Q.Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.

Limitations: low personal touch; incongruence between fast order-taking and slower physical delivery; need for technology capability (the 'digital divide'); increased risk from anonymity and non-traceability; people resistance; ethical fallouts (privacy/'electronic eye'). …

e-Business is not all rosy; doing business in the electronic mode has certain limitations. The main ones are:

• Low personal touch: However high-tech it may be, e-business lacks the warmth of interpersonal interaction. It is therefore less suitable for products that need a high personal touch — such as garments and toiletries — where customers like to see, feel or try the product first.
• Incongruence between order-taking and order-fulfilment speed: Information flows at the click of a mouse, but the physical delivery of the product still takes time. This mismatch tests customers' patience, and sometimes websites themselves are slow to open, adding to the frustration.
• Need for technology capability and competence: Beyond the three R's (Reading, wRiting, aRithmetic), e-business needs a fair degree of familiarity with computers. This creates the digital divide — society split between those familiar and those unfamiliar with digital technology — leaving the latter out of e-business.
• Increased risk due to anonymity and non-traceability: Transactions occur between cyber personalities, so it is hard to establish the identity or location of the parties. This brings the added hazards of impersonation, leakage of confidential information (e.g. credit-card details), and the well-known problems of viruses and hacking.
• People resistance: Adjusting to new technology causes stress and insecurity, so people may resist an organisation's move into e-business, making the transition harder.
• Ethical fallouts: e-Business raises ethical questions about privacy — for example companies using an 'electronic eye' to track the files, e-mails and websites of employees. Whether such surveillance is ethical is a troubling open question.

Are these limitations severe enough to restrict its scope? No. Most of the limitations are steadily being overcome:

• Websites are becoming more interactive, countering the 'low touch' problem.
• Communication technology keeps improving speed and quality, easing the order-fulfilment mismatch. …