Business Skills for Ecommerce Essay

Introduction This assignment will enable you to apply the business skills needed to design an eCommerce solution for a music production company. You will need to consider the organisation and processes of the company and consider what the impact of the Internet and e-Commerce has been on the company. Answers to the tasks will demonstrate: 1: An understanding of the structure and aims of business organisations. 2: An understanding of the impact of e-Commerce 3: An ability to design e-Commerce solutions Task You have been provided with a description of a music production company which is considering providing a service where customers can download MP3 versions of the music they produce from their own web site. You will need to consider the effects of this proposal on the organisation and processes of the company. You will need to investigate the impact of the Internet on the music industry. Scenario Drums Rock is a small independent company which is owned by two partners and has been in existence for more than twenty years. It is based in a specialist music shop in Birmingham in the centre of England. As this is the home of many famous rock bands such as Black Sabbath, they naturally focus on this style of music and, in particular, drum kits. In addition to selling drum kits and other music related items the company specialises in producing music by rock artistes which it releases in CD and Vinyl format. The CD/Vinyl format is sold direct via a phone line, through retailers via music distributors and at concerts. Drums Rock hires the recording studio and when the recording is produced they have the Vinyl and CDs produced by outside organisations. The invoicing and payment relating to customers and suppliers is basically a manual process supported by records held on a PC. The reason why Drums Rock has not released music via MP3 format before is that there is a resistance from rock listeners to the format. Rock listeners are very concerned about the quality of the recording and the MP3 format provides a lower quality format than Vinyl and CD. However, Drums Rock considers that the ease of using the MP3 format on many different devices could outweigh the quality deficiencies. Task 1 – Understand the structure and aims of Business Organisations. Provide an assessment for the owners of Drums Rock of the potential impact on the organisation’s aims, structure, functions and stakeholders of implementing an Internet based facility for the sale of music in an MP3 format. The assessment should consider what it means for the potential markets, effects on current distribution channels, the structure and organisation of the organisation. This task will allow you to demonstrate the following: Learning Outcome 1. Task 2 – Understand the Impact of e-Commerce. Provide an assessment of the impact, the risks and financial implications of introducing an eCommerce function into Drums Rock. The assessment should consider the impact on the organization, the global impact of e-Commerce, the potential risks involved in e-Commerce and the possible financial factors such as costs/benefits. This task will allow you to demonstrate the following: Learning Outcome 2. Task 3 – Be able to define the objectives of e-Commerce solutions. Provide a statement for the owners’ of Drums Rock that describes the following for the proposal for an e-Commerce solution: Objectives Market Research Target markets Market potential This task will allow you to demonstrate the following: Learning Outcome 3.1. Task 4 – Design of an e-Commerce solution Produce a high level design document for the proposed Drums Rock e-Commerce solution which covers the following areas: Technology requirements e.g. hardware, software, security, maintenance, back end systems, supply sources, distribution channels. Payment systems e.g. electronic cheque, Paypal, NoChex, credit or debit cards. Security – e.g. prevention of hacking, viruses, identity theft, firewall, impact on site performance, Secure Socket Layer(SSL), secure HTTP (HHTPS), digital certificates, strong passwords, alternative authentication methods. Legislation – e.g. Data Protection Act 1998, Computer Misuse Act 1990, Consumer Credit Act 1974, Trading Standards, Freedom of Information Act 2000, copyright legislation. Consideration of other music download sites that exist. The design document should conclude with an evaluation of your proposed design. This task will allow you to demonstrate the following: Learning Outcomes 3.2, 3.3, 3.4 and 3.5. Student Guidelines 1. You should write this assignment in report style, although a formal report structure will not be required. The report should contain the assessments and design document that the Tasks ask for. You should write each task of this assignment as detailed above, in coherent and appropriate English. 2. You should use diagrams and tables of figures where appropriate ensuring that you provide a reference to their source. 3. You should include references using the Harvard referencing system. 4. It is advised that you write your report within approximately 3500/4000 words in order for your research and summarising skills to be developed, and for effective time management. However, you are required to ensure that the assignments meets all of the learning outcomes and there is no penalty for being over the suggested word count. Excessive word counts may be asked to be reduced before marking Grading Criteria ~ Business Skills for E Commerce To achieve a PASS GRADE the evidence must show that the learner is able to meet all of the learning outcomes: P1 (LO 1): Understand the structure and aims of business organisations. 1.1. Summarise the key aims of the organisation. 1.2. Describe the structure of Drums Rock and the music industry P2 (LO 2): Understand the impact of e-Commerce 2.1. Explain the impact on consumers of the development of e-Commerce 2.2. Explain the impact on businesses of the development of e-Commerce 2.3. Explain the global impact of e-Commerce P3 (LO 3): Be able to design e-Commerce solutions 3.1. Explain the role of objectives and market analysis in the development of e-Commerce 3.2. Evaluate the e-Commerce systems used by the music download industry 3.3. Discuss the financial implications of Drums Rock’s proposed e-Commerce solution 3.4. Produce a high level design of an e-Commerce solution that covers technology, payment systems, security and the role of legislation. 3.5. Produce an evaluation of the above design The assignment adequately covers the descriptive areas of the brief but little attempt has been made to analyse or evaluate the information presented. There is little discussion of what has been found through research with limited application of research to practice. Presentation of the material is acceptable but may display weaknesses in the way in which it is communicated. To achieve a MERIT GRADE the evidence must show that the learner is able to: M1- Identify and apply strategies to find appropriate solutions 1.1. How implementing e-Commerce will affect Drums Rock’s aims and organisation 1.2. Demonstrates an understanding of how the structure of the music industry is changing due to the Internet M2 – Select design and apply appropriate methods/techniques 2.1. A range of credible sources of information have been used in the explanation of trends and developments in e-Commerce 2.2. A Structured Design Approach has been taken to the design of the e-Commerce solution and the design approach has been evaluated. 2.3. Research has been carefully selected and summarized. M3 – Present and Communicate Findings 3.1. The report is clear, concise and logical and describes the role of e-Commerce and its possible role in the music download industry. 3.2. Information sources are clearly identified through the use of appropriate referencing To achieve a DISTINCTION GRADE the evidence must show that the learner is able to: D1 – Use critical reflection to evaluate your own work & justify valid conclusions 1.1. Conclusions have been developed on the effects of current and recent trends and development of e-Commerce and the music download industry 1.2. There is a synthesis to the work in that it flows well throughout leading to valid, thought-out conclusions that demonstrate an integrated solution of aims, processes and technology for Drums Rock. D2 – take responsibility for managing and organising activities. 2.1. Independent research, outside of what has been provided in the course materials, has been utilised to prepare a thorough report for Drums Rock. 2.2. Assignment is completed fully to deadline D3 – demonstrate convergent, lateral & creative thinking. 3.1. Ideas are evaluated for their validity and realism in the context of the Drums Rock. 3.2. An attempt has been made at an evaluation of the recommended approach to strategic and tactical decision making in implementing e-Commerce in the music download industry.