Implementing Web-based Online Store (e-business)

Business Plan

Adding an e-business component to existing services or building an online store from scratch, involve planning process of evaluating the business. Where do you want to take your business? Before you start your e-business plan, you should identify your goals, make a commitment, and evaluate yourself. It is important to clearly understand your business’ goals and expectations before setting up your online store. Once a plan is developed and goals are set, it is easier to see the steps involved.

Identify objectives by knowing who is the audience for the e-business plan going to be and what do they need to know about your company? Different details will be required if your objective is to obtain financing, develop an e-commerce site, or provide a roadmap for yourself. Once your objectives are identified, you can prepare the outline of your e-business plan.

Business plans will vary from company to company reflecting their different needs. For example, an established business looking at adding an online component will be able to focus on integration between the physical store and the online store. A pure player, a business operating solely on the Internet, will use its business plans to demonstrate its market analysis and seek funding.
This area of your e-business plan includes a look at how your physical store and online store fit together. It is important that you set up your online business so that it aligns with your physical business – bricks & mortar – from an accounting, inventory, and pricing perspective. By integrating, you use a business-proven system already in place and ensure consistency in customer service and accounting.

E-business plans identify strategies for promoting websites and products. They can also be used to identify retention strategies to ensure customers return. Since there is no single right way to approach a marketing strategy, several ways to market your online store will be suggested in the following chapters.

Product and services should outline the benefits received by your potential and current customers of shopping online. By focusing on the areas where you have a distinct advantage, you demonstrate an understanding of your strengths and of market opportunities. For example, your business may be able to deliver the widest variety of fishhooks with overnight shipping.

Once an e-business plan is finished, you have a model from which to focus your energy and ensure nothing is left out. From the plan, you can determine what type of online store to build, who your customers are, and what financial resources are necessary to accomplish your goals. By integrating your online store with your physical store, management will be easier and customers will appreciate the consistent information provided. For Internet-only companies, an e-business plan enables management to stay focused on site development expenditures and realistic revenues.


Creating The Website

Get a domain name and sign up for a hosting service, is the first step of developing any type of commercial website. When selecting a domain name make sure it is as simple as possible and that it works for your retail business. Then designing the website can be started.

Pull together a price list and a product description list that include all the items you plan on carrying on your retail website. You will be using both of these lists when setting up your retail website. For each item you want to host on your retail website you will need a clear color digital image. For more advanced websites you will want to include multiple photographs of each item, with special shots taken of important product details. Import image option to upload your product graphics to your website, assign them a product number and product description. Also make sure you assign each product a price.

After all of the products been uploaded to the hosting service, database of item numbers, prices and inventory need to be set up. At this point you will also want to link your shopping cart program to your current merchant credit card account or to your Paypal account. This way, your customers will be able to make purchases online and the payments will be processed using these accounts.

Manage the retail website. To keep the retail website functional you will need to monitor orders, keep the inventory data up-to-date and you will need to add and modify text, graphics and supplemental information posted on your website periodically.


E-business infrastructure:

Framework for the internet consist of three main element: infrastructure, services and products and services. The Information System Function Chain”, Kampas (2000)
1. Storage/physical. Memory and disk hardware components (Level IV)
2. Processing. Computation and logic provided by the processor (Level I and II)
3. Infrastructure. This refers to human and external interfaces and network (Level III)
4. Application/Content. Data processed by the application into information (Level V)
5. Intelligence. Additional computer-based logic that transforms information to knowledge (part of Level I)


Management issues in adapting online services:


- Which types of e-business applications do we develop? e.g. SCM, e-procurement, secure online ordering, CRM
- Which technologies do we use? e.g. email, web-based ordering, EDI
- How do we achieve quality of service in applications? Requirements are: business fit, security, speed, availability and errors
- Where do we host applications? Internal or external sourcing and hosting?
- Application integration. Integration of e-business solutions with legacy systems, partner systems, B2B exchanges and intermediaries
- Which access platforms do we support? e.g. Mobile access, interactive digital TV
- Which development technologies and standards do we use? e.g. CGI, Perl, ColdFusion, .NET, PHP
- How do we manage content and data quality? How are content and data updated so that they are up-to-date, accurate, easy to find and easy to interpret?
- How do we manage employee access to the Internet?Staff can potentially waste time using the Internet or can act illegally
- How do we secure data? Content and data can be deleted in error or maliciously

Challenges of E-Business Implementation:
1. Resistance to developing e-business because of uncertainty of its applicability for their business or industry.
2. Initial cost
3. Trained personnel
4. Costs to convert will not pay off in the long run
5. Lack access to high-speed Internet
6. Security of transmitting sensitive information via the Internet
Solutions to E-Business Problems:
1. Develop an e-business plan
2. Educate themselves
3. Improve technology infrastructure
4. Funding for training
5. Improve marketing
6. Seek assistance / partnerships