Doing Business Virtually has its own limitations. The digital world has both decreased and increased the business limitations of how a company does business. Due to the pandemic and sudden lockdown situation, many businesses are facing limitations in doing business virtually. Learn how to overcome limitations of virtual mode of doing business.
Need for Technology Capability and Competence
In doing business digitally the parties have to be fairly familiar with computers and internet. The digital divide has thus limited the use of doing business virtually. Not all business or its employees have been digitally educated. Keeping pace with the upgrades in technology is harder for business in terms of talent and infrastructure.
Low Personal Touch
Virtual mode of businesses lacks the warmth of interpersonal interactions and personal touch for satisfaction of customer. Thus, it is relatively less suitable mode of business for product categories requiring personal touch for convincing the customers such as garments, etc.
Read More : The Importance of Emotional Intelligence to Be a Successful Leader
Mismatch between Order Taking & Delivery
Fulfillment Speed while doing business digitally is that, orders can be placed at the click of a mouse, but the physical delivery of the product takes time. Customers are sometimes not patient enough to bear with this mismatch in experience. At times the users even get frustrated due to technical reasons when websites take unusually long time to open.
Increased Transaction Risk
Internet transactions occur between cyber personalities. It is difficult to establish the identity of the parties or know the location from where the parties may be operating. Doing business virtually is also risky; due to additional hazards of impersonation and leakage of confidential information such as credit card details. Problems of virus attacks and hacking also pose security concerns in doing business digitally.
Resistance to Change
The process of adjustment to new technology and new way of doing things causes stress and a sense of insecurity due to change. As a result, people may resist a change from traditional business to doing business virtually.
Learn More : 5 Persuasion Hacks to Change Anyone’s Mind
Ethical Grounds
Companies use an electronic eye to keep track of the computer files, e-mail account and the websites; visited by their employees or others who use their network systems which is not considered right on ethical grounds.
Overcome Limitations in Doing Business Virtually
Most of the limitations of doing business virtually as discussed above are in the process of being overcome. Websites are becoming more and more interactive to overcome the problem of low personal touch. Speed and quality of communication through internet is being improved through communication technology innovations.
Efforts are on to overcome the digital divide through setting up of virtual reality setups and community tele-centers; in villages and rural areas with the involvement of government agencies, NGOs and international institutions. Thus, we can say that despite limitations, doing business virtually is here to stay and bring a positive change in the businesses, governance and the economies.
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