E-Business Paper

Running head: E-BUSINESS PAPER

E-Business Paper

Danelle Martin

University of Phoenix

E-Business Paper

When any organization makes the decision to enter into the world of electronic business, or e-business, they face a whole new set of challenges and a whole new set of regulations that must be adhered to. Smith Systems Consulting was no exception.

Smith Systems Consulting

Smith Systems Consulting began in the late Seventies in Houston, Texas, when founder, Bill Smith, was still a partner with a large public accounting firm. Mr. Smith was able to obtain an advanced degree in computer science in addition to an undergraduate degree in accounting as well as his CPA certification (Apollo Group, Inc., 2003/2004) and often used this knowledge, with specific technology applications, to solve both financial and accounting problems for his clients. Seeing a need; he foresaw technology consulting becoming an equal partner with accounting and auditing. When he could not convince his partners of the same vision, and being encouraged by the success of EDS and Computer Associates, Mr. Smith decided to launch and independent technology services consultant business along with three associates from his firm. Thus, Smith Systems Consulting was formed in June 1984 (Apollo Group Inc., 2003/2004).

Launching an E-Business

Smith Consulting launched their E-Business in 1994 offering a variety of services such as: Networking (design and installation), Applications (database design, support and programming), and Websites (development, maintenance and hosting). Among their clients are Riordan Manufacturing, Huffman Trucking, McBride Financial, and Kudler Fine Foods. As with any business, whether national or international, disaster recovery or being able to retrieve data in the event of a disaster is paramount. In fact, it has become so important that there are specific guidelines and regulations that must be followed.

Data Protection Issues and Solutions

Organizations conducting e-business now have a legal obligation to protect data stored on their IT system according to the Data Protection Act of 1998 (Steve Pain, 2007). When Smith Systems Consulting launched their e-business, they also launched a legal obligation to take adequate steps to protect their client's data and financial information. This includes protecting the data again hackers by developing and maintaining.

Thankfully, there are a number of ways to do this, including: encrypting data, securing websites, securing IT systems and wireless networks, and providing adequate training to all employees regarding the safe transmission, handling, and disposal of information (Steve Pain, 2007). The improper disposal of information and the breach of confidentiality have been in the news on a regular basis. This has ranged from employees improperly throwing out customer files, to laptops being stolen, to hard-drives not being properly "wiped" or erased. More often than not, it is reported that these items contained customer social security numbers and financial records.

According to the British Security Industry Association, "companies should be learning lessons about the importance of protecting confidential information." (Steve Pain, 2007, para. 7). In fact, compliance with the Data Protection Act is imperative and non-compliance could result in prosecution by the Office of Information Commissioner. The best way to ensure that data is being disposed of securely and responsibly and that confidential information is being eradicated is to follow the guidelines of the Data Protection Act 1998. Following these guidelines and training employees to understand the importance to of keeping data secure is the only true way to ensure compliance.

International Legal Issues

There are a number of legal issues to consider when conducting e-business internationally. The Organization of Economic Cooperation and Development (OECD) released a series of guidelines to protect international consumers and to help businesses structure