Title

: E business and E Technology Strategy for Rover parts (UK)

Author

:Judy Hallal-Murray

Course

:COMP 1442 Strategic IT for E Business

Course Centre: School of Business and Computer Science

Date

: 29th November 2007

E Business and E Technology Strategy for Rover parts (UK)

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Table of content 1.0 Introduction: .......................................................................................................... 3 2.0 Actinic Evaluation: ................................................................................................ 4
2.1 ACCURACY: .................................................................................................................................... 4 2.2 AUTHORITY: ................................................................................................................................... 4 2.3 CURRENCY: .................................................................................................................................... 4 2.4 OBJECTIVITY: ................................................................................................................................. 4 2.5 ACCESSIBILITY: .............................................................................................................................. 5

3.0 Implementation Issues:.......................................................................................... 6
3.1 TECHNOLOGICAL FACTORS: ........................................................................................................... 6 3.1.1 Security .................................................................................................................................. 6 3.1.2 Integration of systems: ........................................................................................................... 6 3.1.5 Backup recovery and disaster recovery plans. ....................................................................... 7 3.2 BUSINESS FACTORS: ....................................................................................................................... 8 3.2.1 Managing Change: ................................................................................................................ 8 3.2.2 Business Models:.................................................................................................................... 8 3.3 LEGAL AND REGULATORY FACTORS: .............................................................................................. 8 3.4 BEHAVIOURAL AND EDUCATIONAL FACTORS: ................................................................................ 9 3.5 CULTURAL FACTORS: ..................................................................................................................... 9

4.0 Development of two B2B Strategies: .................................................................. 10
4.1 B2B DIRECT BUSINESS MODEL ...................................................................................................... 10 4.1.1 Supply chain business to business strategy .......................................................................... 10 4.1.2 Demand chain business to business strategy ....................................................................... 11 4.2 ROVERPARTS (UK) B2B ONLINE STORE ....................................................................................... 11

5.0 Critical comments ................................................................................................ 13
5.1 ‘THE SITE DESIGN TO BE KEPT SMALL AND SAMPLE AT THE BEGINNING’ ....................................... 13 5.2 ‘CHANGE TO BE MADE ONE STEP AT A TIME’ ................................................................................. 13 5.3 ‘PLAIN ENGLISH ….. TO BE GIVEN THE HIGHEST IMPORTANCE’ .................................................... 14 5.4 ‘THE BUSINESS CAN ONLY EXPAND BY HAVING A TRADING INTERNET WEBSITE’ .......................... 14 5.5 ‘HE HAS ALREADY PURCHASED SEVERAL COPIES FOR THE COMPANY’ .......................................... 15

6.0 Conclusion: ........................................................................................................... 16 7.0 Appendix A ........................................................................................................... 19 8.0 References: ........................................................................................................... 22

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E Business and E Technology Strategy for Rover parts (UK)

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1.0 Introduction:
RoverParts (UK) sells parts and accessories for Land Rover 4X4 all-terrain vehicles. RoverParts focus heavenly on customer’s interface and experience. They offer their customers a print catalogue, categorized into four main areas (standard vehicle parts, vehicle accessories, technical manuals and magazines). They would like to enhance their customers experience by introducing an online trading website. Actinic e-commerce tool was purchased. This report attempt to evaluate this tool in terms of it usefulness and limitations. Criteria such as Accuracy, Authority, Currency, Objectivity and Accessibility were used to evaluate the Actinic e-commerce tool. Several implementation issues were consider, these are in the areas of Technological Factors, Business Factors, Legal and regulatory factors, Behavioural Factors and Cultural Factors. One business-to-business model, (B2B Direct Business Model) was discussed and two B2B strategies were derived from that model – the Supply Chain Strategy and the Demand Chain Strategy. Both strategies add value to the customers, trading partners and RoverParts (UK). Some benefits are:  Reductions in the cost of products, cost of delivery and cost of overhead expenses.  Improved the procurement process;  Improved information Security,  Promote best practice; It were recommended that RoverParts (UK) is a unique organisation and should consider special design software that tailor to their needs instead of off-the-shelf software.

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E Business and E Technology Strategy for Rover parts (UK)

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2.0 Actinic Evaluation:
The actinic tool was evaluated on five criteria – (accuracy, authority, currency, objectivity and accessibility). These five criteria were chosen for RoverParts (UK) requirement as a commercial site for present and future usefulness as a commercial website.

2.1 Accuracy:
The site is a commercial site, thus the accuracy of the information is very important as well as the relevance of such information to the product being offer by the organisation. The purpose of the site is to sell product to their customer and trade with their suppliers. This should be apparent in each page. The page Contact Us automatically open Microsoft outlook and place the company e-mail address in the To recipient area. By doing such give both customers and suppliers the opportunity to contribute useful feedback.

2.2 Authority:
There were pages for Introduction and Welcome. These two pages would state the author and is there an organisational or corporate sponsor. The page About Us should state the organisation’s credentials. There were a page about contact us and how to find us each page is very important to reach the organisation. However there was no page for a reference list.

2.3 Currency:
In each of the pages there was no way to said if the information was updated, there were no dates stated for updates. There was a date when the information was created at the bottom of the page. However all the links worked, but some links like Login need special GGI script to run.

2.4 Objectivity:
The site in general is a commercial site. The content of each page reflect what is being sold by the organisation. There was no biasness or hidden agenda. The usefulness of the information was relevant to the product and to the customer.

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E Business and E Technology Strategy for Rover parts (UK)

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2.5 Accessibility:
There was a login page, although this link needs to run GGI script to be available for viewing. The site load quickly, this is very important to keep customer coming back to visit the site. The site navigation was done properly; it was easy to move around. Provision was made for visually-impaired when images were used.

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E Business and E Technology Strategy for Rover parts (UK)

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3.0 Implementation Issues:
RoverParts (UK) have recognized the potential of Business to customer (B2C) and Business to Business (B2B) commerce. Some of the implementation issues can categorized as follows in the following factors: a. Technological Factors b. Business Factors c. Legal and regulatory factors d. Behavioural factors e. Cultural Factors

3.1 Technological Factors:
Key challenges RoverPart (UK) would face are:

3.1.1 Security
Adequate measures must exist to provide security to databases, networks, applications, payment systems and transaction systems. Authentication procedures and policies should be developed, implemented and regularly updated to provide secure environment. Use of technologies like encryption, Secured Socket Layer and Public key infrastructure can help RoverParts (UK) over come security challenge. Another challenge that arises is that RoverParts (UK) should have clear privacy policies. Customers and suppliers would not like to trade on exchanges where the information is not secured or and privacy policies are not in place. Implementation of initiatives like TRUSTe goes a long way in establishing RoverParts (UK) creditability and gaining customer/supplier confidence.

3.1.2 Integration of systems:
RoverPart (UK) must integrate its disparate systems to consolidate the information and thus leverage its power. Communication gap between disintegrated and isolated systems can lead to increased inventory, purchasing and critical material shortage and disruption of business processes. Integrating eMarket platforms and implementing new protocols and processes are the most challenging steps in an eMarket development program. This process is both complex and difficult, because there are

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E Business and E Technology Strategy for Rover parts (UK)

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many points of integration within the company, and also technology keeps changing. Before choosing any integration strategy RoverParts (UK) must weigh the time and cost required implementing such strategy, against the benefits offered by different options. 3.1.3 Networking capabilities RoverParts (UK) should have adequate networks implemented within the four walls of the organization and it should extend to external entities. They should have wide area network. Technologies like Virtual private network (VPN) can assist them in meeting network challenges. 3.1.4 Content management: Ability to update and provide reliable information in real time is another challenge/issue faced by RoverParts (UK) implementing B2B applications. Content on the web should be accurate and current. Whether RoverParts (UK) is selling or buying it needs to establish efficient operations in-house i.e. provide customized dynamic content, example product information, pricing, and product availability information. If the organization does not have systems in place it will not be able to provide this information in timely and accurate fashion. Similarly, on the buy side the organization can consolidate purchases of similar goods across the divisions and thus achieve increased efficiencies. However, if they are do not have properly implemented and integrated systems they would not know what they are buying and why they are buying or if they are getting the best price. Properly implemented and integrated Enterprise Resource Planning systems across the company can play a very positive role.

3.1.5 Backup recovery and disaster recovery plans.
RoverParts (UK) can be proactive in their approach. Adequate backup and disaster recovery systems must be in place to allow the company to back in business with minimum loss of data and time in case of any eventuality.

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E Business and E Technology Strategy for Rover parts (UK)

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3.2 Business Factors:
3.2.1 Managing Change: Among business issues, managing change is a big challenge whether an organization is implementing new system or developing new ideas. RoverParts (UK) would have to spend considerable amount of energy and resources managing change. Resistance to change can come from within the organization and from external partners of the business. For instance the supply chain, the resistance can come from buyer, sellers or eMarkets. Resistance can be against new process or procedures to be followed, new systems, increased job responsibilities. For example as eMarket become omnipresent and corporate jump on to them, procurement personnel will be required to gain new skills and improve existing skills. They will have to respond to dynamic pricing, 24 X 7 X 365 availability, quick turnaround and shorter response time towards their customers’ queries. Implementing new IT systems requires extra coordination between more than one business function and process. Employees will have to acquire new skills like risk management to understand concepts like hedging. These issues cannot undermine the importance of eMarkets. Training and education of parties involved in eMarket operation can help RoverParts (UK) over come the resistance to change. While, is some cases hiring fresh talent may solve these problem 3.2.2 Business Models: There are no successful proven business models that RoverParts (UK) can study and try to emulate in their strategy. Lack of understanding of environment increases the risk in such initiatives. However, as more and more companies are taking initiatives this will no longer be challenge. Many consulting companies have already developed pool of knowledge created as a result of their being part of such initiatives. Hiring such consulting companies can definitely will be a source of guidance.

3.3 Legal and regulatory Factors:
There are many legal and regulatory issues involved e.g. electronic copyright, cash policies, tariffs, privacy, digital offers to name a few. Since e-business is a new phenomenon, there is lack of consistent rules and procedures. There are issues related

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E Business and E Technology Strategy for Rover parts (UK)

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to taxes which need to carefully reviewed by RoverParts (UK). As RoverParts (UK) buys and sells over the Internet, and conduct business beyond the national boundaries of one country, this gives rise to another important issue about the role of Government and other nations' laws.

3.4 Behavioural and educational Factors:
Another barrier that can be difficult to overcome is related to consumer and employee attitude. It is difficult for RoverParts to encourage customers to change their habits and start shopping online. Besides, RoverParts have a huge task to gaining customers trust and confidence. Also RoverParts (UK) have to re-train their employees and business partners to adapt to new business model and become conversant with new technologies. Employees may have to learn new skill set. Employees may not always be willing to learn new skills and learn new ways of doing thing. Education and change management programs can be effective methods in tackling cultural challenges.

3.5 Cultural Factors:
The question of cultural issues is an important aspect of the implementation process because it can underscore all other aspects of the project. If the system to be implemented does not align it self with the business processes and the culture of the organisation the system is doom to fail.

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E Business and E Technology Strategy for Rover parts (UK)

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4.0 Development of two B2B Strategies:
RoverParts (UK) should consider the B2B direct business model. This model consist of two B2B strategies; the supply chain strategy and Demand chain strategy that

4.1 B2B direct business model
B2B direct supports commerce transactions involving products, services, or information between two businesses or parties. Typical B2B direct transactions occur between customers, suppliers, manufacturers, resellers, distributors, and trading partners. The following diagram demonstrates a typical B2B direct business.

http://publib.boulder.ibm.com/infocenter/wchelp/v5r6/index.jsp?topic=/com.ibm.com merce.admin.doc/concepts/csdb2bdirectmodel.htm In a typical B2B direct business, businesses purchase goods or services directly from another business. The selling business can be a wholesaler, a distributor, a manufacturer, or a retailer who sells to customers from other businesses. 4.1.1 Supply chain business to business strategy A supply chain is composed of the enterprises that provide services to a business. Some of the architectural infrastructure to support the supply chains that take the form of a private marketplace, as well as through hosting supplier sites. A private

marketplace provides a forum for vendors to offer their goods and services for sale. Customers enter this forum and after browsing through the available options, select the appropriate goods or services. The following diagram illustrates an example of such a supplier forum.

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E Business and E Technology Strategy for Rover parts (UK)

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In this example supply chain, the buyer enters the supplier's hub to interact and browse the aggregated catalogue in which products and offers from multiple suppliers are presented. The buyer can then select the desired offers or request quotes from multiple suppliers. The buyer also has the option of conducting business or procuring from online suppliers directly. 4.1.2 Demand chain business to business strategy A demand chain is composed of the enterprises that sell Land Rover parts or services. For example, a demand chain may be composed of customers who initiate the sales transaction, the resellers who sell the rover parts and vehicles. The demand chain may be composed of the resellers who sell car part and accessories, Land Rover manufacturer and the distributors who supply the Rover parts to the resellers. Demand chains also support direct sales channels, in which the demand chain owner sells directly to consumers or business trading partners. The following diagrams illustrate examples of some of the demand chains supported by RoverParts (UK). Customers, channel partners (resellers), and rover manufacturers

In this example, customers purchase goods from a manufacturer's resellers (channel partners). Resellers, in turn, obtain the goods from the manufacturer, via the Rover manufacturer's hub. 4.2 RoverParts (UK) B2B online store Some of the features included in this online store are:

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E Business and E Technology Strategy for Rover parts (UK)

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  

Master and sales catalogues Product categories, products, Merchandising associations, defining and descriptive attributes, list and offer prices

             

Automatic and redeemable promotions Shipping charges and taxes e-Marketing Spots Support for multiple shipping addresses Globalization support Shopping cart and shopping total Quick order and quick checkout Requisition lists Order status and tracking Simple purchase order support Restricted access to the store (registered users only) Three sample feature-rich data sets Simple and advanced search Commerce Payments

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E Business and E Technology Strategy for Rover parts (UK)

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5.0 Critical comments
5.1 ‘the site design to be kept small and sample at the beginning’
Advantages:  At the beginning if the web site is kept small the cost incurs would be relatively small.  By keeping the site small and simple in the beginning help the store transform incrementally rather than a sudden change.  The time take to build a small and simple site would be less than if the site were complex and large.  There would be less risk of failure if the site were small and less customer dissatisfaction.  If customer is not satisfied and the site does not add value, it is easier to revert to the conventional ways of going business. Disadvantages:  By keep the site small and simple may not appeal to the customer.  A small and simple site may not add value which will not give RoverPart the competitive edge.  Customer experience might be dull and lack interest.  Security may lack the complexity that it deserves.  Small site are appealing to large distributors or manufacturers.

5.2 ‘change to be made one step at a time’
Advantages:  Legal: With a web site you may be dealing with credit cards. You will need a policy to insure your customer’s security.  Marketing the site address to all your current advertising. Business cards, letterhead, delivery trucks, answering machine should all carry your web site address.  Navigation of the site should clear and easy for the customer/viewer.  E mail should be considered in all form of advertisement.  The timeline of the project is more manageable.

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E Business and E Technology Strategy for Rover parts (UK)

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Disadvantages:  As changes are done incrementally, technology may move head, hence the scope and vision of the project will constantly be change.  Staff will be change position and jobs, knowledge transfer may not go as planed.

5.3 ‘plain English ….. to be given the highest importance’
Advantages:  The intended audience understand the message and the purpose of the site.  The business has a certain theme and feel; this should be translated into the web site.  Online experience should pleasant and enjoyable to all type of

viewers/customers whether they are impaired or not.

Disadvantages:  Plain English may not be interrupted as it was intended too.

5.4 ‘the business can only expand by having a trading internet website’
Advantages:  In today world for a business to survive they should have a web presence to conduct business with their trading partners.  You can provide company history, products, services and testimonials that provide a way for new customers to find out about your company quickly and easily.  No other media can be changed so quickly. If you need to react to something your competitor's are doing you can do it in a matter of seconds.  Use other media to direct people to your web site. For example, you don't have time to list all sale items in a radio ad but you can direct listeners to a complete list of sale items with pictures on your web site.

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E Business and E Technology Strategy for Rover parts (UK)

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 Each day more and more people are tuning to the internet to find products and services. You can research prices, services and companies with more information than any yellow pages ad. Disadvantages:  May run the risk of not penetrate the market thoroughly.  Traditional market may have been exhausted.

5.5 ‘he has already purchased several copies for the company’
Before purchasing any software or hardware that will on the business process, a information system development life cycle should be done. By purchasing off-the shelf software limited the business to the scope of the software.

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6.0 Conclusion:
RoverParts (UK) can gain considerable value created and add even though the online B2B is in the infancy stage. RoverParts (UK) need to evaluate what model fits their need best or do they need to participate in multiple e-commerce of different types. The company should adopt more than one B2B model. For example Dow chemicals has diverse need and hence it participates in independent e-commerce, consortium and online exchange. For more details about this see case study of Dow's Portfolio of Emarkets in Smart path forward. As B2B online evolve further, become more

efficient and more sophisticated capabilities, and make way for greater information sharing and collaboration, RoverParts (UK) should definitely associate themselves with them in someway or the other. Before creating business plans or when evaluating existing system it is important to 'scan' the external environment. This may take the form of a SLEPT analysis, i.e. an investigation of the Social, Legal, Economic, Political, and Technological influences on a business. These forces are continually in a state of change. Social factors relate to pattern of behaviour, tastes, and lifestyles. A major component of this is a change in consumer behaviour resulting from changes in fashions and styles. An understanding of social change gives business a better feel for the future market situation. Laws are continually being updated in a wide range of areas, e.g. consumer protection legislation, environmental legislation, health & safety and employment law, etc. RoverParts(UK) need to take a pro-active approach and be ahead of these changes. Economic changes are closely related to social ones. The economy goes through a series of fluctuations associated with general booms and slumps in economic activity. In a boom nearly all businesses benefit and in a slump most lose out. Other economic changes that affect the business include changes in the interest rate, wage rates, and the rate of inflation (i.e. general level of increase in prices). RoverParts (UK) will be more encouraged to expand and take risks when economic conditions are right. Political changes relate to changes in government influence. In recent years these changes have been particularly significant because as members of the European Union (EU) they may have to adopt directives and regulations created by the EU which then become part of UK law. Political changes are closely tied up with legal changes.

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Changes in technology have also become particularly significant. RoverParts (UK) need to be aware of the latest relevant technologies for their business and to surf the wave of change. All industries are influenced by SLEPT factors. Value chains support the two business to business strategies models: demand chain and supply chain. Value chains support transactions involving multiple enterprises or parties. Products, goods, services, or information are delivered through the parties of the value chain from producers to end users. As a result, the customers enjoy the lower cost for Rover parts and accessories. RoverParts (UK) also enjoy a lower cost by decreasing the time taken to manage the procurement process (their businesses: their customers and direct sales, and their trading partners and suppliers). Value is also added through the catalogue to process the order, thus the time will be reduce in term of delivery of the product. The following diagram provides an overview of the partners and relationships that should be supported in value chains.

Downloaded from

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E Business and E Technology Strategy for Rover parts (UK)

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When implementing any tool that would affect the business processes of a business, it is wise to consider a structure approach to develop a systems life cycle. These are  Feasibility study;  Systems investigation;  Systems analysis;  Systems design;  Implementation;  Review and maintenance; It were recommended that RoverParts (UK) is a unique organisation and should consider special design software that tailor to their needs instead of off the shelf software.

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7.0 Appendix A

This is the home page ,introducing RoverParts (UK)

The is the introduction Page, that tell the viewer the purpose of the business.

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E Business and E Technology Strategy for Rover parts (UK)

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The is the Special product page that link to the other pages

This the vehicle Accessories page that show all various accessories.

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E Business and E Technology Strategy for Rover parts (UK)

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This is the Technical manuals page that show some of the workshop manuals that RoverParts offers.

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8.0 References:
Morrison, Mike., 2007. Duchlock, 3 Jan. pp.27-32. Available at http://publib.boulder.ibm.com/infocenter/wchelp/v5r6/index.jsp?topic=/com.ibm.com merce.admin.doc/concepts/csdb2bdirectmodel.htm

Chaffey, D. and Wood, S., 2004. E Business and EcommerceManagement. 3rd ed. New York: USA Prentice Hall.

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