The Impact of App-Based Solutions on Commercial Businesses Essay

Introduction

In the past decades, the use of app-based solutions has exploded all around the globe. App-based solutions are software applications designed for users of mobile and computers to perform a specific task. Due to the millions of smartphone and computer users, commercial businesses use this technology to attract customers and improve their work functionalities (Turban et al., 2018). These companies can easily communicate with customers and share vital information whenever possible. In addition, this technology helps commercial businesses manage their supply chain. It helps businesses to manage relevant stakeholders in the supply chain. However, security, financial and social issues affect the adoption of this technology by businesses. Therefore, although there are some shortcomings, businesses use app-based solutions to improve the efficiency of operations in their supply chain.

The Focus Area

The focus area of this report is commercial businesses because they are one of the main users of the app-based solution. A commercial business is an activity in which a company sells goods or services (Stubbs, 2017). Commercial business encompasses any activities undertaken apart from manufacturing or producing goods. In other words, these businesses can also refer to the use of land or property for commercial purposes, such as retail businesses (Stubbs, 2017). A good example of a commercial business is a hospital, providing healthcare services to people. Hospitals are among the greatest users of app-based solutions to improve their services. Another good example of a commercial business is a manufacturing company such as Nike. Therefore, a commercial business that offers products and services to people.

The Current Use of App-Based Solutions in Business, Military, Or Government

The app-based solution is one of the greatest technological innovations that has revolutionized various sectors’ operations. In business, this technology is being used in various sectors to improve operations and enhance accessibility (Turban et al., 2018). It enables businesses to send push notifications about new or altered features in their services or products. The technology allows businesses to form close relationships with their clients, generating a genuine customer base and deep loyalty. Businesses can also form deep ties with their stakeholders by offering exclusive deals within the application (Turban et al., 2018). For example, stakeholders can walk through the application anytime and anywhere using their gadgets. Based on this, a business can share anything with its employees, customers, suppliers, and other stakeholders.

These solutions are excellent marketing tool that helps businesses stay ahead of the competition. They inhibit enterprises from using conventional marketing tools such as leaflets, brochures, and the same option (Turban et al., 2018). Applications may easily provide information about new launches, offers, discounts, bookings, newsfeeds, and other connected things. Push notifications are becoming increasingly popular as a feature that has improved the popularity of the mobile app as a wonderful marketing tool. Business leaders can utilize push notifications to send messages to users in the form of alerts about any deals, discounts, offers, and many more (Turban et al., 2018). This assists them in increasing product sales and money generation. Thus, an app-based solution is an important marketing tool because it enables businesses to share content with customers.

Apart from businesses, app-based solutions play an integral role in increasing efficiency in the military. This technology is designed for use during warfare, especially in enhancing soldiers’ situational awareness and saving lives (Nolan, Lindeman & Varghese, 2019). The applications with blueprints or maps of locations can improve soldiers’ situational awareness, allowing them to engage in battle and effectively reduce casualties in their team. App-based solutions are also important in conducting military training. Education-based applications are developed specifically to help relay military information to soldiers. The applications are a great way for soldiers to learn more about the army’s equipment, uniform, ranks, rules, policies, and operations (Nolan, Lindeman & Varghese, 2019). As a result, the military is using app-based solutions to improve the efficiency of their operations, ranging from communication to training.

Applications have made monetary transactions in the banking and financial sectors easier. With the help of applications, mobile banking is becoming more popular in the banking industry (Fairooz & Wickramasinghe, 2019). Previously, customers were supposed to physically visit the bank to make bill payments, transfers, or withdrawals. Currently, all of these financial transactions can be done via the mobile app for the internet banking system. In terms of financial transactions, smartphone apps allow people to pay for goods and services without having to go to the bank. In addition, customers can use app-based solutions to communicate with bank agents when they want their concerns addressed (Fairooz & Wickramasinghe, 2019). Therefore, applications have revolutionized the banking sector and other sectors by improving the efficiency of operations.

App-based solutions are one of the favorite activities in the commercial test platform that look for methods to include them in the curriculum. With a bit of creative thought, there are numerous mobile applications that provide a plethora of learning opportunities (Martínez, Ferré & Marcillo, 2018). In the case of education, there is a need to apply their expertise to create a learning environment that encourages a connection between students’ gaming experiences and their normal curriculum. Some applications inside different platforms are paired with an educational concept that has successfully been used with students. There are also some extra ideas for mobile application creation that they can explore with their students.

In addition, applications promote brand loyalty and assist a business in engaging with customers on a regular basis through catalog updates, deals, and promotions, all without being constrained by the confines of a digital device browser (Martinez, Ferré, & Marcillo, 2018). With the help of applications, users have access to location services, integration options, and mobile payments. There are other features that enable users to scan a barcode or take an image of a product to find it in their catalog, which leads to more sales. In addition, commercial application users can get the information they need from any location. This means that application users can make purchases or sell at any moment. These applications are crucial in handling business transactions.

Businesses are able to cut costs with the use of app-based solutions. Applications help businesses get rid of SMS messages, brochures, and paper newsletters (Martínez, Ferré & Marcillo, 2018). The absence of these aspects in business operations helps to reduce costs. It streamlines client communications through the use of secure, immediate, and direct messages. It has also decreased staff workload because they no longer have to send information requests or make phone calls. In addition, a user can scan the item’s barcode with a mobile device. As a result, a user can obtain a more accurate count of the real things offered in the store. It also enables users to reconcile inventories in the stores and warehouses effectively.

The Three Best Arguments That Support the Use of This Technology

The first argument supporting the use of the app-based solution is its ability to enhance the flow of communication. According to Tjahjono et al. (2017), the supply chain involves a range of actions, beginning with purchase, then moving on to packaging, dispatching, shipping, and eventually delivery. Therefore, the communication flow between the many teams in charge of these operations must be swift, clear, and ongoing. Currently, with the use of app-based solutions, each team is automatically kept up to date on the actions of the other teams (Tjahjono et al., 2017). This can help the teams to plan their future course of action systematically. As a result, there are no delays since vendors and drivers can easily communicate to schedule deliveries, check routes, and many more. In addition, customers can receive real-time status updates from drivers.

The second argument is that app-based solutions can be used to make business processes easier, faster, and more transparent. Businesses can create bespoke service packages based on the needs of their consumers (Tjahjono et al., 2017). Whether it is a small e-commerce startup or a worldwide retailer, the companies can serve the majority of clients. For example, millions of people using smartphones and computers can install apps and link with a business. This has prompted numerous businesses to sell their products on an e-commerce platform. Companies’ commercial scope has expanded due to these applications (Tjahjono et al., 2017). These applications have resulted in a speedier and more transparent delivery process. Customers may quickly track the status of their orders. Application-based solution changes can result in an increase in the efficiency of business activities.

The third argument is that app-based solutions can assist a business launch and managing a direct marketing channel. A business can offer its products and services directly to end consumers by using this technology (Tjahjono et al., 2017). It serves a number of purposes, including general information, product prices, search functionality, news feeds, and many more. One of the major benefits of having an app is that it puts all of the information a company wants to share with its customers right at its disposal. This includes limited-time deals and promotions for their products and services. In addition, a business can get even closer to direct interaction with its clients by using push notifications. This allows businesses to remind their customers about products and services effortlessly.

Possible Shortcomings That Might Keep a Business from Adopting This Technology

The security challenge is one of the shortcomings experienced when using app-based solutions. There are a lot of steps required to tackle app security issues. However, when these security issues are not followed effectively by a business and customers using these applications, the applications become vulnerable (Tjahjono et al., 2017). As a result, this puts business information and customers’ personal information at risk of hacking. For example, a business can lose funds from installing malicious applications collecting account information from consumers. A business can also suffer from financial loss when hackers request money in exchange for stolen information. Therefore, this implies that financial threat is a key security consideration that limits the deployment of mobile apps in businesses.

Technological issues are the primary hindrance to the use of app-based solutions. The first technological aspect leading to this limitation is the performance of the technology leading to psychological risk (Martínez, Ferré & Marcillo, 2018). This consists of disappointments and frustrations a customer experiences when using these applications. People can lack confidence when it is challenging to use and learn using an application. The perceived risk originates from a consumer’s expectations of suffering a loss in pursuing the desired outcome. The other technical aspect that can hinder the use of these applications is network connectivity. Lack of network connectivity in some locations may adversely affect app-based solutions. As a result, the absence of an internet connection and the complexity of an application may hinder their use.

Cost is also another factor that can limit the use of app-based solutions. It can be divided into transactional and infrastructure costs (Martínez, Ferré & Marcillo, 2018). Transactional cost is the cost that customers spend when using applications, which includes fees levied by app service providers, data bundle costs, and the cost of the device utilized. The consumers may not be able to meet up with the cost of running the application. On the contrary, the infrastructure cost is defined as the cost incurred by service providers to install and maintain the apps. For effective use of these applications, a business must invest money and resources. Based on this, businesses offering products and services may find it expensive to use app-based solutions.

Lack of computer literacy is one of the barriers to using app-based solutions. Individuals without information and communication technology (ICT) skills may find it challenging to use the applications (Martínez, Ferré & Marcillo, 2018). This means that businesses would not be able to achieve the intended purposes of app-based solutions effectively. For example, in the United States, the absence of an in-service training program for ICT skills delayed the integration of ICTs into learning programs. This shows that a lack of computer literacy is a barrier to utilizing applications in businesses regardless of region. As a result, a shortage of ICT skills obstructs the application of technological innovations. As a result, organizations adopting those technologies must develop programs to give consumers the necessary knowledge and skills.

There are social factors that may adversely influence the adoption of app-based solutions. These factors include peer pressure, a lack of management support, and a lack of partner organizations adopting applications to allow reciprocal business transactions (Martínez, Ferré & Marcillo, 2018). The Lack of managerial support hinders the use of technology in a business. Managerial support is required to facilitate its functioning, such as allocating funds for maintenance. The absence of management support means that the applications would not receive the appropriate support. Peer pressure is one of these social factors that affect the adoption and usage of technology. An individual is likely to use what they see their friends using. Therefore, social factors negatively affect the uptake of technological innovations.

Operational, Financial, And Other Ramifications of Adopting This Technology

The operational issues linked with the adoption of app-based solutions are reputational damage due to the increase in cyber-threat. Most users feel uncertain and pay little attention to the use of app-based solutions in most of its operations, leading to inadequate use (Martinez, Ferré & Marcillo, 2018). Cyber-attacks hit businesses on a daily basis, and several attacks have increased quickly. In addition, a number of high-profile attacks have led to the loss and exposure of sensitive data. Based on this, many businesses and consumers are still skeptical about the security of these applications. They are not sure whether their sensitive information is safe or not when using app-based solutions. As a result, the perception of insecurity makes the operation of app-based solutions challenging.

The complex nature of app-based solutions makes operation difficult for users. There are integrative, information, and intention complexity. Information complexity makes it hard for users to understand the content (Martínez, Ferré & Marcillo, 2018). The language used may be difficult for the users to comprehend. Integrative complexity is the complexity of the underlying technology, such as the interconnection of the backend system. On the other hand, intention complexity is linked with supporting unstructured objectives that characterize the use of complex tasks. Some applications have features and functionalities that fail to focus on the target audience. The users may find it challenging to look for content in a complex application. User manuals are always provided to help with the usage of the technology. The varying complexity of the applications adversely affects their operability.

The financial ramifications affecting the adoption of app-based solutions are the cost of buying and maintaining the technology. Purchasing an application may be too expensive for some businesses to afford (Martínez, Ferré & Marcillo, 2018). In addition to purchasing the applications, there is a maintenance cost. A business using an application is required to set aside some funds for maintenance. For example, they are supposed to make sure that there is steady network connectivity. The users, such as customers, employees, and other stakeholders, are also required to incur the cost of the internet to ensure usability. In addition, businesses are required to recruit application experts to help with their management. Therefore, for the effectiveness of app-based solutions, users are required to incur the cost of purchasing and operations.

The negative perception of the security and effectiveness of app-based solutions is another ramification for their adoption. People are always willing to purchase products with positive reviews (Martínez, Ferré & Marcillo, 2018). For an application to sell in the market, it must have been seen as reputable. One of the aspects that influence the adoption of apps is security. It is believed that apps are also vulnerable to cyber-threat like other information technology. As a result, people do not trust its usability, especially where financial transactions are expected. Users are afraid that they might lose their money or sensitive data to hackers. Based on this, the adoption of app-based solutions is threatened if there are still threats of cyber-attacks on businesses using information technology to perform their operations.

Conclusion

Despite the existence of challenges, the use of app-based solutions has increased because of the many benefits. Commercial businesses are utilizing this technology to attract clients and improve their job functions due to the millions of smartphone and computer users. These businesses can communicate with their customers and give critical information whenever possible. The ability to connect users makes the applications an effective tool for enhancing communication. Furthermore, this technology assists commercial businesses in managing their supply chain. It assists firms in managing supply chain stakeholders. An e-commerce company, for example, can successfully manage its staff tasks and maintain track of its activities. Commercial enterprises are using App-based solutions to increase the efficiency of operations in their supply chain.

References

Fairooz, H. M. M., & Wickramasinghe, C. N. (2019). Innovation and development of digital finance: a review on digital transformation in banking & financial sector of Sri Lanka. Asian Journal of Economics, Finance, and Management, 69-78.

Martinez, D., Ferré, X., & Marcillo, D. (2018, January). Proposal for an integrated framework for mobile applications development. In International Conference on Information Technology & Systems (pp. 813-819). Springer, Cham.

Nolan, J., Lindeman, S., & Varghese, F. P. (2019). Mobile app interventions for military and veteran families: Before, during, and after deployment. Psychological services, 16(2), 208. Web.

Tjahjono, B., Esplugues, C., Ares, E., & Pelaez, G. (2017). What does industry 4.0 mean to the supply chain? Procedia Manufacturing, 13, 1175-1182. Web.

Turban, E., Outland, J., King, D., Lee, J. K., Liang, T. P., & Turban, D. C. (2018). Mobile commerce and the internet of things. In Electronic Commerce 2018 (pp. 205-248). Springer, Cham. Web.

Stubbs, W. (2017). Sustainable entrepreneurship and B Corps. Business Strategy and the Environment, 26(3), 331-344. Web.