Mitigating Online Shopping Risks through Information Systems Security Audits

Web technology facilitated by the internet has provided the impetus for the tremendous growth in online shopping because of its speed, accessibility and ubiquity. Nevertheless, these same factors which propelled the advancement can so easily lead to information systems risks and subsequent exploit and compromise such as data breach if these security risks are not properly controlled (Suduc, Bizoi, & Filip, 2010).

This data breach could result in theft of credit card information which may well lead to financial loss for the customer. Nonetheless financial loss is not limited to customers as it is estimated that enterprises lost an average of $1.3 million (an increase from the 2016 figure of $1.2 million) while small and medium sized businesses lost an average of $117,000 in 2017 due to data breach in North America (Kasperskey Lab, 2017).

The good news however, is that there are a number of security measures that can be applied to mitigate information systems risks. The starting point though is to identity these risks (both physical and logical) and thereafter determine the appropriate measures that will provide the required level of security for the information assets.

Despite these security controls such as public key infrastructure, cryptography, anti-malware, etc., information systems are still vulnerable to attacks from both internal and external actors. This is because security set up and monitoring can be time consuming, consequently, security lapses are often overlooked and only noticed when there is an attack (Suduc, Bizoi, & Filip, 2010).

A veritable way of ensuring that the needed security controls are put in place and maintained on an ongoing basis is to institute regular information systems security audits targeting both physical and logical controls (Suduc, Bizoi, & Filip, 2010). This is particularly important since security can never be absolute as organisations’ information systems keep changing and hackers continue to discover new vulnerabilities (Suduc, Bizoi, & Filip, 2010). These audits would provide a feedback on the efficacy of security polices and also suggest remediations for areas that fall below expectation (Popescu, Popescu, & Popescu, 2008). 

To ensure that these audits are comprehensive and provide the required assurance, ISACA (2018) recommends that the under listed reviews be carried out:

•    Identity management
•    Incident management (Security)
•    Network perimeter security
•    Systems development
•    Project management
•    IT risk management
•    Data management
•    Vulnerability management

These audits should cover the following areas:

Figure 2 | Information Security Management Systems | Source: sovisionit.com

As organisations change, their security infrastructure and posture will also change, consequently, information systems audit must be a continuous effort to ensure that the required level of security is maintained (Popescu, Popescu, & Popescu, 2008).

References
ISACA. (2018). Information Security Management Audit/Assurance Program. Retrieved June 20, 2018, from ISACA: https://www.isaca.org/Knowledge-Center/Research/ResearchDeliverables/Pages/Information-Security-Management-Audit-Assurance-Program.aspx
 
Suduc, A.-M., Bizoi, M., & Filip, F. G. (2010). Audit for Information Systems Security. Informatica Economică, 14(1), 43-48. Retrieved from http://revistaie.ase.ro/content/53/04%20Suduc,%20Bizoi,%20Filip.pdf
 
Kasperskey Lab. (2017, September 19). Press Releases. Retrieved June 19, 2018, from Kasperskey Lab: https://usa.kaspersky.com/about/press-releases/2017_kaspersky-lab-survey-cost-of-cyberattacks-for-large-businesses-in-north-america
 
Popescu, G., Popescu, A., & Popescu, C. R. (2008). Conducting an information security audit. Manager, 7, 76-82. Retrieved from http://manager.faa.ro/download/496_714.pdf
 

Webinar Review

This review is based on the webinar Consumer-Retailer Confessions: What Consumers Really Want and Expect delivered by Greg Zakowicz, Senior Commerce Marketing Analyst with Oracle + Bronto, Durham, North Carolina, USA.

The webinar is based on the results of a survey of retailers and consumers commissioned by Oracle + Bronto. It explores the divide between customer expectations and the strategies of retailers in Australia and offers strategic recommendations to enable retailers meet customer expectations. The webinar further discusses what consumers expect retailers to do with the data they collect from them. In addition, it explores the consumer generational differences and similarities and offers strategic email recommendations for giving customers what they want.

Potential Audience
Potential audience for this webinar are retailers and consumers in the Australian market. The webinar could also be of interest to retailers and consumers in other markets who may use the results of this study for further studies in their own localities with a view to improving customer service.

Overall Quality and Value of Webinar
The webinar presents customer expectations and corresponding retailer views and highlights gaps between what customers want and what the retailers think the customers want.

The webinar also presents common mistakes retailers make like displaying unrelated search results, recommending unrelated and irrelevant items. It then presents recommendations on how to avoid these issues to improve customer satisfaction and retention.

The webinar shows how customer behaviour can be changed by offering them facilities that improve customer service. For instance, a good number of customers did not want their data captured by retailers. However, by offering to use such data to make product recommendations, their posture changed.

This webinar should be of tremendously value to retailers operating in the Australian market as it points out areas that they are required to refocus their efforts to facilitate the actualization of customer expectations. It would also be useful for retailers in other countries as it provides a starting point on which to interrogate user expectations and conduct their own surveys.

Suggested Improvements
Given the conflicting definitions of Millennials, Generation X and Baby Boomers, it would have been useful if the presenter’s definition was offered in the webinar to remove any confusion with the use of these classifications.

A review of some of the bar charts like the that of “Using Consumer Data” (the second chart presented in the webinar), indicates that the answers were not mutually exclusive thereby leading to some confusion in the interpretation of the affected charts. Notes should have been included to indicate this. On the same chart, the data series for “I don’t want brands to collect info about me” should be moved to another graph as it does not quite align with the question for this chart. Again, on the same chart, the data series for “None of the above” should either be moved to just above the x-axis or renamed to “None of the below”.

The slide on “Consumer In-Store Mobile Usage” requires an explanation as to what the entries under the different generations mean.

In presenting the results of the survey, some questions expect answers such as Yes, No, Don’t Know, Don’t Care while other areas use Strongly Agree, Disagree, Neither agree nor disagree, Agree and Strongly Agree. A uniform classification would have made comparison of the different areas easier.

Limitations
The webinar is based on a study in Australia and therefore the results are specific to Australia only. Consequently, these findings may therefore not apply to other geographies.

One Minute Paper

The one minute paper is based on the Lecture 1 slides “Introduction to Information Systems: What Is?” by Dr. David Kreps.

Main Learning Points

• The lesson defined data and information and discussed the differences between the two. This reinforced my understanding of the differences between data and information.
• The characteristics of information presented in the lesson provides a basis for deciding what qualifies as quality information.
• The lesson cleared the ambiguity between some earlier definitions of Information Technology and Information Systems which I have come across in the past. Based on my understanding of the lesson, I can now define Information Systems as being Information Technology with the people and processes. This new understanding has cleared the seeming confusion due to other definitions of the two terms.
• The lesson presented the information life cycle and highlighted the processes required to support information exchange. It also discussed Business Process Management.

Main Unanswered Question
Lesson answered the question about the differences between information and data but did little to address the many similarities between the two such the Information Lifecycle which also applies to data.

Lesson Part Requiring Clarification
The discourse on IS as an academic discipline which explained the three main strands of theory in information systems was not very clear as it did not quite explain the main elements of this approach and did not indicate if the Critical IS approach included the quantitative and qualitative approaches.

Online Shopping Implementation in Shoe Retail

Internet data subscription has continued to grow at a fast rate in Nigeria since the introduction of the GSM network in 2001. In May 2017, the number of subscribers to internet data services stood at 91,565,010 increasing significantly to 101,209,503 by April 2018, an increase of about 11% in just one year (Nigerian Communications Commission, 2018). This number represents a large proportion of the population of Nigeria given that the country’s population as at June, 2018 is put at about 198 Million people (National Population Commission, 2018).

This wide penetration of internet usage has had a significant impact on the adoption of online shopping in the country as evidenced by the growth of this sector sector from an expenditure of N49.9 Billion (about 164 Million USD) in 2010 to N78 Billion (about 256 Million USD) in 2012 representing an increase on 56% in just two years (Phillips Consulting, 2014).

Added to this is consumers’ identification of certain advantages and benefits of online shopping compared to the traditional brick and mortar in-store shopping (Kim, Ferrin, & Rao, 2008). Such advantages include the convenience of shopping with the ability to purchase goods and services at any time and from any geographic location in addition to saving cost as consumers can easily compare same products at different sites to obtain the best bargain.

Despite the growth of the local online shopping sector in Nigeria, many shoppers still prefer foreign retailers due to the paucity of credible local online retailers coupled with the high  delivery cost from abroad (Gabriel, Ogbuigwe, & Ahiauzu, 2016). This has however not stopped the increasing number of online retailers coming to market (Gabriel, Ogbuigwe, & Ahiauzu, 2016).

Figure 2 | Online Shopping in Retail | Source: ibm.com

The prospects and problems enumerated thus far can however be an opportunity for a shoe retailer to implement an online information system which presents all the advantages earlier enumerated while facilitating differentiation and creating competitive advantage that will enable it take advantage of the exponential growth in the online sector.

Such an information system must implement features that will ensure trust, convenience, ease of use, usefulness, high site quality and user friendliness among other features; others include Frequently Asked Questions (FAQs) and Security (Al-Maghrabi & Dennis, 2011). These features are described below:

S/No.	Feature	Remark
1	Convenience	Availability of solution on mobile, tablet, desktop.
2	Accessibility	System must be simple to use providing categories, filters and allowing product comparisons. Ability to return purchased items. Easy checkout with adequate payment options.
3	Usefulness	Features like wish lists improve usefulness and are a sure way to drive traffic to the online site. Detailed shipping information with low cost.
4	High Site Quality	High quality pictures and images that bear real life semblance to item being sold will facilitate purchase and engender trust.
5	FAQs & User Reviews	FAQs provide quick and easy way of getting answers to common questions while user reviews allow customers also engender trust.
6	Security	Security is key especially with the increased incidences of cybercrimes worldwide.

References
Al-Maghrabi, T., & Dennis, C. (2011). What drives consumers’ continuance intention to e-shopping? International Journal of Retail & Distribution Management, 39(12), 899-926.

Gabriel, J. M., Ogbuigwe, T. D., & Ahiauzu, L. U. (2016, October 11). Online Shopping Systems in Nigeria: Evolution, Trend and Prospects. Asian Research Journal of Arts & Social Sciences, 1(4), 1-7.

Kim, D. J., Ferrin, D. L., & Rao, R. H. (2008). A trust-based consumer decision-making model in electronic commerce: The role of trust, perceived risk, and their antecedents. Decision Support Systems, 44, 544–564.

National Population Commission. (2018). National Population Commission. Retrieved June 14, 2018, from National Population Commission: http://population.gov.ng/

Nigerian Communications Commission. (2018). Nigerian Communications Commission. Retrieved June 14, 2018, from Nigerian Communications Commission: https://www.ncc.gov.ng/stakeholder/statistics-reports/industry-overview#view-graphs-tables-5

Phillips Consulting. (2014). Online Shopping Report 2014. Retrieved June 14, 2018, from http://www.phillipsconsulting.net/files/online_shopping_report.pdf

Enterprise Resource Planning (ERP) Implementation in Shoe Retail

Because of the multitude of shoe retailers, operators in the shoe retailing business must create sustainable competitive advantage that will differentiate their business thus maintaining customer loyalty, attracting new customers and consequently maximising profits to stay in business. This can be achieved by implementing an Enterprise Resource Planning (ERP) information system covering areas such as Human Resource, Inventory, Sales & Marketing, Customer Relationship Management and Finance & Accounting. 

Such an implementation can provide the needed advantage as it empowers organisations gain insight into all areas of their operations thus facilitating comprehensive assessment of their companys’ financial positions on an on-going basis (Patalas-Maliszewska & Krebs, 2014). There is also evidence that an ERP implementation can provide the impetus for significant operational improvement through the institution of best practice processes; however this is not without the initial period of instability associated with systems implementations (Cotteleer & Bendoly, 2006).

Implementing an inventory module as part of a retailers ERP rollout can help reduce inventory buffers thus providing additional working capital to the business (Cotteleer & Bendoly, 2006). Furthermore, an ERP implementation can lead to increased profitability two years after its implementation, improvement in the non-payment of invoices as well as a reduction in the number of overdue invoices (Matolcsya, Booth, & Wieder, 2005).

Furthermore, adding a Customer Relationship Management (CRM) Solution as part of the ERP implementation can provide improvements in business processes, customer loyalty, reduced operating cost and the alignment of Human Resources with Corporate Strategy (Agapitou, Bersimis, & Georgakellos, 2018).

In adopting an ERP solution, the shoe retailer should however note that implementing an ERP solution does in itself guarantee success and the realisation of the benefits mentioned above since factors such as vendor capability, role of organisation’s leadership, business environment, effective project management, organisational culture among numerous variables have an impact on the outcome (Almahamid & Awsi, 2015). This is demonstrated in the case of American Lafrance that filed for bankruptcy in January, 2008 blaming IBM for the botched ERP implementation (Reuters, 2008).

References
Agapitou, C., Bersimis, S., & Georgakellos, D. (2018, February 01). Appraisal of CRM implementation as business strategy option in times of recession: The role of perceived value and benefits. International Journal of Business Science and Applied Management, 12(2), 18-31.

Almahamid, S., & Awsi, O. (2015). Perceived Organizational ERP Benefits for SMEs: Middle Eastern Perspective. Interdisciplinary Journal of Information, Knowledge, and Management, 10, 145-172.

Cotteleer, M. J., & Bendoly, E. (2006, September). Order Lead-Time Improvement Following Enterprise Information Technology Implementation: An Empirical Study. MIS Quarterly, 30(3), 643-660.

Matolcsya, Z. P., Booth, P., & Wieder, B. (2005, November). Economic benefits of enterprise resource planning systems: some empirical evidence. Accounting and Finance, 45(3), 439-456.

Patalas-Maliszewska, J., & Krebs, I. (2014, June). THE IMPACT OF ENTERPRISES SYSTEMS ON SALES PERFORMANCE: A STUDY OF ERP SYSTEM IMPLEMENTATIONS IN POLISH SMES. Management and Production Engineering Review, 5(2), 54–59. doi:DOI: 10.2478/mper-2014-0017.

Reuters. (2008, January 28). Firetruck maker files for bankruptcy, blames IBM. Retrieved from Reuters: https://www.reuters.com/article/us-americanlafrance-bankruptcy/firetruck-maker-files-for-bankruptcy-blames-ibm-idUSN2848407720080128

Market Information Systems in Shoe Retail

Businesses such as shoe retailers exist to sell shoes to customers while ensuring they make profit to stay afloat. Due to the preponderance of such companies there is a high level of competitiveness requiring many retailers to seek information systems which enable them to take decisions and respond quickly to customer changing needs ahead of their competitors (De Queiroz & Oliveira, 2014). Additionally, due to low margins only those who minimize costs will remain afloat. Market Information Systems provide this information to facilitate such business decisions (Lin & Hong, 2009).

Figure 1 | Marketing Information Systems | Source: businessjargons.com

As part of efforts to improve sales, advertising provides an avenue to affect customer purchase decisions. This could be through direct communication by sales people or via indirect methods such as oral or viva voce communication which has been shown to facilitate customer purchase decisions (Whan Park, Roth, & Jacques, 1988).

In order to ensure that these purchase decisions are to the benefit of the retailer, customer tastes and preferences need to be met. To discover these tastes and preferences, the market information system will be used to conduct research through systematic data collection using questionnaires or through data sources like magazines, periodicals, research materials, etc. This system will also provide invaluable information about the activities of other competitors such as new products planned for the market (Lin & Hong, 2009). This information about the activities of other competitors can then be used to determine what type of shoes and when to bring them to market. The information collected can also be used to determine when the retailer should introduce promotions or effect price discounts.

Furthermore, preliminary analysis on information can reveal demographic information which can then be used to target products for the different groups.

The internal records stored in the Market Information System can also reveal loyal customers over time who can be rewarded to maintain their loyalty.


References
De Queiroz, J. P., & Oliveira, B. (2014, October 01). Benefits of the Marketing Information System in the Clothing Retail Business. Journal of Information Systems and Technology Management, 11(1), 153-168.

Lin, C., & Hong, C. (2009). Development of a marketing information system for supporting sales in a Tea-beverage market. Expert Systems with Applications, 36(3), 5393-5401.

Whan Park, C., Roth, M. S., & Jacques, P. F. (1988). Evaluating the effects of advertising and sales promotion campaigns. Industrial Marketing Management, 17(2), 129-140.

Introduction: Information Systems in Shoe Retail

Businesses rely on timely and accurate information to plan, make decisions and take timely and appropriate actions leading to increased performance, income and subsequent rise in profits (Hannabuss, 1987). This reliance has increased significantly in the information age which has made the provision of such information much easier through the awesome computing resources available to organisations at affordable costs.

These information are provided through systems like Market Information Systems (Lin & Hong, 2009) and others including Enterprise Resource Planning (ERP) systems which have created revolutions in businesses through the redesign of core business processes and the provision of increased quality and quantity of information in sectors like Sales, Pharmaceuticals and Car Manufacturing (Shoemaker, 2003).

The use of information Systems in businesses especially sales has completely changed the traditional approaches so much so that it has become possible for automated systems to use the large amounts of data captured by markets and salesmen to discover customer shopping trends and made recommendations to customers based on their past behaviour as is being done in today’s leading online sales outlets like Amazon, eBay, etc.

This blog will focus on a number of information systems applicable in a shoe retailer in the Small, Medium Enterprises sector of the Nigerian economy which can facilitate business differentiation and create competitive advantage leading to improved customer satisfaction, sales and increased profitability. Areas of focus include the use of market information systems in improving sales management through the provision of information that will lead to decisions on promotions, incentives to customers, price adjustments and so on. Other areas include the use of ERP systems for online and on-premise sales, inventory, analytics and performance management.

As mentioned earlier, information is critical to planning and timely decision making in many organisations. However, unreliable information due to errors in underlying data can compromise such information and have serious consequences for both the organisation and the customer (Mollick, 2014). Errors may also arise due to unethical practices of operators (Guragai, Hunt, Neri, & Taylor, 2017). Consequently, any discourse on Information Systems must take into account issues of ethics and periodic information systems audits.

The issue of errors in underlying data may be intentional as a result of security issues. Additionally, sensitive information may also fall into the wrong hands through acts of sabotage leading to unintended consequences (Allen & Fisher, 2015). Accordingly, this article will also discuss the issues of information systems security as it affects the shoe retailer.

References
Allen, C., & Fisher, W. (2015). Road warriors and information systems security: risks and recommendations. Journal of Management Information and Decision Sciences, 18(1), 84-96.

Guragai, B., Hunt, N. C., Neri, M. P., & Taylor, E. Z. (2017). Accounting Information Systems and Ethics Research: Review, Synthesis, and the Future. JOURNAL OF INFORMATION SYSTEMS, 31(2), 65-81.

Hannabuss, S. (1987, May 01). Information and Decision Making. Industrial Management & Data Systems, 87(5/6), 11-14. doi:https://doi.org/10.1108/eb057476.

Lin, C., & Hong, C. (2009). Development of a marketing information system for supporting sales in a Tea-beverage market. Expert Systems with Applications, 36(3), 5393-5401.

Mollick, J. S. (2014). How are concerns about errors and ethics related to demands for information systems audits? Communications of the IIMA, 14(1-2), 63-73.

Shoemaker, M. E. (2003, July 01). WHAT MARKETING STUDENTS NEED TO KNOW ABOUT ENTERPRISE RESOURCE PLANNING ( E R P ) SYSTEMS. Marketing Education Review, 13(2), 69-77.