keywords: ecommerce in uae, big data in uae, cloud computing in uae, emerging technologies
After some research we have not found that how Artificial Intelligence, Big Data, Cloud Computing and services effects Ecommerce Industry in the context of United Arab Emirates, in this Research we will put the lights on these topics and try to highlight the main idea.
“Since it began in 1995, global e-commerce has grown from a standing start to €1.96 billion business-to-consumer and a €14.2 trillion business-to-business juggernaut, bringing about enormous change in business firms, markets, and consumer behavior.” laudon, keneth, & traver, carol, . (2016).
Electronic commerce is a new business term in th 70’s which changed since the World Wide Web has shown more and more business have converted and made there own electronic sites with there domains in order to be align with the new technology and also they saw good results having there own website up running.
Buying and selling has been much easier than before also reaching and contacting other business was much convenient than before which you had to travel to the country you want to work with to collab for certain business related projects.
“Shopping via mobile devices, personal computers, tablets and connected devices is now a part of the everyday lives of consumers globally. Estimates show that global retail eCommerce sales will be $3.563 trillion in 2019, commanding 13.7% of total retail sales, an increase of 21.5% over 20181 , excluding travel2 .” The UAE eCommerce Landscape. (2019). The Uae eCommerce Landscape.
“In 2016, the eCommerce industry gained market share to command 10% of all global retail sales. Since then, it has continued to expand exponentially. It is estimated to grow 21.5% in 2019, to hit $4.135 trillion by 20202 .” The UAE eCommerce Landscape. (2019). The Uae eCommerce Landscape.
Using Technology is a huge factor in business thrive, “Technological innovation has changed the way consumers discover, interact, purchase and consume on a daily basis. Virtual assistants powered by artificial intelligence (AI) drive the customer down the funnel with a higher degree of certainty” The UAE eCommerce Landscape. (2019). The Uae eCommerce Landscape.
In conclusion , I think that ecommerce is still growing and will walk with new technologies and will make shopping experience much interesting and fun in the coming years, we will continue talking about AI, Big Data, Cloud computing and services and how it effects Ecommerce in more details.
“The term artificial intelligence was coined in 1950s. This was after the US department of Defence Advanced research Projects Agency(DARPA) took interest in this type of technology. They first started to train machines to mimic basic human reasoning and problem solving and have since then developed machines that are able to perform more intricate tasks.” Thakor, S. D. (2019)
“AI is the discipline that aims to understand the nature of human intelligence through the construction of computer programs that imitate intelligent behavior.“ Prasad, B. (2003). Intelligent Techniques For E-Commerce (Vol. 4). Journal of Electronic Commerce Research. Large business has been investing a lot of money in making algorithms for there ecommerce websites in order to bring the most out of this technology since it’s invented, you could collect customers behaviours and analyse them then teaching the machine what kind of product each customer are more interested on based in there search.
AI will make creative ads much easier than before which even will get to the point where it will create certain ads for each person depending in his mood of clicking certain ads than other ads , to be more specific it may get to the point where it will create ads that interests you, which will make customer experience much better and more accurate to the customer needs.
Chat bots has been used a lot lately and it make sales conversion much higher more than before because it reads and collects customers questions and answer each one, which made customer satisfaction better which adds to the reputation of the business and definitely AI had huge effort in in building it.
Ai have also been solving big problems and enhancing servers scalability, “basically the user supplies a query to a client machine. The client machine forwards the request to server. The request contains constraints specified by the user. The server accesses the database of product information and generates a CSP. The CSP is added with a search algorithm. The resultant information is sent back to the client. The user can browse the information at client site to see various solutions.” Prasad, B. (2003). Intelligent Techniques For E-Commerce (Vol. 4). Journal of Electronic Commerce Research.
AI techniques are also useful in development of buyer agents. Most of the e-commerce services are viewed as “sellers” agents because their goal is to push services and/or merchandise on to the users. Buyer agents work for the buyers rather than the sellers. The aim of the agents is to educate the user to become a mo re informed customer. Some key responsibilities of such agents are: informing customers of complex interactions between specified preferences (for example, the relationship between the cost of additional insurance for a product and the guarantee period of the product) and prevailing market conditions, and use of ontology to help the user formulate queries, and providing alternate products [Sen 1999] Prasad, B. (2003). Intelligent Techniques For E-Commerce (Vol. 4). Journal of Electronic Commerce Research.
“The e-commerce landscape today is bubbling up with numerous big data that are being used to solve business problems. According to Kauffman et al. (2012, p.85), the use of big data is skyrocketing in e-commerce “due [to] the social networking, the internet, mobile telephony and all kinds of new technologies that create and capture data”. Akter, S., Wamba, S.F(2016)
People may hear that big data in ecommerce is only collecting data from emails or phone numbers of customer actually it’s much more than that companys nowadays go deeper than that they analyse everything they get there hands like click stream data where does customers come from , video data where they analyse how consumers behave when watching videos and the points where consumers stop or skip like for example Netflix, voice data where companies analyse phone calls or customer service conversation and based on it improve there service or retarget them to better deals, we will get more details on them.
Click Stream data, “Click-stream data originate from the web and online advertisements, and from social media content such as the tweets, blogs, Facebook wall postings, etc. of e-commerce businesses. In today’s connected environment, social media and online advertisements play a key role in the ongoing promotional strategy of firms, such as the use of click-stream data that are very important for management in making informed, strategic, and tactical decisions.” Akter, S., Wamba, S.F (2016)
Video data, “These data have the potential to add value for e-commerce firms. For example, Ramaswamy (2013) reported that Netflix uses video data to predict viewing habits and evaluate the quality of experiences. In addition, the visualization and demand analytics tool based on the type of movie consumption help Netflix understand preferences, which led them to achieve success in their “House of Cards” program in the US.” Akter, S., Wamba, S.F(2016)
Voice data, “data typically originating from phone calls, call centers, or customer service. As evidenced in recent research, voice data are advantageous for nalyser consumer-buying nalyser or targeting new customers. As described by Davenport et al. (2012), credit card companies, for example American Express, use and track data related to call center activities so that personalized offers can be given in milliseconds. In Schroeck et al.’s (2012) survey, e-commerce firms were found to use advanced capabilities to nalyse text and transcripts converted from call center conversations.” Akter, S., Wamba, S.F (2016)
Big Data is an amazing innovation that bring a lot of benefits to big company’s and if there wasn’t good results coming out of it business owners wouldn’t invest money on it everyday company’s face challenges on how to attract more customers in innovative ways, Netflix and Google and Ebay are already using it in there systems and bring a lot of value to the company.
So where did computing came originally ? “”The precursor of could compute is the“grid computing”. As a matter of fact, as early as in the 1990 s, a grid computing is proposed, as considering making full use of leisure CPU resources, and then structures parallel distributed computing. But the SETI@home in 1999 is even more successfully put the idea of grid computing into practice, and to build a successful case.”” Juncai, Shen, and Qian Shao(2011)
Cloud computing and services is considered as new concept in the commerce field which a lot of companies now adays move all there data from internal physical hared drives to cloud drive “” The cloud storage of IBM, Google and other large IT enterprises are ready to come out. Cloud storage is the networking storage with super computational capabilities. “”Juncai, Shen, and Qian Shao(2011)
The new ecommerce 2.0 add cloud computing as one of the main aspects in there ecommerce plan it doesn’t just make life easier it also save a lot of efforts and money by installing cloud storage you could share add remove or edit information easy and without the need of dealing with physical hardware which cost much more than normal cloud.
Working with a teams in certain projects using cloud storage also will help in the flow of work which will result in much benefit and to give or receive information from clients like emails , phone numbers etc, and connecting that with big data system and analyzation will be much easier and organized.
Security is huge concept when dealing with cloud computing anything connected to internet is as at risk of being hacked or disrupted , “”It is not only can provide service for multiple clients at the same time, but also can guarantee a high degree of security of its application environment.”” Juncai, Shen, and Qian Shao(2011), cloud services for certain big companies like What like AWS by Amazon offers high security as a guarantee with your subscribtions which makes you away from headechs and problems when dealing with cloud storages.
A lot of big companies in the UAE are investing in AI technology to increase engagement rate and study there customers behaviours, one of them was dubizzel, “AI and machine learning have enabled technology companies like Dubizzle to flourish, harnessing the power of big data sets and insight-driven solutions for end-users. Machine learning technologies are crucial to succeed in the competitive technology market.” Duk, Vitalii, and Eddie Taylor(2018).
“image recognition allows Dubizzle to simplify the user experience by detecting placing immediately after user upload an image.” Duk, Vitalii, and Eddie Taylor(2018). Also having to analyse people purchase and personalization “allows us to provide everyone with personalised search results and feeds, taking into account users’ interests and preferences.” Duk, Vitalii, and Eddie Taylor(2018). You can’t have human interaction without getting spams and dubizzle used AI technology to analyse spam uploads and prevent them, “Dubizzle’s AI-powered spam detection system is preventing irrelevant ads from being posted on the platform and allows us to process thousands of ads per second.” Duk, Vitalii, and Eddie Taylor(2018). What about forecasting ? definitely gathering data and using AI helps in decision making in the near future and to act before incidents occur.
UAE always thinks to the future and leaders of the country are the first to contribute and encourage in new technologies “In an interview, His Highness Shaikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE said, “We want UAE to become the world’s most prepared country for artificial intelligence.” Fusion Informatics (AI).
““Data and AI will be more and more important, making the difference in all e-commerce components. Personalisation will be key to better serve customers. Knowing what the customer would like to purchase and being able to deliver that option to them before they even make the decision is key,” opines Yuldashev.” Mansoor, Zainab( 25 Jan. 2020)
Dubai , United Arab Emirates with increase of ecommerce market “industry reports indicating MENA region to be the fastest growing region in the world for ecommerce, with an annual growth rate of 25% and UAE” Ramarajan, L. (2020, January 28). Customers had been leaving digital footprints whenever they purchase something online from emal , phonenumbers, date and time of purchase and what kind of products are bought together which is very valuable data to data scientists “Ecommerce constitutes a large portion of the retail sales with consumers opting to shop from ecommerce channels rather than brick and mortar stores.” Ramarajan, L. (2020, January 28)
In the increase of ecommerce stores has been focusing in data analytics to study the behaviour of the customers in order to offer them personalized deals there are many new tools now adays like what SAS offers for data Scientists uploading data from excel sheets to the tool and implement AI technology to predict certain outcomes that will help improving sales.
As experts say “Most of the growth in retail is expected to come from online channels” Ramarajan, L. (2020, January 28) , investing in this technology with other technologies like AI will result in increase in revenue, knowing how crucial is taking advantage of these information will help a lot.
Looking at the national article they say “After a slow start, cloud adoption will be in full swing in the Middle East and North Africa (Mena) in 2019 with the UAE is at the forefront, expected to gain 31,650 new jobs between 2017 and 2022 from the market.” How the cloud will create nearly 32,000 jobs in the UAE. (2019, January 1) , which means nowadays big companies in the UAE are bringing the highest technologies saving time performing high conversion rates to there business.
UAE has been the first and biggest adopter of cloud computing according to nathonal business website “The UAE is the region’s most active adopter of cloud computing. Massachusetts-based IDC predicts spending on public cloud services in the Emirates will almost quadruple over the next four years, from Dh439 million in 2017 to Dh1.51bn in 2022.” How the cloud will create nearly 32,000 jobs in the UAE. (2019, January 1).
Introducing cloud computing and services to other technologies like (AI) or Big data will help improving the process and will make it much easier to reach better results in the near future, also will open the door for new innovative ideas for new problems coming up.
There is a lot of web service like amazon AWS where you can get you cloud service from, servers will be installed in Bahrain and UAE soon in order to improve the experience of cloud computing, “Microsoft has announced cloud data centres in Abu Dhabi and Dubai and Amazon Web Services will be opening at least three centres in Bahrain to serve customers across the Middle East and Africa.” How the cloud will create nearly 32,000 jobs in the UAE. (2019, January 1).
Having this research we conclude that AI alone or big data alone or cloud computing alone will not help ecommerce thrive in UAE unless we combine them all together and try to build the best solution that meet the needs of each ecommerce company out there, whether you are a small , medium, or large ecommerce company integrating these kind of technologies will improve the business flow and you will be updated with the new ways and solutions for specific problems that may occur in the future.