Economy and artificial intelligence Essay Example
EVOLVING INTERNET ECONOMY
Evolving Internet Economy
The internet has been a significant tool in enhancing communication that has substantially supported all sectors of economy builders. The internet has been a fundamental instrument in networking information and channeling products to the consumers. Therefore, the internet economy has widely been used in reshaping individual’s lives and enhancing benefits to consumers through digital goods and services. Through the internet transactions, companies and governments tend to broaden their productions due to easy access to users in the world. Besides, the internet economy has enhanced efficient labor market and access to products in the global market. The internet has also led to the innovation and restructuring of business models in firms as a form of improving the efficiency of organizations. Significantly the world has embraced the Internet as a partner in developing the human activities in a perfect manner (Kauffman 2010).
E-Commerce is a trade business model that enables companies and individuals to conduct the trading activities through the electronic network or internet. These trading activities usually occur either from the company to another business or the consumers. E-business is used information technologies in supporting the company. The electronic business includes the buying and selling of product suppliers and consumer services along with information sharing in the industry. Nonetheless, the enterprise consists of a range of function along with service from the internet to the service. The contemporary world of business has restricted sense of business activities through every changing technology. E-Commerce has become a significant tool for both small and large businesses worldwide, not only to sell to the consumer but also to engage them. E-commerce has been an excellent opportunity for the development and the growth of enterprises in the world.
Economist ideology on the e-commerce has led to the intensified competition due to increasing consumer information concerning products. Large firms enjoy economies of scale and offer low prices through the E-commerce. E-business has the capability that integrates intra-company and inter-company functionality from the financial flow to the informational flow in the chain of supply. The affection of information flow improves the production quality and inventory management of the company. Further information optimizes the capacity of processing activities in a corporation. The financial flow affection allows organization efficient payment and settlement of solution.
Moreover, internet evolution is a dynamism that have enhanced in the global whereby communication and transaction and done online (Tassabehji 2003). The e-commerce has same several advantages in the globe as, and they include the following; first e-commerce has cost effective whereby the entire financial transaction and deliveries are trough online services thereby making the conversion rate of money to become cheap. Secondly, there is higher marginal revenue due to the business safety and flexibility of the enterprise. Thirdly Commerce has supported greater productivity to both consumers and companies. The people find the online transaction, fast and cheap. Fourth, e-commerce is a convenient form of finding the right product best fit to the consumer satisfaction. Moreover; it saves time in finding the best product from variety. Finally, the transaction has been made easier since operation makes instant.
Besides the advantages, we find the negative side of the e-commerce transaction. Firstly the consumers lose confidence and trust over payment method on a product. Thereby before making an instant transaction, the customer needs to access the integrity of the seller. Secondly, the customers are unable to access directly the products until delivery thereby limiting consumers in making choices effectively. Thirdly, the marginal cost may be hidden such as the tax and import duty that will burden the consumer on delivery point. Fourthly, products may be delayed to the recipient, or the product may get to wrong hands depriving the esteem buyer access to the product he/she has purchased. Finally, the internet access is costly in other regions of the world. It has been a limiting factor for the various persons more so in the developing countries (Bradley 2010).
Artificial Intelligence in the contemporary world has contributed to the innovation and the use of robotic devices in enhancing efficiency has led to the growth of internet economy. Technological advancement focuses on the development and evaluation of algorithms that performs intelligent behavior efficiently with minimal human intervention. These techniques have been applied to a broad range of problems that arise in medical diagnosis, robotics, e-commerce, military strategies and logistics. The rising need for artificial intelligence has contributed to the dynamism of mechanisms that enhance a reliable service delivery. The use of robotic devices integrates the human language with a programming language. Our example case from the research in the recent years focus on the market architectures in the E-commerce and the governing protocol on self-interested agents. The Artificial intelligence here is known as the MAGNET (Multi-Agent Negotiation Testbed) that is used to provide support for the negotiation of products in a multi-agent markets in facilitating various protocols of negotiations.
Moreover, this intelligence focuses on the market architecture by giving integrated frameworks as a support mechanism for efficiency. The MAGNET intelligence develops a sophisticated agent interaction such as the use of automated contracting as well as negotiation protocols. Our primary focus is on the business-to-business structure in an organization outsource its production to the external environment with a real structure supply chain. This system entails independent agent entity with its resources, structure, and goals. Therefore, the independence will enhance the individual agents to negotiate on the required protocol officer. The model used to consist of the consumer agent that include the plan that is used to set a market domain. The planning phase further consists of the bids from the market and the executed strategy to meet consumers’ need. The second phase is the market model that consist of the market ontology that is used by the management of a firm. This step is used to analyze the statistical trend of the markets of a product. Another subsection in this model is the market session that is used to manage the responses of the markets of a particular product. The final Agent phase is the Supplies model that facilitates the product readily available in the market. Moreover, this agent step is important in communicating the consumer trend of a product in a particular market.
Further analysis of the MAGNET protocol distinguishes two agent roles, the supplier, and the customer. The consumer phase provides a description on the quotation and the quantity of a product. In response, the vendor agent offers the prices and the request from a firm on the product. Once the bid request is received the system device evaluates the cost and the possible risk and set an optimal goal satisfaction. The supplier, on the other hand, files a report and plan on the better strategy to channel a steady flow of products. Further, the plan maintenance will re-negotiate on the commitment after the breach of a contract, and the re-bidding portion is restructured further to meet goals of the firm.
The use of MAGNET system has some advantages in an organization whereby the company can manage the trend of its products in the market and easy access of the market trend. Second the market statistics is accurately recorded, and analysis is made quickly in case of the future reference point of a product. Thirdly, information can be easily accessed from the markets due to the supplier agent phase providing the necessary information to the organization. Finally, the artificial intelligence is more efficient than human beings due to its accuracy in delivering relevant information. Besides we find its limitation whereby information may be omitted thereby affecting the entire system analysis and decisions by the managers. Another limitation is that this system may face a barrier in upgrading its service in case of integrating other products and other transaction. Moreover, this artificial ay give a general analysis that will require the user to give further a decision on the system. Finally, to install an artificial intelligence such as MAGNET is expensive and further costly to maintain the system in an organization.
The internet has been faced with other security threats from the environment often involving browser threats and network threats. The internet, therefore, represents an insecure channel for accessing information that is exposed to high risk and fraudulence. There are several threats including phishing, spyware, adware and viruses. Our case example is the viruses and worms that have been a revolving threat on the internet. A computer virus is an artificial software attached to a program that cause fraud on information. The virus threat is well known to be transferred from one computer to another whereby it limits the access to full information on a computer. The virus software usually attaches itself to the disk and external memory thereby enhancing attack to another computer (Bradley 2010).
Moreover, the virus threat can be acquired through the internet access while free view sites. Several virus has been on the rise as a form of cybercrime intrusion. The lasts form of the virus is the email virus whereby email information is prompt to attack by a virus. Therefore, it is significant to ensure that your computer is free from viruses by first installing an anti-virus and ensuring it is up to date to avoid losing valuable information in a computer. Secondly, you need to download and install security patch in the operating system to ensure the operating system works efficiently. Finally, ensure that files in the email are from known sources to avoid virus intrusion into the personal computer. Besides, this threat has created awareness thereby making the internet user always alert in accessing information through the internet.
The internet has significantly led to better understanding of the users through a modified and monitored environment. Nevertheless, the internet has improved the safety, quality, and sustainable intersects in all areas of technology. The technological advancement has created societal concern on the safety practices, legally set up and the ethical behaviors of the users. Teamwork and collaboration on the internet users on a shared goal have enhanced greater efficiency. Leadership skills exposed over teamwork participation has been developed to challenging and competitive activities (Bradley 2010).
Further, the internet summarizes strategies to be used by firms and agencies in solving problems that greatly impact the social economy. The internet system consists of millions of private, learners, public, Governments and enterprises on a global scope linked through the world server. The range of information is useful to these sectors with their esteem services variance and usage. In schools, learning has been done through the computer and tasked performed over the networks whereby illustrations are significantly elaborated via the computers and projectors. In the Government offices as well as organizations the computers are used to store information considered as a backup reference and easily accessible documentation depending on the value of information via the internet. It has led to a convenience and ready information in offices outdoing the physical files. Moreover, the computer serves as a communication and transfer of information over the internet. In the business sector the internet has helped in the online transactions and the breach of products and services to the esteem consumers in the market.
Socially, E-commerce and E-business enhance the protection of the consumers whereby relevant information is passed to the customers. Moreover, it has led to the progressive spirit and loyalty in the market niche. Therefore, it has further resulted in attention to building the internal enterprise culture and an interactive measure between the stakeholders. The social aspect has promoted the global communication and better relation of people despite the distance and the physical location (Kauffman 2010).
As a form of a recommendation to the E-business evolution, it is important for firms to incorporate the use of the internet to enhance a global market and a steady growth for new companies in the market. Besides, it is necessary to be optimistic in the E-commerce trade despite the competitive environment of enterprises. The internet acts as an advertisement zone to the businesses and, therefore, cheap cost of creating awareness of a product. It is important to acknowledge the internet economy in transforming ideas from the consumers.
Indeed, the internet has been an economical server in the world resource and convenience of service to the people. In conclusion, the internet has been evolving due to the advancement and the growth of the world as a global village. Therefore, further innovations are taken in to allow the growth and the extensive usage of the internet in all sectors. Significantly, the e-commerce has extensively incorporated the internet alongside automated machines that support particular transactions and faster flow of operations (Kauffman 2010). The global trend in the recent years indicates the biggest E-commerce market is giving a significant per capita in Europe among other developed continents.
Other countries have also emerged such as the Chinese state expanding on the internet users whereby the internet users is approximately 384 million. Therefore, online transactions have rapidly increased serving an increase in the economy of the country. E-commerce is recognized enterprises to communicate and to form trade all time and any location. According to (Kauffman 2010) the power of E-commerce typically has two crucial factors in consideration; logistics and supply chain that play a role in efficiency in customer satisfaction.
Bradley, P. (2010). The business and economy Internet resource handbook. London: Library
Kauffman, R. (2010). Economics, information systems, and electronic commerce empirical
research. Armonk, NY: M.E. Sharpe.
Tassabehji, R. (2003). Applying e-commerce in business. London: Sage.
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