Introduction
E-business has gained a lot of popularity in the recent past due to advancement in technology. The world has been turned into a global village as the emerging technologies change the world into various fronts. Business units also find themselves in position where they can no longer ignore changes being brought about by these technologies.
The geographical boundaries that existed before have been eliminated by advancement of technology in the areas of transport and communication. Movements from one country to another have been made easier through the invention of various means of transport.
Communication has also been enhanced and it is now possible for one to communicate with others in other regions of the world in real time using phones. The social media has also improved communication in the world.
Business units cannot ignore the technological advancements in the market if it intends to remain competitive. The management of Kids Designed Craft Cards must realize that the only way of remaining competitive in the market is to adopt the emerging technologies as soon as they come into existence in order to remain one-step ahead of market competition.
This firm must find a way of employing e-business in its operations in order to increase its efficiency and market coverage. E-business has become very popular in the current market in Australia and other developed countries. People have limited time to go shopping around.
They prefer making their purchase while in office or at home. This means that only those firms that conduct e-business stand better chances of tapping into a wider market in the current market. This research proposal seek to develop a prototype and give an explanation why e-business is very appropriate for this firm.
E-commerce business model
According to Bhusry (2005), it is important for a firm to come up with an appropriate model that will be able to respond to the market dynamics in order to enable a firm succeed in the market. The following model can help Kids Designed Craft Cards when developing a prototype for e-commerce business.
Source (Manzoor, 2010)
The diagram shows all the stages that should be observed when developing a prototype for e-commerce business.
Driving revenue through e-commerce business
The main intention of this project proposal is to increase the profitability of this firm in the market. Increasing revenues in the market may not be a simple process. It requires a model of how the firm will increase its profitability in the market. The management must realize that this process involves conversion of innovation process into economic value. The model below demonstrates this.
The model above identifies some of the factors that Kids Designed Craft Cards must understand in order to generate the needed revenue. It must first identify customers’ needs through this new technology. Then it should segment the market based on the demographical factors.
The firm should then determine the best value proposition for each market segment. This will result into increased sales, which will then increase the firm’s revenues.
Network and communication infrastructure required
In order to have a successful operation in e-commerce, it is necessary for the management of Kids Designed Craft Cards to understand some of the infrastructural requirements needed in this project.
This will help ensure that before the project starts, the management have rough estimates of what this project will cost in order to be completed successfully. The following list identifies the infrastructural requirements to be observed by this firm.
- Search and advertising software
- Contracting and order software
- The billing and settlement software
- Production and distribution of receipt software
- Customer service software
- Knowledge and information processing software
- The hardware
The management must understand all the associated costs for all the software and hardware needed for this project. These infrastructural needs are further discussed in other sections of this proposal.
Applications required in meeting specific e-commerce business goals
According to Manzoor (2010), when starting a new system in a firm that has been in existence for some time, it is important to ensure that the intended goals are achieved within a specified timeline. To achieve this, the application must observe the following requirements.
- Effective and efficient online shopping functionalities
- Easy process of maintaining online stores using minimum effort
- The site should be fast loading
- The interface should be user-friendly and easy to navigate
- Attractive and professional product displays
- Purchase function should be easy to operate
- Data of clients should be easily captured
- The credit card facility must be secure
- The system must have online validation of credit cards
The system must be able to deliver on the above applications in order to be considered effective enough to achieve the goals of the firm.
Addressing security issues
According to Schneider (2011), just like brick-and-moter stores need some form of security to eliminate cases of robbery or burglary, e-business must be secured. This scholar says that cyber-crime has become so rampant in the current society as crime take a new shape with the changes in the technological environment.
In order to operate an e-business successfully, KDCC must develop some form of security that will protect its operations. The customer needs to be protected from fraudsters who may be intending to steal from them by purporting to be this firm. This firm must also protect itself from any form of threat from these fraudsters in order to eliminate any form of losses that may be incurred because of fraud.
This means that the technical team must develop software that will be able to fight any malware that cyber-criminals may use to corrupt the system of this firm. All users must also be given password that they have to use any time they want to make any form of e-transaction through the website of this firm. The customers should be given an account with a password that they will use when making any transaction with the firm.
The password will remain a secrete for the customer. To enhance security, the customer can always change the password whenever he or she feels that the current password has been compromised. Every department involved in the online transactions will always have its own password when dealing with e-customers.
For instance, the marketing department will be able to deal with the customer from the time he is given an account, and respond to any issue whenever this is necessary.
The finance unit will be directly involved with the customer during the process of making payment, while the logistics unit will coordinate with the customer during the process of delivering the purchase to the designated place. Each member of this organization will be responsible for all the transactions taking place through his or her account.
Addressing e-marketing requirements
It is important to understand e-marketing requirements in order to deliver quality service to the customers. The management of KDCC should understand all the requirements of e marketing in order to run without many huddles that may affect the normal operations.
According to Awad (2002), starting an e-commerce business may appear a simple process that can easily be realized as long as there is access to the internet. However, this is not as simple as it may appear. This complex process not only requires the right instruments, but also the skilled workforce that will help in addressing various issues within the firm.
The management must first address the issue of hardware needed to develop an e-commerce. This will involve a number of computers and accessories that come with it. It will also need all the hardware used in internet connectivity. The firm will also need to identify a room where these machines will be operated from, within its premises.
The firm will then need to purchase the software that will be used to develop and run e-commerce within the firm. This will also include the software that will be used to protect the system from cyber criminals. Finally, this firm will need the skilled workforce that will help in running the system.
The marketing unit will need to have its customer-care unit at the station 24-hours a day to address any question that may come from the customers. Other departments of this firm should also be active in this new system.
Choice of payment systems to be used
Choice of payment to be used with this new system should be selected with a lot of keenness in order to enhance customer experience. According to Bhasker (2006), it is important to realize that some fraudsters are always keen to rob firms that do not have foolproof payment system.
The management must therefore, develop a payment system that will always protect itself and its customers from fraudsters. Choosing the best payment method should take a number of factors into consideration.
The first factor, as mentioned above, should be security of the firm and its customers. The second factor should be convenience. The payment system should be convenient to the client and the firm. The third factor is the ability of the firm to realize that payment has been made the moment the customer makes this payment.
Factoring all these issues together, the best approach that would be very appropriate for this firm would be the use of credit cards. This would allow a strict interaction between the customer and the finance department of this firm during the process of making payment.
However, the firm should consider another alternative of making direct bank deposits to the bank accounts of the firm in case the payment is huge and cannot be transacted easily using credit or debit cards. However, it is important to find a way through which the system will detect any direct payments to the bank account and all the necessary details of the customer who has made the payment.
Addressing privacy and other relevant ethical concerns
Some of the main concerns that have been raised by stakeholders in relevance to e-business are the need to maintain ethical issues related when conducting this business. This involves privacy issues and other issues related to customer care and protection. According to Corchuelo (2003), some customers may always want their private life to remain as such, especially when it comes to making purchase of some specific products.
It is the ethical responsibility of the firm to ensure that customers’ identity is not revealed to the public when they make purchases from the firm. Failure to observe this may seriously affect business operations of the firm as customers may lose trust with it. Another privacy concern is the need to protect the finances of the customers who is paying through credit cards.
The officers responsible for effecting the payments should not withdraw more than the right amount from the account of the customer. This is an ethical responsibility of this firm if it intends to keep its customers. It is also important to ensure that customer is not double-charged for the products they purchase from the firm. Yokoo (2008) says that it is ethical to deliver on the promise made to the customer.
When a customer sees a product online and pays for it, the firm should make an effort and deliver that particular product to the customer. The product must meet all the specifications made by the customer during the purchase. The time of delivery should also be as prompt as promised on the company’s website.
Addressing legal issues connected with the e-commerce business
As Gasós (2003) observes, it is not possible to run a business in an environment that lacks proper legal structure to protect the customers and the firm. The law is meant to protect all the stakeholders involved in the transactions. In e-commerce business, laws exist that helps in guiding the relationship between the customer and the firm, and that between the firm and other firms or the government.
The laws are already in existence, and the only issue that the firm should address is to implement them. In order to address the legal issues properly within the firm, it is important to ensure that all employees understand this law and its relevance in an e-business environment. This will help in ensuring that these employees appreciate the need to observe these legal issues in all their activities.
The next step would be to let customers know the laws and regulations governing their online transactions. The company can let them know their rights and responsibilities, and how the law protects them and the firm. This will help in creating a legal environment where stakeholders get the respect they need.
Addressing customer service issues
According to Kidd (2000), the only way in which a firm can succeed in e-commerce business is to find a way of treating its customers with a lot of decorum, and addressing their concerns as soon as possible. This means that KDCC must have a very active customer care unit that will be able to address needs of the customers as may be appropriate.
To do this, the firm must develop a state-of-the-art call centre, which will be the customer care centre. The call centre should be equipped with all the necessary communication systems and qualified workforce that will be able to respond to the questions of the customers and direct them as may be necessary. It is important to ensure that the customer care service is offered round the clock.
At no moment should the customer call and fail to get response as needed. To enhance communication, the firm may engage the social media in addressing customers’ needs. This may involve responding to customers through Facebook and Tweeter. The firm can also develop a live chart in its website where customers can reach the firm directly.
Measuring the success of your proposal
It is important to measure the success of a project in order to determine if it is economically viable. Coming up with metrics that can be used to measure, the level of success of the project may be very important in helping the management determine the next approach to take. Three departments of KDCC can do this. The first department can be the marketing unit.
The can determine the level of success by determining the increase or decrease of customer engagement within the firm. The finance unit can determine the level of success by determining the increase of income directly related to the new system. The logistics unit can measure this by determining the increase in delivery of products to online customers.
Conclusion
The discussion above demonstrates that e-commerce is the best approach through which Kids Designed Craft Cards can increase its market share locally and internationally. The new system may cost a lot to this firm during the initial installation. However, the firm stands to benefit a lot upon its completion. This research has demonstrated that if the firm comes up with the appropriate prototype, then it will be successful in this market.
References
Awad, E. M. (2002). Electronic commerce: From vision to fulfillment. Upper Saddle River: Prentice-Hall.
Bhasker, B. (2006). Electronic commerce: Framework, technologies and applications. New Delhi: Tata McGraw-Hill.
Bhusry, M. (2005). E-commerce. New Delhi: Firewall Media.
Corchuelo, R. (2003). Technology supporting business solutions. New York: Nova Science Publishers.
Gasós, J. (2003). E-business applications: Technologies for tomorrow’s solutions. Berlin: Springer.
Kidd, P. (2000). E-business: Key issues, applications and technologies. Amsterdam: IOS Press.
Manzoor, A. (2010). E-commerce: An introduction. Saarbrücken: LAP Lambert Acad. Publishers.
Schneider, G. P. (2011). Electronic commerce. Boston: Cengage Learning.
Yokoo, M. (2008). Electronic commerce: Theory and practice. Berlin: Springer.