Overview
You have the task of developing an e-commerce business plan and prototype for the client described in the case study below. Your planning document must meet the needs of the client and you may not choose to develop a plan for any other client (i.e. business or website). However, this case study is not intended to limit your creativity or the scope of your e-commerce business proposal.
Your must submit a report (as an MSWord format document) for the client. You may/will need to research a number of different aspects of your proposal, but some of these aspects will not be covered in lectures until Week 10 of semester - however, do not wait until that time to begin this assignment as it will take considerable time, thought and work to be successfully completed. You may refer to any authentic source in conducting your research and all references must be included in your report. You may also employ any analysis or design tool in the preparation of your report - so long as the results are suitable for presentation in the required Word document and are your own work.
Remember: this is a report intended to convince a board of directors to adopt your proposal. Your report must therefore be complete, yet concise; be clear and convincing, and professionally presented. Above all, the report must be specific to the needs of the business!
Case Study
Kids Designed Craft Cards
Kids Designed Craft Cards (KDCC) has been selling quality handmade craft cards, specialised paper and other accessories for making gift cards for many years. The SME company is based in Springmount, Victoria, with a shop front retailing their wide selection of products. KDCC now has more than 10,000 styles of cards available. The owner believes this is the largest range available in the world.
After many years operating out of its premises, it launched a mail-order marketing system. This has enabled the business to expand its reach mainly to the rest of Australia and New Zealand. The system works very well but clients have to wait for catalogues to arrive via the post after ordering them either by phone, fax or email. Also, during peak times of the year, KDCC often sells out of popular cards and has a limited capacity to keep track of current stock levels.
Last financial year, KDCC made $1,200,000 in sales, increasing at 20% per annum, and net profits of 12% of the total sales.
The management team are keen to expand the retail sales, which are potentially very profitable for the company and to improve relations with customers. The company wishes to tap into the overseas market by offering their customers the ability to purchase anytime, anywhere. To do this, one member of the team has suggested the company create new online channels for sales, marketing and supply chain management.
You have been called in as an internet and management consultant. KDCC wants to know how e-commerce business technologies could be used to improve the company's operations. The company is keen to leave as much open as possible - you have been told that it is a 'clean sheet' strategy but cannot consume more than 45% of the profits projected for the next financial year. The CEO, Tom Roberts, needs a report from you to give the board a specific brief, along with an e-commerce website.
Requirements
Tasks
Your e-Commerce business proposal should address:
- clearly identified e-commerce business model(s)
- how the e-commerce business will derive revenue (i.e. revenue models)
- what network and communications infrastructure will be required
- what applications will be required to meet specific e-commerce business goals
- how you will address security issues
- how you will address e-marketing requirements
- what choice of payment systems will be used
- how you will address privacy and other relevant ethical concerns
- how you will address legal issues connected with the e-commerce business
- how you will address customer service issues
- how you will measure the success of your proposal (metrics, tools)