e marketing and e technology strategy for rover parts(uk)
DESCRIPTION
RoverParts (UK) sells parts and accessories for Land Rover 4X4 all-terrain vehicles. RoverParts focus heavenly on customer’s interface and experience. They offer their customers a print catalogue, categorized into four main areas (standard vehicle parts, vehicle accessories, technical manuals and magazines). They would like to enhance their customers experience by introducing an online trading website. Actinic e-commerce tool was purchased. This report attempt to evaluate this tool in terms of it usefulness and limitations. Criteria such as Accuracy, Authority, Currency, Objectivity and Accessibility were used to evaluate the Actinic e-commerce tool.TRANSCRIPT
Title : E business and E Technology Strategy for
Rover parts (UK)
Author :Judy Hallal-Murray
Course :COMP 1442 Strategic IT for E Business
Course Centre: School of Business and Computer Science
Date : 29th
November 2007
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
2
Table of content
1.0 Introduction: .......................................................................................................... 3
2.0 Actinic Evaluation: ................................................................................................ 4
2.1 ACCURACY: .................................................................................................................................... 4
2.2 AUTHORITY: ................................................................................................................................... 4
2.3 CURRENCY: .................................................................................................................................... 4
2.4 OBJECTIVITY: ................................................................................................................................. 4
2.5 ACCESSIBILITY: .............................................................................................................................. 5
3.0 Implementation Issues: .......................................................................................... 6
3.1 TECHNOLOGICAL FACTORS: ........................................................................................................... 6
3.1.1 Security .................................................................................................................................. 6
3.1.2 Integration of systems: ........................................................................................................... 6
3.1.5 Backup recovery and disaster recovery plans. ....................................................................... 7
3.2 BUSINESS FACTORS: ....................................................................................................................... 8
3.2.1 Managing Change: ................................................................................................................ 8
3.2.2 Business Models:.................................................................................................................... 8
3.3 LEGAL AND REGULATORY FACTORS: .............................................................................................. 8
3.4 BEHAVIOURAL AND EDUCATIONAL FACTORS: ................................................................................ 9
3.5 CULTURAL FACTORS: ..................................................................................................................... 9
4.0 Development of two B2B Strategies: .................................................................. 10
4.1 B2B DIRECT BUSINESS MODEL ...................................................................................................... 10
4.1.1 Supply chain business to business strategy .......................................................................... 10
4.1.2 Demand chain business to business strategy ....................................................................... 11
4.2 ROVERPARTS (UK) B2B ONLINE STORE ....................................................................................... 11
5.0 Critical comments ................................................................................................ 13
5.1 ‘THE SITE DESIGN TO BE KEPT SMALL AND SAMPLE AT THE BEGINNING’ ....................................... 13
5.2 ‘CHANGE TO BE MADE ONE STEP AT A TIME’ ................................................................................. 13
5.3 ‘PLAIN ENGLISH ….. TO BE GIVEN THE HIGHEST IMPORTANCE’ .................................................... 14
5.4 ‘THE BUSINESS CAN ONLY EXPAND BY HAVING A TRADING INTERNET WEBSITE’ .......................... 14
5.5 ‘HE HAS ALREADY PURCHASED SEVERAL COPIES FOR THE COMPANY’ .......................................... 15
6.0 Conclusion: ........................................................................................................... 16
7.0 Appendix A ........................................................................................................... 19
8.0 References: ........................................................................................................... 22
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
3
1.0 Introduction:
RoverParts (UK) sells parts and accessories for Land Rover 4X4 all-terrain
vehicles. RoverParts focus heavenly on customer’s interface and experience. They
offer their customers a print catalogue, categorized into four main areas (standard
vehicle parts, vehicle accessories, technical manuals and magazines). They would
like to enhance their customers experience by introducing an online trading
website. Actinic e-commerce tool was purchased. This report attempt to evaluate
this tool in terms of it usefulness and limitations. Criteria such as Accuracy,
Authority, Currency, Objectivity and Accessibility were used to evaluate the
Actinic e-commerce tool.
Several implementation issues were consider, these are in the areas of
Technological Factors, Business Factors, Legal and regulatory factors,
Behavioural Factors and Cultural Factors. One business-to-business model,
(B2B Direct Business Model) was discussed and two B2B strategies were
derived from that model – the Supply Chain Strategy and the Demand Chain
Strategy. Both strategies add value to the customers, trading partners and
RoverParts (UK). Some benefits are:
Reductions in the cost of products, cost of delivery and cost of overhead
expenses.
Improved the procurement process;
Improved information Security,
Promote best practice;
It were recommended that RoverParts (UK) is a unique organisation and should
consider special design software that tailor to their needs instead of off-the-shelf
software.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
4
2.0 Actinic Evaluation: The actinic tool was evaluated on five criteria – (accuracy, authority, currency,
objectivity and accessibility). These five criteria were chosen for RoverParts (UK)
requirement as a commercial site for present and future usefulness as a commercial
website.
2.1 Accuracy:
The site is a commercial site, thus the accuracy of the information is very important as
well as the relevance of such information to the product being offer by the
organisation. The purpose of the site is to sell product to their customer and trade with
their suppliers. This should be apparent in each page. The page Contact Us
automatically open Microsoft outlook and place the company e-mail address in the To
recipient area. By doing such give both customers and suppliers the opportunity to
contribute useful feedback.
2.2 Authority:
There were pages for Introduction and Welcome. These two pages would state the
author and is there an organisational or corporate sponsor. The page About Us should
state the organisation’s credentials. There were a page about contact us and how to
find us each page is very important to reach the organisation. However there was no
page for a reference list.
2.3 Currency:
In each of the pages there was no way to said if the information was updated, there
were no dates stated for updates. There was a date when the information was created
at the bottom of the page. However all the links worked, but some links like Login
need special GGI script to run.
2.4 Objectivity:
The site in general is a commercial site. The content of each page reflect what is
being sold by the organisation. There was no biasness or hidden agenda. The
usefulness of the information was relevant to the product and to the customer.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
5
2.5 Accessibility:
There was a login page, although this link needs to run GGI script to be available for
viewing. The site load quickly, this is very important to keep customer coming back
to visit the site. The site navigation was done properly; it was easy to move around.
Provision was made for visually-impaired when images were used.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
6
3.0 Implementation Issues: RoverParts (UK) have recognized the potential of Business to customer (B2C) and
Business to Business (B2B) commerce. Some of the implementation issues can
categorized as follows in the following factors:
a. Technological Factors
b. Business Factors
c. Legal and regulatory factors
d. Behavioural factors
e. Cultural Factors
3.1 Technological Factors:
Key challenges RoverPart (UK) would face are:
3.1.1 Security
Adequate measures must exist to provide security to databases, networks,
applications, payment systems and transaction systems. Authentication procedures
and policies should be developed, implemented and regularly updated to provide
secure environment. Use of technologies like encryption, Secured Socket Layer and
Public key infrastructure can help RoverParts (UK) over come security challenge.
Another challenge that arises is that RoverParts (UK) should have clear privacy
policies. Customers and suppliers would not like to trade on exchanges where the
information is not secured or and privacy policies are not in place. Implementation of
initiatives like TRUSTe goes a long way in establishing RoverParts (UK) creditability
and gaining customer/supplier confidence.
3.1.2 Integration of systems:
RoverPart (UK) must integrate its disparate systems to consolidate the information
and thus leverage its power. Communication gap between disintegrated and isolated
systems can lead to increased inventory, purchasing and critical material shortage and
disruption of business processes. Integrating eMarket platforms and implementing
new protocols and processes are the most challenging steps in an eMarket
development program. This process is both complex and difficult, because there are
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
7
many points of integration within the company, and also technology keeps changing.
Before choosing any integration strategy RoverParts (UK) must weigh the time and
cost required implementing such strategy, against the benefits offered by different
options.
3.1.3 Networking capabilities
RoverParts (UK) should have adequate networks implemented within the four walls
of the organization and it should extend to external entities. They should have wide
area network. Technologies like Virtual private network (VPN) can assist them in
meeting network challenges.
3.1.4 Content management:
Ability to update and provide reliable information in real time is another
challenge/issue faced by RoverParts (UK) implementing B2B applications. Content
on the web should be accurate and current. Whether RoverParts (UK) is selling or
buying it needs to establish efficient operations in-house i.e. provide customized
dynamic content, example product information, pricing, and product availability
information. If the organization does not have systems in place it will not be able to
provide this information in timely and accurate fashion. Similarly, on the buy side the
organization can consolidate purchases of similar goods across the divisions and thus
achieve increased efficiencies. However, if they are do not have properly
implemented and integrated systems they would not know what they are buying and
why they are buying or if they are getting the best price. Properly implemented and
integrated Enterprise Resource Planning systems across the company can play a very
positive role.
3.1.5 Backup recovery and disaster recovery plans.
RoverParts (UK) can be proactive in their approach. Adequate backup and disaster
recovery systems must be in place to allow the company to back in business with
minimum loss of data and time in case of any eventuality.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
8
3.2 Business Factors:
3.2.1 Managing Change:
Among business issues, managing change is a big challenge whether an organization
is implementing new system or developing new ideas. RoverParts (UK) would have to
spend considerable amount of energy and resources managing change. Resistance to
change can come from within the organization and from external partners of the
business. For instance the supply chain, the resistance can come from buyer, sellers or
eMarkets. Resistance can be against new process or procedures to be followed, new
systems, increased job responsibilities. For example as eMarket become omnipresent
and corporate jump on to them, procurement personnel will be required to gain new
skills and improve existing skills. They will have to respond to dynamic pricing, 24 X
7 X 365 availability, quick turnaround and shorter response time towards their
customers’ queries. Implementing new IT systems requires extra coordination
between more than one business function and process. Employees will have to acquire
new skills like risk management to understand concepts like hedging.
These issues cannot undermine the importance of eMarkets. Training and education of
parties involved in eMarket operation can help RoverParts (UK) over come the
resistance to change. While, is some cases hiring fresh talent may solve these problem
3.2.2 Business Models:
There are no successful proven business models that RoverParts (UK) can study and
try to emulate in their strategy. Lack of understanding of environment increases the
risk in such initiatives. However, as more and more companies are taking initiatives
this will no longer be challenge. Many consulting companies have already developed
pool of knowledge created as a result of their being part of such initiatives. Hiring
such consulting companies can definitely will be a source of guidance.
3.3 Legal and regulatory Factors:
There are many legal and regulatory issues involved e.g. electronic copyright, cash
policies, tariffs, privacy, digital offers to name a few. Since e-business is a new
phenomenon, there is lack of consistent rules and procedures. There are issues related
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
9
to taxes which need to carefully reviewed by RoverParts (UK). As RoverParts (UK)
buys and sells over the Internet, and conduct business beyond the national boundaries
of one country, this gives rise to another important issue about the role of Government
and other nations' laws.
3.4 Behavioural and educational Factors:
Another barrier that can be difficult to overcome is related to consumer and employee
attitude. It is difficult for RoverParts to encourage customers to change their habits
and start shopping online. Besides, RoverParts have a huge task to gaining customers
trust and confidence. Also RoverParts (UK) have to re-train their employees and
business partners to adapt to new business model and become conversant with new
technologies. Employees may have to learn new skill set. Employees may not always
be willing to learn new skills and learn new ways of doing thing. Education and
change management programs can be effective methods in tackling cultural
challenges.
3.5 Cultural Factors:
The question of cultural issues is an important aspect of the implementation process
because it can underscore all other aspects of the project. If the system to be
implemented does not align it self with the business processes and the culture of the
organisation the system is doom to fail.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
10
4.0 Development of two B2B Strategies: RoverParts (UK) should consider the B2B direct business model. This model consist
of two B2B strategies; the supply chain strategy and Demand chain strategy that
4.1 B2B direct business model
B2B direct supports commerce transactions involving products, services, or
information between two businesses or parties. Typical B2B direct transactions occur
between customers, suppliers, manufacturers, resellers, distributors, and trading
partners.
The following diagram demonstrates a typical B2B direct business.
http://publib.boulder.ibm.com/infocenter/wchelp/v5r6/index.jsp?topic=/com.ibm.com
merce.admin.doc/concepts/csdb2bdirectmodel.htm
In a typical B2B direct business, businesses purchase goods or services directly from
another business. The selling business can be a wholesaler, a distributor, a
manufacturer, or a retailer who sells to customers from other businesses.
4.1.1 Supply chain business to business strategy
A supply chain is composed of the enterprises that provide services to a business.
Some of the architectural infrastructure to support the supply chains that take the form
of a private marketplace, as well as through hosting supplier sites. A private
marketplace provides a forum for vendors to offer their goods and services for sale.
Customers enter this forum and after browsing through the available options, select
the appropriate goods or services.
The following diagram illustrates an example of such a supplier forum.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
11
In this example supply chain, the buyer enters the supplier's hub to interact and
browse the aggregated catalogue in which products and offers from multiple suppliers
are presented. The buyer can then select the desired offers or request quotes from
multiple suppliers. The buyer also has the option of conducting business or procuring
from online suppliers directly.
4.1.2 Demand chain business to business strategy
A demand chain is composed of the enterprises that sell Land Rover parts or services.
For example, a demand chain may be composed of customers who initiate the sales
transaction, the resellers who sell the rover parts and vehicles. The demand chain may
be composed of the resellers who sell car part and accessories, Land Rover
manufacturer and the distributors who supply the Rover parts to the resellers. Demand
chains also support direct sales channels, in which the demand chain owner sells
directly to consumers or business trading partners.
The following diagrams illustrate examples of some of the demand chains supported
by RoverParts (UK).
Customers, channel partners (resellers), and rover manufacturers
In this example, customers purchase goods from a manufacturer's resellers (channel
partners). Resellers, in turn, obtain the goods from the manufacturer, via the Rover
manufacturer's hub.
4.2 RoverParts (UK) B2B online store
Some of the features included in this online store are:
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
12
Master and sales catalogues
Product categories, products,
Merchandising associations, defining and descriptive attributes, list and offer
prices
Automatic and redeemable promotions
Shipping charges and taxes
e-Marketing Spots
Support for multiple shipping addresses
Globalization support
Shopping cart and shopping total
Quick order and quick checkout
Requisition lists
Order status and tracking
Simple purchase order support
Restricted access to the store (registered users only)
Three sample feature-rich data sets
Simple and advanced search
Commerce Payments
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
13
5.0 Critical comments
5.1 ‘the site design to be kept small and sample at the
beginning’
Advantages:
At the beginning if the web site is kept small the cost incurs would be
relatively small.
By keeping the site small and simple in the beginning help the store transform
incrementally rather than a sudden change.
The time take to build a small and simple site would be less than if the site
were complex and large.
There would be less risk of failure if the site were small and less customer
dissatisfaction.
If customer is not satisfied and the site does not add value, it is easier to revert
to the conventional ways of going business.
Disadvantages:
By keep the site small and simple may not appeal to the customer.
A small and simple site may not add value which will not give RoverPart the
competitive edge.
Customer experience might be dull and lack interest.
Security may lack the complexity that it deserves.
Small site are appealing to large distributors or manufacturers.
5.2 ‘change to be made one step at a time’
Advantages:
Legal: With a web site you may be dealing with credit cards. You will need a
policy to insure your customer’s security.
Marketing the site address to all your current advertising. Business cards,
letterhead, delivery trucks, answering machine should all carry your web site
address.
Navigation of the site should clear and easy for the customer/viewer.
E mail should be considered in all form of advertisement.
The timeline of the project is more manageable.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
14
Disadvantages:
As changes are done incrementally, technology may move head, hence the
scope and vision of the project will constantly be change.
Staff will be change position and jobs, knowledge transfer may not go as
planed.
5.3 ‘plain English ….. to be given the highest importance’
Advantages:
The intended audience understand the message and the purpose of the site.
The business has a certain theme and feel; this should be translated into the
web site.
Online experience should pleasant and enjoyable to all type of
viewers/customers whether they are impaired or not.
Disadvantages:
Plain English may not be interrupted as it was intended too.
5.4 ‘the business can only expand by having a trading internet
website’
Advantages:
In today world for a business to survive they should have a web presence to
conduct business with their trading partners.
You can provide company history, products, services and testimonials that
provide a way for new customers to find out about your company quickly and
easily.
No other media can be changed so quickly. If you need to react to something
your competitor's are doing you can do it in a matter of seconds.
Use other media to direct people to your web site. For example, you don't have
time to list all sale items in a radio ad but you can direct listeners to a complete
list of sale items with pictures on your web site.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
15
Each day more and more people are tuning to the internet to find products and
services. You can research prices, services and companies with more
information than any yellow pages ad.
Disadvantages:
May run the risk of not penetrate the market thoroughly.
Traditional market may have been exhausted.
5.5 ‘he has already purchased several copies for the
company’
Before purchasing any software or hardware that will on the business process, a
information system development life cycle should be done. By purchasing off-the
shelf software limited the business to the scope of the software.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
16
6.0 Conclusion:
RoverParts (UK) can gain considerable value created and add even though the online
B2B is in the infancy stage. RoverParts (UK) need to evaluate what model fits their
need best or do they need to participate in multiple e-commerce of different types.
The company should adopt more than one B2B model. For example Dow chemicals
has diverse need and hence it participates in independent e-commerce, consortium and
online exchange. For more details about this see case study of Dow's Portfolio of
Emarkets in Smart path forward.
As B2B online evolve further, become more
efficient and more sophisticated capabilities, and make way for greater information
sharing and collaboration, RoverParts (UK) should definitely associate themselves
with them in someway or the other.
Before creating business plans or when evaluating existing system it is important to
'scan' the external environment. This may take the form of a SLEPT analysis, i.e. an
investigation of the Social, Legal, Economic, Political, and Technological influences
on a business. These forces are continually in a state of change. Social factors relate to
pattern of behaviour, tastes, and lifestyles. A major component of this is a change in
consumer behaviour resulting from changes in fashions and styles. An understanding
of social change gives business a better feel for the future market situation. Laws are
continually being updated in a wide range of areas, e.g. consumer protection
legislation, environmental legislation, health & safety and employment law, etc.
RoverParts(UK) need to take a pro-active approach and be ahead of these changes.
Economic changes are closely related to social ones. The economy goes through a
series of fluctuations associated with general booms and slumps in economic activity.
In a boom nearly all businesses benefit and in a slump most lose out. Other economic
changes that affect the business include changes in the interest rate, wage rates, and
the rate of inflation (i.e. general level of increase in prices). RoverParts (UK) will be
more encouraged to expand and take risks when economic conditions are right.
Political changes relate to changes in government influence. In recent years these
changes have been particularly significant because as members of the European Union
(EU) they may have to adopt directives and regulations created by the EU which then
become part of UK law. Political changes are closely tied up with legal changes.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
17
Changes in technology have also become particularly significant. RoverParts (UK)
need to be aware of the latest relevant technologies for their business and to surf the
wave of change. All industries are influenced by SLEPT factors.
Value chains support the two business to business strategies models: demand chain
and supply chain. Value chains support transactions involving multiple enterprises or
parties. Products, goods, services, or information are delivered through the parties of
the value chain from producers to end users. As a result, the customers enjoy the
lower cost for Rover parts and accessories. RoverParts (UK) also enjoy a lower cost
by decreasing the time taken to manage the procurement process (their businesses:
their customers and direct sales, and their trading partners and suppliers). Value is
also added through the catalogue to process the order, thus the time will be reduce in
term of delivery of the product. The following diagram provides an overview of the
partners and relationships that should be supported in value chains.
Downloaded from
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
18
When implementing any tool that would affect the business processes of a business, it
is wise to consider a structure approach to develop a systems life cycle. These are
Feasibility study;
Systems investigation;
Systems analysis;
Systems design;
Implementation;
Review and maintenance;
It were recommended that RoverParts (UK) is a unique organisation and should
consider special design software that tailor to their needs instead of off the shelf
software.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
19
7.0 Appendix A
This is the home page ,introducing RoverParts (UK)
The is the introduction Page, that tell the viewer the purpose of the business.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
20
The is the Special product page that link to the other pages
This the vehicle Accessories page that show all various accessories.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
21
This is the Technical manuals page that show some of the workshop manuals that
RoverParts offers.
E Business and E Technology Strategy for Rover parts (UK)
_________________________________________
22
8.0 References: Morrison, Mike., 2007. Duchlock, 3 Jan. pp.27-32. Available at
http://publib.boulder.ibm.com/infocenter/wchelp/v5r6/index.jsp?topic=/com.ibm.com
merce.admin.doc/concepts/csdb2bdirectmodel.htm
Chaffey, D. and Wood, S., 2004. E Business and EcommerceManagement. 3rd ed.
New York: USA Prentice Hall.