Big a Yellow - Business Model for a New Site - Assignment Example

1. Introduction: The developments in the World Wide Web have given rise to the application of selling through the Internet in the form on web sites and virtual malls and directory services. Mendes et al (2004) notes that over the last five years, there has been a substantial increase in the presence of many organisations on the Internet. These organisations have adopted methods through which they have been known to sell their goods or services online and specific tailored business models have been adopted by them- to make a successful entry to the now competitive online market. 2.0 Application of Online Model 2.1 Extension of Business model through Internet: The online experience is summarised in the term e-commerce- which elaborates the business function of selling into the dimension of internet. The processes of businesses are adapted from a physical entity to an experience for the existing and prospect clients to make support, service and sales a convenient and friendly procedure. The conclusion is determined by Mendes et al (2004) based on an extensive research on business websites that will support this report on the development of a strong web model for Big & Yellow. I recommend that the expansion of our business entity towards an online business function may be useful in terms of the increases reliability and greater benefits in terms of cost reduction in controlling customer churn and therefore increased profits. 2.2 The Basis of selling: Since online selling has now developed into an experience that the customer sees as the value addition to their cost of purchase, the online business model for the website may be categorised into the functions of the physical stature of the business and may be defined as follows: 3.0 Site Design: 3.1 Design Concept The site is designed on the basis if more text specific design to extensively infuse search engine optimisation through keywords which can be developed along with the layout of the above template. The links have been put on the top and differentiated where the site has been designed with full accessibility features where even the blind will be able to hear the text in its representative state through a customised browser. 3.2 Content and Management The page has been divided through the use of the tables as separators to make the page ease out in layout and be convenient to use. Recent updates have been put on the page along with an RSS news feed and all these would be customisable according to the needs and preferences of the user. These news and updates can further be dynamically controlled as per the geographical location of the user through its IP address. The calendar has been used to provide a utility to organise the content and manage the tasks that may be shared with other users online so that the website may provide a group task utility for the managers and decision makers. This may be extended in using this site as a discussion and task oriented board, where equipment and other decisions may be discussed and noted by the sellers and buyers. These features are based on the following observations and research: 3.3 Framework and Modelling Rosen (2002) has noted that the design of the site should be made in terms of the segment of the customers that are being focused to make sales or provide support services. Web site design will be based upon the preferences of the users and the content will have to be developed according to their understanding and geographical background. International trade statistics show that the top five markets for the equipment are: America, Japan, Germany, United Kingdom and France. Rosen further states that the basic mistake that most e-commerce websites make is that to forget that consumers and decision makers in the different geographical locations have many different barriers that hinder the sales process. 3.4 Market Orientation At many times, it has been found that a language barrier has made the deterrent effect on a possible sale. Reynolds (2004) discusses in his work that since the consumers are spread across the globe for this specific industry, it would be a sound idea to develop region specific websites that should have the local regional language of that country and the tone of business that is prevalent there. Therefore, the website should be made in English (US), English (UK), Japanese, German, and French for Big & Yellow. Initially as the focus may be put on the initial five major markets, these offshoots may be enough to start of the website. However, if there is a possibility to target a different region, example China, then the web content should also be developed in Chinese as well. 3.5 Navigation Extension of the text in e-commerce is the layout of the website. Since the product is already too technical and many junior managers who are responsible for the purchase or at least research on the product may not be able to navigate or find information on the website at their convenience. Keeping that in mind, it has been stated by many design experts such as Aykin (2002) that a simple text based menu placed at the top just under the logo or at the left is much more easier to access than any other location. The layout should be simple and concise enough to make the important information available at the main page. As compared to other sites, Big & Yellow may be bale to gain an edge following these guidelines. 3.6 Functionality and Compatibility Big & Yellow’s web home will have to be developed according to the guidelines of design standards in terms of communication and accessability. Since web sites are also a tool to develop relations, the main page can include existing client list and testimonials, news update, search facility and top selling products. The site should incorporate the vision of the company and how it is different than others. Aykin (2002) furthermore states that third party add-ons such as flash should be avoided, as they are not totally compatible across various platforms. In the industrial goods market, it has been noted that the better sites in terms of information retrieval have been those that offer simple and easy to use navigation that the already over scheduled and over burdened decision maker can quickly navigate and just see the relevant information. Mendes (2004) states that third party visual tools should also be avoided because they have not been fully integrated into mobile devices such as cell phones and personal digital assistants (PDAs) or smart phones. A site that is flash based may not be able to display anything at all on these platforms and a potential sale may be lost. Moreover, heavy graphical content will take much more time for these websites to open on a mobile device as the internet connection available does not offer the same speed and the content is viewed at a much slower speed. According to Bauknecht et al (2003), many web development technologies have this option to detect the platform of the user that it is sending the request from. The server can detect the type of operating system, the browser and the region from where the site is being accessed. Based on this primary information about the user, the server may direct the client request to an appropriate page that is specifically developed and designed keeping those requirements in mind. For example, a user from Japan may request the URL using a Windows bases PC and running Mozilla Firefox as the browser. They furthermore state that the Server may automatically take the user to the Japanese website and adjust variables according to the browser. However it is advised by many experts on web development that the websites content should always be cross platform functional. These observations may be infused in the online model of Big & Yellow to make the site more functional and an experience for the user- which my research has shown matters a lot in the success of an online business. 3.7 Enhancement on WAP Bauknecht et al (2003), have concluded that one addition that may be useful is the adaptation of the entire web services on in the form of text based Wap application that may be very convenient to be used on cell phones and PDAs. It has been noted that a majority of managers and decision makers in the business to business (B2B) industries travel a lot and have to make decisions while they are not in the office. Availability of a fast access to information on their cell phones may provide an edge over other companies that are in the same industry. 3.8 Online Assistance One integral feature is the availability of customer service staff online that can assist customers in real time. Reynolds (2004) discusses that the prospect clients may have a better experience if they can be quickly assisted with their questions and other technical information. This will make the experience of the users more personal on the website and they will get the feeling that they can rely on the company for quick and speedy service. A professional designed site with all of these features may be developed and supported online at a cost if USD 3,300. 4.0 Technology: Big & Yellow can gain the competitive edge through the deployment of Web 2.0 application in the form of Rich Internet applications (RIA). These applications have evolved out of Web 2.0 development to be applications that are not restricted to the level of a home or business computer, but may be accessed and run online through the web. Duval et al (2007) have stated that the RIA applications have been developed to sustain the bulk of the application on the web and application servers only keeping the processing of the web application to be loaded on the client side computer through a web page. RIAs do not require users to install specific software or any other tool on the client side computer and may access the application as using or browsing any other website. 4.1 Advantages over other e-businesses The competitive advantage that Big & Yellow can get through the uses for RIA based applications have outweighed the drawbacks for using such an intricate system- which almost all of the industrial users in the plant equipment field are using. Where regular desktop applications may have been relatively easy to approach and use, the drawbacks of system software are the actual strengths of the RIA applications (Carter, 2007). Many advantages of an RIA based application may be as follows: Since the applications are accessed online, the RIAs do not require themselves to be available as part of the system software on the machine and any customizations, updates and uses of the application may be saved online and may be accessed from any computer (Carter, 2007). The updates and upgrades are simpler and do not require additional space on the client side as mostly these updates are handled and executed on the web servers (Carter, 2007). Applications based on RIA are cross platform and can function on any system and operating software as the functionality of all such applications is more of a web form than an actual software and web browsers are used to allow clients to connect to the server software and applications (Johnson, 2006). As the applications are accessed on the web, it has resulted in the user systems to be less prone to viruses and other harmful codes that may result from insertions of many removable storage devices to transport data form one PC to another. 5.0 Payment systems: Payments can be tailored into the website through a number of different options that are available. However, Korper (2000) states that whereas credit card terminals online may be useful in a small transaction of not over a thousand dollars, this may contribute as an advance payment or a token money on bigger orders. For bigger orders that may have sales figures in multiples of thousands of dollars, payments in terms of bank contracts and letter of credits may be more advisable. However, a service may be obtained which can verify the credit line of the customer online along with their authentic information via and verifying service. The following payment systems are available for use in online transactions: 5. 1 Merchant Accounts Merchant accounts give the facility to directly make use of credit and debit cards linked to Discover, AMEX, Visa, Mastercard and other relevant financial services. These financial terminals have the ability to check, verify and process payments through these credit or debit cards online and the process takes thirty to forty seconds- just as it takes on a physical terminal. The benefits of merchant accounts are that a transaction is backed by the financial service and there are no delays as compared to other third party tools dealing in financial transactions online. Merchant accounts deliver a prompt financial transaction and give more control to the users in terms of acceptability and confirmation of transactions. The recipient of the money through these transaction has an advantage over the sender of the money as the policy of these services are inclined to support the business receiving the money and no re-funds are charge backed until or unless the recipient of the money requests one. Therefore, to avoid false claims and bogus reports, Big and yellow should adopt merchant account services as their primary source of second order payment solution on the Internet. 5.2 Third party Financial Services Apart from direct financial services there are many third party tools and service providers available that offer payment solutions online. Among many, a few famous and competitive service providers are: Paypal, E-Gold, Web Money, and World pay. The main advantage of using these providers is that there is more security- as users do not have to give out their personal and other sensitive information repeatedly online. Moreover, these services are more inclined to favour the buyer and claims are settled in favour of the entity that is sending money. Although these may be the terms that the consumers are more comfortable with, but the financial burden that Big&Yellow may have to go through in terms of hold on payments on a minute dispute may cause a disturbance in the value of sales. Therefore, third party tools may be only available as a last option for the online transaction tool as many of these may also have delays of up to two weeks in processing payments and verifying the transaction. 5.3 Recommendation The payment gateways are already operated via third parties and are consistently developed to be secure and measures are taken to not to have personal information being hacked or leaked to anyone else. Big & Yellow can also have their sales insured, meaning that any fraud may be covered through insurance and make the client and the seller more comfortable and confident at the sales process. Such solutions are available at a minimum cost and can be hired at a monthly cost of USD 100 per month. However this cost may also be translated into a per-transaction cost in terms of sales. 6.0 Back-up systems: The site back-up systems may be tailored, to be linked, to a back-up computer machine in the vicinity of the physical office to store all information regarding the site activity and customer details in case of a system crash or error. Mendes (2004) notes that Back-ups are an integral part of any information system and may be very useful in case of a system failure where the data form one side is permanently lost or corrupted. However, according to Korper (2004) a back-up is usually maintained by the web hosting provider but another back-up may also be handy in case of customised forms of data and timings that need to be stored as a back-up at a different location. A back-up system may not cost as much and may be seen as a one time utility asset for the company as the machine has to be purchased and linked to the administration of the web site. 7.0 Site Promotion: The development of the site is said to be the easier of the tasks in the building of a successful e-commerce web home. Experts such as Reynolds (2004) have stated that in most cases, the web experience fails because the site is not visible to the target user. Visible in the sense that it is not positioned properly for the purchase managers and other decision makers to find the web site of the company in their searches that they make on the search engines. According to Reynolds (2004), the first step towards site promotion is to develop the text of the site specifically to be picked up by search engines to match above 90% in the listings. The content is developed in such a way that the key words are integrated into the content of the website and are repeated numerous times. This process is also called Search engine optimisation (SEO). SEO is extremely useful in integration with search engines and in particular with google search engine. The algorithm of google indexes every web page and optimises on the basis of keywords for every search. Keywords may be defined by the user and most appropriate keywords may be placed to direct the attention of users that would commonly search in context for the machinery within the industry. Experts view this optimisation as the foundation of doing business on the Internet and is equivalent to physical positioning of the business. As without a proper place and location of the physical business the consumers would not be bale to initiate a sale process, similarly in the terms of online business, the keywords will direct consumers to the site appropriately. Next step to site promotion is to use Google Ad sense and other advertising tools which will place the listing of the site at the top of the search results or at the sponsored listing on the first page. Google is the most common search engine used on the Internet and having a placement in their search results on the first page would mean maximum exposure in terms of establishing client list. 8.0 Advertisement: These search engine advertisement tools will enable the sit to be picked up on the basis of the key words and will enable the viewer to consider it as a trusted site. Apart form the advertisement tools offered by Google, Big & Yellow may be promoted using banner advertisements in online directories that relate to export sales and promotion of machinery. This will help as the brand recognition as consumers searching for these products will be able to recall the company name from different locations and will help in establishing credibility. Banner ads and other sponsored listings will facilitate users to choose Big & Yellow as a preferred brand of equipment retailers and exporters. The advertisement will highlight the website and generate traffic on the site. This traffic will allow Big & Yellow to gain exposure through people visiting the site and maybe recommending it to others as a reference. Furthermore, discussions at different Bloggs will also allow Big & Yellow to gain form the linkages and create better search engine ratings and increase traffic on the site to generate more sales. 8.1 Promotion: Promotion may also be effective if collaborative links can be placed, as (Bauknecht et al (2003) state, on associated web sites which offer equipment and other products that compliments the machinery. As more sites link to the company website, it will automatically increase the rating on Google and will make a better standing of the search result on the company in the Google search results. Furthermore, Mended at al (2004) state that associated links of related business sites will create a direct exposure and opportunity for the consumers as they may also be customers of the equipment. Along with all these integral techniques, the site may be promoted through reviews and other online publications that have reviews of equipment and their ratings. Sponsored links on these sites may also benefit as prospect customers always search for comments of existing users and if any positive feedback may be highlighted, it will benefit in acquiring sales. 9.0 Security: Online Fraud has made many new online ventures and unknown companies to face obstacles in running their businesses. However, the reliability of the site can be maintained if the site is maintained at security levels backed by “Verisign” and “hackerproof” trade mark labels. These logos on the website help users now that the site is trusted and falls in the reliable category. Apart form developing the site and processing it through already set servers to encrypt data and prevent internet spoofing for information interception, the website may also be developed along the guidelines of security application in the development of the website. These security adaptations are recommended for Big & Yellow as follows: 9.1 Digital Signatures and Certificates Digital signatures are a form of encryption technique where the data sent over the internet is converted through an algorithm on the client machine and is covered as strings of symbols that do not mean anything till the authentic receiver authenticates himself through an appropriate certificate. This method is useful for any hack that may be attempted through monitoring the web traffic that is coming and going form the site. 9.2 Secure Socket Layer (SSL) SSL is an advancement in digital signatures where the application of the Digital signatures is more towards the actual data and SSL incorporates the port through which communication and data is being sent. This process locks the communication port and monitors all activity on the port as ‘listening’ to alert the security system of any un-authorize attempt to access the data on this port. 9.3 Firewalls Firewalls are used as an internal tool to administer the SSL and extend the functionality of a secured environment in terms of control that can establish the provider to select what type of users may access the system and till when their information left on the internet or the server may be made available till they have to re-enter it. 9.4 Recommendations: The above applications of the security using the main three tools in the development of the website for Big & yellow will be useful in keeping the information that the customers enter on the website confidential and less probable to a leakage through a hack attack. All communication in this way will be genuine and authentic as customers will be confident that their messages cannot be viewed by anyone else than the person they are intended for. These applications will build the trust between the user and the company and will aloow development in business for Big & Yellow. 10.0 Services: Big & Yellow may also reap benefits through the larger focus on its services that it may decide to offer to its customers. One of the advantages of selling online is that the company will face lower sales costs and will be able to have a higher turnover respectively. The lower sales cost of operating through the website will allow the company to offer subsidised insurance plans and other benefits associated with the sale and service of its products. The service of the Big & yellow company may also be improved through the website as they can track the shipments and see the progress of their order online and check for new contracts and reference to old contracts and prices if any. The clients may also be entertained in relation to the support in case they need spare parts and other after sales services or even replacements. 11.0 Additional services: The website may be integrated with video streaming of equipment where the actual use of the equipment may be shown as compared to other brands or companies. Furthermore, the site may be developed on Ajax technologies of the later Web 2.0 standards to make users customise the way they want to see information about products and updates once they have made a transaction with the people. Another competitive edge may be developed through establishment of call centres for different regions so the prospect and existing customers may be served in local regional language and according to their business hours. These steps will ensure the business presence online to sustain itself in a favourable manner. 12.0 Conclusion: All of these activities may be linked together to make the online experience of the customers being attended at the Big & Yellow website comfortable and on excellence standards so sales and after sales services may compliment the entire strategy. Many online businesses fail because they are not taken up as an actual physical front where the web home may be seen as the actual sales floor of the company and all other processes associated with it may be deemed as the actual business process. Works Cited: Aykin, N. 2007. Usability and Internationalization. Global and Local User Interfaces: Second International Conference on Usability and Internationalization, UI-HCII 2007. Springer. Bauknecht, K. et al. 2003. E-Commerce and Web Technologies. Springer. Korper, S. et al. 2000. The E-Commerce Book: Building the E-Empire. Morgan Kaufmann. Mendes, M. J. et al. 2004. Digital Communities in a Networked Society: e-Commerce, e-Business and e-Government. Springer. Reynolds, J. 2004. The Complete E-Commerce Book: Design, Build and Maintain a Successful Web-Based Business. CMP Books. Rosen, A. 2002. The E-Commerce Question and Answer Book: A Survival Guide for Business Managers. AMACOM. Carter, S. 2007. The New Language of Business: SOA & Web 2.0. IBM Press/Pearson Duval, E. et al. 2007. Creating New Learning Experiences on a Global Scale. Springer Johnson, D. 2006. RSS and Atom in Action: Web 2.0 Building Blocks. Manning Read More