Introduction
The small brick-and-mortar business that sells designer clothing and accessories does not have an online presence apart from a simple website. The company cannot compete in e-commerce – an immense and still expanding part of the retail industry. Thus, the business owner has to solve the problem of entering the field of e-commerce with the help of technology.
Two Technologies
While there are many ways to improve one’s online business, focusing on one or two tools for better initial results is necessary. The first technology under review is mobile and wireless commerce – selecting and purchasing goods with the help of smartphones, tablets, and other devices. The second technology is social computing – the use of social media to promote the brand and drive sales.
Business Requirements
Objectives
The project should examine the competitors’ approach to technology integration, review possible solutions, and decide which strategy is the best. Then, this technology has to be implemented with consideration of customers’ data protection. Finally, the objective is to increase sales, engage more customers, and strengthen the brand’s presence.
Project Description
The project has to consider the current trends in using technology and how they help businesses succeed. Moreover, it is vital to use this knowledge in practice. The desired outcome is improvements in revenue, customer numbers, brand visibility, and customer loyalty and satisfaction with the new services. The business needs to use new tools to keep the customers interested and have a presence on the market.
Technology Requirements
To implement any technological solution, the company needs resources. First, it has to have human resources – a developer, tester, and system administrator in the form of hired professional or outsourced specialist. Moreover, for social media, social media managers are a vital component. All products, programs, and accounts require hardware, such as laptops or computers, smartphones or tablets, and software, including applications for posting, software development, and analytics.
Competitors and Technology
Wireless, Mobile Computing, and Mobile Commerce
The first example of a competitor is Kohl’s – a business with a strong offline and online presence. Despite having many brick-and-mortar stores, Kohl’s also has an online store that can be opened from any smartphone or computer with access to the internet. Moreover, the applications offer simple payment options, reward programs, and campaigns that connect online and offline shopping (Waldron, 2022). As a result, almost half of Kohl’s revenue was earned from online sales at the beginning of 2020 (Risley, 2020).
Social Computing
Another tool is social computing, and it is used by such companies as Zappos. The business is one of the pioneers of social media – the firm drives engagement by posting personal stories and connecting with users through feedback and conversations (Raineri, 2019). Zappos focuses not on direct marketing but on building the brand’s image for consumers, driving sales and increasing loyalty as a result.
Technology Benefit
Kohl’s benefits from its mobile commerce by allowing customers to shop without leaving their homes. The store’s revenue share demonstrates that buyers find their applications and websites convenient. If the discussed company created a website or an application for selling its products, it could reach a new demographic of online shoppers who do not visit brick-and-mortar locations.
Technology Solutions
Wireless, Mobile Computing, and Mobile Commerce
Mobile commerce is an integral part of modern retail businesses. More people want to shop online every day, and customers value website design and usability, information quality, and data security (Chi, 2018). This technology meets the business’s requirements for reaching more clients, collecting data, and integrating online shopping. However, it does not address the current brick-and-mortar processes, as their management requires additional software.
Social Computing
By introducing social computing methods, the business can make itself known among social media users and connect with them on a more personal level (Xu et al., 2019). This could establish brand relationships and manage customer information. Nevertheless, this approach will not lead to the creation of online shopping software without integrating other solutions and will not provide any support for managing inventory, payments, or shipping.
Recommendations
Technology Solution
The chosen strategy for the business is mobile commerce – creating a website for online shopping optimized for computers, tablets, and smartphones. This solution addresses most of the project’s objectives and introduces the company to the market of e-commerce, where its main competitors are positioned. It is the integral expansion that the firm has to go through to increase sales and attract new clients. Social computing can be recommended to spread the information about the online store, but it is an addition to mobile e-commerce.
Overall Benefit
Creating an online store will increase the business’ outreach, improve sales, and help collect customer data. Online shops allow one to gather helpful information about purchases and buyers’ habits, giving the company more tools to improve its marketing.
Basic Security Considerations
Security Features
The business has to take several security precautions when creating and managing the online shop. All customers’ data must be protected; the website must purchase a good domain and have a valid certificate to ensure information safety. Data should be stored with customers’ consent and be handled according to local privacy laws.
Third-Party Vendors
If third-party vendors are engaged in the business, they should agree to follow the same privacy rules as the business. Non-disclosure agreements and limited access to customer data are essential, and other legal concerns have to be included in contracts.
Internal Safeguards
The main concern is protecting customer data; therefore, safeguards must focus on this issue. Examples of practices include gathering only relevant and essential data and adopting two-factor authentication and security certificates. One could also ask users to protect their accounts with strong passwords.
References
Chi, T. (2018). Mobile commerce website success: Antecedents of consumer satisfaction and purchase intention. Journal of Internet Commerce, 17(3), 189-215.
Raineri, S. (2019). Zappos embraces digital tech, customer service for success. The Balance Small Business.
Risley, J. (2020). Nearly half of Kohl’s Q1 revenue came from online sales. Digital Commerce 360.
Waldron, J. (2022). Here’s how Kohl’s makes mobile shopping easier. eTail.
Xu, F., Han, Z., Piao, J., & Li, Y. (2019). “I think you’ll like it”: Modelling the online purchase behavior in social e-commerce. Proceedings of the ACM on Human-Computer Interaction, 3(CSCW), 1-23.