?The unprecedented global growth of the Internet, the promise of E-Business, and the emergence of mobile business have a profound effect upon the way organizations operate. The digital economy, that leverages the benefits of technological convergence and new business models, offers unparalleled advantages for an immense variety of service providers and their customers in the cyber marketplace. Providers see significant economies in operating in an E-Business environment that has global reach, with the prospects of cost reductions being passed on to the customer. Similarly, for online consumers, the Internet offers infinitely expanded buyer information and a range of choices that are daunting to comprehend. However, in spite of these apparent benefits the transition to the digital economy has not been without problems. For many organi- zations there is continuing uncertainty over which operating model to adopt, and the rather intimidating lessons of some high profile failures. The global E-Business environ- ment will continue to pose difficult and far-reaching management challenges to leaders of online businesses. Some of these challenges are already evident and have a profound effect upon the ways of doing business. Among them, and of paramount importance, is the issue of how E-Business can maximize its value to consumers and simultaneously
retain their trust and confidence.

It is evident that the biggest barriers to E-Business today come from the notion that people don’t trust the security and authenticity of E-Business environment. Building consumer trust and confidence requires thoughtful analysis of the nature of the relationship between buyers and sellers. This notion is also about privacy in the EBusiness environment (E-Privacy). In the context of E-Business, E-Privacy has to be established as a core value that connects organizational culture with the best interests of the consumer. The value of E-Privacy can be viewed as an important indicator of
business success. Worldwide, many high profile business failures are attributable to the lack of recognition accorded E-Privacy, and the lack of commitment to it as a consumer issue. The  consequences of this oversight can lead to an erosion of consumer loyalty, negative publicity, and the loss of potential business.

When examining barriers to the implementation of E-Business, numerous studies have singled out consumers’ lack of trust as a major factor. Some people reduce the trust problem to one of security, arguing that if security issues are resolved, people will be happy to transact online. However, when the trust problem is broken down into its constituents, privacy, ease-of-use or the credibility of information on the Web is revealed to be as important to consumers as security.

Taken From : Digital Economy – Impacts, Influences and Challenges

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