Internet has become an inseparable element of the business. All firms are performing their operation by using the internet and its applications. The purpose of this report is to understand the scope of the e-business. It will explain how the internet works and how its components add value to the business. It will also discuss different types of e-business models and their implications. At last the report will end in describing how the website of an company can work and offer great features to the customers.
Task 1: Understand The Scope Of E-Business
1.1 Describe the environment in which e-business is conducted along with types of business transaction
Currently Ideal DIY store is facing many issues with its suppliers and it is unable to fulfil the demands of customers because of not having web presence. In the absence of web, this store is losing connectivity with the suppliers and customers. It is essential that it should adopt e-business solution for the business. Its old business can be transformed into click and mortar business model by establishing an online platform where it can connect easily with the stakeholders (Ahmed, 2013). It is required to adopt effective customer relationship management techniques so that needs and expectations of the customers can be evaluated easily. Supply chain management will help the store to develop better relations with its suppliers. Intranet and extranet will facilitate a smooth flow of information and a good communication will be established within organization (Hall, 2010). There is a need to convert the passing of information in an electronic form. This will make the communication and networking faster and it will also promote sound decision making as well. It can make use of components such as client server system, web applications and internet protocols such as TCP/IP, HTTP and HTML/XML to eliminate the business issues.
1.2 Explain the benefits and barriers to businesses considering an online presences
Major benefits associated with the e-business are as follows:
Costs reduction - Online presence will improve the costs of operations for IDS. It can track millions of customers at a single platform, reducing its costs that are related to land based business (Jones, 2008).
Easy availability of customers - Online presence will help in identifying millions of customers in a very quick span of time. Company can get these customers at a single platform only.
Better control and flexibility – It will be able to maintain adequate control along with avoiding several kinds of confusions and errors (Jones, 2008). Lots of flexibility and transparency can be seen in the business as it will be easy to track each and every aspect.
Security issues - It is one of the major issues in E-Business world. It is related with hacking of important and confidential information related to the business. It may cause damage to the reputation of company as well (Lee, 2000).
Increasing competition - These days all business firms are driving towards establishing online presence in its operations. In such scenario, it can be very difficult for a company to create a distinctive impression among the minds of customers.
1.3 Assess the security and legislative issues facing an online business organization
These issues are as follows:
Hacking - It is the most serious cyber crime followed in the world. Here, the cyber criminals steal the important and sensitive information from hard drivers and server of the organization in an unauthorised manner (Madel, 2003). They have to install strong tracking devices and procedures within business.
Viruses - Virus is a very serious threat that can corrupt the online server and system of any organization. It can erase or damage all the useful information related to company. This issue can be resolved by using effectual anti-viruses for the protection (Trim, 2002).
Legal Framework - Companies operating in online business have to follow some legal rules and guidelines. These rules are related to safeguarding the identity of clients, not disclosing any personal information and avoiding misrepresentation of the data too. Strong laws and provisions are to be made regarding online transactions (W,S., 2002).
Explain the internet technologies and their importance in making an e-business successful
Different types of internet technologies can be used by the IDS organization. Electronic data interchange; electronic fund transfers, social media marketing, extranet etc. are the approaches that will bring integration and coordination in flow of information within the business (Ward and Kirthi 2007). A common client server can be established which will help them to store the data in a more appropriate manner. EFT and EDI technique will help in performing online transactions. In order to establish a proper IT infrastructure, HTML/XML, WEB application server technologies and TCP/IP, HTTP protocols are required. Intranet will aid in placing a private network where all business activities can be performed easily. Customer relationship management and supply chain management will help in establishing healthy relations with customers as well as suppliers (Adam and et.al, 2002).
Task 2: Understand How The Internet Works
Explain the main features of HTML
HTML stands for Hyper Text Markup language which is also regarded as the static webpage designing language. It makes use of small markup tags in order to make the web pages more flexible (Ward and Kirthi 2007). The features of HTML can be explained as follows:
Supportive - With HTML, experts can design the website in more interactive manner. It will also provide support to high line stream videos, make the animation more creative and offer integration with different types of social networking websites such as Twitter and Facebook.
Accessibility - The process of designing the structure of HTML is very easy and web designers can effectively understand the web page structure as well as coding part (Lagrosen, 2005).
Elegant forms - It helps the experts to make web-forms more worthwhile and vibrant by offering a flexible user interface and also by reducing the needs of java scripts.
Client side database - HTML can be used in the form of session storage in order to store online information such as cookies (Christopher and Asha 2007). This aids in storing the structured data in temporary manner. Cookies can be used to track the data of users for years.
Illustrate the different e-business models that can be used to generate revenues for a business
Business to Business and Business to Consumer models would be very beneficial and valuable for the company for the purpose of increasing sales of its products. It will also help in establishing a direct communication between sales representative and customers. Don Lumber organization can implement B2B e-business model to improve the communication within business (Chaffely, 2008). Currently all things are performed in manual manner. With this model, their online transactions can be improved in an appropriate manner. It will be able to offer various range of products and this will also improve the maintenance costs as well.
Their relations with the suppliers and other business partners will be improved. On the other side, by employing Business to Consumer model, it will help the firm to make direct communication with its customers (Katerina and et.al., 2009). There is a Data Driven Model also which will improve its relations with the suppliers. Through this model, it can have an access to the actual price updates for retail products. Web Catalog model aids in solving the problems that is related to pricing and in managing the relations with customers and suppliers. The model will provide the company an electronic interface and an online transaction platform where each and every kind of information related to the products can be grasped (Bruce and Ho, 2009).
Analyse each model in terms of its capacity to generate revenue
Every model has its capacity to generate the revenues. Don's Lumber can use all these models into its business:
Business to Consumer model - This model is having the capacity to generate very high revenues because it helps in establishing advertising network which is very effective in knowing the behaviour of customers (Bain, 2011). In this way, company can design its retail products as per the needs and expectations of customers.
Business to Business model - This model will improve the supply chain management of company and it can smoothly sell or purchase the prefinished wood flooring items. It will render adequate revenues as relations with the suppliers get improved (Mason and Mouzas, 2012). Further, its supply chain management activities like ordering, order tracking etc can be managed in a proper manner.
Web Catalog Model - It will facilitate better communication within all the departments. Company can have the information about every aspect on a single web platform specially the pricing of its products. In this way, this will promote adequate sales and ultimately profits for the business (Jengchung and et.al., 2013). This will also open many other business opportunities also for the firm.
Report on future developments in e-business models organisation
IBM (International Business Machine) organization has discovered a new WebSphere commerce V7.0 model which supports next generation B2B and B2C e-commerce solutions and also generates new potentials for business. The responsive web design facilitates the buyers to avail optimized storefront searching and browsing facilities for sellers. The users can always have latest and upgraded products as compared to the previous systems (IBM Europe, 2014). Apart from this, it also offers speedy services to the customers at low cost. In addition to this, it also offers search based merchandising facility and API services which increases the coordination between the various stakeholders of the company as well.
Don Lumber can avail many benefits from these latest technologies and it will be able to provide wide range of services to the customers also (Jengchung and et.al., 2013). This will provide value to the business partners. Benefits will be availed in terms of order management and commerce enhancements to improve the business operations. Virtualization and outsourcing technologies are needed in executing the online transactions in more quick and accurate manner. The company can establish virtual environment and direct communication without spending high amount of costs (Ahmed, 2013). Further in order to preserve such kind of innovative system company have to bear the extra costs and appoint experts in order to solve the technical issues.
Task 3 Be Able To Use Different E-Business Models
Analyse the functions of client servers and browsers, and the role of the search engine
The client server architecture is constructed with the help of the web server and web browser. In this dynamic global scenario, the changes arise in technology and its applications. Client server is the most effective instruments which gives lot of business value to the organization and also creates lot of authorities and responsibilities (Hall, 2010). The new architecture has transformed the way in which the computers have been used in the firms. The reinvention of the networked mainframe devices has provided many opportunities to the firms. In this way multiple computers can be connected together so that storage of data can be increased. Client act as the single user workstation and provides connection with the database services in order to fulfil the business needs. The server makes use of multi-user processor and offers sharing advantage to the company
Amazon has been using the 3 tier architecture which is comprised of three layers that includes database layer, client layer and server layer. The company has established a website which supports browser compatibility features. The browser functions as a mediator between the clients and servers. Web browser provides facility to the users related to the sending and receiving of information from the server to client and vice versa. Search engine is also very helpful for the company in order to get access about each and every information. Amazon provides flexibility in order to store large amount of data related to the customers and suppliers. A sorting option is provided to the users including "Search inside the Book" to search specific content on the Internet.
Evaluate the use of intranets and extranets within business communication
Amazon makes use of the intranet in order to meet the digital communication needs. By using this method online customers can avail the services of the company and generate reviews and recommendations about the products. The company has connected its CRM with the intranet in order keep a complete record and needs of their customers (Trim, 2002). Intranet also provides various facilities to the users such as digital reference database and packer facilities to increase its efficiency. On the other hand extranet has been employed by the Amazon in order to share information related to the product prising with the other companies. It also provide strength to their customer support services. Along with that it also ensure the user to test the functionality of the web page and to bring improvements in the business process in effective manner (Ward and Kirthi 2007). In this way they can maintain good and healthy business relations with the other companies.
Use the key elements of good web design structure
A good web design structure can have many characteristics such as searching keywords, proper link of product selection, clear details about the images, availability of products, discount offers, payments options, flexibility etc. Amazon is providing highly attractive features to the users which make their shopping experience unforgettable. They offer fast pace and speedy services (Adam and et.al, 2002). Lucrative structure of the website greatly attracts the attention of the customers towards the brands and also contributes towards increase in the customer base. Following benefits are offered by the Amazon to its customers:
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Easy navigation - Amazon keeps the record of every customers and alert them about the latest offers and schemes at regular intervals. By using the visitor tracking code technique, company can trace its customers easily and also can discover the reasons for visiting the website (Mason, and Mouzas, 2012). They also provide an option to log in with an social media account.
Keyword phrases option - Company can offer greater amount of flexibility to its users in order to search an specific information related to its products and services. Web site security - Company offers complete security to its customers by providing them the facilities of image of the product, shopping carts options, complain box, customized payment options etc (Jengchung and et.al., 2013). Further they have greater connectivity and coordination with the banks in order to secure the payments made online.
Evaluate the impact of a well-designed website to an e-business
A well designed website will definitely affect the business of the e-company in positive manner. A website with flexible and attractive features attracts the attention of the customers towards the items and products. It is essential that company should have elements like easy navigation, easy selection of payment method, website security etc. The website of the Amazon is acting as a promotional tool for the business in order to increase the rate of the customers (Ward and Kirthi 2007). The web page of the website is very user friendly on which customers can find detailed information about the products and services. Information related to discount and offers is also communicated very clearly to the people. Search engine optimization method also helps the firms in reaching towards maximum number of customers. Amazon has used attractive tools like graphics, animations, feedback option, wish lists, sorting etc to make the shopping experience of the users memorable (Madel, 2003). Hence it is essential that company must give easy accessibility and flexibilities to its users so that they can purchase the goods and services at online platform without any complaints and issues. Great shopping experience at first time will help in gaining the customer loyalty in effective manner.
Report on the issues concerning website usability
Amazon is facing many issues related to the use of website which are as follows:
Effectiveness - The company wants to increase the page views and break the information into many web pages. Overloading of information about the product and services on the webpage can reduce the downloading process of the webpage and can create many usability related issues for the online users (Ward and Kirthi 2007).
Efficiency - In the website many areas of the hyperlinks are designed in small manner and due to which the user is not able to see the detail in proper manner. Hence it creates lot of confusing situation for the online users.
Browser compatibility - In this cut throat competition, lot of changes occur in the technology day by day. Hence in this situation the organization is required to be updated and upgraded with the latest technology. The browser compatibility feature can be understood with the help of an example (Lagrosen, 2005). A company runs the website on Google web-browser properly although it creates many issues during running on Internet explorer.
Search options - Amazon has not provided separate search options related to the age-wise product selection for the customers (Christopher and Asha 2007). Further lack of clarity can be seen in some of its web pages and this is dissatisfying for the users.
Sorting options - Further it is needed that company should provide sorting options for its customers which means an individual can search for the products on the basis of different types of categories. This will save the time for the users and they will be able to purchase which they wishes to purchase (Mason and Mouzas, 2012).
From the above study it can be concluded that e-business models such as B2B and B2C will be very beneficial for an e-commerce company. This will help them in establishing long term healthy business relations with their customers and suppliers. Apart from having many benefits the e-business comes up with many hurdles and problems related to security, privacy etc. Hence all e-commerce companies must adopt suitable e-business and internet models so that their services can be improved. Companies must designed their website with lots of lucrative features and options which can make the shopping experience of the customers excellent.
Adam,S. and et.al, 2002. E-marketing in perspective: a three country comparison of business use of the Internet. Marketing Intelligence & Planning. 20(4).pp.243 – 251.
Ahmed, I., 2013. Internet Marketing Trends and tactics for 2014. [Online].
Bain, D., 2011. The 6 essential elements of effective website structure. [Online].
Bruce, C. and Ho, K., 2009. An empirical study of the use of e‐security seals in e‐commerce. Online Information Review. 33 (4).
Chaffely, 2008. Internet Marketing: Strategy, Implementation and Practice. Pearson Education India.
Christopher D. and Asha G.,2007. Internet Marketing Secrets. Lulu.com.
Hall, A. J., 2010. Information Technology Auditing. Cengage Learning.
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