graduates leave the more developed countries because of low salaries and the volume of work in the IT field. In Romania the term CIO is rare compared to other countries. There are few CIOs who called the CIO. They are appointed IT managers. CIO role in the new economy is a strategic one. CIOs must acquire such knowledge in business not only in IT to achieve company goals they are working effectively.
Romanian companies have climbed into the top sales, and making itself felt in a lesser or greater extent, presence on the Web. Many organizations present themselves and the products they offer in a highly compelling and attractive. But no matter how agreeable presence on the Web is useless unless it serves a group of individuals who purchase products or services, not occasionally but repeatedly. It is known that an enterprise can survive in the long term when its customers thanks to its offerings, and cause them to buy its products several times.
In Romania there is few purchase transactions are entirely virtual Romanian Web site – due to the low use of electronic payments generated by the lack of security of payments online. You can pay cash, raise or receive the product, by transferring money into the seller's account, by money, by introducing a very rare card number into an online form. Although initiatives concerning the development and implementation of electronic payment systems exist among banks and card processors local consortia, they have not yet been embraced by vendors. Overcoming these gaps could provide at least some of the online traders, complete virtualization interaction with consumers online.
Activities they carry most companies concentrated mostly in the sphere of trade and services and telecommunications and to a very limited extent in the production of technology. That is largely because IT specialists leave the country and work in other countries. Although we are in top because specialists who obtained many awards, less than half of them remain in the country. This reality, in the long term, may result in Romania's dependence on imported technology. Orientation mainly to trade and services, although beneficial in terms of promotion and dissemination of products and services and telecommunications, as well as a source for creating new jobs is a significant gap developing technologies in the field.
Relatively important advances were made in terms of legislative adapting to global trends of liberalization of international trade and globalization. Trap growth at any cost to export and import goods predominance but will be avoided in the future. In this regard, the State policies will be pursued to improve the structure of the product categories export alongside regaining domestic markets for domestic producers competing with imported goods, at least in the case of commodities for which resources are unused and available unused capacity in the country.
For the next period, an impact will have government policy to support the IT sector, already begun by the government of the past by establishing a national program of included in the government program and promoting urgent effective measures to stimulate this area vital for Romania's transition to the new economy. Thus, there is a series of measures already under implementation, such as the deduction of personal income tax to a PC for each family once every five years; creating a government program vast numbers of computers to schools and high schools; tax relief for IT staff salaries. For example, the fruits of providing the tax exemption for computer scientists already can signal yet by the spectacular rise in the number of registrations of new companies in the field of informatics.
Looking ahead, the economic criteria will be ultimately decisive for Romania's accession to the European Union, and the economic development of type SI-SC, the new economy will be a major one on the general economic trend. Given these patterns underlying the macroeconomic policies will be mandatory to take into account, on the one hand, efforts and resources to accelerate the transition to sustainable development, sustainable type Si-SC, and on Furthermore, the impact of dynamic structural changes in the economy.
If the internet as an easy way to send electronic mail, it would still be one of the greatest discoveries in history. But it's much more! … The Internet is a library, a telephone, a daily newspaper, a video, a travel agent, a museum, a bank, a broker, an art gallery, an encyclopedia, a virtual office, a photo album, a music store, a meeting place, a video store, a meeting room, a political action committee, a post office, a room of sent messages, a saloon car, a bookstore, a huge mall … Internet can be anything. Internet already dramatically changing the way we live and work.
BIBLIOGRAPHY
BOOKS, WORKS AND CASE STUDIES
„Construire la société européenne de l’information pour tous”, Final Report of the High Level Expert Group, Brussels, The Commission European , 1997, page 65
A Pateyron, EA, Salmon, R., "Les Nouvelles Technologies de l'Entreprise", Economica, Paris, page 29
Aron Cristina Elena, Regular Expressions and Acceptors, Proceedings of Of The Sixth International Conference On Economic Informatics, Section „Support Technology for the Information Society”, ASE, Faculty of Economic Cybernetics, Statistics and Informatics, Department of Informatics in Economy, volume „Digital Economy”, Ed. Economic, INFOREC Printing House, pages 78-82, Bucharest, 8-11 mai, 2003
Barefoot, C. – e-commerce revolution, Publisher Amaltea, Bucharest, 2004
Bucur, C.- Electronic Commerce, ASE, Bucharest, 2002
Chaffey, D., “E-business and E-commerce management. Strategy, implementation and practice”, Second edition, Ed. Butterworth – Heinemann, London, 2002, page 201
Choi, Soon Yong and Whinston, Andrew B., The Internet Economy: Technology and Practice – Understanding the Internet Economy – What Does Knowledge-Based Products ; Smart Econ Publishing, 2000
Dr. Engineer. Vasilache, D., "Electronic payments: an introduction" Rosetti Educational Publishing House, Bucharest, 2004, pages 208-210
Dumitriu, F., "Accounting information system in the modern enterprise", Ed. Junimea, Iasi, 2001, page 25
Fatu, T. „Information Society. Education, research, information systems, information technology” Coordinator Gabriela mesn, ETP Tehnopress, Iasi, 2004, pages 50-51
Ghilic-Micu, Bogdan Stoica Marian, E-activities in the Information Society, Publishing House, 2002
Grama, A., Philip M., „Information Society. Education, research, information systems, information technology” Coordinator Gabriela mesn, ETP Tehnopress, Iași, 2004, pages 40-41
Haig, M. – The B2B E-commerce Handbook – How to Transform Your Business-to Business Global Marketing Strategy, Kogan Page, London, 2001
Ioan C.A., „Mathematics II ”, Publisher Summaries, Galati – 2008
Ioan C.A., „The current management-from theory to mathematical modeling” Publishing Summaries, Galati – 2005
John C.A., "Mathematical models of economic phenomena modeling and optimization methods Vol.II- models of business activity" Didactic and Pedagogical Bucharest – 2009
Lucey, T., "Management Information Systems", DP Publications Ltd, London, 1993, page 212
Naisbitt, J., "megatrends" Political Publishing House, Bucharest, 1989, page 218
Nath, R., Schutz, M., “Electronic Commerce and the Internet: Issues, Problems and perspectives”, în International Journal of Information Management, vol. 18, nr. 2, 1998, pages 91-110
Oprea, D., Airinei, D., Fotache, M., "Business Information Systems", Polirom, Iasi, 2002, page 63
Philip F. Gh. Eds., "Information Society. Knowledge Society. Concepts, solutions and strategies for Romania ", Ed. Romanian Academy, Bucharest, 2001, page 410
Philip, F., Gh., " Information Society – Knowledge Society . Concepts, solutions and strategies for Romania ", page 187
Segovia, J., Szczepaniak, Niedwiedzinski, M., „E-commerce and Inteligent Methods”, Ed. Physica – Verlag Heidelberg, New York, 2002, page 6
Stoian, I., Dragne, E., Stoian, M., "International Trade. Techniques, strategies, basic elements of electronic commerce ", Vol. II, Publisher Caraiman, Bucharest, 2001, page 1232
Tawfik, J, Albrecht, E. – Strategies for E-Business. Creating value through Electronic and Mobile Commerce. Concepts and Cases, Prentice Hall, 2005
Turner, C. – The Information E-conomy. Business Strategies for competing in the global age, Kogan Page, 2000
Vasiu, I., "Cybercrime", Nemira, Bucharest, 1998
Rosen, K. T., Howard, A. L. – E-retail: Gold Rush or Fools Gold?, California Management Review, vol 42, n. 3, 2003
Ray, R. – Technology Solutions for Growing Business, AMACom, 2004
Segovia, J., Niedzwiedzinski, M., – E-commerce and Inteligent Methods, Phisica-Verlag Heidelberg, New York, 2002
ARTICLES FROM MAGAZINES AND NEWSPAPERS
Bowonder, B., Miyqake, T., Singh, T.M., “Emerging Trends in Information Technologies: Implications for Developing Countries”, International Journal of Information Management, nr. 13/1993
Pohjola, Matti, New Economy in Growth and Development, United Nations University, WIDER-World Institute for Development Economics Research, ‘Discussion Paper’, nr.67, July, 2002,
https://www.wider.unu.edu/publications/dps/dps2002/dp2002-67.pdf?query=Pohjola
LINKS TO SITES
http://whatis.techtarget.com/reference/Roles-and-responsibilities-guide-What-does-a-CIO-do
http://www.economistinsights.com/sites/default/files/EIU_EMC_Strategic_CIO.pdf
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=URISERV%3Al24221
http://www.legex.ro/Legea-365-2002-31715.aspx
www.insme.org
www.romnet.net/ro
http://www.ciocouncil.ro/index.php?option=com_content&view=article&id=102:provocri-i-soluii-it-dezbtute-de-peste-250-de-manageri-i-profesioniti-it-la-conferina-accelerating-change-fast-agile-cio&catid=1:noutati&Itemid=2
VeriSign Inc., www.verisign.com/products/, What Every Merchant Should Know About Internet Fraud, 2003
http://appsso.eurostat.ec.europa.eu/nui/show.do
http://www.bloomberg.com/europe
http://www.bloomberg.com/bw/articles/2013-05-22/the-new-role-of-the-cio
http://www.bloomberg.com/news/articles/2013-07-22/ebay-eyes-china-as-global-commerce-seen-at-307-billion
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