Importance of Planning and Modelling for Successful E Business - Essay Example

Importance of Planning and Modelling for Successful E Business The world has shrunk to a small speck called E-commerce, where it is now possible to exchange goods and money in the form of normal transactions. "Shopping on the Internet or online shopping, as it is more popularly known, is a form of shopping that has almost emptied shopping malls in various parts of the world" (Chaffey, 2007). For success in this kind of trading, it is important to stimulate the customer or end user in ways that will be dissimilar from normal marketing. For example, it is not possible for a customer to feel the fabric of the shirt he is about to buy from an online trader. So what is it that is supposed to draw him Similarly, the housewife cannot smell the coffee beans that she is being offered on an online grocery store - so how does she know it will be something that she will relish every morning These are the questions that are often asked in the arena of online shopping. In this regard, all the answers point towards a specific simulation application that may be used and categorised as aids in online shopping. E-commerce is currently an extremely vast field and requires the use of like HTML and Flash based applications for appropriation of simulation techniques where the online market place is concerned. The problem in this project mainly adheres to the fact that there are now a plethora of such models and theories. Thus, this has led to some amount of deliberation in terms of choosing the appropriate ones (Nemetz, 2002). Here, it may be noted that the competition in reaching an optimum model and plan for websites has been on a steady rise, thus making it difficult to pinpoint which of them is the best in terms of E commerce objectives. It has been found that there has been a 94% increase for the year 2005 in the number of Britons buying products online as opposed to the 37% figure of five years ago (news.bbc.co.uk). This further implies the fact that E-Commerce is now a major field generating an excessive amount of revenue in the world of global economies. Owing to increasing trends in globalisation, there has been widespread exposure of people from all corners to products and services that are suddenly not out of their reach (Chaffey, 2007). In this regard, the specific need areas of the people involved in terms of end users is a difficult area to study in order to arrive at the relevant simulation models and approaches. This depends largely on the demographic make up as well as the cultural influences, age, and product being sold. Therefore, E-Commerce is a vast subject to study and to find the appropriate simulation models for (Chaffey, 2007). Scope of Planning and Modelling The scope of business is decided by its advent upon various spheres of operation. To be effective, market intelligence is the foremost pre-requisite. In this regard, E-Commerce has been described along the following lines, in terms of its operational sphere: Industry Association with various web pages: this gives rise to a certain amount of validation of the product and it elements, especially in terms of marketing and online shopping (Palmer et al., 2003). This can be seen in the example of www.indiamart.com which carries various industries and their associated companies'websites. Availability of information: E-Commerce depends largely on the information system, which is an integration of knowledge management as well as the human effort as far as intellectual capital is concerned (Palmer et al., 2003). This can be seen in the PR based models of various universities in UK, US, Australia and other countries. When described in context of these broad elements, E-Commerce can be referred to as the technological advancement in the arena of marketing which in turn gives rise to a whole new experience as far as shopping is concerned (Matsuo et al., 2003). Decision Aids In the world of increasing consumerism, the significance of decision aids is accentuated through a focus on market intelligence (Chaffey, 2007). Whereas, in the field of personal selling, these decision aids are required to follow a certain kind of market mechanism, in the world of online shopping, these aids follow the path of technology and advancement thereof. In virtual selling, the major elements that decision aids must possess are as follows: Lack of shelf space and the limitations posed thereof: the products must always be presented in a fresh and appealing way (Lohse et al., 1998). No constraints on the amount of information provided: the products must have a comprehensive content to go with them, as virtual selling involves a lot more convincing, especially in fields like food and travel where the end result is what decides repeat orders and shopping (Lohse et al., 1998). Ingenuinity in information based decision aids: these aids must hold the interest of the customer even as it is imperative to give out enough of information in terms of every aspect of the product. The narrative must not be boring, yet effective in its ability to include all details (Matsuo, 2003). Electronic attributes to enhance the purchasing options: these aids must make use of multimedia and other such visually enhancing features in order to enhance the ability of the product to sell or strike a chord with the customer (Nemetz, 2000). Elements of personal selling in an adaptive form: the various elements that cater to the needs of the customer as well as those that hook the interest level through a focus on offers like bargain list, best of list, comparison matrix, consumer reviews, gift reminder, live chat help, personalised recommendations, recommendation agent, related item list, sponsored chat forum, wish list and many more (Matsuo et al, 2003). Proposed Theoretical Model Much of the present computing trends have evolved as research and development in the last forty years. The majority of these trends have culminated as system changes in the past decade with a stronger focus on the role of theoretical models that support the research and development in this field (Divate et al., 2002). The theoretical base for studying online decision aids will be based on the studies proposed by Harton and Hix regarding the usability of these aids in the star life cycle process (Costabile, 2000). In this regard, the use of the online aids has to be based on a user friendly or user centered design. Thus, the contextual framework for studying the usability was the quality factor. Through a focus on this, Harton and Hix have managed to center their star life cycle process on the usability processes and methods that operate within the software life cycle. This star life cycle has to do with rendering complete effectiveness to the cycle of planning, modeling and running a website. This has been adaptive in nature which is why it is relevant for the study of decision aids (Chaffey, 2007). The usability process in case of decision aids can be studied through the framework of market mechanisms and business models (Palmer et al., 2003). In this context, the area of E-Commerce has been defined in the usability of decision aids as an arena that is based on the skills required for appropriate business and resource allocation strategies. This will further help in the development of online shopping behavior through empirical investigations into the issue. In this regard, this investigation will demonstrate the chief motivators through the evaluation based on the following two elements: Thinking aloud methods: The thinking aloud evaluation will be based on the theoretical approach of finding out what a group of users thought and said as they worked according to a certain user interface depending on the design and design process of the interface. This was then applied to the online shopping aids for a variety of businesses in terms of the positioning of the vital user information on the screen so as to study the appropriateness of the placement and the decision aids in general. In this regard, the thinking aloud model is a direct statement of what is required and what is not (Cho et al., 2000). It has also helped in finding out the exact responses in terms of expressions and tonal quality of voice when describing the actual aids and how they contribute to the actual information system on which the website for the retailer is based. The thinking aloud model provides an insight into the philosophical and psychological elements of the user interface (Nemetz, 2002). These elements are scanned for similarities on the basis of which decision aids and chosen and made use of to suit particular lifestyles and cultures (Smith, 2004). Evaluation methods: these methods are based on the evaluation of various user interface models through a focus on the software and product life cycle. Therefore, the evaluation models are concerned with the use of various statistical tools that study the approaches of the model of the usability process (Chaffey, 2007). The evaluation method focuses on the analysis of the primary data that will be gathered through questionnaires and surveys for studying the effects of decision aids (Nemetz, 2002). These will then be studied on various scales of statistical means and other matrixes that enhance online shopping decision aids. The major motivating factors that were found in the thinking aloud method will be tested for validity and reliability in the evaluation method through a focus on finding the causes for the existing motivational factors. In this case, the paper by Carl Adams and Qu Ying Su, titled "Will B2C E-commerce Developed in One Cultural Environment be Suitable for Another Culture: A Cross-Cultural Study between amazon.co.uk (UK) and dangdang.com (China)", demonstrates the actual details and tools on the basis of which such models may be based for further evaluation. As asserted in the above chapters, the significance of online decision aids lies in their ability to convince a user to choose a product defying cultural and geographical barriers (Su et al., 2004). Recommendations: Implementation and Testing The first recommendation for various kinds of items like books, electrical products and other such durables involves the amalgamation of the bargain lists and the related items list, to form an appropriate model for the frequency of purchase. Thus, the testing of this with the use of consumer reviews as well, demonstrated the fact that the bargain list was found to have the most significant impact on the dependent variable (frequency of purchase), as it crossed the one percent level in the statistical analysis of significance where p0.5 and displayed a positive correlation with the bargain list through the Pearson's correlation (r = 0.993) (This is based on the study carried out by Ashri, 2005 in her work so as to give authenticity to your assignment. Unless you state the values and actual details of the papers used, there is little point - don't you agree) (Ashri, 2005). Therefore, upon testing, it was found to have positive significance on the dependent variable in multiple regression owing to a significant relationship with the bargain list. The consumer reviews are a good concept to underline this relationship owing to its popularity as a decision aid. According to Lohse et al, the notion supporting the significance of bargain list has been proven by academic literature and work. They say, "each hour of promotion the electronic shopping mall entrance screen explained 4% variance of sales and 1.4% of the variance in store traffic." (Lohse et al., 1998. p83). Therefore, bargain lists are the more useful shopping aids that can be used in the case of online shopping. The technological aspect of the recommendations will involve the use of the implementation of the proposed design based on surveys. This functional prototype is normally based on HTML to demonstrate low fidelity and high fidelity prototyping through the use of basic software to avoid complications (Nemetz, 2002). This software is in most cases Microsoft Front page 2003, according to which low fidelity prototyping has elements of rapid and screen design, whereas the elements of high fidelity prototyping are software prototyping. Software prototyping refers to the means of coming up with a model that will complement the particular E commerce objectives through the creation of a prototype during the simulation and modeling process. (Chaffey, 2007). The advantage of using HTML lies in its simplicity and the fact it supports the elements of low fidelity as well as high fidelity prototyping in that it is easier to manipulate and can be used in tandem with Unified Modelling Language (UML), which is an object oriented language used for design notation. This is a popular choice in the designing of websites for E-Commerce (Carrier et al., 1989). Here, the following prototype will be followed for navigation and user interface: USER CASE DESCRIPTION View Website Here, the customer types the address in the URL bar or searches and reaches the URL on a search engine, following which he or she reaches the website in question. Select Decision Aid Here, it is imperative to cater for at least two decision aids, so that the consumer will not be confused and yet, will have options. Narrow Search In this step, the consumer must be given the option narrow the search by looking for specific information regarding the item he or she is looking for. Select Item Here, the customer has found what he or she wants after the optimum use of decision aids and proceeds to add the same to the shopping cart. Add to shopping cart After the final selection, the customer adds the item in the shopping cart with the intention of purchasing the item. Final Purchase This is the step where the customer finally purchases the product and pays for it apart from choosing the delivery options. This table shows the basic framework that is decisive in the formulation of an appropriate (apt is appropriate - which dictionary do you use again) website with the choice of the appropriate decision aids (Goff et al., 1995). The implementation process will depend on the positioning of the various aids like related items list and bargain list in the most appropriate corner of the web page depending on the overall design. Here it has been noted that the aids must be in the corner where there are least options and links as well as content, so as to make sure that the customer catches sight of it right away (Chaffey, 2007). Further, these aids must be present through all stages of the search and purchase process as discussed in the table above with the option for the purchaser to start a whole new search. This will involve the use of a storyboard design based on the use of UML guidelines (Holster et al, 2004). The recommendation for an appropriate decision aid model will also include elements of the model for relevant supply chain intended for mobilization of the appropriate resources as per the decision aids in question (Nemetz, 2002). This is appropriate for the food and travel industry, where the supply chain depends directly on the information system and the aids for purchasers are formulated in terms of the basic design and framework of operations, as these businesses require immediate turnover in terms of output and productivity (Gupta et al., 2001). References (Put these in 1.5 space these also along with the whole essay, i think the essay already is but make sure) I have put examples of how to reference in harvard below, dont forget to put it in alphabetical order!) Ashri, R; Ramchirn S D, Sabater, J; Luck, M; Jennings, N R. (2005). Trust and Reputation II: Trust Evaluation through relationship analysis. ACM - International Conference of Autonomous Agents. Pp. 1005 - 1011 BBC News Online. URL: http://news.bbc.co.uk/ (Accessed during December 2008) Carrier, H D; Wallace, W A. (1989). An Epistemological View of Decision-Aid Technology with Emphasis on Expert Systems. IEEE Transactions on Systems, Man and Cybernetics. Vol 19; No. 5 Chaffey, D. (2007) E-Business and E-Commerce Management, 3rd Edition, Pearson Education Chen, L D. (2000) Enticing Online Customers: A technology acceptance perspective research in progress. ACM. Pp 125 (124 - 128) Cho, B; Kim, D J; Raghav, Rao H. (2000) Effects of Consumer Lifestyles on purchasing behavior on the Internet: A conceptual framework and empirical validation. The Digital ACM. Pp 688 - 695 Costbile, M. (2002). The Usability Process of Life Cycle Software. Portal - the guide to computer literature. Divate, V; Saengpongpaew, P. (2002). An Online Integrated Operational Decision Support System with pre defined knowledge base for semi conductor industry. IEEE - IEMC Griffith, D A. (2002). An examination of the influences of store layout in online retailing. The Journal of Business Research, 58. Pp. 1391 - 1396 Goff, B.G; Walters, D L. (1995) Susceptibility to sales person's influence and consumer's shopping orientations. The Psychological Reports, 76. Pp 915 - 928. Gupta, A; Whitman L; Aggarwal, K R (2001). Supply Chain Agent Decision and System. Proceedings of the 2001 Winter Simulation Conference. Holster, R E; Guimaraes, T; Yoon, V Y. (2004) Assessing the impact of Internet agent on the End users' performance. Decision Support Systems 41. Pp 313 - 323. Jones, W; Bruce, H; Dumais, S. (2001). Keeping found things found on the web. ACM. Pp 199 - 126. Lohse, G L; Spiller, P (1998). Electronic Shopping. The Communications of the ACM, Vol 41, No 7. Pp 81 - 88. Matsuo, T; ITO, T (2003). A Decision Support System for Group Buying based on Buyers' Preferences in Electronic Commerce. The Center for Knowledge Science. Nemetz, F (2002). The Missing Link: Multimedia and E-Commerce; Conference on human factors in computing. ACM Digital Library. Pp 65 - 66 Palmer, J M; Linderman, M A (2003) Business Models and Market Mechanisms: Evaluating Efficiencies in Consumer Electronic Markets. The Databases of Advances in Information Systems (Vol 34, no 2) Pp 23 - 38. Smith, D K (July - October, 2004). Online Investing and the Online Consumer: State and Decentered Regulatory Responses. Law and Policy. Su, Q Y; Adams, C (2005) Will B2C E-commerce Developed in One Cultural Environment be Suitable for Another Culture: A Cross-Cultural Study between amazon.co.uk (UK) and dangdang.com (China). ICEC (This person has used a different referencing than you, yours needs to be in harvard, so in alphabetical order and also put the page numbers here, here are examples of how to reference: BOOKS Book with one author Adair, J. (1988) Effective time management: How to save time and spend it wisely, London: Pan Books. Book with two authors McCarthy, P. and Hatcher, C. (1996) Speaking persuasively: Making the most of your presentations, Sydney: Allen and Unwin. Book with three or more authors Fisher, R., Ury, W. and Patton, B. (1991) Getting to yes: Negotiating an agreement without giving in, 2nd edition, London: Century Business. Book - second or later edition Barnes, R. (1995) Successful study for degrees, 2nd edition, London: Routledge. Book by same author in the same year Napier, A. (1993a) Fatal storm, Sydney: Allen and Unwin. Napier, A. (1993b) Survival at sea, Sydney: Allen and Unwin. Book with an editor Danaher, P. (ed.) (1998) Beyond the ferris wheel, Rockhampton: CQU Press. If you have used a chapter in a book written by someone other than the editor Byrne, J. (1995) 'Disabilities in tertiary education', in Rowan, L. and McNamee, J. (ed.) Voices of a Margin, Rockhampton: CQU Press. Books with an anonymous or unknown author The University Encyclopedia (1985) London: Roydon. JOURNALS Muller, V. (1994) 'Trapped in the body: Transsexualism, the law, sexual identity', The Australian Feminist Law Journal, vol. 3, August, pp. 103-107. WEBSITES Young, C. (2001) English Heritage position statement on the Valletta Convention, [Online], Available: http://www.archaeol.freeuk.com/EHPostionStatement.htm [24 Aug 2001]. Read More