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Top2. Research Methodology
To investigate the applicability of the proposed payment system, the Burstein and Gregor (1999), information system research approach will be selected as the primary research approach given its flexibility in being able to alternate amongst various research methods. Burstein and Gregor (1999) demonstrated the importance of recognizing the “System Development” approach and relevant criteria for guiding the validity and worth of such work. Figure 1 demonstrates the three-step process whereby exchanges occur between theory building and system development. As experimentations are recorded through observations, further work is performed around theory building and hence, supports the further development of the system bringing it to its desired state.
Figure 1. Information system research to phenomenon of interest (source: Burstein and Gregor, 1999)
There are two key interesting features with the “Systems Development” approach - its simplicity and its ability to adapt quickly to rapidly changing environments. The approach is simple and iterative allowing “action learning” to take place in “real time.” A “rapid response” approach also compresses the cycle time between observations and further systems development and/or refinements. Burstein and Gregor (1999) also suggest that action research is usually associated with the creation of knowledge about the system, while at the same time attempting to change it.
The production of the prototype remains the ultimate objective of this research and as such, a thorough literature review must be performed followed by the design and architecture of “Use Cases”. Once completed, “Non-expert” users can then test the prototype and provide feedback.
Top3. Literature Review
3.1. Introduction
Stephens and Valverde (2013) suggest that, as globalization takes place, there’s an increasing need to re-engineer legacy systems to address future technology requirements in terms of communications, including payment processing. However, the main concern is that security is often times overlooked in the process. In fact, it is now becoming a growing concern in most e-commerce and procurement solutions and platforms. To address this growing concern, the authors suggest that secure transactions are essential if organizations wish to fully realize the benefits of e-procurement. This idea would extend to include transaction costs which is ultimately the focal point in this research.
The complexities associated with electronic payments are on the rise. With the various standards and protocols and currencies for electronic payments and they vary significantly across the different parts of the world. As vendors and manufacturers learn to open their doors to the world and adopt B2B e-commerce, borderline payments are more common and will probably grow in the future. Other worldwide movements, like the implementation of the euro, also stimulate exchanging money amongst worldwide regions.
This paper describes the conventional way vendors transact with one and other across the supply chain and how this interaction could be replaced with web services. The literature review is focused on the world-wide standards and the architecture framework. The costs of the recommended web-service solution are considered and explained in this research.