Impact Of Virtual Private Networks On Business Operations

Main technologies

Discuss about the Impact of Virtual Private Networks.

In this fast moving and constant changing world, where the preferences and needs of customers change at a high rate, only firms that can withstand the innovations updating and adapt to the customer's requirement adjustments can maintain their performance high and competitive in the market (Sarkar, 2011). The success of any enterprise is highly related to the level and quality of technology that the firm uses.

The internet has greatly evolved since the introduction of computers in 1969. Studies show that the number of people who had access to the internet by the year 2010 was 1.7 billion. This number has almost tripled to date as many people have become conversant with the internet and millions of enterprises Management that use technology established. Many businesses depend and act upon real-time information gathered via the use of technology (Kordi?, 2014). The implementation of Internet VPN is much cheaper than other types of private means of communication and more flexible. This reason has constituted to many businesses adopting VPN in their information systems.

The necessity of information systems has majorly grown in the modern world market leading to a high number of businesses embracing them. Jumia being an online shop has implemented VPN that enable them to run their activities at cost effective prices.

Jumia was established by a group of entrepreneurs who spotted a niche in the online market about five years ago. The company uses information systems that are well structured to and interconnected systems that collect, organize, process and communicate information that helps in the decision making of the enterprise by the top executives. By using VPNs, its business branch offices can get a similar type of secure private connection regardless of their type of equipment, their location and connection speed.

Jumia has established numerous branch offices all around the African region. The enterprise started by offering mobile phones and other electronics. Due to the numerous opportunities that present themselves in the modern world, Jumia has expanded and deals with a wide range of products. The organization offers clothing products, furniture, and many other products. The company uses a VPN that uses encapsulated internet packets to transfers data in created tunnel (Aminu, 2013). The virtual private network facilitates sending and receiving of information from clients and employees in different locations of the firm.

Jumia started in northern Africa and later spread its network to the rest of the continent with the aid of VPN. The company developed branches within the region and linked them to the main center network through virtual networks (Genge & Siaterlis, 2013). The firm then launched its products in a website developed by its IT human resource. When a customer is interested in purchasing items from Jumia, he visits the firm's site views the product of his interest and then adds the item(s) in a cart where he has to log in using his account details with the firm and then places his order. The company confirms the customer's order by reaching out to him. In the event where the clients confirm that he placed the order, the company processes it, packs and the delivery are done (Kihuha, 2012). The customers are then contacted on arrival to the pick-up station he had indicated.

State of the present technologies

Jumia online shop uses different technologies to ensure a complete and successful network for its operations. Some of the technologies that the firm has used are highlighted below. 

The tunnel is a virtual pipe that makes the actual physical network. The tunnels are either permanent or temporary.   Permanent tunnels usually require high network resources. Virtual private networks are more efficient when used temporarily. Jumia uses different VPN technologies to facilitate its operations. VPNs extend company's' LANs without the need for owned private lines. Jumia uses VPN to provide remote and mobile customers with access to their networks (Zhu & Wang, 2012). Virtual private networks use encapsulated internet packets to transfer data through the created tunnel.

A VPN is termed as private because the application first encrypts the packets that are being transferred to ensure that the data arrives safely. After encryption, packets are encapsulated and sent on their way via the dynamically created tunnel. Voluntary tunnels are those created upon user requests. They have the advantage of enabling the user to open secure tunnel and access other internet sites without tunneling. To back early tunneling of virtual private networks two protocols which are point-to-point tunneling protocol (PPTP) and Layer 2 Tunneling Protocol (L2TP). These protocols were later surpassed by IPSec. IPSec ensures increased security to the IP/TCP networking.

PPTP is the most common and much used VPN protocol. They facilitate authorized remote users to access the company's VPN network by use of the present internet connection and then log in to the VPN by use of password authentication (Da-ji, 2011). PPTP are less expensive and don't require additional hardware. However, they have a drawback which is the lack of encryption hence no security measures are ensured.

IPSec is a tried and trusted protocol which sets up a tunnel starting from the remote area to the user's central site. IPSec is designed for IP traffic. It includes protocols for starting a personal authentication between clients before the start of every session. IPSec guarantees data security between a pair those who are using it (Uskov, 2013). IPSec supports data integrity, replay protection, and data confidentiality. However, it has a disadvantage in that it is expensive and client installations are time-consuming.

Jumia has witnessed great development in its productivity through adopting these modern technologies which make it accessible to people in all localities (Protection, 2015). This is facilitated by the VPN that the shop has developed to launch and sell its products.

Market share for top 3 leaders

Jumia uses VPN tunnels to encrypt clients' information. Through this encryption, customers are assured of data security. Jumia has created VPN tunnels that enable data transfer between the firm and its customers. Customers make their purchases online, and the can also make their payments online or after delivery is made.

 PPTP enables customers to create their personal accounts with Jumia. This protocol authorizes clients to log in to these accounts and make their purchases. For a client to make purchases from Jumia, he has to confirm with the firm before uploading items in his cart. PPTP also makes it possible for buyers to get to Jumia's portal and view products even when one doesn't have to buy.

IPSec, on the other hand, ensures data security and confidentiality. Jumia uses IPSec to ensure that customers who make orders are the ones to receive them on delivery. The firm requires one's identification before picking an item from them.

The above-mentioned technologies have positively influenced the performance of the Jumia shop. These technologies will stand out to be the pillar for Jumia successful future as people are embracing technology day to day life. Jumia needs to keep these technologies upgraded as time goes by and through this, the firm will be sure of a successful future in the online market since people a deloping the culture of online shopping since it does not require one to be physically present where the products are sold (Ntetha, 2010). The three technologies will magnify Jumia's network in more countries thus the shop will have a promising future in the market.

Amazon retained the number one spot in the Online shop market in Africa and the globe at large (Dessart, 2011). Maintaining this position is witnessed as a result of using integrated VPNs and offering affordable products at affordable prices.

Jumia has increased its popularity and overtaken other online vendors. The shop shipped a total of over 20 million units which was a 4% increase from the previous year (Mshangi, et. al).

Ebay manage to retain its spot among the top three online shops in Africa and the entire world. The firm shipped 45 million units which were a decrease of 6% from a year ago. This constituted to Jumia going above it to claim the second position due to its advanced VPNs which facilitate faster delivery.

Conclusion

Using a VPN can lead to result into increased network load and reduced time delays in a firm's operations. VPN ensure a versatile and secure communication over long distances. Therefore, firms that are operating an online business over large regions like Jumia should consider using virtual private networks in its operations.

References

Aminu, S. A. (2013). Challenges militating against adoption of online shopping in retail industry           in Nigeria. Journal of Marketing Management, 1(1), 23-33.

Da-ji, X. I. E. (2011). Researches on VPN Technology Based on PPTP [J]. Sichuan University of   Arts and Science Journal, 2, 018.

Dessart, F. (2011). U.S. Patent No. 7,921,215. Washington, DC: U.S. Patent and Trademark             Office.

Genge, B., & Siaterlis, C. (2013). Analysis of the effects of distributed denial-of-service attacks             on MPLS networks. International Journal of Critical Infrastructure Protection, 6(2), 87-   95.

Kihuha, C. K. (2012). Network intrusion monitoring and reporting using e-mail and             sms (Doctoral dissertation).

Kordi?, N. (2014). The extent of e-commerce presence in developing countries. Sinteza 2014-   Impact of the Internet on Business Activities in Serbia and Worldwide, 313-317.

Mshangi, M., Nfuka, E. N., Sanga, C., Kilima, F. T. M., Sife, A. S., Mlozi, M. R. S., ... &             Tumbo, S. D. International Journal of Computing and ICT Research.

Ntetha, M. A. (2010). The access, interaction, use and impact of information And             communication technologies among civil servants In the Umhlathuze area: a social             informatics study (Doctoral dissertation, University of Zululand).

Protection, I. S. R. (2015). Internet. Un anno in dieci punti, 6.

Sarkar, A. (2011). Impact of utilitarian and hedonic shopping values on individual's perceived benefits and risks in online shopping. International management review, 7(1), 58.

Uskov, A. (2013, June). IPsec VPN-Based Security of Web-Based Rich Multimedia Systems. In IIMSS (pp. 31-40).

ZHU, Y. J., & WANG, B. J. (2012). Design and Realization of Multi-VPN Tunnels System based on 3G Communication Networks [J]. Netinfo Security, 6, 026.