E-business: Success Factors of IGo Inc - Case Study Example

E-business: Success Factors Name Date Table of Contents Table of Contents 2 1- Introduction 4 3- Business overview and background 5 4- Business strategy 6 4.1- Business goals 6 4.2- E-Business Revenue Model 7 4.3-Mission of organization with e-business 7 4.4-The product 8 4.5-Target market 8 4.6-Target customer 9 4.7-Benefits to the customer 9 4.8-Market Competitors 9 4.9- Porter's Five Forces 10 5- Critical success factors (CSFs) 12 5.1- Communication 12 5.2- Profit 13 5.3- Customer/client relationship 13 5.4- Stability and security 14 6- Key benefits 14 6.2- Operates 24x7 15 6.4- Product Advertising/marketing 15 7- Functional specification 15 7.1- Adoptability: 16 7.2- Usability: 17 7.4- Security: 17 7.4- Efficiency: 17 8- Implementation steps 17 9- Conclusion 18 10- Bibliography 18 1- Introduction This decade was the most important in redefining the customary business practice that was operational form previous centuries. Emergence of web based business and implementation of new ecommerce strategies has totally transformed the traditional business practice. The emergence in the computer and information technology has offered a great opportunity regarding the potential enhancement of business and its progress. The essay is going to develop a business model and idea and applying an appropriate Internet solution. This report will present the idea regarding the implementation of the new web based/Ecommerce technology for the potential enhancement of the business and marketplace. This research will discuss and present the detailed analysis of the business strategy, main advantages of utilizing the Internet for this business, critical success factors for the business and functional specification and execution phases, for the implementation of the new website and to finalize the information technology or information systems strategy for the organization. This work will elaborate the selection of the particular business model and implementation of a business on that business model. In this scenario I have decided to implement the e-business for IGo Inc. This business is based on the development of the rechargeable batteries and related electronic accessories. This business is operating in a manual way and functioning in a limited business market place. The aim of this business report is to suggest an effective business model and implementation of an enhanced business structure regarding the better business support and enlargement. This business research report will present some of recommendation and suggestion of the technology for the enhanced business operations and web based structure implementation. All the activities will be based on the suggestion of the main e-business strategy for the IGo Inc. 3- Business overview and background This age is completely based on the remote technologies. At the present time, we are having and working on lot of the hand-held and remote devices. These devices include personal digital assistant (PDA), mobile phone, laptop, navigator or any remote technology devices. All these devices are operational through the batteries. The use of traditional batteries is costly because of their cost and changing problems. However declarable batteries can resolve this problem more effectively. The same idea is established by the IGo business. The business of IGo is developing rechargeable batteries, chargers for mobile and laptops devices, smart phones/PDAs, portable gaming devices, MP3 players, digital cameras and more. The business of IGo is aimed at offering the users to have a better facility of the remote power of energy. This business is offering the facility to charge thousands of models of remote and mobile devices by means of a single charger in the course of the utilization of interchangeable power tips. The business of iGo is currently operating in a small business market. The management of the business wants to capture wide market and enhance the power of the business to capture the relevant business market. The CEO of business desires to reduce the cost of customer service, enhance business revenue, capture and target more exact business market, enhancing servicing quality and improving the business out put. In this scenario the implementation of the business website is the most ultimate business solution this can change the overall working style and handling of the business. 4- Business strategy By the arrival of the web/Internet as well as abundance of web development technologies all through the globe, e-business is the new paradigm of customary practice of businesses in today’s world. The web has in a lot of means to make it possible in the development of businesses globally that would be able to arrive at an extensive customer base as well as advertises their goods with extra well-organized way and competently. Business communications, cutting edge applications, interface designs, are as well available on the web. E-business has been newest area in business and has turned out to be a most important part of almost every business. E-business strategy can be presented as the strategies governing E Businesses in the course of intended information areas (Economy Watch, 2009). Kong (2000) states that E-business intelligence presents valuable web based market opinion to a business.  It is a business’s technique for calculating as well as organizing ROI or return on investment.  However, the main oversight is regarding formulating web ROI is the insufficiency of significant metrics to calculate it.  Present metrics are inadequate to website efficiency, not the influence of the whole web on the business (Kong, 2000). Macomber (2005) has defined the E-Business strategies as it discovers utilization of higher technologies that transforms the business dynamics (Macomber, 2005), (Lientz & Rea, 2001) & (Cagliano, Caniato, & Spina, 2005): Now I will describe the main e business strategy for the business of IGo Inc, 4.1- Business goals IGo is aimed at enhancing the overall business practice and making the business more powerful. The main aim of the IGo business is to capture wide business market place. This business wants to capture the customers from all over the world. The management of business is aimed to reduce the cost of the customer support. They also desire to enhance the quality of services offered to customer. These are the main goals of the IGo business and can only be fulfilled through the web based structure implementation. 4.2- E-Business Revenue Model According to Cheshire Henbury (2001), the Internet and the increasing growth of electronic commerce (eCommerce) in the mid-1990s rendered business-to-business (B2B) and business-to-customer (B2C) relationships more interactive and applicable for travel-related businesses. This facilitated transformations in customer behaviors and attitude regarding travel products via integrative and mutually supportive means for information exchange (Cheshire Henbury , 2001). There are different revenue models available for business, especially in online (e-commerce) business. Revenue model is an explanation of how the business will make profits, generate earnings as well as make a better return on provided assets (DuNg, 2009). The main revenue model I have selected for the IGo business is the virtual storefront or direct product sales. This revenue model suggests the sales of product directly to customer form the website. 4.3-Mission of organization with e-business IGo is functioning in a limited market place. The business of the IGo is aimed to capture the global market and enhance the business market share. Below I have listed some objectives of the organization regarding the implementation of the web based business: Enhancing the business Capturing the bigger market Taking a better competitive edge Introducing products to other parts of world Making new customer and clients Offering better services through web Reducing overall operational cost Enhancing customer services Establishment of a well organized marketing platform 4.4-The product IGo business is basically the developers of the portable energy. Means IGo manufactures the portable charging products for all type of electronic products that require the charging. The business of the IGo is developing the rechargeable batteries those will be available the web based platform. 4.5-Target market The market of the IGo business is available all through the world. This increasing use of the mobile technology and devices has offered the business of the IGo to have a better facility to capture the overall marketplace. The utilization of the portable mobile devices is more prevalent in the market and we can say whole world is the market of IGo products. 4.6-Target customer IGo desires to target the customers that are using the mobile devices or portable technology products that require use of batteries. In this scenario IGo is offering the facility to charge the systems and reduce the overall cost of the energy utilization. 4.7-Benefits to the customer The implementation of the web based structure for the IGo business will offer the customer to buy the product online this will reduce the effort of shopping and going outside. This also gives the facility of home delivery services. In this way customers can purchase the desired products by sitting at home. 4.8-Market Competitors The business of the IGo is surrounded within the huge market competitors. These market competitors are well established and operating from long time. In the overall market place IGO business is basically facing competition form the Amazon.com and Ebay.com those are offering the facility to purchase online products. However, they don’t have the specialty in the particular field of portable energy. I have researched the web and found some batteries related businesses. These are specialized in the business of batteries. The web site addresses of those businesses are given below; http://www.planetonline.com/ http://www.shop4battery.com/ http://www.getprice.com.au/Batteries.htm http://www.batteriesplus.com.au/ 4.9- Porter's Five Forces Retrieved from: (Berry, 2009) Figure 1- Five Forces: Source[http://articles.bplans.com/business/porters-five-forces/119] Berry (2009) describe about the Michael E. Porter five forces model, the explanation and its implementation to our business website will enhance our business and operational management. The five forces are given below (Berry, 2009): Existing competitive rivalry between suppliers In this scenario we can assess the present competition in existing business organizations in the market. We can compete by establishing a better strategy for handling them. Threat of new market entrants In the scenario it can be assessed that we are going to establish business in a new market place and we require a better and enhanced business policy in the business arrangement for handling and surviving in business market place. Bargaining power of buyers Buyers always require some bargaining from the business. In this scenario we need to establish good cost, some appropriate cost as compared to business competitors. Power of suppliers We also need to view the suppliers’ power regarding the business products manufacturing and handling. In this way we would be able to gain in a better way and also able to maintain an effective demand and production cycle. Threat of substitute products (including technology change) We need to develop our products with state of the art technology that offer better services and effective working as compared to business competitor. 5- Critical success factors (CSFs) Critical success factors are necessary parts of actions that should be carried out well if the business has to attain the objectives, mission, or goals (Mind Tools, 2009). By recognizing our CSF, we can be able to formulate a widespread point of reference to aid us direct as well as calculate the accomplishment of our project or business (Mind Tools, 2009). Like a widespread point of reference, critical success factors facilitate everyone in the business group to recognize exactly what's most significant. Also, this facilitates people carry out their own effort in the correct context as well as so pulls jointly towards the similar overall aims (Mind Tools, 2009). Burkow (2008) states that there are five main business achievement aspects (importantly significant for the core profit values) that all businesses distribute - together small business as well as large. In times of financial crisis similar to these, they are necessary. Also, they can formulate the dissimilarity among just receiving through - or we receiving ahead in our business (Burkow, 2008). 5.1- Communication Hoagland-Smith (2009) has outlined that business communication is the key to unlock the possibilities inside businesses and individuals. When the objectives are in arrangement by the vision as well as consistently communicated as of top down, then showing quality is much more possible to happen. Conflicting communication adds to overlooked goals as well as reduces the performance for the whole business (Hoagland-Smith, 2009). In scenario of the IGo business we need to establish an effective communication. This can be in the form of online customer services and help line. This will offer the customers to contact and complaint against or in case of any problem or take help. This will offer the customers the feeling of assurance and loyalty to the business operations. 5.2- Profit Burkow (2008) has outlined that business profits are necessary for a business to do well. Eventually profits are the necessary input ingredient for business continued existence - and organizations need to spotlight on key factor. The extreme survival of any business relies on a steady-stream of profits. This facilitates them to pay their bills, manage employees, and disburses salary, content with vendors and suppliers as well as to protect our financial future (Burkow, 2008). IGo business needs to generate the profit by offering innovative products, superior services and well managed business structure. This will enhance the business power and will also generate the revenue for the effective business and organizational handling. 5.3- Customer/client relationship According to Burkow (2008) the customer/client relationships are one of the main factors of generating the business revenue and making possible the sustained business development. Regarding the IGo business we need to establish enhanced customer relationships and offer the better facilities to handle, manage, and control the business operations. This can be done by offering the facility to communicate with business. 5.4- Stability and security In a web based business the factors of stability and security are more critical. Nowadays organizations are facing danger from the web based security threats. These attacks can be virus based, phishing or hacking. In this scenario of critical success factors we need to establish a better business security plan. This plan needs to involve the business as well as customer security. For the IGo business where online transactions and dealings are involved we need to establish security structure that could offer privacy to the customer information as well as web links and layers based security that can secure the customers business transactions. 6- Key benefits In this section I will identify some main benefits of using the Internet for this business. The implementation of the IGo website and utilization of the Internet in the business will offer the following advantages (InVirCom, 2007). 6.1- Global Audience Through the implementation of the Internet in the IGO business will be able to get access to the global audience. In this way business would be able to access the customers from almost all regions of the world and have a better business scope. 6.2- Operates 24x7 As compared to the traditional business the new IGo business will be live for the 24 hours and 7 days of the week. In this way business will earn more and have a better revenue generation by moving side by side with the global economy. 6.3- Relatively Inexpensive The implementation of the Internet to the IGO business is offering long term advantages. These can comprise improved services, cash management, customer record management, marketing and communication. All these areas are more expensive for any business. Through the implementation of the web based structure IGo business will be able to attain more and higher profits with less expenses and management and handling of the all above mentioned areas. 6.4- Product Advertising/marketing Product advertising/marketing is one of the main parts of any business. This area takes a huge part of business revenue. Through the implementation of the web based structure for the business of the IGo will be able to attain more profits and gain well in the overall business setting. 7- Functional specification The e-business of IGo will include the ISO 14000 and ISO 9000 E-commerce standards (Foster, 2005). For defining these standards for the IGo e-commerce IGo has to implement the following qualities in their new online E-commerce application. Efficiency Usability Security Simple interface: The user interface of IGo website should be simple and easily accessible to the customers. The user interface of IGo should incorporate uncomplicated attributes. Also, during the design attention should be given on the color schema of the website pages as well as links. The colors of the web site should be simple and offer a feel of lightness. The font should be a key concern of this interface. The font should be easy to understand and work (Dix, Finlay, Abowd, & Beale, 1998) and (Helander, Landauer, & Prabhu, 1997). 7.1- Adoptability: The web site of IGo should be adoptable inside and outside the IGo website system. The web site should be easy to use for customers as well as staff of IGo. Because if the web site creates a feeling of overhead then it creates problems for users and staff while using the web site in a more appropriate manner. 7.2- Usability: The IGo website needs to be usable in the scenario of its functioning and ease of online transactions. This web site needs to provide its user a more relaxing and satisfaction feeling for the online purchasing and shipment. 7.4- Security: At the present, organizations are facing major danger from the online money frauds. Many people are uncertain from the online transaction. The IGo website should make certain that there is no security hole in the web site functioning and online cash transaction. By doing this the customers will be satisfied in carrying out the online transaction and the business of IGo will gain more customers trustworthiness. 7.4- Efficiency: The IGo website needs to be competent and well organized in its functioning, online dealings, and shipment tasks. 8- Implementation steps In the website of IGo business we will follow the simple software development life cycle. In the initial step we will assess the market. Then we will develop the business specifications. The next phase will be about requirements garnering. Then we will design the system and develop the list of system specifications. In the next stage of the system implementation we will code the website system. Then we test and implement the website of IGo business. 9- Conclusion In this technology and business specifications based report I have presented detailed analysis of the business system implementation for the IGo business. In this report I have outlined the main E-business strategy. Then I have outlined the business critical business factors. Then next section has outlined the Internet advantages to business of IGo business and also presented the lifecycle of system development. I hope that this report will offer a deep insight into the overall system development analysis. 10- Bibliography 1. Berry, T. (2009). Porter’s Five Forces. Available at: http://articles.bplans.com/business/porters-five-forces/119 [Accessed 17 November 2009]. 2. Burkow, S., 2008. The 5 Critical Success Factors in Business. Available at: http://www.articlesbase.com/business-articles/the-5-critical-success-factors-in-business-639661.html [Accessed 17 November 2009]. 3. Cagliano, R., Caniato, F., & Spina, G., 2005. E-business strategy: How companies are shaping their supply chain through the internet. International Journal of Operations & Production Management, pp. 1309 - 1327. 4. Cheshire Henbury . 2001. E-business Definitions (B2C, B2B etc.). Available at: http://www.cheshirehenbury.com/ebusiness/ebdefinitions.html [Accessed 17 November 2009]. 5. Dix, A., Finlay, J., Abowd, G., & Beale, R., 1998. Human-Computer Interaction. Hillsdale: Prentice Hall. 6. DuNg, A. (2009, June 12). Revenue model for Google, Amazon.com and EBay. Available at: http://milkmom.blogspot.com/2008/06/revenue-model-for-google-amazoncom-and.html [Accessed 17 November 2009]. 7. Economy Watch. 2009. E Business Strategy. Available at: http://www.economywatch.com/business/e-business-strategy.html [Accessed 17 November 2009]. 8. Foster, W., 2005. ISO-14000 Environmental Standards and E-Commerce. Available at: http://www.fosterandbrahm.com/docs/ISO14000.pdf [Accessed 17 November 2009]. 9. Helander, M., Landauer, T., & Prabhu, P., 1997. Handbook of Human-Computer Interaction. Amsterdam: Elsevier Science Pub Co. 10. Hoagland-Smith, L., 2009. Business Results - Four Critical Success Factors . Available at: http://ezinearticles.com/?Business-Results---Four-Critical-Success-Factors&id=31202 [Accessed 17 November 2009]. 11. InVirCom. 2007. Advantages of using Internet. Available at: http://www.invir.com/int-bus-advantages.html [Accessed 17 November 2009]. 12. Kong, J., 2000. Determining your Competitive E-business Strategy:. Available at: http://techdivas.com/data1.htm [Accessed 17 November 2009]. 13. Lientz, B. P., & Rea, K. P., 2001. Transform Your Business into E: Going Beyond the Dot Com Disasters (E-Business Solutions. Academic Press. 14. Macomber, J. D., 2005. E-Business Strategies. Avaulable at: http://web.mit.edu/1.464/www/ [Accessed 17 November 2009]. 15. Mind Tools. 2009. Critical Success Factors. Avaiulable at: http://www.mindtools.com/pages/article/newLDR_80.htm [Accessed 17 November 2009]. Read More